Aiming to become free from all disputes of trade margins with the traders and to establish its presence in the marketing field, the Tamil Nadu Pharmaceutical Manufacturers Association (PMA) has decided to explore the opportunities for marketing of branded generics manufactured by its member units. For this, PMA will float one marketing company and apply for licence for wholesale trade.

To commence a feasibility study of the new area of business, first to be confined in the state alone, the small scale manufacturers body has assigned an accredited national agency to conduct a survey of the possible opportunities in the domestic marketing. The agency is expected to submit its study report by the end of January next year, said B Sethuraman, president, PMA.

“We will establish our presence in the marketing field shortly, mainly to avoid disputes of trade margins with the traders and to help our member units by promoting their products and providing raw materials. So, we will float a marketing company at first and conduct a survey to check the viability of becoming a Carrying and Forwarding (C&F) agent”, said Sethuraman.

According to him, the preliminary work for the project will be completed within two months, and on getting licence, the association will enter into marketing field as a C&F agent. “We are not sure whether all our members will cooperate and support this idea and how far it will succeed. We are going to become one among the C&Fs in Chennai”, he added.

Regarding the scope of the business, he said “we are evaluating opportunities for marketing of pharmaceutical products, first in Tamil Nadu, and then in other three south Indian states and Pondicherry. We expect the support of the Federation of South Indian Pharmaceutical Manufacturers Associations (FOSIPMA). If so, gradually our organisation will become a distributor of all pharma products in south India. But, now the process is in its preliminary stage and only after a detailed analysis of the opportunities will we share our ideas with other state associations”, he pointed out.

PMA expects that the evaluation survey will tell them the total financial commitment, infrastructure facilities like warehousing, logistics, requirement of trained sales personnel, office building, administration etc. Association also plans to approach the state government for financial support and warehousing facilities. The president said the business aims sales of branded generics only.

He said even though the association is aware of the total turnover of Indian pharmaceutical business and the total medicine requirement of the country, it is still unaware of these two factors with regard to Tamil Nadu. The survey will answer these questions also. Once the association becomes a trader, it will be ready to supply for the whole requirement of the state.

Focusing on distribution side, the association is eyeing the net work capacities of all member units for establishing a good service management system through proper delivery arrangements/logistics. The financial capacity of the member units and their trained sales personnel will also become supportive pillars for the project.

On being asked whether PMA will have to encounter any challenge from the traders’ body or from other C&Fs, he said such a situation is not expected, but their ultimate aim is also to do business and help our members. He further said if they get licence, the association will be able to purchase raw materials and supply for their member units.

In southern Tamil Nadu, a forum of manufacturers called Consortium of Indian Pharmaceutical Manufacturers and Marketers Association (CIPMMA), is marketing the products of their members all over India and abroad operating under the head ‘marketers’.