At least 15 pharmaceutical wholesalers in Mumbai has suspended the drug supplies to Medicine Shoppe India, the master franchisee of the US-based pharma retail major Medicine Shoppe in the country, due to non payment of bills for last several months. The company has not been paying the credits to the wholesalers for last six months, according to trade sources.
The trade sources informed that a majority of the pharmaceutical wholesalers in the Metro has stopped supplies to the company, which failed to make the payments as per the bill-to-bill credit system. "As far as we know, Medicine Shoppe India has a market outstanding of nearly Rs 2 crore in Mumbai and we have discussed the issue with the company officials. The officials are asking for more time for payment and we think they are in severe financial crisis," said a trader from the Western suburb of Mumbai on condition of anonymity.
"Our members in the city conveyed that Medicine Shoppe is not paying credits for last few months. According to the trade system we follow, our regular members will suspend supplies to the clients who fail to pay the bill in the credit period of 15 to 20 days from supply," said J S Shinde, president, Maharashtra State Chemists and Druggists Association (MSCDA) and secretary, All India Organisation of Chemists and Druggists (AIOCD).
The Retail Dispensing Chemist Association (RDCA), the Mumbai based affiliate of AIOCD also confirmed the development. "Our wholesale members have informed that Medicine Shoppe has failed to pay the bills for past several months and the company is not in a position to make the payments at present. The company officials assured as that it will pay the bills very soon," said Prasad Danave, Hon. general secretary, RDCA.
The sources also revealed that the company has closed down its central warehouse, which was earlier at Andheri and relocated to Princess Street, Mumbai lately is defunct at present. However, the company officials were not available to comment on the matter.
Medicine Shoppe India is run by the Mumbai-based Melrose Trading Company, the master franchisee with the US-based second largest pharma retailer, Medicine Shoppe. With the Indian operations started in 1999, the company currently have outlets under Antariksha Pharmaceutical Traders Pvt Ltd, a firm working closely with Melrose Company, in Mumbai even as the retail outlets in peripheral Mumbai is run through sub franchisees.
The company, which has more than 140 franchisees though out the country, has 50 shops in Mumbai under Antariksha Pharma while almost 18 franchisees are operating in the suburbs of the city, according to sources. Medicine Shoppe India has its operations in Maharashtra, Gujarat, Goa, Delhi, Uttar Pradesh, West Bengal, Andhra Pradesh and Karnataka currently.