The Hindu Business Line : Chemexcil officials unhappy over break-away Pharmexcil

IT has not been an easy ride for Pharmexcil, which finally looks set to come into its own, having crossed the several hurdles in its path. But there is more heart-burn apparent, since the creation of an export promotion council dedicated to the pharma sector virtually wrenches out a huge chunk from the body of Chemexcil - the outfit that hitherto took care of export-related issues covering a segment that spanned from drugs and dyes to agarbattis (incense sticks).

"There is a lot of heart-burn because pharma industry exports, at about Rs 12,000 crore, account for more than 50 per cent of the total turnover clocked by representatives of the `parent body'. In that sense, Pharmexcil is the golden goose," said a pharma industry representative.

Concurring with this view is Mr Dara Patel, Secretary-General of Indian Drug Manufacturers' Association (IDMA).

"About 2,600 members will be leaving Chemexcil and joining Pharmexcil. The pharma industry is a sunrise industry and can grow at about three times its current size; what is needed is a focused body to take care of issues related to this segment." Meanwhile, Chemexcil representatives have minced no words in expressing their opposition to Pharmexcil.

Mr Satish Wagh, Chemexcil's recently-elected Chairman, is quoted on his organisation's Web site saying that Pharmexcil's formation would have an adverse effect on trade.

Further, he has said that there are too many pharma associations - the Bulk Drug Manufacturers' Association, IDMA, the Organisation of Pharmaceutical Producers of India, the Indian Pharmaceutical Association ... not to forget the several State-level associations.

"The formation of Pharmexcil in addition to the above associations would be a sheer duplication of work. This will also add to more confusion in the minds of overseas buyers, resulting retardation in export growth."

But Pharmexcil's newly-elected Chairman, Mr D.B. Mody, told Business Line that a dedicated body was required to look into the specific requirements of its members.

"A number of smaller players are getting their manufacturing facilities USFDA approved as part of a plan to target regulated markets. A host of export opportunities will open up due to contract manufacturing, outsourcing of clinical trials and potential that lies in the herbal segment."

The domestic pharma industry looks to close this year with sales of about Rs 15,000 crore and is targeting Rs 50,000 crore by 2007.

Earlier, Pharmexcil was caught in a tug-of-war between Maharashtra and Andhra Pradesh, with both pharma-intensive States wanting to headquarter the association.

But with Andhra Pradesh promising the Rs 3-crore corpus, Pharmexcil would now be housed in Hyderabad and have a regional arm in Mumbai. It is slated to get operational by later next month.

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