The viability of the Pharma Limited Liability Partnership (LLP) business model, recently launched by All India Organisation of Chemists and Druggists (AIOCD), is set to be the main topic of discussion at a pre-AGM briefing on October 4 by the Tamil Nadu Pharmaceutical Distributors Association (TNPDA). The AGM will be held at the Hotel Presidency in Kochi in Kerala on October 5.
To provide a comprehensive explanation of the venture, TNPDA has invited A N Mohan, chairman of the Pioneer Poonam Pharma LLP in Thrissur, to the pre-AGM meeting, said organising secretary V G Somasundaram.
Somasundaram told Pharmabiz that distributor businesses are facing severe struggles, forcing them to explore alternative business models to ensure survival. The association, therefore, slated this year’s annual general body meeting in Kochi to specifically learn about the Pharma LLP model, which has gained significant traction in the neighbouring state of Kerala. The viability study on the cluster business model will be held on October 4, he said.
Talking to Pharmabiz, he said the traditional pharma distributors are facing a crisis of existence. Their major business hurdles include disintermediation via direct hospital supplies by manufacturers, market consolidation due to corporate acquisitions (such as Apollo Pharmacy), the rise of discount pharmacies, increased foreign direct investment (FDI), and competitive pressure from large-scale distributors. Consequently, the association has decided to conduct a feasibility study on the new model launched by AIOCD.
The pre-AGM briefing will commence at 4 pm on October 4. The business session will open with a motivational address by Kochi-based speaker Harish Kumar, followed at 5:30 pm by the key presentation, a detailed talk on the Thrissur-based Pharma LLP distributors’ consortium by A N Mohan.
The AGM is scheduled to begin at 9 AM on October 5. President C. Chidambaram, proprietor of Rajarajan Agencies, Tanjore, will preside over the session, with secretary N Rajan delivering the welcome address. Organising secretary V G Somasundaram will propose the vote of thanks. The AGM agenda is heavily focused on the industry’s ongoing business crisis, including discussions on GST-2 compliance, the financial impact of direct hospital supplies, and the market threat posed by corporate companies acquiring existing stockists/distributors.
In an important clarification, the organising secretary confirmed that there will be no election of new office-bearers this year, as the tenure of the current team expires next year. The association currently represents 900-member distributors, managed by a 70-member Executive Committee and a 10-member Advisory Committee.
Somasundaram also noted a significant development regarding membership, as of this year, no distributor from Pondicherry holds membership with TNPDA. He further clarified the meeting's regional scope, despite the AGM being held in Kerala, no local Kerala distributor has been invited to attend the meeting.
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