All India Organisation of Chemists and Druggists, the apex body of over 500,000 chemists that manage the bulk of the Rs 50,000 crore (Rs 500 billion) medicine trade in the country, has identified Maharashtra and Kerala as pilot states where its corporitisation move can be kicked off.
The organisation plans to build a pan-India drug retail chain brand by enrolling AIOCD members as shareholders of state specific companies that are under various levels of registration. The move is intended to counter the increasing threat of corporate drug retail chains in the urban pockets of the country.
While pool procurement of ethical medicines will begin in Maharashtra, all critical care, generic and over the counter products that are to be marketed through AIOCD member outlets will come under centralised procurement system in Kerala.
The finer aspects of the drug procurement methods and financing options would be decided after AIOCD announces its consulting partner by month end.
Informing this to Business Standard, A N Mohan, president AIOCD, said the flagship company for entire policy directives would be the recently registered All India Origin Chemists and Distributors Limited.
"The apex firm would be a service arm for all 36 state level companies that are to be registered by our member associations. AIOCDL would initially identify four or five reputed pharmaceutical companies and source all their products through pool procurement. It will be expanded in a phased manner".
Mohan also informed that AIOCD executive committee had unanimously decided to oppose any corporate take over of its attempts.
"We will not be diluting members stake to any corporate entity. However, we would approach the banks and other financial institutions for initial support." Mohan clarified.
Drug retail trade is fast becoming an attractive platform for corporate firms with at least a dozen companies showing interest in building brands in this sector.
Healthcare majors like Apollo and Escorts are already having active interests in this segment. AIOCD move is to save its members from any possible threat that these organised retail chains could pose to their business interests.
