Adag To Rewrite Drug Distribution Rules

[HetalDP 947]

ADAG to rewrite drug distribution rules

The Anil Ambani led Reliance Group is set to re-write the rules of drug distribution in India. Ambani's healthcare venture wants to cut out the middle men in the sale of medicines, reports CNBC-TV18.

Anil Ambani has set his sights on the lucrative business of drug distribution in India. In what could be the first serious attempt to break the conventional rules of pharmaceutical distribution, the Anil Ambani Group aims to strike partnerships with large distributors and cut across intermediaries like C&F agents.

Sources say that Reliance already has large warehousing facilities in more than 90 towns and can handle logistics at par with international standards. Large stockists like Jalaram Distributors admit that talks with Reliance are currently underway.

"We held several rounds of talks and we are progressing on it but nothing is finalised as yet," said Dilip Mehta, Jalaram Distributors.

Currently, drug companies appoint state-wise c&f agents, which later distribute drugs to stockists and retailers. Sources say that with Reliance taking the centrestage, drug firms wil need to deal with just one organised company. However, Reliance is not alone in the distribution game. Hongkong based Zuellig Pharma has also started its operations to provide organised distribution structure for pharmaceutical companies.

Reliance hopes to break the conventional model of drug distribution, which is expected to result in better inventory management and supply chain - something that could be at par with the global standards.

[supernova 47]

these reliance brothers would come in all segments and become market leaders in that

[KumaarShah 143]

hope ADA fails here also, otherwise the price of drugs will also be revised upwards as soon as he takes over this model of distribution.