Bengal Chemicals ‘sale’ plan leaves unions fuming

Ministers’ panel to expedite 2016 decision for strategic sale; bid to sell a profit-making unit: INTTUC

Talks about a strategic sale of the Kolkata-based 118-year old heritage pharmaceutical company, Bengal Chemicals & Pharmaceuticals Ltd., (BCPL) founded by the doyen of Indian chemistry, Prafulla Chandra Ray, has left trade unions fuming and its workforce demoralised.

Acharya P.C. Ray had founded BCPL in 1901 as India’s first pharmaceutical venture. However, its fortunes started sliding with its founder’s death in 1944. BCPL was taken over by the government in 1977 amid persistent losses. Its losses peaked in 2003, touching ₹40 crore.

Through sustained efforts thereafter, a proactive management team led by the present director — finance P.M. Chandraiah helped BCPL turn around, reporting a profit in 2017— its first in 50 years.

BCPL’s products — Bengal Chemical Pheneol, naphthalene balls, Cantharidine hair oil, Kalmegh and Aqua Ptychotis —still command a market share through the company’s own retail outlets opened recently, modern trade, and on e-commerce sites. It was also among the first Indian manufacturers of anti-snake venom.

As many as 185 employees, including 50 officers, have been discharging their duties on salaries that remained frozen for 22 years.

₹25.3-crore net profit

In 2018-19, BCPL reaped a ₹25.3-crore net profit on the back of a ₹119.7-crore turnover. Additionally, ₹28-crore bank loans have been repaid and the corporate office building in the central business district has been freed of a mortgage.

Just as they were expecting to be rewarded for putting in their best efforts, reports of the Centre renewing its efforts to divest their holding through a strategic sale has dealt a body blow to the employees, although none was willing to go on record.

The Indian National Trinamool Trade Union Congress (INTTUC) staged a protest outside BCPL’s Maniktala unit on Tuesday. Dola Sen, INTTUC president, told The Hindu that at a time when an earlier Cabinet decision to pare government stake in the company was before the courts, it was surprising that the government was trying to mount fresh efforts to sell a profit-making public enterprise.

Official sources said that in its meeting earlier this month, the Union Cabinet had decided to constitute a Committee of Ministers for taking a decision on strategic sale of a few undertakings, adding that the setting up of this committee was likely to ‘expedite the process of implementation’ of the December 2016 Cabinet decision for strategic sale of BCPL.

“We know that the government is chasing a ₹1.05 lakh crore divestment and strategic sale target,” Ms. Sen said. While announcing the 2018-19 results, Mr. Chandraiah had mapped out his plans for the company. “We work in mission mode here and we plan to take this great company to a ₹500-crore turnover by 2024.. that is my mission BCPL,” he said.

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