Recent examples are of conflicts between Johnson and Johnson Ltd about trade margin that was far below the expected margin where chemists has banned the company at their retail level.
Because of this Johnson and Johnson got a major setback in the market and finally came forward to settle this issue. In Maharashtra many trade boycott has been demonstrated in few years against the companies like Glaxo- SmithKline Ltd, Plethico Pharma Ltd, Sarabhai Piramal Ltd etc. against their non- imbursement of claims and association got success in it as per their expectations.
As strengthening of trade unionism amongst chemist and druggists under A.I.C.D. A result into a new culture of compulsion of L.O.C./N.O.C (No Objection Certificate or Letter of Cooperation) for the launch of new product has been inculcated.
It has been seen that, at every time whenever company has to introduce a product / product range or appoint a new stockists or discontinue the stockists, it is bind for the company to collect L.O.C. from respected inter-state or inter-district union bodies.
Obviously charges are very high that has been taken under a headline of Advertising tariff and printing charges. Therefore it has found that for each district, company has to bear Rs. 500/- per product per strength at every time. Such a huge amount badly affects the profitability ratio of the company.