The MRP based excise duty induced exodus of drug manufacturing units from all parts of the country to duty free zones like Himachal Pradesh and Uttaranchal have already begun and would take concrete shape in another six months, it is learned. Contrary to the expectations, it's not just the big companies that are on the move, the small and medium scale units are also exploring this option to continue their contract manufacturing programmes. The drug control administrations of these states are anticipating considerable increase in manufacturing / loan licensing applications in the coming months.

According to leaders of state level pharmaceutical manufacturers' associations, several dozens of SMEs from major drug manufacturing hubs like Gujarat, Madhya Pradesh, Maharashtra etc are in the process of setting up their WHO GMP compliant units in these areas. The companies who have purchased land in these two states for the purpose of setting up units during the last one month could be about 100, they informed. The association leaders said that more than 1400 pharmaceutical companies have purchased land in these two states. "About 200 of them are engaged in construction activities in these sites and would probably be ready with their manufacturing facilities in a year," they said.

The MP Drug Manufacturers Association informed that 12 of their members have purchased land in Himachal Pradesh / Uttaranchal during the last one month. The office bearers of Pharmaceutical Manufacturers Association (PMA) of Tamil Nadu , Rajasthan Pharmaceutical Manufacturers' Association (RPMA) and Gujarat Small Scale Industries Association (GSSIA) also indicated that several of their members have already purchased the land in these areas, with many more contemplating the same.

Replying to Pharmabiz queries, B Sethuraman, president, PMA, Prashant H Pandya, secretary general, (GSSIA), Shailesh N Choksi, president GSSIA, Vinod Kalani, president RPMA were all unanimous in their opinion about the future option before SME drug units of their respective regions. Sethuraman highlighted the instance of Microlabs disposing off its South Indian manufacturing facility to shift to HP. RPMA office bearers said that the some of their members have temporarily stopped manufacturing operations in Rajasthan and ret-renchment of emplo-yees have begun.