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September2009
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ExecutiveSummary
MarketThe
market
is
valued
at
INR
216
bn
in
2009;
Estimated
to
reach
INR
432
bn
in
2011
Themarketisfragmentedanddominatedbytheunorganizedsector
Thereare8,00,000pharmaciesinIndiawithabout60,000distributors
Drivers&
Drivers:
Growthin
pharmaceuticals
sector
Increaseinhealthcarespending
Changingdiseaseprofile
Challenges:
Fragmentedindustry
Longdistributionandsupplychain
Counterfeitdrugs
Challenges Consumerattitudes Attractivemargins
GrowthinOTCSegment
FDIregulations
LoyaltySchemes
Trends
ValueAddedServices
TieupswithRetailfirms
RuralExpansion
EntryofPrivateLabels
OrganizedRetailersstartingPharmacyChains
Apolloleadsintheorganizedpharmaretailmarketwithhighestnumberofoutlets
2PHARMACYRETAILMARKET INDIA.PPT
Competition LeadingorganizedplayersincludeApollo,MedicineShoppe,MedPlus,ReligareWellness, Primarilyorganizedretailchainsoperateeitherasacompanyownedorasafranchiseeoutlet
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Drivers&
Challenges
ren s
GovernmentRegulations
Competition
Key
Developments
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Themarketishighlyfragmentedanddominatedbytheunorganizedsector
Thereare8,00,000pharmaciesinIndiatoday,
withabout60,000distributors
MarketOverview Overall
Market
Size
&
Growth
INR bn
Marketisfragmentedanddominatedbythe
unorganizedsector
Growthinthismarketisdrivenbyincreasing
432
216
200
400
600+41%
,
retailingandattractivemargins
Theentryoforganizedplayersischangingthe
faceof
the
pharmacy
business
in
India Revenuesplit OrganizedvsUnorganized
0
2009 2011
2%
Organized eorgan ze spaceo p armacyreta ng s
dominatedby1012bigplayers
Primarily,organizedretailchainsoperateeitheras
acompanyownedormanagedstoresorasa
98%
Unorganized
InIndia,pharmacies/drugstoresarethe
dominantdistributionchannelgenerating74%
oftheoverallpharmaceuticalsales
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Pharmacychainsareexpandingoperationsusingvariousstoreformats
StoreFormat Description
HospitalPharmaciesTheyarehousedinhospitals&dispensealimitednumberofmedicines
Theycatermainlytotherequirementsofpatientsadmittedinhospitals
StandaloneStores Storesarelocatedneartheresidentialareas
Someofthesestoresofferhomedelivery
Thetargetcustomersaremiddleandupperclasshouseholds
Malls/ShopinShopsThesearelocatedinsupermarkets,mallsordepartmentalstores
SpencerhastieupwithLifeKenMedicinesforitsDailystoresinSouth
India
Townships Pharmacychainsareplanningtosetupshopintownships
ApollohassignedanagreementwithHindustanConstructionCo.(HCC)
tosetupamedicityinsidetheupcomingprojectLavasanearPune
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Drivers&
Challenges
ren s
GovernmentRegulations
Competition
Key
Developments
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Drivers&Challenges
Drivers
Growthinpharmaceuticalssector
Challenges
Fragmentedindustry
Increaseinhealthcarespending
Changingdisease
profile
Longdistributionandsupplychain
Counterfeitdrugs
GrowthinOTCsegment
Consumerattitude
FDIregulations
Attractivemargins
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Growthinpharmasectorandorganizedpharmaretail
isexpectedtoboostpharmacyretailinIndia
