Diversification helps HLL Lifecare boost profit 23%

HLL Lifecare, a mini-ratna public sector enterprise under the Ministry of Health and Family Welfare, has registered a profit after tax (PAT) of Rs 1.84 crore during the last financial year — representing 23 per cent over year-ago period.

A leading manufacturer of contraceptives in the world, the company handled a total business of Rs 1,131 crore during the last financial year, an official spokesman said.

The manufacturing turnover increased by 17 per cent riding on its new diversified business models including project consultancy, diagnostics, medical devices, healthcare delivery and health education.

The Chairman and Managing Director, Mr M. Ayyappan, presented a cheque of Rs 2.3 crore to the Union Minister for Health and Family Welfare, Mr Ghulam Nabi Azad, at a function in New Delhi on Wednesday.

The Secretary, Ministry of Health and Family Welfare, Mr P. K. Pradhan, other senior officials from the Ministry and HLL Lifecare were also present on the occasion.

The company has recorded a 35 per cent compound annual growth rate (CAGR) in business volumes during the last five years thanks to the vigorous diversification and expansion drive.

“We have been looking constantly to diversify with the aim of emerging as a full-spectrum healthcare company and the growth achieved as of today reflects this,” Mr Ayyappan said.

HLL Lifecare, which accounts for nearly 10 per cent of global production of condoms and has a diversified portfolio, is now planning to supply sanitary napkins under the brand ‘Free Days' to the Union Government as part of its national healthcare programme.

SANITARY NAPKINS

“We are setting up production facilities to manufacture sanitary napkins at different locations in the country. Production at the Belgaum facility in Karnataka will begin soon,” Mr Ayyappan said.

As part of diversification, the company is venturing into the field of diagnostics by setting up a chain of diagnostic labs under the brand ‘Hindlabs' to provide high quality reliable services at affordable rates across the country.

The company has already completed upgradation of three super speciality medical colleges under the Pradhan Mantri Swasthya Surakha Yojana (PMSSY).

MEDICAL COLLEGES

The Centre has entrusted the company with the task of upgrading three more medical colleges.

The company has also been mandated to set up National Institute of Para-medical Sciences and the Regional Institute of Para-medical Sciences.