| Chennai-based discount retail chain Subhiksha Trading Services has landed into troubled waters in Ahmedabad.
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| In its plans to offer discount on medicines to customers Subhiksha has crossed the swords with the Ahmedabad Chemists Association (ACA) which is on the forefront of the protest.
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| Talking to Business Standard, Jashvant Patel, honorary secretary of ACA, said, “We oppose Subhiksha offering 10 per cent discount on medicines, as it would harm the interest of our members.” According to the association, providing discount on medicines would lead to unhealthy competition in the market.
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| “Our wholesale drug suppliers have been requested to give six per cent discount on bulk purchases by Subhiksha,” he said.
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| The discount secured from the local wholeseller drug supplier would be then passed on to the retail customers by Subhiksha at its pharmacy counters that it will come up along with its 40 outlets that it has planned to open in Ahmedabad.
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| While the remaining four per cent discount will be managed by the company. Subhiksha offers 10 per cent discount on all the products sold at its outlets.
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| On contacting R Subramanian, managing director of Subhiksha said that the company is facing problem from ACA as it has boycotted Subhiksha by not allowing its member to supply drugs to the company.
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| Subramanian further said, “It is an illegal step taken by the association and if needed we will approach the court on the matter”.
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| Refuting the allegation of Subhiksha, Patel said, “We have not boycotted Subhiksha. Members are free to supply drugs to Subhiksha but not at discounted prices as it would harm the interests of small retailers. We have created awareness amongst the member regarding the harmful affect on the retail business of our members”, he added. When asked what if ACA member defy the call of association and supply drugs at discounted price to Subhiksha, Patel said that none of the members would be supplying drugs to the company at discounted rates. However in case if any members do supply then the association would take appropriate action against the member.
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| Subramanian further said that the company is facing problems only from the Ahmedabad’s and Bangalore’s chemist association while it has no such problems from the chemists association in Delhi, Andra Pradesh.
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| The company had successfully tackled similar kind of problems earlier in Tamil Nadu. “We have succeeded in court cases in similar cases earlier and we are legally right even in present situation too”, said Subramanian.
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| However, he claims that there are some bulk suppliers in Ahmedabad, who are providing adequate drugs supplies to it.
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| “We will launch our pharmacy outlets in the next month”, said Subramanian. The pharmacy outlets are part of the Subhiksha’s grocery outlets.
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| The company is in the process of launching its 40 odd outlets in Ahmedabad and Vadodara in next two weeks and by November end the remaining outlets will be launched in all the state.
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| In total the company will open 80 outlets throughout Gujarat in cities like Surat, Vadodara, Vapi, Bharuch, Ankleshwar, Rajkot including Ahmedabad.
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| Ahmedabad Chemists Association claims to be the largest association in Gujarat with total 2500 member that includes 400 wholeseller and 2100 retail chemists. |
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