TheIndianpharmaceuticalindustryranks4thinvolumetermsand13thinvalueterms
Thedomesticpharmaceuticalmarketislargerthantheexportmarket
Growthin
pharmaceuticals
sector
Impact
Retailmarketaccountsforthreequartersofthepharmaceuticalswhiledirectsalestothe
hospitalsandnursinghomesaccountsfortheremainder
GrowthofPharmaceuticalIndustry
INR bn
758524
0
500
1,000
2008 2012
+
Growthinpharmaceuticalsectorhasattractedmanyorganizedplayersinpharmacyretailing
Newplayersincludenotjustthosewithapharmaceuticalorhealthcarebackgroundbutalso
corporatesfromothersectors
GrowthofOrganizedPharmaRetail
38.7
10.1
0
50
+40%INR bn
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Increaseinhealthcarespendingisdrivingretailsalesofpharmaceuticalproducts
Increasein
healthcare
spending Impact
Healthcarespendinghas increasedwiththeincreaseindisposableincome
Healthcareislikelytobeoneofthefastestgrowingcategoriesapartfromcommunication,
educationandrecreation
AverageIndianspendingonhealthcareisexpectedtoreach13%
Peoplearereadytospendonpreventivecareandproductintegrity;alongsidevalueaddedservices
SpendingonhealthcareislikelytoincreaseasIndiaiswitnessingchangesinitsdemographic
pro eaccompan e w es y e seasesan ncreas ngme ca expenses
%
HealthcareSpending
915
60
80
411
25
7
17
29
9
19
13
20
Healthcare
Education , Recreation & Communication
Transportation
5642
3425
0
20
40 29Personal household products utilities apparel
Food Beverages and Tobacco
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1995 2005 2015 2025
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Riseinchronicdiseasesisdrivinggrowthinthissector
ThediseaseprofileinIndiaischangingfrominfectiousdiseasestolifestylediseases,which
requiresmoreintensivecare
Changingdisease
profile Impact
Theincidenceoflifestylediseaseshasincreasedwiththechanginglifestyle
Indiaishometothelargestnumberofdiabetespatients
Stressboth
at
work
and
at
home
is
likely
to
result
in
increase
in
number
of
people
suffering
from
hypertension
,
medicinemandatory
MountingChronic
Diseases
3.3
3.7
4.9
4
6
2005 (%)
2015 %
36 62 31 46 14 34 2 2.5Population
(mn)
0.2
1.3
.
0.2
.
0
2
Coronary Heart Diabetes Obesity Cancer
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RisingsalesofOTCproductsisdrivinggrowthinpharmacyretailinginIndia
Retailpharmastoresofferseveralproductsunderoneroof,frommedicinestocosmeticsin
ordertotargetvariousneedsofthecustomers
Growthin
over
the
counter
(OTC)
segment Impact
IndianconsumershaveincreasedconsumptionofOTCproductslikeanalgesics,cough,coldand
allergyremedies,digestiveremediesandmedicatedskincareproducts
Medicaldrugs
make
up
70
80%
of
the
pharmacies
sales
while
non
pharma
products
constitute
2030%
CoughColdandAllergy
19.7
+20%INR bn
Analgesics
+12%INR bn
Digestives
+16%
INR bn..
0
20
2005 2006 2007
...
0
10
2005 2006 2007
...
0
10
2005 2006 2007
Vitaminsand
minerals OthersSkin
treatment
7.35.75.3
5
10
+18%INR bn
29.424.622.3
20
40
+15%INR bn9.5
7.87.0
5
10
+16%INR bn
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2005 2006 20072005 2006 2007 2005 2006 2007
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FavourableconsumerattitudeandattractivemarginsisdrivinggrowthinpharmacyretailinginIndia
Indianconsumersconfidentlyselftreatawiderangeofcommonailmentssuchascough,cold,
fever,painandsprains,heartburnanddiarrhea.
