T S Jaishankar, Chairman, Confederation of Indian Pharmaceutical Industries (CIPI), the apex body of small-scale sector pharmaceutical companies in India and the largest industry association in the country in terms of membership. He is also the President of the Federation of South Indian Pharmaceutical Manufacturers Associations (FSPMA) and President of the Pharmaceutical Manufacturers' Association of Tamil Nadu. Excerpts from the conversation with P B Jayakumar of Pharmabiz.com

Now the Government is thinking in terms of further extension to the Revised Schedule M norms, as you were demanding. Is it not necessary to have high quality manufacturing facilities for the SSIs in the country, as the industry is now open to a global challenge?

It is not that we are against adopting global manufacturing standards and the parameters suggested by the Government. The rules are to better the industry and it is our duty to follow it. Nevertheless, practically it is not possible for the industry to adapt within the short time frame. We have been demanding an extension up to year 2007. In our country, most of the people live in the villages and majority of the population cannot afford to buy drugs. It is the duty of our Government to provide them drugs, and mostly the SSIs have been undertaking this job.

It is the dream of every budding pharmacist to set up a unit of his own, and thus numerous small-scale units have come up in the country in the last three decades. The SSI pharma units have invested more than Rs.7000 crores in India in terms of infrastructure. Now there are 19,000 units in the country providing direct employment to an average 50 to 100 people per unit, and another one million people depending indirectly on these units. We undertake more than 90 percent of the Government purchases, thus literally treating the rural masses with a social commitment.

Now there is propaganda that the SSIs are the people behind manufacturing of spurious drugs and they produce only substandard drugs. Hence, they should upgrade their manufacturing quality or else should close down forever, as from 2004 onwards it will be a new world. Is it that the SSIs were supplying substandard drugs to the majority Indians and were fooling the Governments at least for the last thirty years? It is like selecting a player to the national cricket team, and then dropping him on charges of unsuitable to international games. This propaganda and strategy is to consciously eliminate the majority SSI units so that the multinationals can completely corner takeover the huge Indian market, the second largest population in the world.

You agree it is necessary to upgrade. The Mashelakar Committee assesses only about 400 units in the country upgraded so far despite the closure threat. Why the SSI industry is reluctant to upgrade?

As I said earlier, we are not against upgradation. It is because of the practical difficulties and the huge financial burden involved. This has been discussed a lot. I do not want to again elaborate those details. In the last few months, we have been able to unite and impress upon the various decision makers and authorities about the practical difficulties involved in implementing the same. Now the authorities also understand our problems. In this connection, I would like to thank the help of media, especially Pharmabiz.com & Chronicle Pharmabiz, for highlighting our problems. However, it has been observed that a bit of lethargy and complacency has crept into the modernization process on the part of SSIs, as everyone feels the extension is there. Soon our association will work on that area to help our members upgrade their manufacturing lines.

How do you foresee the future for SSIs in the country and how far they would be benefited in the changed scenario?

There is nothing to worry, and like all other segments of the industry, SSIs will have lot of opportunities. The market is growing fast. Outsourcing and reducing cost of production will be the manthra of the industry worldwide. Our industry is lagging by about 20-30 years in comparison to the west. In the case of SSIs here, so far it was an all rounder concept, doing everything. This should change. Specialization should be the key. A particular manufacturer making a particular product should specialize in that instead of looking at various other options of manufacturing. More than 90 percent of the multinational companies will be looking forward to outsource products from specialists with standard manufacturing capabilities. SSIs will also have immense opportunities in support services like protocol and documentation. Therefore strengthening own base and forming alliances with suitable partners with different capabilities in manufacturing will surely help the cause of small scale manufacturers in future.

What will be the role of CIPI in future?

We will take up to the authorities and the public our genuine concerns and problems. We will surely fight united against anything harmful to the interests of our members. SSI entrepreneurs are not that much exposed to the technology or other advancements happening in the industry, and our association will take enough measures to give them update on the industry through seminars and other means. We will be taking up issues one by one. CIPI will become the binding force, inspiring the units in different parts of the country, with a patriotic fervor.