The Tamil Nadu Chemists and allied Distributors Alliance Ltd (TNCDA Ltd), the corporate arm of the Tamil Nadu Chemists and Distributors Association (TNCDA), has entered into third party contract manufacturing and marketing of 15 pharma products through a deal with the state-based MMC Healthcare Ltd.

The TNCDA Ltd has started marketing the 15 generic products, which includes analgesics, anti inflammatory and anti-infective products under the banner of Alliance Division - an exclusive division for marketing the company's own products. Through the deal with MMC Healthcare, the company has acquired the brands and while the product will be manufactured by the former, the marketing will be done by the latter ensuring better margin for the retailers, informs the source from TNCDA Ltd. The company has also plans to acquire a few more leading analgesic and cough relief products, sources added.

"We were able to generate Rs 40 lakh by selling these 15 brands in last month and we hope to achieve a revenue of Rs.1 crore in building through these products in this financial year. The unique business method under the Alliance division will help us to announce dividends to our share holders right at the completion of first year operation of the company. We will be increasing the number of share holders from 6000 to 10000 in next three months," said the source. He added that the Tamil Nadu unit of the national pharma traders' body - All India Organisation of Chemists and Distributors (AIOCD), will be the first state affiliated company under the organisation to issue dividend to its share holders.

The company, for the next few months will focus on establishing brands acquired recently and will look out for more brands for acquisition later. However, TNCDA Ltd has almost finalised talks with an Australian firm, High Tech Health, to market an electronic equipment - Circulation Booster - in India through its outlets. The product, which is claimed as useful to reduced pain in foot and an aid for diabetic patients, will be promoted through diabetic specialists and through the retail chemist outlets. The product will be available in the market in mid October and will have a price tag of nearly USD 200.

The company will also build a chain of retail outlets under the brand of Alliance Division, by providing fund and training to selected share holders. The plans are to link around 500 retail outlets in a phased manner. TNCDA Ltd is in the process of identifying the retailers to launch the first phase of operations, i.e. to train and equip 100 retail outlets in lines with standard stocking and pharmacy practices. The project will have three phases in total and the first phase of operations is expected to commence by December 200, informs the source.

The TNCDA Ltd, which currently has 6000 shareholders, is operating with a capital of Rs 6 crore and the plans are to increase the capital to Rs 10 crore in next three months. Even as the company will carry out its own operations through Alliance division, the projects undertaken by the parent company, the All Indian Origin Chemists and Distributors Alliance Ltd (AIOCD Ltd), including the marketing of Sangam products (the products exclusively sold by the alliance in collaboration with the manufacturer) are also in the focus, added the source.