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The office-bearers of the Tamil Nadu Pharmaceutical Distributors Association (TNPDA) are taking steps to revitalize the association by affiliating with the All India Chemists and Distributors Federation (AICDF), the national pharma distributors body.
High-level discussions between the two trade bodies are slated to take place at Kolkata later this month. Subsequently, a merger or affiliation agreement will be signed at the annual general body meeting (AGM) of the TNPDA. The leaders of AICDF will also attend the AGM which is scheduled in the month of September in Kerala, said K Somasundaram, organising secretary of the TNPDA.
Regarding affiliation with AICDF, Somasundaram has been in telephonic discussions with Joydeep Sarkar, the national secretary of AICDF, for several days. They have now decided to meet in Kolkata at the end of this month.
“The absence of a unified national trade body often complicates addressing the significant challenges faced by pharmaceutical distributors in India. Many of these issues stem directly from the business policies of manufacturing companies, including margin inconsistencies, appointment of separate distributors for hospital supplies, and other margin-related concerns. Given the common nature of these problems across the country, it is crucial for distributors nationwide to collectively address them. This is why we plan to collaborate with the All India Chemists and Distributors Federation (AICDF),” he told Pharmabiz.
Somasundaram, based in Tanjore in Tamil Nadu, stated that pharmaceutical companies, irrespective of their origin, are establishing distinct distribution channels for hospital supplies, offering a 15% margin to these specialized stockists. In contrast, authorized distributors, such as himself, are restricted to a 10% margin. He further indicated that some companies engage in direct supply to hospitals. This phenomenon, he observed, is prevalent across major urban centres like Chennai, Coimbatore, Madurai, Trichy, and Tanjore, where prominent pharmaceutical firms maintain separate distributors for institutional sales.
When asked about a potential collaboration with the All India Organisation of Chemists and Druggists (AIOCD), he clarified that TNPDA, being a distributors' body, does not wish to join AIOCD, which mainly represents retail chemists. He informed that the decision to associate with the All India Chemists and Distributors Federation was made at their last AGM in Ooty, acknowledging AICDF's strength in states like New Delhi, Maharashtra, Uttar Pradesh, and West Bengal. His personal aim, he said, is to bolster AICDF's footprint across South Indian states.
Joydeep Sarkar, national secretary of AICDF, when contacted, revealed that AICDF's very inception was supported by TNPDA, the regional association for pharmaceutical distributors in Tamil Nadu. He stressed that AICDF therefore feels indebted to TNPDA and is eager to partner with them moving forward. While discussions with senior association officials are in progress, he clarified that no information regarding a merger or affiliation can be shared currently. Sarkar plans to finalize the decision after a discussion with Suresh Renka, reiterating that the paramount interest is that of the TNPDA members.
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