Pharma Cold Chain Distribution In India

The overall Indian pharmaceutical market, which was US$ 40 Bn in FY 20, has crossed US$ 45 Bn in FY 22. The supply chain is complex, considering geography, infrastructure condition, and many intermediate entities. Higher government spending, higher prevalence of lifestyle diseases, growing awareness about health, and higher insurance coverage are some factors triggering the growth.

Major stakeholders are companies, government agencies, and service providers.

Companies

A small percentage of pharma companies are very conscious of compliance and quality. They are ready to go that extra mile and incur a higher cost to be compliant. However, for many companies, there is pressure to reduce the cost, and the best bet is the cost of freight/storage. They go in for the lowest cost criterion leaving last-mile delivery/storage to unorganized players.

There is also a reluctance to try new technologies like Blockchain and AI because it adds to the cost. The distributors have a strong hold through their cartel, and it becomes difficult to implement Good Distribution Practices.

Government

Though manufacturing pharmaceuticals needs licenses, and the National Body prescribes many compliances, surprisingly, there are no regulations for the distribution of drugs. The concept of Good Distribution Practices (GDP) was discussed as early…