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‘Pioneer Poonam Pharma LLP’, a new Limited Liability Partnership (LLP) model for the pharmaceutical business, a project championed by the All India Organisation of Chemists and Druggists (AIOCD) president, Jagannath Shinde, is set to be launched in Kerala soon.
The initiative, aimed at countering the growing influence of corporate pharmacies, online marketplaces, multinational distributors, and regional discount pharmacies, will kick off on August 20 in Thrissur. The inaugural event will be held at Hotel Asoka Inn and will be attended by Shinde himself.
The inauguration of the LLP business model will be conducted by Shinde at 11:30 am, with Vaijanath Jagushte, vice-president of the AIOCD, presiding over the event. Following the inaugural session, Jagushte will lead a separate session on ‘LLP-The Maharashtra Model’, which will be attended by pharma wholesalers, distributors, and retailers from all over Kerala.
According to A N Mohan, managing director of the Pioneer Poonam Pharma LLP, the new venture is a consortium of four wholesalers, with a plan to later absorb retailers after the project becomes successful. He said this business model is a dream of the AIOCD president, J S Shinde. He introduced the model in Mumbai, and several LLP units have since emerged across Maharashtra.
He explained that the AIOCD decided to launch this consortium model to counter the growing threat from corporate pharmacies and multinational companies. He noted that, much like MNCs taking over small firms, large corporations are now acquiring pharmaceutical trade firms, leading to monopolies. This trend makes it difficult for conventional pharmaceutical traders to compete, forcing many to close their businesses. The new LLP model is specifically designed to protect these traditional traders, especially retailers, who are also facing competition from new corporate-owned retail shops.
A N Mohan, who is also the president of the AKCDA, stated that one of the largest pharmaceutical business enterprises in Kerala, Devi Pharma in Thiruvananthapuram, has been acquired by the major corporate entity, Entero Healthcare Solutions. “To counter such attempts and survive the intense competition, we have also decided to form a consortium of business firms,” he told Pharmabiz.
Sharing more information about the LLP business model, Basavaraj Manure, the managing director of Solapur Pharma Hub LLP, explained that the General Agreement on Tariffs and Trade (GATT) has facilitated the entry of multinational corporations (MNCs) into India. He noted that several MNCs have already taken over Indian pharmaceutical business firms, and their attempts are growing. This trend creates fierce competition for Indian pharma traders, many of whom are forced to close their businesses. To address this, J S Shinde designed a new LLP business strategy, which is now being launched in many parts of the country. He added that one LLP unit has already started operations in Agartala in Tripura.
Speaking to Pharmabiz, Basavaraj said that there are 3,000 retail business shops in Solapur, and the Solapur LLP currently supplies 80 percent of them. He noted that there are now 30 LLPs operating across Maharashtra, a number that is expected to increase soon. According to Basavaraj, a single LLP has a daily turnover of Rs. 40 to Rs.45 lakhs and provides employment opportunities for many people.
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