German Technical Cooperation (GTZ), a non-profit developmental organisation of German government and NDMA (Nalgonda Drug Manufacturers' Association) have jointly commissioned the feasibility study for setting up common effluent treatment plant at Nalgonda, Andhra Pradesh which has around 50 pharma units. NDMA has formed a coordination committee to monitor and oversee the progress of the study. GTZ has committed a grant of Rs 7 lakh for the study.

Indwa Technologies, the consultant engaged for the study, is expected to submit its report in five months. The report is expected to cover quantification and characteristics of effluents, the cost and size of the common effluent treatment plant, feasible location and the pricing structure for running the plant on a self-sustained basis.

Speaking to Pharmabiz, N Gurumurthy, senior technical specialist of German Technical Cooperation, said, "GMP compliance is not only mandatory but also provides significant advantage for bulk drug manufacturers in terms of cost savings and pricing power. It is learnt that the cost of GMP compliance varies among units based on the level of preparedness. On a rough estimate the cost ranges from Rs 30 lakh to Rs. 1.50 crore per unit which goes towards machinery, infrastructure, instruments and documentation. We are conducting various seminars for the pharmaceutical industries".

One of the biggest hurdles faced by SME units in GMP certification is finance. The GMP certification process takes between one to two years time period. Whereas, banks consider GMP certification is an expense with no contribution towards profits. In view of this, SME units either postpone certification or dip into their working capital affecting their business cycle.

Export Market Facilitation programme of GTZ is aimed to connect Pharma and Ayurveda units with international market. The units expressed their interest in the programme and have outlined the specific products, areas and the markets in which they are interested. GTZ is presently in talks with Foster and Sullivan and other consultants for the engagement.

SAP (System Application Product) has introduced a special 'Business Solution one' for SMEs. SAP a comprehensive technological solution which helps in promoting speed of decision making, efficiency, cost effectiveness and MIS for business units.

"We are also in talks with many organizations to strengthen our involvement in promoting cluster competitiveness. CII has a unique cluster programme which focuses on cost competitiveness, quality, managerial efficiency etc. GTZ is considering to join CII in the programme. Cluster pulse has been engaged by Microsoft foundation, a CSR initiative to strengthen the technological base of pharma units at Hyderabad. We are planning to collaborate with them" he added.