Companies

Government receives multiple expression of interest for privatisation of HLL Lifecare

Our Bureau | | Updated on: Mar 14, 2022
HLL Lifecare Limited factory, Peroorkada in Thiruvananthapuram.

HLL Lifecare Limited factory, Peroorkada in Thiruvananthapuram. | Photo Credit: GOPAKUMAR S

Transaction moves ahead to the next stage, says Tuhin Kanta Pandey, Secretary, DIPAM

The government has received expression of interest for buying 100 per cent stake in Kerala-based Central public sector undertaking, HLL Lifecare. The company is known for the famous condom brand MOODS beside other contraceptives.

“Multiple expressions of interest (EoI) received for privatisation of HLL Lifecare Limited (HLL). The transaction moves ahead to the next stage,” Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said in a tweet. Monday was extended last date for submission of EoIs.

Thiruvananthapuram-based HLL Lifecare was incorporated on March 1, 1966 as Hindustan Latex Limited under the Health Ministry. It was renamed as HLL Lifecare Limited in 2009. It started as a manufacturer of natural rubber latex condoms. Later, it diversified into a healthcare major with emphasis over healthcare services – the affordable pharmacy network across the nation, healthcare services outlets, vaccine security of the nation, the medical devices park etc.

The company states it has emerged into a global corporate of international acclaim spread across 118 nations, taking under its wings 7 subsidiaries comprising 21 offices and 7 manufacturing units across locations having a multitude of products ranging from contraceptives and hospital products to pharmaceuticals; and services from diagnostics to infrastructure development and standing tall at a value exceeding ₹1,400 crore.

It also says that with the addition of new condom plants at different locations, the total production capacity had been enhanced to 2 billion pieces matching global scales. It calls itself as only company in the world that offers anything and everything in birth control solutions. The flagship brand ‘MOODS’ comes in more than 19 variants. A pan-India retail distribution channel was also developed covering all towns of the country. The marketing portfolio of the company expanded considerably with more than 70 brands under its fold.

Chengalpattu unit not included

Preliminary Information Memorandum (PIM) related with company’s disinvestment clarified that 430.10 acres of land situated at Chengalpattu in Tamil Nadu in the possession of HLL on lease basis will not form part of strategic disinvestment. This land was given for setting up an Integrated Vaccine Complex (IVC) to manufacture vaccines required for Universal Immunization Program (UIP) of the Centre and new generation vaccines and a ‘Medipark’, which is an industrial park envisaged for medical devices to attract potential investors to set up their units for manufacture of medical devices.

Later, this land was given on sublease basis to tow subsidiaries, HBL and HML. In March this year, these two have been demerged from HLL and they ceased to be subsidiary companies, so land given on lease not part of disinvestment.

Published on March 14, 2022
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