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The Kerala State cabinet has authrorised Chief Minister Pinarayi Vijayan to write to the Centre and convey its displeasure over rejection of a proposal to participate in the disinvestment of HLL Lifecare, a Central public sector undertaking (PSU) based in Thiruvananthapuram.
Earlier, the State government had entrusted the Kerala State Industrial Development Corporation (KSIDC) to take part in the tender with an intent to take over HLL Lifecare units in the state.
Exploring legal options
But the Union Department of Investment and Public Asset Management has written to the State government that extant norms did not allow government-owned agencies, including local PSUs, to take part in the disinvestment process.
The State government is now exploring legal options to get around the Centre’s denial of permission. It was earlier in December last that the Centre had invited global expression of interest to sell 100 per cent of its equity in HLL Lifecare as of the strategic disinvestment programme.
Best known for condom brand ‘MOODS,’ the ₹1,400 crore company was incorporated on March 1, 1966, as Hindustan Latex Limited and renamed HLL Lifecare in 2009. It began as a manufacturer of natural rubber latex condoms.
Land in TN not part of deal
Later, it diversified into a healthcare major with interests in healthcare services, vaccine security and medical devices park. Production capacity was enhanced to two billion pieces with condom plants coming up at different locations.
A preliminary information memorandum relating to the divestment had clarified that the 430.10 acres of land at Chengalpattu in Tamil Nadu in the company’s possession would not form part of the strategic disinvestment.
This land was given for setting up an integrated vaccine complex for making vaccines required for the Centre’s universal immunisation programme and new generation vaccines and a ‘Medipark’ for setting up medical device- making units. It has since been sub-leased to two subsidiaries, HLL Biotech and HLL Medipark, which were demerged from HLL Lifecare in March, 2021.
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