VZCZCXYZ0003
RR RUEHWEB

DE RUEHNE #2060/01 1201228
ZNR UUUUU ZZH
R 301228Z APR 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 5249

UNCLAS NEW DELHI 002060 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-D/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: HIKAL LTD., 
BANGALORE, LICENSE NO. D346099 
 
REF: USDOC 02794 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Export Control Officer (ECO) Paul Cushman, Former ECO Michael 
Rufe and BIS FSN Prem Narayan conducted a Post-shipment Verification 
(PSV) at Hikal Ltd. (Hikal), Bangalore, on April 17, 2007. 
 
¶3. BIS requested a PSV at Hikal, a private sector company, located 
at: 82/A KIADB Industrial Area, Jigani Anekal Taluk, Bangalore 
562105, Tel: 91-80-27826351-54, Fax: 080-2782-5377, email: 
ravi_d@hikal.com. Hiakl was listed as the Ultimate Consignee; 
Lutz-Pumpen GmbH and Co., Wertheim, Germany as the Foreign 
Purchaser; and Shanbhag and Asociates (Shanbhag), Mumbai as the 
Intermediate Consignee for 1 Model 5702-080 one-inch Air operated 
double diaphragm pump controlled under ECCN 2B350. The license 
applicant was Lutz-Jesco (Lutz-Jesco) America Corp., Rochester, NY. 
 
¶4. BIS Team met with D. Ravi (Ravi), Vice President (Pharma 
Manufacturing) and Vijayeendra Katageri (Katageri), Senior Manager - 
Commercial, Hikal. 
 
¶5. Hikal representatives were aware of the BIS regulations.  They 
have been party to previous BIS export licenses.  Former ECO Rufe 
and BIS FSN conducted a favorable Pre-license Check (PLC) for this 
transaction on November 17, 2005.  Katageri stated that Shanbbag is 
the exclusive distributor for Lutz-Jesco in India and they dealt 
with Shanbhag for this transaction.  Hikal representatives did not 
have any documentation pertaining to this shipment.  Katageri stated 
that all Hikal purchases are centralized and processed through the 
Hikal's headquarters located in Mumbai.  He promised that he would 
obtain a set of documentation and forward to BIS New Delhi.  To 
date, he has not sent the transaction documentation. 
 
¶6. At the time of conducting a PLC for this transaction, Hikal 
representatives provided a copy of the Lutz-Jesco quotation, 
Lutz-Jesco Technical Detail, Hikal Purchase Order, and Hikal End-Use 
Certificate acknowledging that Hikal will abide by the export 
license conditions.  Katageri did not recall receiving final BIS 
export license conditions either from Lutz-Jesco or Shanbhag. 
 
¶7. Ravi made a presentation on Hikal's business activities.  He 
confirmed the stated end-use of the air-operated pump for 
unloading/transferring of liquids, mainly hydrochloric acid, from 
tanks/drums into various processes for manufacturing active 
pharmaceutical ingredients and bulk drugs.  He stated that 
approximately five Lutz-Jesco air-operated pumps of different sizes 
are operating at Hikal plant including the pump covered under this 
license.  Earlier, Hikal used the locally made pumps that had a 
short life span and required "vigorous" maintenance on regular 
basis. The transfer of chemicals into various manufacturing 
processes is a zero percent error process.  Appropriate steps are 
required to protect the environment and pump leakage is 
unacceptable. The air-operated pumps made of kynar and Teflon are 
sophisticated and have long life spans.  These pumps are widely used 
to prevent corrosion caused by caustic liquids.  BIS Team was given 
a tour of the Hikal plant's Reactor Area where the pump was 
operating with two other Lutz-Jesco pumps.  BIS Team noted the 
serial numbers of all three pumps.  The serial numbers for these 
pumps are: 123902, 126138, and 123899 and part no. of all three is 
5702-080.  BIS Team was also shown two stand-by pumps of Lutz-Jesco 
Model 5702-080, their serial numbers are: 123899 and 123529.  The 
Hikal building is guarded 24 hours a day. 
 
¶8. Established in 1988, Hikal is a public limited company, 
manufactures agricultural chemicals, intermediate bulk drugs, active 
pharmaceutical ingredients (APIs) and chemical reactions.  Hikal is 
a 100 percent export-oriented unit and exports its production to 
manufacturers of capsules, tablets and injectable solutions in 
developed countries including the United States, Canada, and the 
U.K.  It has expertise in chemical reaction technologies and in 
handling hazardous chemicals. 
 
¶9. It has manufacturing facilities at 5 locations including two in 
Maharashtra, two in Bangalore and one in Gujarat.  It is a member on 
the Global Scientific Advisory Board.  Hikal has its own R&D center, 
which employs approximately 76 people.  It conducts research and 
manufactures pharmaceuticals on a contractual basis for its clients. 
 Hikal representatives stated that its state-of-the-art, 
multipurpose production plants are ISO 9001-2000 compliant. Hikal 
follows several international standards including the Canadian cGMP 
(Current Good Manufacturing Practices) standard.  The plant at 
Bangalore is approved by the U.S. Food and Drug Administration 
(FDA), Australian Therapeutic Goods Administration (TGA) and the 
 
World Health Organization.  Hikal employs 710 employees at all five 
locations.  Its sales turnover for FY 2005-06 was approximately $55 
million. 
 
¶10. Recommendation: Post recommends Hikal Ltd. as a reliable 
recipient of the controlled U.S. origin commodity.  All indications 
are that the listed commodity is used in accordance with U.S. export 
control regulations. (PSCUSHMAN/PNARAYAN) Pyatt