Press release

Thiruvananthapuram, Feb  :The pharmaceutical business of HLL Lifecare Limited (HLL), a Mini Ratna public sector enterprise of Ministry of Health and Family Welfare, will get a major fillip with the company acquiring 74 per cent equity stakes in pharma major Goa Antibiotics and Pharmaceuticals Ltd (GAPL).  
On Wednesday, the Goa cabinet, presided by Chief Minister Manohar Parrikar, approved a proposal to disinvest 74 per cent equity stake of the state-owned EDC Limited in GAPL in favour of HLL.
Under the agreement, HLL would shell out Rs 7 crore for buying the equity stakes and also make an additional investment of Rs 226 crore in that company in the next five years. Further, it would not give pink slip to any of the existing 205 employees of GAPL.
“The acquisition of majority stakes in GAPL shows HLL’s intent and seriousness to expand its footprints in the country’s booming pharma sector in a substantial manner,” said Dr M. Ayyappan, the CMD of the company.
“We are getting feelers from a number of pharma companies in various states for buying equity stakes,” he said, adding: “HLL would definitely like to bolster its pharma segment through more similar acquisition of stakes in some other companies. We have the resources and expertise to acquire stakes and we can do the job efficiently. It is also in tune with our diversification plans across the health segment, including project consultancy and healthcare products.”
HLL had sent a proposal to the Goa government to invest in GAPL early last year. The proposal was given in-principle approval by the Central government in May. In August 2013, the company submitted its initial offer to acquire 76 per cent of EDC's equity stake in GAPL for Rs 4.8 crore. After a detailed business valuation by the Goa government, HLL agreed to acquire 74 per cent of the equity stake in the company for Rs 7 crore.
Set up in 1996, HLL has already made its presence felt in the pharma industry by offering a basket of women healthcare products, including contraceptives, Ovulation Inducers, antiemetic, Menstrual Cycle Regulators, anti-fibronytics and MTP Pills, pregnancy test kits, besides natural products and vaccines. It has also a strong distribution network, reaching out to over 30,000 medical professionals and over 3500 hospitals in the country.
A major manufacturer of contraceptives and healthcare products, HLL has a well-established Hospital Products Division, which offers a wide range of critical hospital products in the field of transfusion services and advanced patient care. The product range includes blood collection bags, surgical sutures, surgical and examination gloves and blood banking equipment.
HLL also runs generic drugs retail outlets in various parts of the country. The AIIMS project in Haryana’s Jhajjar district has entrusted the functioning of laboratory and pharmacy of its Outreach OPD to HLL. Apart from the whole range of laboratory services, the company also provides generic medicines in 194 drug categories through the outreach pharmacy.
HLL Lifecare   through its brands - Hindlabs and Lifecare Centres (LCC) - provides diagnostic services and retail outlet in pharma and surgical implants to partner institutions under the PPP model. The company has also been operating specialty diagnostic and pharmacy services in leading health institutions in Kerala, Odisha and other states in collaboration with the respective State Health Departments.
A multi-product organisation, HLL also supplies pharma products to various state governments in the country. Its R&D Centre has recently developed drug releasing coated IUD-Copper T, which got grants from Bill and Melinda Gates Foundation.