Indian exporters undertaking supplies to global retailers like Wal-Mart and Metro will be required to affix the electronic product code tags on their consignments from the beginning of next year.
Adopting EPC technology standard is expected to facilitate detection of counterfeit merchandise, arrest pilferage and help asset tracking among other things, EAN India, the supply chain standards provider to the Indian industry, said on Monday.
EAN India, which is promoted by the ministry of commerce said Ranbaxy Laboratories, is already gearing up to apply EPC-based radio frequency identification (RFID) tags on cases/pellets to be supplied to Wal-Mart.
It said retailers can expect 25 per cent reduction in inventory levels, 80 per cent reduction in theft and fraud and 3 to 4 per cent increase in sales.
EAN India said the company was working with Indian exporters to adopt RFID technology based on the global 'EPCglobal Network.'
"As global retailers and buyers move rapidly towards directing their suppliers to adopt EPC-based RFID technology, Indian exporters would need to take pro-active steps to meet stipulated deadlines to protect and enhance their global market shares or else risk losing business opportunities," EAN India CEO Ravi Mathur said.
Mathur also said that besides global retailers, including Tesco and Albertsons, who insist on this standardisation, adoption of the technology is also being aggressively driven by bodies like USFDA and US defence department.