MUMBAI, May 16: Glaxo India's manufacturing alliance with Jayant Vitamins for its "Celin" range of Vitamin C tablets is set to be terminated. Jayant Vitamins was manufacturing Celin at its Ratlam factory in Madhya Pradesh.

Glaxo officials told The Financial Express that the company had begun looking at `alternative sources' for manufacturing Celin since it was not receiving supplies from Jayant Vitamins. Vitamin C is a price-controlled drug.

With the Bombay High Court receiver taking possession of the company's Ratlam facility (in an alleged default case), manufacturing activity there had been thrown out of gear, senior Jayant officials said.

Besides, the Ratlam unit had been affected by the irregular supply of power from the Madhya Pradesh Electricity Board (MPEB). Jayant Vitamins has accused the MPEB of increasing tariffs from time to time, inflicting an additional burden on the company by way of fuel cost adjustment, imposition of penal charges and surcharges.

Jayant officials said the company had written to Glaxo, indicating its inability to supply Celin due to the action taken by the court. The move has, in effect, given Glaxo an option to look elsewhere for its Celin supplies, officials said. Glaxo's arrangement with Jayant has no specific time-frame and can be terminated with due notice.

Jayant Vitamins had in 1995-96 entered into an exclusive arrangement with Glaxo for making Celin 100 mg, 500 mg and Celin chewable banana flavour at its Ratlam unit.

The Celin chewable formula was developed by the R&D division of Jayant. The drug was being marketed by Glaxo in the country. Prior to the arrangement, Celin range was being made at Glaxo's Worli unit in Mumbai. Analyts say that the latest development would deal a major blow to Jayant Vitamins given the poor financial health of the company. The arrangement was expected to generate funds in the range of Rs 20 to Rs 25 crore. Jayant Vitamins is a eading manufacturer of Vitamin C, its salts, esters and sorbitol. In 1995-96, the company was operating around 29 per cent of its total installed capacity of 1,500 tonnes.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.