KOCHI: After buying the Velloor unit of Hindustan Newsprint Ltd, a Central public sector undertaking (PSU), the state government has now set its sights on HLL Lifecare Ltd, a healthcare PSU headquartered in Thiruvananthapuram.
The Centre has invited global expressions of interest (EoI) for selling its 100% stake in HLL, the maker of Moods condoms and pregnancy preventing intrauterine device Emily. The last date for receiving the EoI is January 31.
Chief Minister Pinarayi Vijayan has sent a letter to the Centre expressing the government’s interest in taking over the Kerala units of the PSU, said Industries Minister P Rajeeve, adding that the state will soon submit a proposal regarding the same.
“We are planning to meet Union Health and Family Welfare Minister Mansukh Mandaviya and submit our proposal for taking over the Kerala units of HLL,” he told TNIE. HLL Lifecare is an extremely profit-making entity recording a net profit of Rs 112.33 crore in the 2020-21 fiscal year, a slight increase from the Rs 110.48 crore in the previous fiscal, despite the Covid-induced slowdown. Its total revenue from operations stood at Rs 5,081.31 crore, of which the revenue from normal operations was Rs 1,513.03 crore in 2020-21.
Rajeeve said the move to acquire HLL Lifecare is as per the policy of the Pinarayi-led LDF government to strengthen and revive PSUs. The state, earlier this week, took over Kerala Paper Products Ltd, the erstwhile Velloor unit of Hindustan Newsprint Ltd.
HLL Lifecare has its corporate office in Thiruvananthapuram and factories in seven locations in the country, four of them in Kerala – Peroorkada and Akkulam (both Thiruvananthapuram) and Kakkanad and Irapuram (both Kochi). The other three factories are at Kangala in Belgaum (Karnataka), Manesar (Gurugram), and Indore (Madhya Pradesh). Though Kerala is keen only to acquire the PSU’s units in the state, it’s not known if the Centre would be interested in selling the firm in bits and pieces.
The Centre is planning to sell stakes in the firm with the transfer of management control by selling 100% equity stakes, including ownership interests in identified subsidiaries and associates held by the government. Formerly Hindustan Latex Ltd, HLL Lifecare is the maker of condoms and pregnancy prevention intrauterine devices.
Founded in 1966, it played a pivotal role in the implementation of the country’s family planning campaigns. Over the years, it evolved as an integral part of the Indian healthcare industry and its condoms manufactured under the brand name ‘Nirodh’ became the synonym for contraceptives in India.