British Biologicals asks employees to opt for Paid Voluntary Resignation Scheme

British Biologicals, a company known for its protein supplements, has asked its employees to opt for ‘Paid Voluntary Resignation Scheme.’ The company’s Head of Human Resources has written a letter to its employees informing that due to the lacklustre performance of it medical representatives, the company has been degrowing over the past five years. The situation has worsened due to the novel coronavirus pandemic.

Through an email, Pradeep Kadam, Head-HR, British Biologicals conveyed, “We all know the disastrous effect the Corona Virus has had on all the countries and humanity at large.  Thousands of companies are closing down all over the world because of this.  We took stock of the situation and found that we are on the verge of collapse. For the last five years, our field force all over India made the company to degrow, in spite of all inputs given to them. Because of this, we have suffered huge financial losses. We have already lost two months this year because of the lock down.  All our resources are drained.  Before we take steps to close all loss making areas, we thought we should give relief.  Hence, we are introducing the Paid Voluntary Resignation Scheme for our employees.”

Explaining the scheme, Kadam informed, “The scheme allows employees to resign from the company, get the notice period waived off and get one month’s salary.  The management is trying to arrange funds in order to immediately settle the accounts of the people who voluntarily resign now. However, if anybody has got any issues, please write to us.  Our fund flow position is low and it may be difficult to get further assistance from banks/financial institutions at this juncture.  In lieu of this, as a gesture, we have launched this scheme. Those opting for the scheme should write to the HR before 5th of May, 2020. ”

The company has a decent presence in the Indian domestic formulation market.

Anil Khanna, Partner, Wisdomsmith Advisors LLP informed, “British Biologicals performance in the Indian market has been steady, but growth has been bit muted. Ranked among the top 100, its revenue on the MAT basis for March’20, is around Rs. 180 crores in the domestic market. With a sales force of around 350 people, it has pretty decent coverage among both GPs, and other speciality doctors.”

He continued, “Additionally, it has significant export footprints. The company claims to export products to nearly 21 countries, with presence across South East Asia, the Middle East, East Africa, and the West Indies, and its focus on growing its presence in the European and American markets. The company claims to have export revenue in excess of Rs 100 crores. It would be imperative to see what would be the impact on the company due to Corona Virus. With doctors’ clinics not functioning, and company having limited presence in the hospital space, it might see some short-term adverse revenue impact. ”

The company,known for its brands like B-Protin, D-Protin, Pro PL, and Kids Pro, dominates the protein supplements/nutritional supplements in the market. These four brands combined constitute more than 80 per cent of the company sales in the Indian market. While B-Protin is a leading prescription brand among GPs, D-Protin has a strong prescription base among diabetologists.

It is true that Covid-19 and the measures to prevent its spread in the community has impacted a majority of the industry. Many pharma companies are facing cash flow problems and are unable to address fixed costs.  However an industry observer informed, “Covid-19, has affected the financial performance of several companies, but some of them are opportunistic and are taking advantage of the situation. Particularly, in the case of British Biologics, it seems they too are taking advantage as they have good financial backing”.

VS Reddy, Founder and Managing Director, British Biologics refused to comment on the development.

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