India Pharma Outlook Team | Thursday, 21 August 2025
The All India Organization of Chemists and Druggists (AIOCD) has ramped up its strategy to consolidate pharmaceutical distributors by forming the first Limited Liability Partnership (LLP) in Kerala. The new LLP, Pioneer Poonam Pharma LLP, was inaugurated in Thrissur, on August 20 at Hotel Asoka Inn, with AIOCD president Jagannath Shinde appearing virtually from Mumbai.
Pioneer Poonam Pharma LLP is Kerala's first pharma LLP since the launch of an LLP in Maharashtra, and the second launch in India, since another launch in Tripura. Shinde noted that consolidation was necessary for traditional distributors to stay competitive amid the rise of corporate players and foreign direct investment (FDI) in India's pharmaceutical markets.
"It is very important for us to keep business in the hands of Indian nationals, and our country," he said, highlighting how LLPs will allow wholesalers to function together and allow to survive.
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AIOCD vice-president Vaijanath Jaguste, CEO Anu Pharma LLP, and Ravi Patel, managing director Susheel Pharma LLP, spoke about how successful the model was. According to Jaguste, there are currently 30 functioning LLPs in Maharashtra and Tripura just added two. Janssen also indicated that in Kerala, it would not take long to launch additional LLPs in Thiruvananthapuram, Ernakulam, and Palakkad, following the launch of the LLP there already.
A N Mohan, CEO of all Pioneer Poonam Pharma LLP, also recently confirmed that the Thrissur unit of its new LLP will be launched on August 21. Discussions are also ongoing with stockists in Thiruvananthapuram to launch 4 additional LLPs with 16 stockists. Tamil Nadu plans to launch three LLPs within 60 days, showing the momentum in the consolidation movement is gathering pace.
