The Federation of Drug Traders of Andhra Pradesh (FEDTAP) is planning to float a company FEDTAP Ltd to benefit its members. The proposed company will go for centralised purchase and distribution of medicines as is being done by AIOCD.

D Krishna Reddy, president of the Federation, told Pharmabiz "We have initiated a project to promote a company for the benefit of individual retailers. The plan is to establish FEDTAP Ltd. It is still at a nascent stage".

The company, when established, would be engaged in centralised drug purchase and distribution system at state level. The affiliated body (FEDTAP) of AIOCD will initially conduct district level meetings to come out with a majority opinion about establishing such an entity. The projected investment for the venture is around Rs 50 crore and the entity would become operational at the earliest.

'If in near future big business houses or MNCs will start their own pharmacy chain outlets, the individual trader will be downsized. To safeguard the individual traders in the state, we will set up the company,' he added.

'We will have meetings at district level to discuss the issue with retail traders. Even if majority traders, say nearly in 15 to 16 districts, agree on the issue, we will go ahead,' Reddy said. The final decision would be taken during the annual general meeting which is due next month. We have passed a resolution during the general body meeting and almost all members of the Federation are in favour of setting up the company,' CH Janardhan, secretary of the Federation, added.

When Pharmabiz questioned FEDTAP about cancellation of trade license of certain medical store by Andhra Pradesh Drug Control Administration in Hyderabad recently, Reddy said, "Currently, I am not aware of such development in the capital. There is a possibility that few traders might not have registered pharmacists with them." .