Mumbai to get first cosmetics cluster

Small and medium-scale pharmaceutical and cosmetics manufacturers in Maharashtra are teaming up to form clusters as part of their strategy to survive and tap opportunities in the export markets.

As a beginning, about 90 cosmetics manufacturers have joined together to float the first cosmetics cluster in India - the 'Herbal and Cosmetics Cluster at Wasai and Western Suburbs of Mumbai,' at Wasai on the outskirts of Mumbai.

The Wasai cluster will also become the seventh cosmetics cluster in the world. At present there are only six such clusters "" two each in UK and France and one each in Jordan and Denmark, said Kajol Anand, president of the All India Small Scale Cosmetics Manufacturers Association.

According to S R Vaidya, vice chairman of SSI Committee of the Indian Drugs Manufacturers Association, the small-scale pharmaceutical manufacturers in and around Mumbai are also planning to set up similar clusters for pharmaceuticals.

Already, a bulk drug manufacturing cluster for more than 30 units has come up at Navi Mumbai, promoted by the Thane-Belapur Industries Association.

They said the cluster approach would help the manufacturers in capacity building, upgrading technology and creation of common manufacturing, warehousing and testing facilities. The cluster will undertake and assist in marketing of the products in export markets.

At present it is difficult for individual manufacturers to undertake expansion and modernisation according to international manufacturing standards like WHO-GMP (good manufacturing practice), as it involves investment worth many crores of rupees.

According to an official Central Drugs Standards Control Organisation (CDSCO) data, more than 100 units have been either closed down or their manufacturing licenses suspended in Maharashtra for not complying with the Schedule M norms (WHO-GMP) of the Drugs & Cosmetics Act, 1945. Another 67 units are in the process of upgrading to comply with the norms.

Medha Chavan, vice president of the All India Small Scale Cosmetics Manufacturers Association said marketing of cosmetics like shampoos, hair dyes, colour cosmetics and eyeliners, has become a major problem for the manufacturers in the small and medium scale segment.

The Rs.26,000 crore per annum domestic cosmetics market, growing at over 15 per cent every year, is mainly dominated by majors like Colgate Palmolive, Procter & Gamble, Hindustan Liver, Nirma, Paras Pharma and the like. Further, cosmetics manufacturers have to face dumping of cheap cosmetics products worth over Rs.600 crore per year from countries like China and Indonesia.

There are more than 2000 small and medium scale cosmetic manufacturers in India, accounting for Rs.8000-10,000 crore per annum of the domestic market.

The Mumbai region with more than 400 manufacturers, Delhi and the emerging tax holiday zones like Baddi are the major manufacturing hubs for cosmetics in the country.