BRPSE asks HIL to diversify products for sustainable growth

NEW DELHI: Board for Reconstruction of Public Sector Enterprises has asked Hindustan Insecticides Ltd to address the issues pertaining to its obsolete technology and diversification of product portfolio for sustainable growth.

Set up in 1954, HIL manufactures synthetic pesticide DDT (Dichloro-Diphenyl-Trichloroethane) and agro-pesticides.

"The board has advised HIL to prepare long-term strategy to address issues such as high operating cost, developing capabilities to face the competition, declining margins on generics and old plant and machinery for sustainable growth," a BRPSE official told PTI.

The Board noted that HIL is earning around 50 per cent of revenue from DDT sale to the Ministry of Health. The BRPSE felt that the growth of revenue from it is limited as there is only one customer and it can't be sold to others.

"Therefore, it has asked the company to increase its product portfolio and diversify its business for the future growth," the official said.

Besides, it recommended HIL to examine the feasibility of manufacturing preservatives to augment the sales, he added.

Further, the Board said that the Department of Chemicals and Petrochemicals, which is the administrative ministry of HIL, may extend the required support to the company for early realisation of amount blocked on sale of DDT to the Ministry of Health.

Also, it advised the Department to regularly monitor the performance of HIL.

The company was declared sick in 2004 and later the government approved a Rs 267.29 crore package for revival of the company.

After the implementation of the package, HIL has been making marginal profits consistently and its networth has become positive.

As on March, 2013, the company employed 1,192 employees. It has three units in Kerala, Maharashtra and Punjab.