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 'Hologram
security will help Indian pharma companies get rid of
counterfeits'
Counterfeiting of drugs is an economic and social menace and
over the years this has grown into a well-organised criminal activity in
the country. Only a sustained and concerted action backed jointly by the
government, drug industry and consumer action groups can tackle it. Along
with this, innovations in packaging technology have come to play a stellar
role in helping the consumers identify the authentic products and to ward
off counterfeiters. In light of this, adoption of holographic security in
pharmaceutical packaging can help to some extent, and some of the leading
pharma companies have taken to holograms for their
products.
Rohit Mistry, chairman, Holographic Security
Marking Systems, has been instrumental in introducing the technology
of holography for commercial purpose in the country. He says that it was
rather impossible to tackle a crime like counterfeiting in a country,
where laws to protect the legitimate producer are not enforced
stringently, before introduction of this concept. Mistry, who established
Holotech, a company manufacturing holograms, in 1993 and currently vice
president of Holographic Manufacturers' Association of India (HoMAI) talks
about the emerging trends in the counterfeit market and the novel
solutions to resist the same in an exclusive interview with Suresh
Rathod of Pharmabiz.com. Excerpts:
Could you brief us about the
counterfeit market in India?
In the world, it is estimated that
around 5 to 8 per cent business is in counterfeits. In India almost
everyone has had the experience of buying a duplicate. The problem of
counterfeits is very crucial indeed. Almost every sector of business in
India is affected by illegal copying. I would estimate that counterfeits
in India comprise a parallel economy and in my opinion, this would be in
the region of about 25 to 40 per cent of the total business. Thus, the
hologram market in India has been growing at about 55-60 per cent per
annum over the last couple of years. This is much slower than forecast and
expectations, but this we believe, has to do with peculiar Indian
conditions.
Many studies have been undertaken to establish
the extent of counterfeiting in the pharmaceuticals market and most of the
studies show that 15-40 per cent medicines are counterfeit in India. A
recent study put the counterfeit medicines at about 20 per cent i.e. one
in every five medicines is counterfeit. A very alarming figure of
counterfeits, it is a delicate matter and many companies do want to
publicise the fact that their products are affected. We have purchased
several products which are look-alikes i.e. same drug, same type of
packaging and colours. It takes extra care in reading the fine print to
realise that it is not the original. From what we have been told by the
companies themselves, around 20 per cent to 30 per cent of their product
market is taken up by counterfeit products. One needs to develop an
anti-counterfeit strategy, but before it is done, one needs to come to
terms with the fact that there is a real counterfeit
problem.
How is the government tackling the threat from
counterfeiters to genuine manufacturers?
As the Indian economy
is being liberalized and opened up to foreign competition, there is an
urgent need to protect one's own marketshare. The consumers often cannot
tell the difference between the copy and the genuine product, therefore,
after unknowingly purchasing a counterfeit product of a famous brand the
consumer has a bad experience, resulting in bad publicity for the brand.
If this happens frequently, then a brand, which has taken years to build,
could be destroyed overnight.
The government has enacted the
laws and it is up to the police and other agencies to ensure that the laws
are implemented. In fact, it is not the paucity of the laws but the
ineffective implementation of the laws, which causes the real
problem.
How can a hologram be effective against counterfeiting
since even this can be duplicated?
Around the world, there are
over 36 currencies, which have incorporated holograms to deter
counterfeiters. If a hologram is correctly and properly designed then it
is the most secure form of marking developed today. Holograms are like
locks. One can buy a cheaper lock as well as an expensive lock with
quality, as well. One buys the correct lock after assessing the risk and
the value to be protected. It is the same with holograms. Do not expect an
inferior quality lock to protect your silver and gold. In order to do that
you will need to specify a more sophisticated lock.
Today
hologram can be bought for little as Rs 25,000 and at the other end for as
much as Rs 10 lakh and more. The hologram used on currencies would cost
more than that. Currently the holograms have come a long way from the
sticker, it can be designed to be applied in whatever way the customer
wants. This integration of the hologram into the product or the packing
makes it very secure form of marking.
How is pharmaseal
effective for pharmaceutical products?
Pharmaseal is a hologram
specially developed for the pharmaceutical industry. It is a
pharmaceutical aluminium foil with holographic stripe to ensure
authenticity of medicines. It is still the only product in the market for
authentication of genuine pharma products. Currently, they are being used
by Indian pharmaceutical companies like Alembic Ltd for their Roxid-150 mg
and Althrocin of 250 and 500mg, Cadila Pharmaceuticals for their Cipro 0
250, Rhone Poulenc (India) for their Phensydyl and Stematil. Others like
Knoll Pharmaceuticals, Medreich Sterilab (SB), Medrel Pharmaceuticals
(India), Maneesh Pharmaceuticals and Healthcare, Raptakos Brett and Co.,
Unichem Laboratories and Sol Health Pharmaceuticals are also using the
same for product security.