Consumerattitudes Impact
Do nothing8%
Self-medication
ConsumerBehaviourforMinorAilments
Go to the pharmacist45%
Go to the doctor
24%
Highmarginsinpharmacyretailingdespitepricecontrolshavemadeitalucrativebusiness
Attractivemargins
Level Margins
ScheduledDrugs NonScheduledDrugs
Stockistordistributors 8% 10%
Retailers 16% 20%
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Fragmentationintheindustryhasledtodecreaseinrevenueperstore
Thepharmacyretailtradeishighlyfragmented,unorganizedanddominatedbysmallchemists
IntheUSandEurope,pharmaceuticalretailissignificantlyconsolidatedwithfewerpharmacies
Fragmentedindustry Impact
servingmuchlargermarkets
48%54%
ShareofOrganizedPharmacyRetail
India
3%
UKUS
Althoughmarginsarehigh,increasedproliferationandfragmentationhasresultedinlow
turnoverperstore
Fragmentedstateoftheindustryhasresultedinprotectionistattitudeofunorganizedplayers,
whichis
using
the
strength
of
its
number
towards
creating
entry
barriers
for
large
and
efficient
players
AllIndiaOrganizationofChemistsandDruggists(AIOCD),representingover0.55mnchemists,isplanning to
corporatiseitsoperationsbybuildingpanIndiandrugretailchains
Thisassociationhascontrolonthemanufacturers,hencelimitingthesupplyofdrugsonlythroughthe
authorized wholesale distributors limitin the mar ins and controllin the additional volume discounts that
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couldbe
passed
to
the
consumers
and
by
organized
retailers
i ib i h l i f i b h
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Distributionchannel
consists
of
many
tiers
between
the
manufacturersandtheconsumer
Distributionishighlytieredanditisdifficulttodirectlysourcefrommanufactures
PharmasupplychaininIndiacomprisesofmultiplelayersofsuppliers,middlemenandretailers
Longpharma
distribution
and
supply
chain
Impact
Pharmacompaniesappointcarryingandforwarding agents(CFA)foreverystate,sometimes
morethanoneforlargestatessuchasMaharashtraandUttarPradesh
Theymoveproductstoatleastonestockistorwholesalerinsmallercities,whothenpassthemonto
neighbourhoodmedicalshops
, ,
eventhousands
Manufacturer
CFA/CompanyDepot
Distributor/Stockist
Hospitals Pharmacy RetailChains
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C f i d d FDI l i i d i d
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Counterfeitdrugs
and
FDI
regulations
impede
industry
growth
Over35%centofthedrugssoldthroughretailpharmatradeisspuriousorfakeinIndia
Thecounterfeitdrugsindustryisnolongerrestrictedtotabletsandcapsulesandhasgraduated
Counterfeitdrugs Impact
toproductionofexpensiveandsophisticatedinjections,expensivetabletsandinhalers
Presenceofonlinepharmacieshasledtoanincreaseindrugtrafficking,unauthorisedimportof
medicinesand
unauthorised
sale
of
drugs
resulting
in
an
increase
in
spurious/
counterfeit
drugs
Inthenext10years,counterfeitdrugsisexpectedtobethesinglebiggestprobleminpublic
ea n n a
MonitoringandcontrollingcounterfeitdrugsisdifficultowingtofragmentednatureofIndustry
Currently,regulationspermit100%foreigndirectinvestment(FDI)onlyinsinglebrandstores
Pharmaretailfallsintothemultibrandcategoryhenceforeignplayersfinditdifficulttoenter
India
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Drivers&
Challenges
ren s
GovernmentRegulations
Competition
Key
Developments
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Trends
LoyaltySchemes
ValueAddedServices
`Trends RuralExpansion
EntryofGovernmentinPharmacyRetailing
EntryofPrivateLabels
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OrganizedRetailers
Starting
Pharmacy
Chains
O i d l ff i l lt h f t i i
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Organisedplayers
are
offering
loyalty
schemes
for
retaining
