The Tamil Nadu Chemists and Druggists Association (TNCDA) is planning to launch its drug distribution company, Tamil Nadu Chemists and Allied Distributors Alliance Ltd (TNCADA Ltd), in the middle of January 2008 with a unique business model.

The new company, setting up as the subsidiary of All Indian Origin Chemists and Distributors Ltd (AIOCD Ltd), will focus on organised pharmacy retail business along with a programme to handle the entire drug distribution chain in the state.

The project will roll out with a capital of Rs 60 crore, to be raised through distribution of shares among the state members of TNCDA. A meeting of the directors held on November 13, 2007 has decided to commence issue of shares to 12,000 retailers and 3000 stockists in the state from the third week of November.

TNCADA will focus on upgradation of infrastructure in retail pharmacies to comply with the standard requirements of quality pharmacy outlet to promote organised retailing. The companies initiated by AIOCD affiliates in other parts of the country are focusing more in wholesale distribution than in retail chain business. By initiating the retail chain, it would also provide training for the chemists in pharmacy practices, informed the company officials.

The company is planning to link up 500 retail shops across the state under its retail pharmacy chain within one year. In the first phase, 200 pharmacies would be affiliated within the first six months and 300 pharmacies would join the chain in another six months. The company has already allocated Rs 120 lakh to upgrade the facilities in the first 200 pharmacy outlets, by allocating Rs 60,000 for each retail outlet.

"We would adopt a standard operating procedure for the wholesale and retail members under the company. The chemists, who are upgrading the pharmacy to facilitate air cooling system and data management software, will be accredited by the company as Alliance Chemists," said R Srinivasan Iyer, one of the six promoter directors of TNCADA Ltd.

TNCDA's plan follows the corporatisation programmes initiated by its parent body, All India Organisation of Chemists and Druggists (AIOCD), through its nation wide distribution company - AIOCD Ltd. As reported earlier, the AIOCD Ltd is expected to commence operation by the beginning of January 2008.