While the penchant for herbal medication is fast catching up among the masses, the Ayurvedic industry in South India is facing the lacunae of stagnating markets and inability to grow in tune to demands of the modern times due to various reasons like lack of professionals, inability to invest in infrastructure and other resources etc.
The growth of Ayurvedic industry in the state in the last five years was a meager Rs 40 to Rs 50 crores, almost stagnant at Rs 10 crore growth every year. Exports roughly contribute less than Rs 25 crore, and another Rs 50 crore from interstate sales of OTC and prescription drugs, according to Dr D Ramanathan, General Secretary of the Ayurvedic Medicine Manufacturers Organisation of India (AMMOI).
In comparison to this, the state witnessed mushrooming of manufacturers in the last two years, thus crowding the market. According to Dr Jacob Titus, the Ayurvedic Licensing Authority of Kerala, at least 100 companies have come up in the last two years. The state issues new licenses only for units that comply with Schedule T requirements, and time extension has been given for units on a case-to-case basis for those trying to comply with the requirements. Even one or two units were asked to close down for not setting up the required infrastructure. As a result, the state now has more than 300 manufacturers with quality manufacturing premises, and many other are in the process of complying with the requirements, notes Jacob Titus.
"Where is the market? The Kerala market is crowded and the option for manufacturers is to eat into the share of one another. Thus growing companies like us are forced to look for either other state markets or to innovate nutraceuticals to float in the market," says Dr Saji Kumar, managing director of Warriers and Dhathri.
According to Ajay George Varghese, director, Bifa Drugs, Kottayam, the approach and mindset ofthe manufacturers should change. "It is a fact that traditional ayurvedic drug manufacturers have a holistic vision for Ayurveda and they are reluctant to make it a business. There are changes and many firms are willing to invest in manufacturing premises and in R&D. This will definitely help the industry to grow," says Ajay.