customers
Organizedpharmacychainsareofferingloyaltyschemesintheformofrewards,points,gifts,
freehealthinsuranceforretainingcustomers
LoyaltySchemes
Loyaltyschemes
Pharmacy LoyaltyScheme Description
Apollo AnyTime
Medicine
Card Card
entitles
its
customers
to
avail
ahealth
voucher
worth
INR500orafreehealthinsuranceworthINR20,000on
purchaseofproductsworthINR6000 fromApollostoresin
organized
retailers
CRSHealth WellbeingClub ItcreditspointsonpurchaseofminimumINR800
Onevery20pointsearnedin6monthsitcredits5bonus
points Pointscanberedeemedinmultiplesof10within6months
Guardian AdvantageCard CreditsapointforeveryINR10spent
Pointscanberedeemed after accumulating200points
Forevery200pointsredeemedmembergetsfreeshopping
creditworthINR50
MedicineShoppe ShoppeSelect PointiscreditedforeveryINR12.5spent
Pointscanberedeemedafteraccumulating 168points
98.4Degrees TotalHealthCard ItcreditsonepointonanexpenditureofINR500
Pointscanberedeemedafteraccumulatingaminimumof10
18PHARMACYRETAILMARKET INDIA.PPT
po nts nmu t p eso
Eachpoint
has
alife
of
6months
V l dd d i i t d i h
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Valueadded
services
emerging
as
anew
trend
in
pharmacy
retailing
Organizedstoresareofferinghostofvalueaddedservicesapartfromsellingmedicinessuchas:
Diagnosticandpathologicaltests
ValueAdded
Services
Pharmacy
Healthrelatedconsultancy&Medicalinsuranceadvisory
HomeDeliveryServices
conventional
retailingPharmacy Services
Apollo Apolloprovidesmedicinedeliveryservices
Apolloalsooffersfreemedicinereminderservice
Itsnewconcept NurseStationprovidesnursestoattendtothepatientsattheirhouses,or
referthemtoanApolloClinic
Guardian ItoffersfacilityoforderingmedicinesonPhone
LifeKen Itoffersfreehomedeliveryservices foritsmembers,between7am 9pmwithout
minimumbillingcommitments,italsoacceptsordersthroughemail
Medicine
Shoppe
Ithastiedupwithpharmaceuticalcompaniestoofferfreediagnosisfordiabetes,blood
pressureetconceaweek
,
,
againstpurchase,personalaccidentinsurance,householdfireinsurance,freecriticalcare
insurance
MedPlus MedPlusoffersdiagnosticlabservices
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Ti ith t il fi d l i i
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Tieups
with
retail
firms
and
rural
expansion
are
upcoming
trendsinthissector
Pharmaciesarealsotyingupwithretailerstoensurewiderdistribution
Tieups
with
Retail
firms
Tieupsaimedat
improving
distribution
Apollo IndianOilCorporation SetupstoresacrossitsretailgasstationsinIndia
Guardian KendriyaBhandar Set
up
pharma
stores
at
its
retail
outlets
in
Delhi
and
NCR
Region
RuralExpansion
LifeKen Spencer SetuppharmacystoresinSpenceroutletsinSouthIndia
rgan ze p ayersare arge ng erura areas npar ners pw ex s ngre a p ayers
Market
expandingto
ruralareas
Pharmacy RetailFirm Description
Apollo GodrejAadhar ToestablishpharmaciesatAadharOutletsinRuralAreasunder
the
brand
Apollo
Aadhar
PharmacyApollo ITCEchoupals
ChoupalSaagar
Distributingmedicinesinruralareas
Guardian DCMShriram TosetupitsAushadhichainofruralpharmaretailoutlets
withintheHaryaliKisanBazaars,theruralinitiativeofDCM
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Entr of go ernment organi ed retailers and pri ate labels
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Entryof
government,
organized
retailers
and
private
labels
hashelpedingrowthofpharmacyretailing
TheGovernmentofIndiaisplanningtodistributeessentialmedicinesthroughGovernment
retailoutletsJanAushadhiStoresataffordableprices
Entryof
Government
in
Pharmacy
Retailing
Entryaimedat
ThefirstofsuchJanAushadhioutletswasopenedinPunjabinNovember2008
Unbrandedversionsofgenericdrugsincludingpopularantibiotics,painkillers,coughandcold
medicationwill
