|
The Tamil Nadu Pharmaceutical Distributors Association (TNPDA) is set to conduct a feasibility study on the Pharma Limited Liability Partnership (LLP) business model launched by AIOCD.
This crucial assessment of the venture's viability will take place during the association's 22nd Annual General Body Meeting (AGM), scheduled for October 4 and 5 at the Hotel Presidency in Kochi.
According to sources, the decision to move the meeting from Ootty to Kerala was made specifically to learn from the successful implementation of the model by Pioneer Poonam Pharma LLP in Thrissur. The two-day meeting will serve as a feasibility study for the increasingly successful LLP model, which has been gaining traction in Kerala and in Maharashtra.
The purpose of this feasibility study is to provide a comprehensive analysis of the LLP model's practicality before TNPDA members commit significant resources. By interacting directly with members of Pioneer Poonam Pharma LLP, the association aims to understand the operational and financial aspects of the venture. This includes evaluating the potential for economies of scale and mitigating business risks associated with the new structure.
V G Somasundaram, the organizing secretary of the association, confirmed that over 250 major distributors from 26 districts of Tamil Nadu will attend the meeting. To get a clear picture, the chairman of Poonam Pharma LLP, A.N. Mohan, will be invited to speak. Somasundaram explained that while TNPDA and the AIOCD are rival associations, the invitation is based purely on the need to learn about the business model.
"Afterall we are all pharma traders..., just to explain about the model, we will invite him to our meeting," Somasundaram stated, highlighting the pragmatic approach of the association. The TNPDA, which supplies 95 per cent of the retail shops in Tamil Nadu, is keen to determine if the LLP structure can enhance their business efficiency and profitability.
The meeting will also touch upon the potential for expanding distribution networks into the Kerala market. By holding the AGM in Kochi, TNPDA members will have a prime opportunity to explore the local pharma landscape and consider new business avenues, as they currently only have a limited presence in the state through distributors in Coimbatore and Nagercoil.
TNPDA is the major association of branded formulation distributors in Tamil Nadu, supplying medicines from large corporations to medical stores and hospitals across the state. TNPDA members are the primary distributors, covering 95 per cent of the state's retail shops. Their strong presence and market share highlight the significance of any strategic decisions they make.
|