In the emerging post-GATT scenario, huge potential and challenges are awaiting the small-scale manufacturers in the country.

This is because, of the fact that medium and large companies are already working to their capacities. If only our SSI units can upgrade their plants to meet the opportunities from national and multi-national companies, they can be very well off. Schedule-M provides an opportunity for upgradation and SIDBI and nationalised banks are ready to help the SSI sector with finance. In the recent budget, the CLSS scheme under the Department of SSI have provided Technology Development Fund up to Rs.1.00 crore with 15 per cent subsidy.

The SSIs can avail these financial supports and availability of scientific manpower to upgrade their manufacturing plant. It is not possible for an SSI manufacturer to produce numerous formulations and market it in different parts of the country on its own in the emerging scenario. If a particular manufacturer has strength in a particular area like tablets or capsule with quality manufacturing lines, business will definitely come to them.

The industry has realized there is no need for setting up huge 'all under one roof manufacturing complexes' with thousands of employees and billions of investment. Quality of the product will be the benchmark for the success of any business, especially pharma business. If an SSI can offer a particular product or service of internationally acceptable quality, there will be people in the queue, including these biggies, to utilize their services. Roping in a quality contract manufacturer means the marketing company is also saving a lot on overheads and other expenses, besides going through the complex manufacturing processes.

Even in the export front, the contract manufacturing SSI units have options. Since most of the multinational large-scale companies are going to concentrate on R&D than manufacturing in future, they are sure to look at countries like India where cost-effective quality manufacturing facilities and spare capacities are available with numerous manufacturers and options.

- The author is vice -president - IDMA; Chairman - SSI Sub Committee; Indian Drug Manufacturers' Association, Mumbai, He is alsomanaging director, Fourrts India Pvt. Ltd., Chennai