Mahawar Pharmaceuticals had PAT below Rs 20,000

Medicines supplied by Mahawar Pharmaceuticals, a Chhattisgarh-based drug firm, are said to be the cause of death of over a dozen women in a sterilisation drive in the state. The promoters of the company, Ramesh Mahawar (62), and his son Sumit Mahawar (31) were arrested on Thursday.

Mahawar Pharma is a small drug company in Chhattisgarh, according to revenue figures disclosed by the company. The company had a turnover of slightly over Rs 90 lakh in the last financial year, with a profit after tax of Rs 17,500, data from the Registrar of Companies revealed. For 2011-12, the sales were at about Rs 86 lakh, with a profit after tax of a little over Rs 19,500.

Industry sources said the company had a very small unit in Raipur. "They have been in the business for over 30 years now but it's a small scale business and supply of medicines was restricted within the state," said an industry source said over the phone from Raipur.

Political connections might have helped the company, despite reports that it was blacklisted two years ago over sale of duplicate generic drugs. In the latest incident, initial investigations indicate that antibiotics administered to the women undergoing sterilization were perhaps laced with a chemical (zinc sulphide) that's found in rat poison.

The company had supplied an antibiotic, Ciprofloxacin, for the surgeries in Bilaspur, which has caused 13 deaths so far. The medicine has now been banned by the state government.

A seven-member team from All-India Institute of Medical Sciences, New Delhi, visited the state after the tragedy. Chief Minister Raman Singh has announced a high-level probe into the incident and has also suspended four officials, including the chief medical and health officer of Bilaspur.

The controversy has also brought the issue of governments setting targets of sterilisation to control population. However, Union Health Minister J P Nadda has denied that family planning is a target-driven programme. On the contrary, he stated that it is a target-free, promotional and a demand-driven programme.