be
available
at
these
'Jan
Aushadhi'
stores
Entr ofPrivateLabels
affordable
medicines
Someretailchainsarenowgettinggenericdrugs,suchasparacetamol,contractmanufactured
bylicensedthirdpartiesandthenmarketingthemundertheirownbrandnames
MedPlusHealth
Services
plans
to
sell
28
drugs
under
its
own
brand
at
its
600
outlets
Tenofthese,includingoverthecounterproductstotreatdiabetesandhypertension,arealreadyonMedPlusshelves
Privatelabelsto
providelow
cost
alternativeSuchmedicineswillbeavailableata15%discounttocomparabledrugs
RelianceRetailLtd,hasenteredpharmacyretailingthroughitsRelianceWellnessstores
It
established
three
such
stores
in
Hyderabad
and
Bangalore
and
one
in
Mumbai,
and
is
planning
to
increase
OrganizedRetailersStartingPharmacyChainsmedicines
thenumberto30stores
TheWellnessstoreswillofferhealthfoods,personalcareandhealthcareproducts
MoresupermarketsbyAdityaBirlaRetailisplanningtohouseapharmacy
PantaloonsispresentinpharmacyretailthroughTulsi,theMedicineBazaar,apharmacyhoused
toincrease
21PHARMACYRETAILMARKET INDIA.PPT
w n g azaarsan oo azaarsa over oca onsa over n a
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Drivers&
Challenges
ren s
GovernmentRegulations
Competition
KeyDevelopments
22PHARMACYRETAILMARKET INDIA.PPT
Drugs & Cosmetics Act 1940 regulates distribution and sale
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Drugs&
Cosmetics
Act
1940
regulates
distribution
and
sale
ofdrugsandcosmetics
Drugs
&
Cosmetics
Act
1940
Toregulatetheimport,manufacture,distributionandsaleofdrugsandcosmetics
ActspecifiescertainminimumrequirementsforgrantofapharmacylicenceObjectives
Licensing TheStateGovernmentappointsLicensingAuthoritiesforgrantofapharmacylicence
Anoriginallicenceorarenewedlicencetoselldrugsisvalidforaperiodoffiveyears
Fordrugsstockedforsaleatmorethanoneplace,aseparatelicenceisrequired,inrespectofeachsuchplace
Thepremisesofapharmacymustbeseparatedfromroomsforprivateuse
Thepremisesneedtobe wellbuilt,dry,welllitandventilatedandofsufficientdimensions
Goodsmustbeclearlyvisible
Thearea
of
the
section
to
be
used
as
dispensing
department
must
not
be
less
than
6square
meters
for
one
pharmacistworkingthereinwithadditional2squaremetersforeachadditionalpharmacist
Guidelinesfor
Premises
Theheightofthepremisesmustbeatleast2.5meters
Thefloorofthepharmacyisrequiredtobesmoothandwashable
Guidelinesfor
Furnitureand
Drawers,glassesandothercontainersmustbeinapositiontobeclosedtightlytopreventtheentryofdust
Everycontainershallbearalabelofappropriatesize,easilyreadablewithnames
Apparatus rugs,
c em ca s,
an
me c nes
s a
e
ep
naroom
appropr a e
o
e rproper es
an
nsuc
spec a
containersthatwillpreventanydeteriorationintheirproperties
General
Provisions
ApharmacymustbeoperatedunderthecontinuouspersonalsupervisionofaRegisteredPharmacistwhose
nameisrequiredtobedisplayedinthepremises
23PHARMACYRETAILMARKET INDIA.PPT
A recor san registersnee to emaintaine inaccor ancewit t e awsin orce
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ApolloPharmacyleadstheoverallmarket
Apolloleadsintheorganizedpharmaretailmarket
withhighestnumberofoutlets
CompetitionOverview Organized
Pharmacy
Distribution
740Apollo Pharmacy
Sectorhaswitnessedtheentryofnewplayers
Almostallplayershaveexpansionplans
Organizedpharmaretailchainsoperateinthree
models: 112
130
350
600MedPlus
Himalaya
Medicine Shoppe
Religare Wellness
Fullyownedstores
Apolloprefersfullyownedmodel
Franchisemodel
MedicineShoppesoperatesinthismodel 35
50
92
Guardian Lifecare
LifeKen
Trust Chemists
Tulsi
Combinationofownedandfranchisestores
Guardianprefersacombinationalmodel
Franchiseemodelhasenabledlossmakingstand
alonestorestobeabsorbedbyorganizedretailers
10
12
14
25
.
