The fierce battle in the retail pharma space is set to reach new dimensions, as drug retailers have started entering into exclusive tie-ups with drug manufacturing companies. The All Indian Origin Chemists & Distributors Limited (AIOCDL), the newly formed company with 5 lakh chemists across the country as members, is set to sign an exclusive tie-up with a Mumbai-based drug manufacturer. The deal is seen by many as AIOCDL?s strategic move to thwart the growth of retail pharmacy chains belonging to corporate giants in the country.
According to the deal, the manufacturer, Maneesh Pharma, will supply its drugs exclusively to AIOCDL, and not to other organised pharmaceutical retailers. Vinay Sapte, managing director, Maneesh Pharma, told FE, ?We are considering an alliance with AIOCDL. In a couple of days, the model will be finalised.? In a few markets, the drugs will be supplied exclusively to AIOCDL, he added, without refusing to disclose further.
In the proposed model, the drugs manufactured by Maneesh Pharma will be channeled through AIOCDL warehouses to each chemist. AIOCDL is India?s largest drug retailing company, formed by All India Organisation of Chemists & Druggists (AIOCD), the parent company.
According to Anil Navandar, joint secretary, western zone, AIOCD, the tie-ups with manufacturing companies are significant in the backdrop of changing scenario in the drug retail industry. He said, “Our move is not to monopolise the industry, but to protect our members. As per the proposed agreements, we ask the companies to supply the drugs to only wholesalers who are the members of AIOCDL.”
Maharashtra Safe Chemists & Druggists Association (MSCDA) Ltd, formed by Maharashtra State Chemists & Druggists Association, an arm of AIOCD, was in preliminary stages of negotiations with a couple of MNCs and Indian companies for entering into an exclusive supply deal. Recently, retail chain Subhiksha had approached the court following the wholesalers’ refusal to supply drug to its retail chains alleging it supplies at lesser rates than what the other chemists offer.
