Much to the delight of the pharmaceutical industry in Tamil Nadu, the central government has approved a pharma cluster in Chennai. The pharma industry's proposal for forming a pharma cluster in Chennai was among the 53 applications short listed by the government. A special purpose vehicle (SPV) called Chennai Pharmaceutical Industries Infrastructure Up gradation Company (CPIIUC) has been formed for monitoring and carrying out developmental activities in this regard.

Alathur Pharmaceutical Manufacturers Association (APMA) has announced here that the Development Commissioner, Small Scale Industries, Government of India, has accepted the APMA as a cluster in Chennai.

A Special Purpose Vehicle (SPV) called Chennai Pharmaceutical Industries Infrastructure Up gradation Company (CPIIUC) has been formed on a non-profit basis for monitoring and carrying out developmental activities under section 25 of the Companies Act.

According to Pharmaceutical Manufacturers Association (PMA) secretary Lakshmi Narayanan, the CPIIUC will have consultants from major pharma companies, drug controllers and other stalwarts from the industry who would share their expertise for the industry's development. It will play an important role in getting export orders and raw materials at subsidized rates for the small-scale industries. "Seventy per cent of the investment will be by the central government, 20 per cent will be given by the state and 10 per cent has to be borne by the company," he said.

The cluster led by the PMA has planned to acquire three acres of land for carrying out the research activities. A proposal has been sent to SIDCO for the allotment of the land. There are also plans to set up the business centre, training centre, etc in Chennai itself. "If the SISI could agree for setting up a business centre in Guindy, Chennai, international clients can come and visit us there and deals can be finalized. Other facilities planned will also be coming up in Chennai except for the research centre," he said.

The consortium members of the cluster include Alathur Pharmaceutical Manufacturers Association (APMA), Tamilnadu Ayurvedic, Siddha and Unani Drug Manufacturers Association (TASUDMA), Pharmaceutical Manufacturers Association, Tamilnadu (PMA TN) and Indian Drug Manufacturers Association, Tamilnadu (IDMA).

The objectives of the pharma cluster would be to provide business development services, unitedly acquire technology transfer from developed countries, share infrastructure which will reduce fixed investment, formation of common raw material bank, establish common marketing, develop new molecules and formulation through common research facilities, establish state of the art common testing facilities and conduct common training programmes and consultancy services.

The CPIIUC has already tied up with Madurai Kamaraj University to carry our research work in the herbal area as well as converting the existing molecules into products through research. The University has given 50 acres of land for the cultivation of herbal plants and for the agricultural development of medicinal plants. Efforts are also being taken not to use chemical fertilizers for the medicinal plant cultivation, as it would become a hurdle while exporting the drugs to other countries. Nearly 100 acres of land have been given for medicinal plant cultivation.

Speaking at the pharmaceutical cluster awareness programme held in Chennai, Sethuraman, president of PMA, said, that the availability of raw materials was a major problem faced by the small scale industries due to the increasing cost and the raw materials were also being supplied in large quantity unlike earlier. "If there is a raw material bank in the cluster, the products can be brought easily and distributed to the small scale pharma industries," he said.

He said, that such a move by the government would help in reducing 25 per cent of the cost incurred. Appreciating the government's move to approve the pharma cluster, he said that it would be the first of its kind in the country.

Sharing his views, TASUDMA president Vijay A Mehta said, it was essential to have a single window to display the products of the cluster members so that the foreign clients can easily see the products and the offers of the companies. He stressed the need for a testing laboratory and a centre for training.

CIPI chairman T S Jaishankar said, it was essential for the SSI's to work together as only then there can be some development. T V Hariharan, Secretary of FASSI, New Delhi, urged that the banks should reduce the interest rate for the benefit of the SSI's.

S Mani, vice-president of Orchid, who was instrumental in forming the CPIIUC, said there was a dire need for improving the infrastructure facilities so that more international players are attracted. He also invited the small-scale pharma companies to visit Orchid so that lot of information about company development and infrastructure related issues could be shared.

Sivajnanam, Director of SISI, Tamilnadu, did a presentation on cluster development programme and urged the members to stay together for development.