The Centre has rejected the Kerala government’s attempt to take over HLL Lifecare, a contraceptive manufacturing company based in Thiruvananthapuram, Kerala. Minister Bhagwat Kishanrao Karad stated that the state government’s bid for the ‘Moods’ condom maker was submitted to Pricewaterhouse Coopers as part of the disinvestment process. However, after thorough consideration, it was found that the bid did not meet the eligibility criteria, leading to its disqualification. Pricewaterhouse Coopers communicated this decision to the Kerala State Government.
HLL Lifecare, a profitable Central Public Sector Enterprise, was put up for disinvestment under the Central government’s policy of exiting sectors where the private sector has matured.
Despite the Kerala government’s interest in taking over the company, the bid’s failure to meet the eligibility requirements resulted in its rejection. The disinvestment process aims to transfer ownership of HLL Lifecare from the government to the private sector, in line with the government’s policy of divesting from sectors where private enterprises have become well-established.
The decision not to proceed with the Kerala government’s bid indicates the adherence to strict eligibility criteria in the disinvestment process, ensuring that only qualified and appropriate entities participate in the acquisition. As HLL Lifecare moves towards disinvestment, the future ownership and management of the contraceptive manufacturing company will be determined by the private sector, following the completion of the disinvestment process.
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