The All India Organization for Chemists and Druggists (AIOCD), have called for share applications from its respective State associations to form its company All India Origin Chemists and Druggists (AIOCD Ltd). The issue opened on June 7 and closes on July 7.

The organization decided to call in for share applications after discussing the issue elaborately during an AIOCD meeting held on June 7. The shares are not open to the public, but to the chemists chosen by the respective State. The price per share is Rs 10 and the company is expecting a raise a total amount of Rs 25 crore.

With the amount raised through equity, AIOCD Ltd plans to function as a full-fledged service provider. The proposed company would negotiate prices with the Pharmaceutical companies that accept AIOCD's trade policies, to distribute its products. The company is planning to focus initially on generic and oncology products.

"We expect this company to be an ideal service provider which can help the pharmacies in various States. The company will procure the medicines directly from the manufacturers and distribute them among the retailers," said A N Mohan, president, AIOCD.

He also informed that by forming the company, the entire purchase will be passed on to the company and the deals with manufacturers can be settled through a single payment.

Once the AIOCD Ltd is formed, under its umbrella the State wise distribution companies would also be formed for offering services at a State Level. In some States like Maharashtra and Kerala, the company has already been formed. States like Rajasthan, Vizag, Tamilnadu etc have started taking steps to roll out the company.

AIOCD through its proposed company plans to computerize all the State distribution companies coming under it. Uniform software will be provided to all the States so that no confusion occurs while distributing them or using them for business at a later stage.