The pharmaceutical manufacturers and traders have been severally hit by the flood in Maharashtra last week and the industry circles estimate the losses could amount to at least a couple of hundred crores of rupees.
Sources said production at most of the drug manufacturing units in Maharashtra have been halted since the last four days. Full-fledged production is likely to be restored only by this week. Pharma units located in the belt of Kalina, Patalganga, Roha, Vapi region have been severally affected by torrential rain and flood water. At least 20-30 units, mainly synthetic and API manufacturers in the region of Patalganga and Roha are reported to have been badly flooded.
Daara Patel, Secretary-General of Indian Drugs Manufacturers Association (IDMA) said it was early to comment on the extent of damage. “Numerous big and small drug manufacturing units are located in the affected regions. Damage to office furniture, documents, raw materials, manpower etc. could have happened. Most of our members are yet to go back to their offices. A clear picture will emerge within a week or so,” said Daara Patel.
According to a senior industry source, losses to the pharmaceutical units are mainly by stoppage of production, since most of the employees were not able to reach workplaces since Wednesday to Friday, last week. The source said damage to inventory could be minimum as the incident happened during the month end. Flooding of raw materials, stocks and plants could have resulted in losses to the tune of a couple of hundred crores of rupees.
The Bhiwandi region, which houses numerous godowns of most of the Maharashtra-based pharmaceutical units thanks to the Octroi concessions, has also been severally affected. According to a Chennai-based leading drug manufacturer, who lost around Rs 80 lakh worth stocks at his godown, damages in Bhiwandi alone would cost the pharma industry several crores of rupees. A drug manufacturer in the area lost his entire stocks and raw materials, he said. The FDC Ltd informed the Bombay stock Exchange on Friday that stocks at its godowns at Bhiwandi Taluk have been damaged due to heavy rains and flooding.
According to trade circles, about 30-35 wholesalers in Mumbai were affected and the estimated loss is about Rs 6-7 crore. About 10 wholesalers in Thane and other central areas and about 15 wholesalers in Panvel have suffered losses to the tune of about Rs 25 crore. About 200 retailers in Mumbai, 175 in Thane and 7,300 retailers in the districts of Ratnagiri and Raigad are estimated to have lost in between Rs 10-12 crore, approximately.
“The estimated loss to the pharma industry as per initial figures is about Rs 100-150 crore. Trade loss is estimated to be in the region of Rs 25- 30 crore. About 600 retailers and 100 wholesalers are affected badly and there will be a shortage of medicine in Mumbai at least for next eight days,” said, J S Shinde, president, MSCDA.