Mumbai, July 1: The controversy surrounding the boycott of Cipla's drugs by the Maharashtra State Chemists'and Druggists' Association (MSCDA) is set to be further complicated with retail chemists in certain pockets of Mumbai raising doubts over the apex body's move. While both the company and MSCDA stick to their guns, caught in the crossfire are thousands of asthma patients who depend on Cipla's products.

Cipla is the market leader in the anti-asthamatics market and key products include Asthalin, Beclate, Cromal and Fenovent. The boycott call is being questioned by a section of the retailers in the north-eastern zone of Mumbai who claim that the entire exercise is aimed at safeguarding the interests of stockists. Average business earnings of Cipla stockists per month in the city is Rs 15 lakhs, they claim. Retailers say that additional stockists would translate into better service for them. "While stockists want monopoly, they want more chemist shops to be set up. To enlist the support of chemists, vested interests are spreading rumours that the company is reducing margins, not settling breakages etc," they said.

Industry sources said that the entire controversy began when the company informed the Nagpur Chemists and Druggists Association (NCDA) about the need to appoint additional stockists in the city following a 200 per cent jump in sales there. Cipla has five stockists in Nagpur of which three parties were regular defaulters. While Cipla identified "Puneet Agencies" as stockists in Nagpur city, the association failed to give them a no-objection certificate (NOC). Instead, the association approved the appointment of a stockist at Kamthi, 25 km from Nagpur city limits. This, sources said, would not have catered to chemists in the city and was hence unacceptable to Cipla.

Under these circumstances, the company was forced to appoint "Captain Distributors", currently a stockist for Dabur's consumer division and a non association member, as a stockist in Nagpur. This, according to the MSCDA, violates the norms agreed to between the trade and industry. Sources, however, added that Captain Distributors was willing to become a member of the association. Similarly, Cipla asked for seven additional stockists in specific areas in Mumbai due to phenomenal growth in sales, new products launched and an increasing field strength. The Pharmaceutical Wholesalers Association (PWA), allegedly influenced by the MSCDA, failed to respond favourably and instead initiated a boycott of Cipla's products, sources said.

Cipla's "stockist needs" are well within industry standards, sources said. While Glaxo-Wellcome has 28 direct stockists and 36 sub-stockists against an average monthly turnover of Rs 1.92 crore, Cipla has 21 direct stockists and no sub-stockists for an average turnover of Rs 1.62 crore.

Sources added that the stockists sought a meeting with the company to resolve the issue on May 21 but allegedly walked out as their association members were not present. Both parties put forth their case at the next meeting on June 21 but no compromise was arrived at. Yet another meeting stands scheduled for July 4, sources said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.