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Bengal Chemicals has started dreaming big. Riding on its recent successful turnaround after nearly seven decades of loss, the century old pharmaceutical company is aiming for Mini Ratna status in the next 5 years.

In order to achieve that milestone, the energetic Managing Director and Director Finance Pilla Marri Chandraiah has charted a roadmap for Bengal Chemicals and Pharmaceuticals Ltd (BCPL), a central government undertaking, for the next five years, aiming at a turnover of Rs. 500 crore, a clear more than six times jump from the present Rs. 78 crore business, with net profit aiming Rs. 100 crore mark from the present Rs. 10 crore.

Founded by Achariya Prafulla Chandra Ray as Bengal Chemical and Pharmaceutical works in his two story north Kolkata residence way back in 1901, BCPL recorded its last profit in the early 50s of the twentieth century and has been running in losses since then. Due to continuous losses and persistent labour problems, it was nationalised in the year 1980.

2014: commencement of turnaround

This turnaround story was actually scripted from 2014 when Chandraiah took charge as Director finance of the beleaguered company (and been Managing Director as well from 2016) and after much toil and clearing of backlog work and streamlining production along sales and marketing as well as administration, the company was gradually set on the right course. 

As per BCPL, after nearly seven decades of loss, the company reported a net profit of  Rs. 4.51 crore in 2016-17. In the following year of 2017-18, the net profit rose to Rs. 10.06 crore. In the first quarter ended on June 30, 2018, the company reported a net profit of  Rs. 5.12 crore. As per the company estimate, BCPL could be touching Rs. 105 crore as turnover in 2018-19, with Rs. 15-20 crore as net profit.

Walking on road map 

Actually this target of making itself a Rs. 500 crore the company has largely based itself on Vision and Strategy Plan issued in June 2016. The June 13, 2016 circular emphatically stated that in order to survive in the long run there should be a “Vision and Strategy” for each organisation. Banking on strength of the company, Chandraiah estimated that this target of Rs. 500 crore business worth could be achieved with pharmaceutical division earning revenue around Rs. 400 crore from the present Rs. 50 crore while the home product division could be touching Rs. 100 crore from the present Rs. 28 crore.

In order to revive the fortune of the company, Chandraiah has taken simultaneous multiple strategies of streamlining finance, slicing off unnecessary administrative costs, putting a rein on the absurd amount of direct cost along with boosting production by opening new divisions like injectable and capsule, opening direct sales stores, tying up online, etc.

Commercial production of the injectable section has started producing antibiotic injections since January 2018 in the newly constructed Maniktala lab and it has already generated Rs. 8 crore to Rs. 10 crore in the current fiscal. On the other hand, Chandraiah expects Rs. 20 crore business from the capsule section in this financial year.

Being the first Indian pharmaceutical company Bengal Chemicals and Pharmaceuticals Ltd (BCPL) has already decided to restart production of Anti Snake Venom Serum by 2020. Actually BCPL was the first Indian company to produce that serum but later it was stopped.

BCPL is also putting importance on reviving sales of known brands like Phenol, Aqua Ptychotis, Cantharidin etc. Explaining the potential of products, Chandraiah said, “Though BCPL is the first company to bring out phenol, in a Rs. 6000 crore industry we are selling only Rs. 18 crore, i.e. miniscule 0.3%. if we can make it even 1%, it would be Rs. 60 crore.”

In order to enhance brand image and ensure product availability, BCPL is also planning to open two new direct company outlets, christened as Bengal Chemicals Retail store within this fiscal- one in Mullick bazar in Kolkata and another in Mumbai. BCPL has already three retail stores in Kolkata. And to be online, BCPL has tied up with Big Basket also.