Frank Ross
Muthu Pharmacy
NewU
Dial for health
RetailoutletsofplayerslikeHimalayasellonlyits
products
Leadingplayersaretargetingruralareasandare
6
6
0 200 400 600 800
Cure & Care
Reliance WellnessNo. of Stores
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MajorPlayers(1/7)
Pharmacy Promoter NumberofStores BusinessDescription
Apollo ApolloHospitals 740 Itispresentin17statesincludingAndaman&NicobarIslands Itsruralinitiativeincludesatieu withITCsechou als Chou al
Sagar)andGodrejsAadhaartoprovidemedicinesinruralareas
Itisplanningtoexpandusingthefranchiseroute
Itis
planning
to
meet
atarget
of
1500
stores
by
2010
Cure&Care ManipalGroup 6 Itsstoresarepresentinmallsandneighbourhoodstreetswithcarpetsizeof7,000to8,000sqft
IthastiedupwithAdityaBirlaGroupandJubilantRetailtoopen
100outletsintheirmallsandstoresby2012
ItisthefirstretailhealthcarecompanyinIndiatohavereceived
theACHSI(AustralianCouncilonHealthcareStandards
International)certification
Besidesthepharmacy,itscentresprovidehealthcheckupsand
consultancyservices
It lans to invest INR 2 bn in the health wellness and beaut
segmentinthenextthreeyears
Itaimstoadd50centresby2011and100shopinshopby2010
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Note:Thislistisnotexhaustive
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MajorPlayers(2/7)
Pharmacy Promoter NumberofStores BusinessDescription
Dialforhealth ZydusCadilla 10 IthasninestoresinMumbaiandoneinPune
,
bloodpressureandbodyfatcontent
Itis
presently
focusing
on
Mumbai
for
its
retail
operations
Itsstoresareairconditionedandtheyoffervalueaddedservices
likeautorefillfacilit andfreedeliver within3kmsfromthe
pharmacy
Financials:
ZydusCadilla
reported
total
sales
of
INR
17.8
bn
and
profit
after
taxofINR2.3bninFY200708
FrankRoss Emami 25 Thesizeofeachpharmacyis350to600sqft
Someofitspharmaciesarelocatedinhospitalsandsomearestandalonestores
ItisplanningtoinvestINR980mninordertoexpandto100stores y2012
Financials:
EmamireportedtotalincomeofINR6bnandanetprofitofINR
927.5mninFY200708
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Note:Thislistisnotexhaustive
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MajorPlayers(3/7)
Pharmacy Promoter Number
of
Stores BusinessDescription
Guardian GuardianLifeCare
110 IthasplannedinvestmentsofoverINR1bnforexpansion
Itcurrentlyoperatesin15citiesinNorth,East&WestIndia
Itis
planning
to
meeting
its
target
of
250
stores
in
2009
and
has
earmarkedINR1bntowardsexpansion
ma aya Company
ss oress owcaseen rerangeo ma aya rugs, rom
pharmaceutical,personalcaretobabycareandanimalhealthcare
atcompetitiveprices
Ithas
150
exclusive
retail
outlet
formats
(300
sq
ft),
more
than
200 sho insho outlets 6070 s ft and an online sho in
website
ItisexpandingitsretailpresenceinIndiaandabroadbyadding
300exclusivestores
Lifetime
92 Healthcare
Pvt.Ltd
ItplanstoaddstoresinMumbai,Pune,HyderabadandKochi
InOctober2006,LifeKenacquiredPill&Powder,theoldestplayer
inpharmacyretailinBangalore
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Note:Thislistisnotexhaustive
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MajorPlayers(4/7)
Pharmacy Promoter Number
of
Stores BusinessDescription
Medicine MelroseTradingCompanyLtd
130 ItistheIndianarmretailpharmacychain,MedicineShoppe
International ownedb thedru tradin ma or CardinalHealth
MelroseTradingCompanyisthemasterfranchiseethatrunsthe
operation
in
India Alltheoutletsareaminimum400sqftinsize
OutletsinseveralcitiesofMaharashtra Gu arat Goa Delhi Uttar
