The Indian Drug Manufacturers Association (IDMA) is initiating a membership drive by lowering the fee structure for small scale pharma firms in an effort to support the suffering Small Scale Industry (SSI) and to strengthen the Association to meet the ever growing challenges with the industry.

The plans are to issue membership to companies which have less than Rs 10 crore turnover at a lower fees and to reach a target of 1000 members for the association from the current strength of around 650 members within a short period, according to IDMA sources. The decision is to implement reduced fee structure for the newly joining companies for the current financial year, while it would be applicable for the existing small scale companies also from the next financial year.

"Uniting more small scale firms under IDMA will help the SSIs to have a platform for their issues while it will strengthen the association at a national level," said S V Veeramani, chairman-SME Committee, IDMA, said. The association has been actively working to support the small scale firms including in issues with the revised Schedule M and in updating upgradation of subsidy scheme, Credit Linked Capital Subsidy Scheme (CLCSS).

Earlier, several small scale pharma firms and bulk drug manufacturers were of the view that the high fee structure of IDMA, which keeps them away from enjoying the benefits of joining under the major industry organisation. With the new move, many of the small scale pharmaceutical firms including manufacturers of bulk drugs will be able to join the association for collective bargaining power.

In fact, the revised fee structure has already showed a considerable increase in the strength of IDMA membership in the tax exempted states of Himachal Pradesh and Uttarakhand. A seperate chapter for these states has been formed earlier this month, with R C Juneja, managing director of Mankind Pharma, as the chairman. Almost 50 members have already joined with the new chapter, said B R Sikri, secretary with the new IDMA chapter.

The IDMA's plan to strengthen its membership base comes at a time when several issues poking up their nose to threaten the existence of the small scale pharma firms including the government's plan to make Good Laboratory Practices (GLP) mandatory from November 2010 and the increasing competition in the domestic market from multi national pharma firms, say industry sources.