Outgoing chairman Venkappa M Agadi told shareholders at the annual general meeting (AGM) on Monday that the company had not yet sold its Saki Naka facility in Mumbai. "The severe slump in the property market has affected these plans. But we are in negotiations with several parties and may consider joint development of the property as a last resort," he said.

Agadi also said that the proceeds from the plant sale would be used towards the prepayment of loans and investment in existing and new businesses. He, however, ruled out the disbursement of these proceeds as a one-time dividend.

The company had also incurred an expense of Rs 28.18 crore towards a voluntary retirement scheme (VRS) offered at the Saki Naka facility. Parke-Davis has,however, decided to defer the VRS charges over a period of 60 months and a sum of Rs 2.34 crore had been charged against the 1997-98 profits. The facility originally employed around 1,200 workers.

On the prospects of a similar scheme for workers at the company's facility in Hyderabad, Agadi said Parke-Davis will wait for the `right opportunity' to do so. Besides, the company was not ready at present with the required funds, he added.

On the criminal proceedings initiated against the company and its directors for alleged violation of the Prevention of Food Adultration Act in the manufacture of chewing gum, Agadi said the prosecution had been stayed. Besides, the company's claims that the product was manufactured in compliance with the PFA standards had been well substantiated.

Meanwhile, the company has launched a slew of new products including Atpark (a cardiovascular drug), Gelusil (an antacid) in the OTC segment and Dilantin, an anti-epileptic drug. Parke-Davis has also relaunched popular foodsupplement, Ferradol.

Lele to assume dual role

Parke-Davis managing director Pramod H Lele will also assume the responsibility of chairman with effect from October 1, 1998. Lele takes over from outgoing chairman and former managing director Venkappa M Agadi who has served the company for around three decades.

Agadi told shareholders that he had been planning to call it a day for quite some time. The "time had now come" to step down as director and chairman of the company, he added. Agadi's term ends on September 30, 1998.