Considering the tremendous growth and export potential, the Pharmaceutical Export Promotion Council (Pharmexcil) is all set to hire a warehouse facility in Moscow, to encourage the small and medium pharma companies to export their products to CIS countries.
Under this Pharmexcil will hire the warehouse on behalf of exporters and in turn it will provide the available space to pharmaceutical companies to store their products at reasonable rent. The council is very confident about the positive outcome from this facility under MAI scheme.
"The facility is at its final stage of approval and will begin its operations by mid 2007. A delegation comprising government officials and small and medium exporters has visited the upcoming warehouse to ensure that the facility is in accordance with the MAI scheme," said Dr. P V Appaji, executive director, Pharmexcil.
As part of its export promotion, the Council will reimburse rent and registration fees paid by exporters towards storage of products. "We intent to reimburse 25 to 75 per cent of rent and registration fees paid, for a period of three years to every exporter including the big pharma companies," Dr. Appaji said.
During 2005-06, total pharmaceuticals exports from the country was recorded at Rs.21,578.96 crore, as against the figure of Rs.17,857.80 crore in 2004-05. The total exports during the current year upto July 2006 was Rs.8,123.54 crore indicating a 30 per cent growth by the end of current fiscal.
During the same period (2005-06) exports to Europe, North America, Asia, Africa, CIS, Middle East, LAC, Oceana, the Caribbean and other regions stood at Rs.5,400 crore, Rs 3,916.61 crore, Rs 4,453.29 crore, Rs 2,970.10 crore, Rs 1,739.08 crore, Rs 1,359.03 crore, Rs 1,307.28 crore, Rs 233.69 crore, Rs 195.47 crore and Rs 3.96 crore respectively. Whereas Rs 3,062.24 crore exports to the USA was recorded, followed by Germany-Rs 1,062.97 crore, Russia- Rs 1,051.12 crore, and UK- Rs 820.63 crore.
"Small pharma companies contribute 20 to 25 per cent of total exports from India. Although the contribution is less compared to the big companies, encouraging such companies is very much essential to sustain growth in exports from the country," Dr Appaji added.