The Hindu Business Line : Pharma majors alive with IT buzz

Following the merger, Pfizer Ltd has completed the IT-integration of Parke-Davis, Novartis has set up a software development centre in Mumbai, and Nicholas Piramal India Ltd (NPIL) has sharpened operational efficiencies with the implementation of i2, for supply-chain management, among other things.

"For anyone buying medicines at a chemist, it is important that the required medicines are available and that they are freshly baked. Marrying the IT infrastructure of two merged companies is critical since it facilitates the rational use of infrastructure.

It ensures the efficient use of working capital," points out Mr Sudipta K. Sen, Managing Director, Comsat Max — the company that has integrated the IT network systems of Pfizer Ltd and Parke-Davis, following their merger.

Comsat Max now connects Pfizer India's 49 points of presence (PoPs) on a `managed' hybrid network that combines VSATs — where an earthbound station uses satellite communications of data, voice and video signals to network,

Virtual Private Networks, that ensures security of information through encryption of data, ISDN and leased Lines. "We have addressed current needs and have built-in facilities for scaling-up, if required in future," Mr Sen said.

Manufacturing in the pharma segment has to plan for every batch of tablets or vials, besides factoring in the judgmental element.

For instance, if a seasonal illness such as conjunctivitis is on the spread, companies should be in a position to shore-up their inventory.

"Shortening the manufacturing processes increases profitability and brings down the cost. Such efforts in the pharma segment has reduced inventory on an average by 10 per cent. There is a cost saving on raw material and distribution, as time between finding out a requirement and supplying the same is reduced. This impacts sales and the profits," Mr Sen said.

The integration of Parke-Davis with Pfizer has been completed across the country, in less than a year, he added.

The post-merger IT integration, according to Mr Arun Gupta, Senior Director (Business Technology), Pfizer Ltd, has helped save at least 50 per cent of the cost incurred on the network earlier.

"Pfizer did have a network earlier, but post-merger the IT integration process brought in the opportunity for rationalisation," he said. The process of integration has cost the company "over a crore (of rupees)," he added.

Dr Swati Piramal, NPIL's Director - Strategic Alliances, said that domestic pharma companies were shaping-up to become more efficient in the face of competition. NPIL, on its part, has introduced customer relationship management systems and i2 over the last two years towards "efficiency, efficiency and more efficiency," she said.

Over the last couple of years, the company has invested about Rs 20 crore in improving operational efficiencies.

Recently, when Novartis established its IT centre in Mumbai, Mr Ranjit Shahani, Country President of Novartis India said, "The convergence of pharma and IT heralds the imminent changes likely to take place in the pharma industry post 2005, when India conforms to internationally recognised intellectual property rights."

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