The fifth annual general body meeting of the Consortium of Indian Pharmaceutical Manufacturers and Marketers Association (CIPMMA), which claims strong foothold in nine districts in southern Tamil Nadu, has decided to expand its activities in the whole of the state by building organisational bases in the northern districts, especially in Chennai.

As part of its expansion plan, CIPMMA has conducted its AGM this year in the state capital involving drugs controller, with the support of its newly floated Chennai district committee. They have also elected a trader with strong base in Chennai as the new president.

The association’s member manufacturers-cum-marketers were previously associating with TN PMA whose 40 members attended in the AGM of CIPMMA, said A Kannan, the newly elected president of the Consortium. According to him his members market their own products with separate brand names.

The general body with a participation of more than 250 people, majority of them from Chennai and nearby districts, reviewed the resolution passed by it in last year and was presented again for discussion. The resolution, presented by the former secretary, was demanding amendment of Drugs & Cosmetics Act (D&C Act) for issuing separate licences for special category of pharma marketers. He said CIPMMA will soon approach the union health ministry and to chemical and fertilizers ministry with this request. The Consortium will also seek the support of the state governments where its members are functioning, members of parliaments and the help of leading media for this purpose.

In another resolution, the marketers demanded the government to reduce the value added tax from the current rate of 14.5 per cent to five per cent for nutraceutical products on par with pharmaceuticals. The members are losing big margin from the sale of nutraceutical products because of levying heavy VAT.

The association unanimously passed a third resolution demanding its members to follow the directions of the Consortium to implement a uniform trade margin for their members in all the districts in the state. The trade margin for stockist is 10 per cent and for retailers it is 16 per cent at present. But certain member manufacturers-cum-marketers offer bigger margins clandestinely to certain retailers in Tanjore, Trichy, Madurai and in other southern districts. CIPMMA wanted all its members to follow one system for trade margins. But it is likely to be increased shortly, said Kannan.

The Chairman of the Consortium, A Karunai Kadal said CIPMMA will reach into an agreement with manufacturing companies for a trade deal which insists them that the companies should not sell their products to any other parties such as stockists or wholesalers directly or indirectly. CIPMMA members coordinate, outsource, market, distribute and sell their products under valid licences from the concerned authorities, he said.

“Since our activities are stretched beyond the activities of a wholesale distributor’s alone, we need to have a separate identity by getting separate licence, exclusively for our marketing company which will enable us to rightfully do all of our ethical promotional activities to the medical profession. Most of our members do not have own manufacturing facilities, but they undertake all the activities of a full-fledged and well integrated pharmaceutical company like conceptualizing, designing, framing of various marketing strategies and implement them through their own marketing and sales force. The marketers are one of the fast emerging segments and form a significant part of the pharmaceutical industry today in India,” he told this reporter.

The AGM elected A Kannan from Chennai as CIPMMA’s new president and P Arun Prasad from Trichy as the general secretary. G Rajendran of Madurai is the new treasurer. A Karunai Kadal from Tanjore will continue as the Chairman of the Consortium.