The Hindu Business Line : Medicine stocks worth Rs 180 cr destroyed in Mumbai floods

Several major pharma companies have their godowns at Bhiwandi, on the outer fringes of Mumbai, and these stocks have been destroyed by the floods, said Mr J.S. Shinde from the All-India Organisation of Chemists and Druggists.

Some drug companies also have their mothergodowns at Bhiwandi. So medicine supplies would be hit not just in Maharashtra and neighbouring States, but also other parts of the country, he said, adding it would take another 10 days to restore supplies. The pharma industry and trade will take a hit of about Rs 150 crore and Rs 30 crore respectively, he said. "About 90 per cent of sales are executed by companies after July 22. So godowns had huge stocks.

According to estimates based on stocks with C&F agents of pharma companies located in Bhiwandi, Cipla has lost medicine stocks worth Rs 20 crore, Ranbaxy about Rs 22 crore, Lupin about Rs 3.5 crore and GSK Pharma about 2 crore," he said.

Major companies including Nicholas Piramal, Novartis, Glenmark, Wockhardt and Pfizer had their godowns here, he said.

Mr Amar Lulla, Cipla's Joint Managing Director, told Business Line that estimates of stock destroyed could be more. "We are in the process of computing. But medicine supplies should not get hit, as we have depots in other parts of the country, including a large one in Pune," he said. Usually large companies have depots across the country, he said, putting to rest concerns of shortages in medicine supply.

Estimates of destroyed medicine stock could not be independently verified from other companies as representatives were unavailable during the weekend.

Pfizer's Managing Director, Mr Kewal Handa, said: "Stocks of pharma companies have been completely destroyed at Bhiwandi. If an epidemic breaks out, there may be no medicines. Medicines worth several crores are stocked here for other parts of the country."

Unhappy with the pace of restoration efforts, he said: "Companies will be taking a hard look at running their business in Maharashtra. There was no power, connectivity and water is unlikely to be restored in the industrial area (housing production units) for another five more days. This is serious trouble for drug companies with a liquid line."

Only FDC Ltd has announced that stocks at Bhiwandi have been damaged due to heavy rain and flooding. "The company is in the process of assessing the damage and lodging a claim with insurers," it said. Meanwhile, several pharma companies took the day off on rained-out Wednesday. Except for Unichem's plant at Roha, no drug company has said that its manufacturing facility had to be closed due to floods.

Scientists at Nicholas Piramal's new research centre at Goregaon, on Mumbai's northern suburbs, got a long rain-enforced weekend.

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