The Pharmaceuticals Export Promotion Council (Pharmexcil) is actively considering to set up warehousing facilities in the overseas markets under the Market Access Initiative (MAI) scheme with a view to boost pharma export, it is learnt.
Initially, it will set up warehouses in three countries, one in the CIS countries, another in Europe and third one in Africa. The Pharmexcil has selected three international agencies, including two from Europe, to work out on the proposal and they are already in the process of identifying a location. They are expected to submit reports in two to three months and after that the proposal would be submitted to the government, and the whole exercise is expected to take six to seven months. These warehousing facilities are expected to help small scale companies in a major way as it is not affordable for them to set up their own warehouses in overseas markets. All these warehousing facilities will have cold storage facilities, which is required for the storage of several pharma products.
Talking to Pharmabiz, Dr P V Appaji, executive director, Pharmexcil, said “We are planning to set up two to three warehousing facilities in overseas markets. It can be either pre-customs or post-customs type. The companies can store their products in them and can sell to the domestic buyers whenever there is demand. The small companies are expected to benefit from this project.”
Pharmexcil said that 30 to 40 member companies, including some big companies expressed interest in utilizing the upcoming warehousing facilities. Pharmexcil expects that with the opening of these facilities more companies are expected to come forward to utilize them.
Under the MAI scheme, the Commerce Ministry funds activities such as opening of showrooms and warehouses, organizing trade festivals of India, national level participation in major international trade fairs, and research and product development.
Commenting on the plans of Pharmexcil in the current financial year, Dr Appaji said that it will be organizing a buyer-seller meet as part of ‘Vibrant Gujarat’ in January next year. It has invited buyers from Nepal, Sri Lanka, Bangladesh and Myanmar. It will also make a proposal for a trade delegation to the CIS countries.