Bharat Immunological & Biological Corporation Ltd Management Discussions

Industrial Structure and Development

BIBCOL was established for supply of Oral Polio Vaccine for meeting national Immunization Programme of Government of India. Commercial production was started in the year 1996 and since then has contributed significantly to the National Immunizations Programme, by supplying billions of doses of OPV. In the year 2006, the facility was up graded to meet the WHO cGMP & revised schedule M of Drugs & Cosmetics Act. In the year 2016 BIBCOL switched over to bOPV from tOPV

To add in product line, company has diversified into Plasma derived medicines, and Oral Cholera Vaccine. The work for facility set up for Oral Cholera Vaccine is about to start. Further the company is working for getting sanction for Covaxin Project to augment the production of Covaxin in the country. Segment-wise or product-wise performance

Company has main revenue generation in vaccine (OPV) segment and it has achieved net sale of 8533.36 lakhs during the year.

Outlook-opportunities, threats, risk and concerns

Opportunities: Awareness & concern of health of young children among public provide an opportunity for development of new products. BIBCOL is gearing up for the same & has tied up with reputed institutions for development of various products.

Threats:

Growth of private manufacturers, non availability of bulk in India, frequent change in foreign exchange rates, reluctance of the Ministry of Health & Family Welfare to award supply order to a PSU on nomination base that was established to support government polio eradication programme, abolishment of price preference to PSUs are perceived to be threats.

Risks:

Long Product development period, reduced product price due to competition, continuous up gradation of regulatory requirements are perceived to be risk factors.

Concerns:

Perpetual import of bulk vaccine of OPV & dependence on single product.

Internal control systems and their adequacy

The Company has established systems providing adequate internal controls, commensurate with its size and nature of the business. Such systems have been appropriately documented.

Financial performance with respect to operation performance

Effective cost controlling process had been adopted to reduce Sundry Expenses as could be appreciated from the Statement of Profit and Loss Account.

Human Resources

The Company regards its human resources amongst its most valuable assets. Company has established a Training Division for continuous up gradation of knowledge & skills of its employees by conducting workshops, seminars etc on regular basis. It proactively reviews and evolves policies and process to attract and retain its substantial pool of Scientific, technical and managerial resources and work force through a work environment that encourages initiative, provides challenges and opportunities.