Indian Medicines Pharmaceutical Corporation Limited (IMPCL), a Central Public Sector Enterprise (CPSE) earmarked for divestment by the government, has seen its asset valuation expand by 80% over the past five years, reaching the fiscal year 2023-24.
IMPCL’s net worth climbed to Rs. 134.56 crore in the 2023-24 fiscal year, increasing from Rs. 75.02 crore in 2019-20. The company experienced a nearly 5% rise in net worth from Rs. 128.16 crore in the 2022-23 fiscal year to 2023-24.
Despite this growth, profit before tax (PBT) has dipped in the last two fiscal years, positioned at Rs. 17.73 crore in 2023-24, marking a 40% decrease from Rs. 29.49 crore the previous fiscal year. However, noteworthy growth was recorded as PBT surged from Rs. 42.77 lakh in 2019-20 to Rs. 45.41 crore in 2021-22 before dropping to Rs. 29.49 crore the following year, according to details from the Ministry of Ayush.
The company’s reserves and surplus have almost tripled from Rs. 23.04 crore in 2019-20 to an impressive Rs. 82.58 crore in 2023-24.
The Ministry, overseeing the CPSE, apprised the Lok Sabha about the progression of IMPCL’s disinvestment plan to its second phase, asserting that there are no future developments forecasted for IMPCL.
On November 1, 2017, the Cabinet Committee of Economic Affairs (CCEA) greenlighted IMPCL’s strategic disinvestment as suggested by NITI Aayog.
“Following the request for Expression of Interest (EoI) in IMPCL’s disinvestment on August 31, 2023, multiple EoIs were heralded, prompting advancement to the transaction’s second phase,” mentioned Prataprao Jadhav, Minister of State (in charge) for the Ministry of Ayush.
Founded on July 12, 1978, IMPCL aims to produce and distribute authentic, effective Indian System of Medicines to various government bodies and markets. It’s the only CPSE in Ayurvedic and Unani medicinal production under the Ministry of Ayush, owned jointly by the Government of India (98.11% Equity) and Uttarakhand’s KMVNL (1.89% Equity). Operations are sited in Almora and Haridwar, Uttarakhand.
Recently, the National Confederation of Officer’s Associations (NCOA), representing CPSE executives, among others, petitioned Prime Minister Narendra Modi to reconsider the disinvestment move concerning IMPCL in Almora, Uttarakhand.
IMPCL boasts substantial manufacturing capabilities, lauded for premium products adhering to Ayurvedic and Unani standards. The company has achieved WHO GMP/CoPP certification, enhancing its prospects for international ventures. Furthermore, as the solitary CPSE with wares available on the Government-e-Market (GeM) platform, it holds a unique position, emphasized in a communication to the Prime Minister.