The Times of India, July
Mumbai : Your next door chemist shop is going
in through a lot of changes. Don't be surprised
if he offers you drugs at cheaper prices or
enrolls you on a customer loyalty program. On
his part, he may no longer be a standalone retailer,
but part of a big corporate entry in your state.
To tackle the threat from the organized retail
players setting up shop in the country, the
All India Organization of Chemists & Druggists
(AIOCD) is forming a privately held company
that will transform the next-door druggist into
the franchisee of an international pharmacy
It works out like this. AIOCD will start a
pan India Company called AIOCD Ltd. It will
be a holding company handling the logistics
and distribution. Further, every state will
have subsidiary of AIOCD. Shares of face value
Rs 10 will be issued to existing members (Chemists
and traders) based on their turnover. The new
company will procure and supply medicines to
the shareholders, taking care of their logistics.
As orders will be combined, the size of order
will give them power to bargain with pharmaceutical
All the subsidiaries and the holding company
will have a professional staff starting with
a CEO. "Only the board of directors will
comprise members from the association,"
said J S Shinde, general secretary, AIOCD.
"We have roped in consultants for various
functions such as connecting these stores through
the Internet, CAs for financial structuring,
HR, consultants for organizational structure
and banks for finance," Shinde said. TOI
has also learnt that a leading bank approached
AIOCD to lend them loans to the tune of Rs 2000
corer. Shinde refused to comment on it.
So how does it benefit you? The members of
the association need to follow certain norms.
These includes maintaining temperature of medicines
at a prescribed level, having certain portion
of a drug store in air-conditioned environment
and maintaining a minimum level of hygiene.