As Indian pharmaceutical industry becoming global players, witnessed by a vibrant growth in exports in the recent past. Industry is on the threshold of predictable and assured growthdriven by consolidation in the global generic market.

Now, forces drivingchanges in the Pharmaceutical distribution structure like- post patent regime, implementation of VAT and phased abolition of CST etchave brought in to focus sudden activity in the emergence of Pharmacy Supply Chain and entry of anMNC- Zuellig Pharma and Reliance in Pharma distributionThese recent spurt in retail chain activities has evoked mixed response from the existing conventional stand alone retail chemists, estimated over 5 lacks in the country.While Subiksha and Apollo pharmacy chains, earlier entrants in the chain in the South, Medicine Shoppe in West, recent entryby Life ken, Dial for Health are indications of the future trend in this race.

Leading pharmaceutical manufacturers are also envisaging the need to re-structure distribution system in the post VAT scenario and growing institutional sales and with focus on cost rationalization and improve efficacy.Major pharma manufacturers like Pfizer, GSK feel that number of stockists arepresentlytoo large and it is time to consolidate.

When India's biggest Corporate house- Reliance ADAG started looking at pan India pharma distribution; All India Organisation of Chemists & Druggists with membership over 6 lacks - retailers and wholesalers has accepted the reality and with its organizational strength, preparing to be one of the players as organized distribution house.

While these changes are inevitable in the present and future context of competition and survival of the fittest theory, thiswill lead to better value and services to consumers and the manufacturers.There is bound to be a sense of apprehension and insecurity amongst the existing retail pharmacies and wholesalers. They have to realize that it is time to look in to realities and accept the changes. They have to change their mind set to accept that it is nolonger possible to survive and remain in the business in a protective environment

It is a fact that pharmacy services in the country is far from satisfactory level of professional competence and standards. There are pharmacies without pharmacists. Proper storage facilities are lacking resulting in the products loosing their potency. Knowledge to offer basic information to customers is not adequate to educate them on dosage compliance, harmful effects of self medication etc. With change in the life style, customers are becoming health conscious and demand better value added services.
Entry of corporate houses and hospitals in retail pharmacy is bound to improve the quality of services to consumers. This should motivate the existing players to consolidate and prepare themselves to remain as active players and emerge as competent professional pharmacies.

The number ofpresent pharmacies in the country, estimated over 5 lacks, has to be looked from a practical positive angle. They too have a role to play - to make the medicines available to the common man at affordable cost.They have survived amidst odds and unhealthy competition due to irrational grant of too many sales licences, unmindful of the need.

Organisation like AIOCD and IPA have a role to help such consolidation, create a level playing field for them to survive and grow.
(The author is chairman, Trade Reforms Committee of AIOCD, Trusteeand Director Academy of Continuing Education forPharmacists, C L Baid Metha College orf Pharmacy, Chennai)