CEO: UN Behera

Turning Around

BIBCOL has made a nominal profit in 2004-05 after few consecutive years of losses

S miles are back at this government-owned polio vaccine maker near Delhi. BIBCOL, the publicly traded vaccine maker run by the Department of Biotechnology (DBT) has made a nominal profit in 2004-05 after few consecutive years of losses.

The company achieved a turnover of Rs 53.25 crore during the year 2004-05 against the turnover of Rs 21.59 crore during the previous fiscal year. Significantly, the company has earned a net profit of Rs 0.93 crore for the first time during the year 2004-05 against the loss of Rs 3.14 crore (before taking the impact of extraordinary items) in 2003-04. This has been possible due to extensive restructuring within the company.

Bharat Immunologicals & Biologicals Corporation Ltd (BIBCOL) is a central public sector undertaking set up by the DBT under The Companies Act, 1956. It was incorporated in March 1989, to manufacture Oral Polio Vaccine (OPV) and other immunobiologicals under cGMP conditions as specified by WHO and Federal Standards. The company has been formulating OPV from bulk since January 1996 and about 1016 million doses have been supplied to the National Immunization Program (NIP) so far.

BIBCOL went public in 1994 and presently there are about 22,000 shareholders in the company. The Indian government has 59.25 percent holding in the company. The shares of BIBCOL are listed in Mumbai, Delhi and Kanpur stock exchanges. The face value of the equity share is Rs 10 each while the present market price of the share is moving in a band of Rs 24 to 30. The company's equity share capital amounts to Rs 43.18 crore.

The WHO-GMP certified facility of BIBCOL has a licensed/installed capacity for indigenous production of 100 million doses of OPV, where as the installed capacity for blending and filling operations is 600 million doses.

During 2004-05, 120 million doses of OPV were formulated and supplied to the National Immunization Program (NIP), capturing nearly 60 percent of the market share of polio vaccines in the country. BIBCOL received the vaccine orders from the Department of Family Welfare, Government of India, which were supplied during the stipulated time.

For the first time the company has signed a MoU with the DBT for the fiscal year 2005-06. The document outlines the targets set for BIBCOL and the commitments made by the parent organization towards the company.

Commenting on the future strategy of the company, in view of the declining polio graph in the country, UN Behera, CEO, BIBCOL, stated, "As the incidence of polio is steadily declining in India, the company is looking towards manufacturing the Injectable Polio Vaccine (IPV) in the future in addition to the oral vaccine. We are also considering diversification into the production of other vaccines, nutraceuticals and diagnostics". BIBCOL is considering this expansion of product portfolio in its present facility. During the year 2005-06, the company is expecting to formulate about 100 million doses of OPV from bulk and supply to NIP.

"During the current year, BIBCOL is aiming at further improving all the dynamic functional parameters, as the margins in vaccine manufacturing are very thin. The input-output ratio, project investment ratio, energy conservation, labor productivity, water conservation and harvesting are the important functions that would be fine-tuned", shared Behera.

Till date, the company has invested Rs 12 lakh on R&D and Rs 38.9 crore on infrastructure development in its plant. It provides continuous training and skill upgradation programs to its employees. The total employee strength in BIBCOL is 125, which is likely to remain the same during the present year.