The sector witnessed just 2.2 per cent growth in January-May compared with 11.8 per cent growth in the same period last year, according to ORG Marg data.
Cumulative industry sales for the January-May 2003 period, as per the retail chemist audit conducted by ORG Marg, stood at around Rs 7,357 crore against Rs 7,055 in the same period in 2002.
The first calendar quarter this year witnessed sales of Rs 4,234 crore against Rs 4,120 crore last year. The sectoral growth last fiscal stood at 8.3 per cent.
The first quarter of the calendar year was even worse with the industry clocking a growth rate of 0.7 per cent against 11.4 per cent in corresponding January-March period last year.
Drugmakers are, however, expecting 6-7 per cent growth during the second half of the year.
Industry players and analysts attribute the drop in growth figures, particularly for the month of March, to the value-added tax controversy that erupted post budget. This was followed by the truckers strike which added fuel to the fire.
Moreover, according to analysts, though there has been a healthy volume growth for the period under consideration, growth in terms of value has suffered primarily on account of excessive competition.
