Micro, Small, and medium enterprises (MSMEs) have outstanding occupancy in the ancillary industry, the India Pharmaceutical Alliance (IPA) said in a statement.
IPA President Satish Reddy said,” The ancillary industry plays a crucial role in the pharmaceutical supply chain. Immediate action is required to support ancillaries for the pharma industry to function. Support can be provided to ancillaries by identifying interventions that will enable early revival in selected segments and clusters.
A report on the theme of ‘Reviving the Pharma Ancillary industry – A Roadmap with Resilience to Excellence‘ by IPA and Accenture states that several short and long terms efforts are required to be made by all stakeholders for the revival of the ancillary industry.
The short terms efforts should be related to the disbursal of financial relief to MSMEs ancillaries by the government and to ensure manpower at work.
The ancillary industry needs to implement a robust disaster management framework across the network backed by greater transparency. There’s also the need of a cross-industry collaboration platform for greater transparency in the ancillary value chain by identifying supply risks proactively. Cross-industry collaboration platforms are led by large Indian pharma manufacturers.
The long term goals recommended in the report for the ancillary industry should include limiting dependency on imports from single geography to manage supply disruption, requiring the government to identify strategic active pharmaceuticals ingredient (APIs) for native manufacturing.
The report also said, ” Facilitate Execution of this plan through early approvals of clusters, lower borrowing costs, setup of common utilities and research-based linkages for continuous innovation”.
Knowledge sharing and mentorship facilitate by IPA and Pharma companies will enable ancillary competitiveness because of access to economical innovation, better payment terms, sourcing assistance, and persuading pharma to accept a hike in price.
IPA Secretary General Sudarshan Jain said, “Indian pharma sector landscape is evolving. With the revival of API and ancillary industry, India’s pharma sector is on its way to becoming a self-dependent sector. IPA will also work collaboratively to assist in implementing the recommendations in the report to aid industry”.