The pharmaceutical wholesalers and retailers in Bengal and Kerala have boycotted Plethico Pharma's, (a Shreya Life Sciences subsidiary) products. According to informed sources the boycott, which began two weeks ago, is in protest against the company's decision to offer trade margin exclusive of excise duty of 16 per cent.

"Before its takeover by Shreya Life Sciences, Plethico Pharma used to offer traders margin inclusive of excise duty. But Shreya made it exclusive of the excise duty. With the ongoing boycott of Plethico's products in Bengal and Kerala, the traders are urging the company to grant margins inclusive of excise duty of 16 per cent. The traders are losing 3.5 per cent on sales of Plethico's products as a result of the decision," said sources. The retailers are offered a margin of 20 per cent and wholesalers are offered 10 per cent on sale of a product.

When contacted, Ajit Bhaskar, director, Shreya Life Sciences denied any boycott in Kerala and Bengal. "We have no problems. Our business is running smoothly in both states," he added.

According to a highly placed official in the All India Organisation of Chemists and Druggists (AIOCD), even though there are no protests in other states, every one wants the company to include the excise duty in margins. "Though silent, the AIOCD chapters throughout the country are in support of the boycott in Kerala and Bengal," he said.

Mumbai-based Shreya Life Sciences Pvt. Ltd in January 2003 acquired Plethico Pharma's domestic ethical drugs business for a total consideration of Rs 85 crore. Plethico with a range of 40 brands has presence in anti-malarial, anti-TB (Tuberculosis), cardiovascular and lifestyle therapeutic segments. Plethico Pharma's domestic marketing division has registered sales of Rs 110 crore for the year ended March 31, 2003.

"Even after the takeover, Shreya used to give us margins inclusive of excise duty in selected metros like Delhi and Mumbai. It was only three months ago that the company denied us rights in these cities," said the AIOCD official.