The prolonged wrangle between the Chennai-based Shantha Marine Technologies Pvt. Ltd. and ABL Biotech has left the suppliers of the former in a tight spot as payments to the tune of almost Rs 10 crore is pending. Some of the suppliers have also resorted to legal action.
According to informed sources, even after the stipulated credit period, there are no payments coming forth from Shantha Marine, the company promoted by Hyderabad-based vaccine major, Shantha Biotechnics. Shantha Marine deals with marine biotechnology products like beta- -carotene. ABL Biotech, is the joint venture associate in Shantha Marine Biotechnologies. The tussle between the two partners has affected the suppliers.
While various suppliers have been waiting well after the credit period, the payment defaults have seriously affected the small chemical traders who operate on low or no margins, the sources informed.
The suppliers are mostly bulk drug traders and specialty chemicals manufacturers. There are a good number of packaging suppliers too.The sources said that the total payment default by Shantha Marine comes to around Rs. 10 crore.
Meanwhile, early this year, some of the suppliers visited Shantha Marine COO Abhay Gupta's residence in Chennai, demanding payment. There are reports that police intervention was sought to resolve the matter. It is gathered that some suppliers are beginning to get their payments in small amounts. However, there is an air of uncertainty about the pending payments, stated sources.