For some time now, the pharmaceutical industry in India has been considered with a dubious distinction of having maximum number of issues related pollution control. It is not that the industry is unaware of the controlling measures stipulated by the government. However, it seems to be a bit slow in adopting serious steps to comply with the norms. Due to this, a number of companies in the sector have been received even closure notices from the concerned Pollution Control Boards across the country. However, the companies'' negative approach towards engaging professional agencies in pollution control measures too a major factor in this regard, says J R Moses, director (technical), Enviro Care Systems, in an interview with Santosh Nair of Pharmabiz.com. The Chennai-based Enviro Care Systems, established in 1995, is a leading company involved with a few pharmaceutical companies in extending services in controlling pollution related problems. Excerpts : There are increased cases of pharmaceutical companies have been served notices by respective pollution control boards directing for taking effective pollution control measures or closure of plants. Still, why companies like yours have not been mainly targeting this industrial segment?
Agreed that the pharmaceutical industry in the country has shown rapid growth in the last few years but one must note here that it was not the case a few years back. This sector was in a sluggish mode. Pollution norms were not that tough and this industry, though beset with pollution related problems, tried to have solutions on their own. Only few big companies did take measures in real terms to find effective solutions to all kinds of pollution related problems during that period. However, if you look from the perspective of companies extending services in pollution control measure, the existing potential of this sector did not enthuse them. On the other hand, the other industrial segment showed lot of interest in this connection, which made companies like mine to look at these areas and disregard pharmaceutical sector.
It is not that these professional agencies have never targeted the pharmaceutical Companies. But the lighter pollution norms made things simpler for them. Some of the companies kept in abeyance any measures towards pollution control. This act actually kept the professional companies engaged in the pollution control services away from the pharmaceutical sector. I will not totally blame the pharmaceutical companies, but put half the blame on serviced agencies too. There have been fly-by-night operators who were of the opinion that starting a company in the segment of pollution control and the like was an easy job. But, it is not the case. This is a specialized field and this fact was ignored by these operators. Because of these operators, the genuine companies in the field were not given their due inspite of having the requisite expertise. The pollution problems faced by pharmaceutical companies are different than what is faced by companies in other industrial segment. This has also created problems for companies engaged in pollution related problems. The toxic effluents discharged by pharmaceutical companies create most of the problems, and to control them one had to treat the effluents. In addition, this was one thing, which most companies could not tackle. As a result most companies ignored the pharmaceutical companies and looked at other industrial segments for business potential.
You mentioned that some of the companies engaged in pollution control are to be blamed for ignoring the pharmaceutical companies. When you say that do you mean to say that companies like yours never tried attempting to adopt new technologies and improve their expertise that could have helped them in working close with pharmaceutical companies?
As I have already told you, some of the companies did have the requisite expertise but most of them remained glued to the expertise they had when they commenced operations. Pollution control is a specialized field and you have to constantly upgrade your expertise on a continuous basis. This can only help companies adapt to the changing requirement of companies in varied segment where too problems relating to pollution also undergo changes. Take for instance water pollution. Discharge of water is common in most companies but in a pharmaceutical company, the discharged water contains toxics. You need to treat these toxics before you can proceed with treating water. You need to have expertise in treating these toxics, and this where some companies lack expertise. Similar is the case with other aspects.
Technological up gradation has to become a part of companies engaged in pollution control. This is not happening. I will not say that technological upgradation could put these companies in a safe position as far as tackling pollution problem is concerned but then it could give the necessary fillip in enhancing their expertise.
Pharmaceutical companies in the country are now tying up with foreign companies and this also means that the partners in pollution control should also meet the stringent requirement of the foreign companies with which the Indian pharmaceutical companies are tying up. Most of the companies engaged in pollution control do not meet these stringent requirements as a result they are not considered.
Most foreign pharmaceutical companies have companies engaged in pollution control as partners, which means any exercise taken by the pharmaceutical company will take into consideration the opinions of the partner. Such a system does not exist in this country. Such a system has not still evolved in the country even as many Indian pharmaceutical companies are tying up with foreign companies. In certain cases, the foreign companies bring in their partners for consultation and tackling the problem and this means there is little scope for companies like mine to tie up with a pharmaceutical company as partner.
Another aspect where Indian companies lack is marketing. Not many companies have gone in for aggressive marketing unlike foreign companies in the same segment. This also makes a lot of difference since one notices the existence of companies.
Given the situation prevailing now, do you foresee these companies making a big difference, especially for the pharmaceutical companies, in the coming years ?
Yes, I do foresee that, but it is very difficult to tell you when that can happen. The pharmaceutical companies have been beset with pollution related problems but then they have been working on other parameters for maintaining international standards. Pollution related aspects are there in the agenda because of the international requirements and this could bring about a change in the role of companies like mine in the coming years.
International project managers helping the foreign companies, as I have already told you, have a partner in company engaged in pollution control. These managers always consult the latter before embarking on a project. This aspect could bring about a change in that most of the foreign companies owing to the business requirement may set up shop in India. This would surely bring about a change in the outlook in the country as far as companies engaged in pollution control are concerned.
Better technology, better skills and R&D methodology will come to India because of these foreign companies. These companies will also look at partnering Indian companies, to extend their reach, and this augurs well for Indian companies.
With the changing scene, Indian companies will be forced to upgrade their skills so also change their style of working if they were to withstand competition so also becoming a suitable partner to the foreign companies.
On the other hand, companies in the other industrial segment will take these companies seriously. The same is going to happen with the pharmaceutical companies too. Most pharmaceutical companies are now working towards attaining international standards and stringent pollution control norms will force these companies into looking for suitable companies, which could help them out in the said aspect. They will be looking at the Indian companies, which by the entry of foreign companies will undergo a metamorphosis in all aspects.
But do you foresee Indian pharmaceutical companies having a pollution management company as partner throughout akin to foreign pharmaceutical companies?
Yes, this will gradually happen. Stringent pollution norms will mean the pharmaceutical companies can''t afford to scout for pollution management companies at the last moment. They will have to have constant watch on the pollution norms. This could be easy if they have a pollution management company as a partner.
Further, stringent pollution norms imposed by the Indian government and the strict implementation of these norms by the respective pollution control boards in the country will further force these companies to be alert on pollution control and this would be better managed if they have a pollution management company as a partner.
Do you also foresee increase in the number of Indian companies engaged in the pollution control given the fact that in the coming years, pollution norms would be on top of the agenda and stringent at that? What role does the government need to play in helping promote this segment?
It is a very difficult question to answer. For the simple reason that there are many companies operating in the segment at present. Only few have the requisite expertise. It will be again difficult to mention as to how many of these companies would survive the competition.
The roles of these companies will change in the coming years but then it will all depend on how these companies perceive the changes. The segment in the country is not as developed as in the overseas but in the years to come should witness a drastic change and that could bring in difficult propositions to the existing companies.
It will depend on the individual companies to better their progress. They will have to keep pace with the changing times and in expertise. Only then can Indian companies do well, and if there are many companies thinking in the same pattern then the segment can see an increase in the number of companies operating. The government has been supportive so far, but then there are still some deficiencies. Benefits in sales tax and excise tax could come in handy for companies operating in this segment.