Increasing number of new generation drug stores in Maharashtra has created a stiff competition among the local chemists and druggists in the state. Not only local chemists and druggists, the overall business has been affected by the increase in number of retail outlets, feel the trade bodies in the state.
'Though these international players entering the business of retail pharmacy do not have anything different to offer than what we already have, they have managed to attract the customers with their trade gimmicks and money power,'' said Anil Navander, chairman, Maharashtra State Chemists and Druggists Association (MSCDA).
MSCDA is the leading retailers' organization in the state. With the collective strength of around 35,000 retailers, it is the fourth largest pharmacists' trade body in India. Currently contributing roughly to 20% of the country's retail pharmacy business to the tune of Rs 400 crore, MSCDA is an affiliate to All India Organisation of Chemists and Druggists (AIOCD).
The drug retail market is very competitive and crowded with more than 5.5 lakh pharmacy outlets. We are not worried about competition, but what is disturbing is the financial muscle of these retail giants and their dictatorial style of operations which is creating unhealthy competition, according to a representative of the organisation.
To keep up with the challenge, MSCDA has already started educating and updating the community pharmacists about the trends in international pharmaceutical trade. The organisation is busy upgrading local chemists shops according to the standards set by the organised pharma retail shops.
MSCDA welcomed the recent announcement by the Union Chemicals Ministry to amend Drug Price Control Order 1995 for printing MRP inclusive of all taxes on the labels of medicines.
"The industry too has cooperated in realising the importance of MRP inclusive of taxes. The only issue raised by the industry is the extra time required for disposing the existing stocks of medicines. As stated in the Government's proposal notification, the changes are required only for batches of drugs manufactured after July1, 2006. Therefore, another six months time can be given to the manufacturers for selling the existing stocks," said Navander.
Also, at present VAT is not implemented in states like Uttar Pradesh and Tamil Nadu. But VAT is implemented only on the drugs under the purview of DPCO. Another issue that concerns the industry is octroi charged by some states. In Mumbai, the Brihanmumbai Municipal Corporation (BMC) charges 2% octroi on medicines. But all the above anomalies can be rectified, he added.