How many hologram producers are there
in India currently?
HoMAI has about 20 members and there are
probably about two or three others who are not members. Today, apart from
us only a few like Everest Holo Vision has the technology to manufacture
holograms for the pharmaceutical industry in India.
How
many types of holograms are available and what is its
market?
Hologram is an "umbrella" word to cover all types of
"diffractive optical variable image devices" (DOVID). Generally, holograms
are of two types viz. embossed holograms and dichromate holograms. Of
these, embossed holography finds wide application for pharmaceutical
products. Also most currencies use these types of images. Today there are
many features available that can be incorporated into an image to make it
secure; very much like a lock for which greater the security desired,
greater the number of levers attached. Similarly with hologram, what must
be noted is that it is now available for use on almost any surface and it
the combining of the technologies which make for increased
security.
What is the science behind a hologram and of what
material are these manufactured?
Holograms are actually 3-D
images formed using a laser and light sensitive material, which is
chemically similar to a photographic emulsion. Basically it records a
pattern of infinitesimal lines called interference pattern due to the
interaction of two beams of laser light. After processing, the hologram is
illuminated at the same angle as one of the beams (the reference beam)
used during the original exposure. The hologram re-creates the second beam
to form a virtual 3-D image. A hologram is a complex product as it
combines various disciplines i.e. physics, chemistry, printing, and
engineering together to produce the final product. It can create
everything your eyes see -- for e.g. size, shape, texture, and relative
position. Generally, most common type hologram media is the sticker --
this is made from polyester film, this is a self-adhesive type and can be
applied to most surfaces. Whereas the hologram on a credit card is fused
with the surface of the card and it is not a sticker. This type of
hologram is polymer coating based and is made up of several micro
layers.
Any new technologies in the offing?
The
holographic sector is known for continuous development. In fact, one needs
to continually be developing new products to keep pace with the
ever-inventive counterfeiter. Over the last few years there have been many
innovations and like all innovations it has a price.
Are the
holograms tamper proof and are they available in varied shapes and
sizes?
Almost all holograms available are tamper proof or
tamper evident. It is this very feature of the hologram, which has made
them so effective as a security device. Holograms, which we manufacture
are tailor made and therefore they can be made in any form, media, size
and quantity. A Japanese company has recently introduced the imaging
technology to arrest counterfeiting of pharmaceuticals. There have been
many imaging technologies, which have been introduced into the market.
However, any technique, which can be scanned or copied, is not secure.
Hologram cannot be scanned, electronically transmitted, photo copied or
duplicated by any known printing technique! This cannot be said of any
laser printing or ink jet printing or thermal printing - hologram is
unique.
In spite of counterfeiting problem of pharmaceuticals
why hasn't the pharma industry shown any interest towards putting
holograms on their products?
It is a complex issue. Companies,
which have used holograms have seen tremendous benefits. In order to take
advantage of the hologarm one needs to change the mind set from cost
analysis to benefit analysis. USA is the world's biggest user of holograms
- 60 per cent of the world's production is consumed in that country. They
use holograms despite having such an excellent and quick legal system,
efficient police force, etc. The Americans use holograms because the
hologram helps them to make more money, they believe in prevention rather
cure; that is why all the top American corporations use holograms to
protect their brands.
How will a hologram help a pharmaceutical
company to gain a bigger market share? Won't the technology make the
product expensive?
One has to know that a hologram also acts as
a good branding vehicle. A hologram pays for itself. Moreover, you recover
your lost market share and thus better profits. At the same time, the
consumer remains loyal to you because he knows that your product is
carrying a hologram thereby assuring him of genuine medicines at his time
of need. Well, the cost to use a hologram will not make the product
expensive since it is as low as an unbelievable just 3 paise for a very
basic sticker-type hologram. However, this has hidden costs of application
and inline wastage. The more cost effective method is to use PharmaSeal
holograms, which are combined with other packaging technologies to create
a secure protection from counterfeiting. Glaxo UK use holograms for their
Zantac drug and they say that the hologram helped them to increase their
sales by 12 per cent as they could to isolate the percentage that the
hologram made to the brand. The problem faced in India is that companies
are not forthcoming with their data.
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