Plan for pharma SMEs to be penned

IDMA-Crisil study gets clearance from the Centre, UNIdo

The Central government and the United Nations Industrial Development Organisation (UNIDO) have in principle cleared a proposal by the Gujarat state branch of the Indian Drug Manufacturers' Association (IDMA) for preparation of a strategic paper that will be a roadmap of survival of small and medium pharmaceutical units in the new patent regime.

The strategic paper, which will cover both the formulations as well as the active pharmaceutical ingredient (API) processes, is likely to be completed by Crisil within six months.

The central government and the UNIDO will jointly bear the cost of preparing the strategic paper. The process is expected to cost between Rs 40 lakh and Rs one crore.

"This paper will not be just another academic exercise. It will be prepared in such a format that small and medium enterprises can actually use it to tackle the post-2005 situation. It has been decided to study the success stories of pharmaceutical companies in the US and Europe and how these can be adopted by our companies," said Kamlesh Udani, former president of the Gujarat state branch of IDMA.

The process of drafting the strategic paper began when the director general of UNIDO visited Ahmedabad a few months ago.

IDMA Gujarat state branch office-bearers suggested that while big pharmaceutical companies will be able to grow in the new patent regime, it would be very difficult for small units to survive unless a roadmap for their growth was chalked out.

Subsequently, IDMA contacted Crisil and moved a proposal to the central government through the state government. Although final details are still being worked out, sources said the report committee will comprise experts from Indian Institute of Management and the industry.

"Once completed, the report will provide significant support to the local industry," Udani said.

Udani said the IDMA-Crisil paper will be made available to all small scale pharmaceutical units across the country.

The Gujarat state branch of IDMA has been associated with UNIDO for the past five years. UNIDO has been assisting it in its cluster development programme. As many as 36 companies have so far obtained the Good Manufacturing Practices (GMP) certification under the cluster development programme.

There are about 800 small scale pharmaceutical companies in Gujarat. Most of them have a turnover of Rs 50 lakh or less.

In addition, 16 ayurvedic companies of Gujarat also have received the Gujarat state GMP certification. Besides, IDMA's Gujarat state branch and UNIDO have jointly organised several training programmes and workshops for SMEs.