Mumbai-based PRS Permacel Pvt Ltd has come with a unique system to counter spurious brands and also prevent counterfeiting of drug products. Christened as Kavach, the system approaches the brand attack with a five level protection programme. According to Permacel sources, the company's principle is to identify the counterfeited products at the packaging level itself, without actually scrutinizing the ingredients of the drug.

As per Kavach system, in level one, a visual identification feature is attached on the pack like hologram. Currently, most of the Indian companies use only this feature as a brand protection device. And the second level of Kavach involves the consumer to check for the genuineness of a product by involving devices like peel-and-see, scratch-and-test or testing under a special light.

However, the level three feature of the system is for the manufacturer, which helps him to track and trace a unit right from the factory floor to the retail outlet thereby enabling him to know the exact area of weakness in his supply chain, which can be strengthened in order to ward off brand attack. The level four feature is built for legal protection. It is an optional feature, which is built only if the manufacturer would like to use it for legal recourse against brand attackers. To protect its value in the process of legal recourse, the existence of this feature is disclosed only to key executives in the manufacturing company. Use of DNA markers is an example of this.

Finally, level five of this novel system represents packaging. Packaging, the tool developed by the manufacturer to protect the product against physical elements between the time it is produced and consumed, and acts as a defence against brand attack if the manufacturer builds in sophisticated features into the packaging.

According to the industry sources, 90 per cent of counterfeiting in the pharmaceutical industry takes place during the supply of drugs from the wholesalers to retailers, said NS Shenoy, vice president (marketing), PRS Permacel. "A majority of retailers sell counterfeit drugs unknowingly. As our technology is based on tracking counterfeiting at the packaging level, it will be much more easier for the companies to educate the retailers to check counterfeit packs on the basis of technology provided by us," he said.

The raw materials for the technology are licensed to Permacel from overseas-based companies. Permacel is currently in negotiations with pharma companies across the country, including three major ones for its technology. The company charges a fee of 1.2-1.8 per cent on the MRP of a product for the technology provided by it.

Permacel is a Rs.50 crore group and was part of the Johnson & Johnson Group till 1999, after which the MNC's local partner bought over the company.