The Hindu Business Line : Hindustan Latex targets Rs 1,000-cr turnover

THE public sector Hindustan Latex Ltd, manufacturer of condoms and healthcare products, has firmed up expansion and diversification projects that are expected to boost the company's turnover to Rs. 1,000 crore by 2010.

A major project that has already been launched is for establishing a network of "Lifespring" hospitals in the country, especially in Bihar, Uttar Pradesh, Jharkhand and Chattisgrah, according to Mr M. Ayyappan, Managing Director.

He told newspersons here that the project was launched at Moula Ali in Hyderabad on December 10. It is a unique social franchising initiative to give poor people access to quality reproductive health services at affordable prices.

The company has signed a memorandum of understanding with AIMU Medical Science and Technology, Anshan, China, for introducing a new generation Intra Uterine Devices (IUDs). Known as Memory MCU IUDs, they can regain the original shape, even if distorted at body temperature. They have an effective life of over eight years.

Another major project in the pipeline is the production of anti-retro viral drugs. The commercial production of the drug, for which formulation development is progressing, will be undertaken at the company's Kanagala plant.

The company has launched a "Women's Healthcare Pharma Division" to cater to the reproductive healthcare needs of women, covering all age groups. The division will initially focus on the gynaec segment, the products of which will be promoted through doctors. All the products of this division will be manufactured at the Kanagala plant.

It has also begun work on augmenting its condom production capacity by another 230 million pieces. This will take the total production capacity for condoms beyond the one-billion mark.

Mr Ayyappan said that the company recorded a turnover of Rs 195 crore and a profit of Rs 20.11 crore in 2004-05. The turnover grew by 20 per cent over the previous year. Hindustan Latexdeclared a dividend of 23.3 per cent to the Union Government, which works out to Rs 4.10 crore, inclusive of the dividend tax.

The company's direct marketing registered a 34 per cent growth to Rs 51 crore during the year. The export turnover was Rs 13.54 crore. The sale of blood bags grew to 39.70 lakh pieces from 33.72 lakh pieces in the previous year.

Besides, the company achieved more than 100 per cent capacity utilisation in the manufacture of its major products — condoms, copper-T and blood bags. It has commenced production of various grades of polypropylene and poly glycolic acid (absorbable) surgical sutures at the manufacturing facility at Aakulam in Thiruvananthapuram.