Federation of Gujarat State Chemists and Druggists Association (FGSCDA) has floated a company called FGSCDA Ltd with a capital of Rs 300 million to launched pharma retail chain, reports Business Standard.
Commenting on the development, Jashwant Patel, president, FGSCDA said, “Currently, 22 to 23 organised retail players are enjoying monopoly in the drugs retailing market. The profits of individual chemists have squeezed substantially after the advent of corporate companies into retailing of these life saving products. In order to insulate we have foray into the retail chain business.”
Maharashtra State Druggists and Chemists Association (MSDCA) was the first in the country to launch state-wide retail chain, followed by Gujarat. Chemists in other states such as Madhya Pradesh, Tamil Nadu, Bihar and Rajasthan are on advanced stages of rolling out similar retail chains to protect the interests of small medical store owners. “In fact, the umbrella body of all the chemists associations in the country, All India Organisation of Chemists and Druggists (AIOCD), asked its members to launch such retail chains across the country,” added Patel.
FGSCDA has around 14,000 members, who will be made shareholders of the newly formed company. Though FGSCDA Ltd. is a private company, it will operate in a manner, which maintains the individual identity of each member of the company. “We will be buying medical products in bulk and the benefits will also be passed on to the customers in the form of better services,” concluded Patel.
— IndiaRetailing Bureau