Pradesh,WestBengal,AndhraPradeshandKarnataka
ItfollowsthemodeloffranchiseestoresinIndia
Itaimstoopenanother1,000storesby2010
O tival 600 It o erates stores in Andhra Pradesh Gu arat Karnataka Tamil
HealthSolutions
Nadu,MaharashtraandRajasthan
InAugust2008,itreceivedfundingofINR1.09bnfromNEA
IndoUSVenturesandanunnamedfundfromWestAsiaand
fundingofINR230mnfromiLabsinMarch2007
Itplanstoexpandusingthefranchisebasedmodelfor75%ofits
storesplannedinexpansionplans
ItplanstoachieveaturnoverofINR3bnbynextfiscalandadd
1,500moreoutletsby2010
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MajorPlayers(5/7)
Pharmacy Promoter Number
of
Stores BusinessDescription
MuthuPharmacy MuthuGroup 14 Itoperatesachainof14pharmacystoresinChennai
items
Itspharmacies
also
offer
counselling
and
door
delivery
facilities
to
itscustomers
, ,
H&BStoresLtd
Storesprovidebeauty,healthandwellnessrelatedproducts
Itsoutlets
stock
over
14,000
international
and
domestic
brands
a art from Daburs own brands in beaut health and wellness
Storesizerangesbetween8003,000sqft
Itplanstoopenanother1215storesby2010
Financials:
Dabur re orted an total income of INR 3.17 bn and a net loss ofINR777 mninFY200809
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MajorPlayers(6/7)
Pharmacy Promoter Number
of
Stores BusinessDescription
Reliance RelianceRetail 6 Itsstoresoffer healthfoods,personalcare,healthcareandharmaceuticals roducts
Itsstoresstocksover8,000products&offerdiscountsbetween5
25
%
on
select
categories PresentinMumbai,HyderabadandBangalore
It lanstoo en150storeswithaninvestmentoutla ofINR9bn
in20082010
IthastieupwithUKbased,AllianceBootsforawholesale
business,andtooperatefrontendstoresthroughafranchise
agreement
Religare
Wellness
Fortis
HealthWorld
112 Itplanstorepositionitselfasahealth&wellnesscompanyofferingawiderarrayofservices
In2008,it acquiredCRSHealth,aDelhibasedpharma&wellnessretailchain
openingstoreinstoreformatsintheirstores
Itisplanningtogrowtoa1,000storesandcover400citiesby2012
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MajorPlayers(7/7)
Pharmacy Promoter Number
of
Stores BusinessDescription
TrustChemists TrustChemists&Druggists
50 Ithas40airconditionedoutletsinBangaloreand10outletsin
ChennaiLtd
Itisthesinglelargestretailchainoforganizedmedicalshopsin
Karnataka HasatieupwithAxisBankforcobrandedcreditcard
Ithasstoresinthreeformats:Standalonestores hos ital
pharmaciesandconceptstores
Tulsi FutureGroup 35 MostoftheTulsioutletsarelocatedinBigBazaar
FutureGroup
currently
has
over
35
Tulsi
outlets
across
the
countr
98.4Degrees GlobalHealthline
30 IthasstoresacrossDelhiandGurgaon
Itstocksalargerangeofprescriptionmedicines,OTCdrugs,
healthfoods,supplementsandbabycare,beautyandpersonal
Thecompanyplanstogrowtoa300400storechainby2014
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Drivers&
Challenges
ren s
GovernmentRegulations
Competition
KeyDevelopments
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KeyDevelopments
Date Development 13 May2009 GuardianPharmacyhasenteredintoanalliancewiththeKendriyaBhandarchainofcooperativeretail
storesforopeningpharmacyretailoutletsinDelhiandtheNationalCapitalRegioninordertoprovide
7Feb2009 Thefirst`JanAushadhi'shopinDelhi,wasinauguratedinKendriyaBhandaroutletinShastriBhavan,
`JanAushadhi
outlets
will
sell
quality,
unbranded
generic
medicines
at
affordable
prices
22Jan2009 TrustChemistsandDruggistshastiedupwiththeAdityaBirlagrouprunMoresupermarketstoset
ups op ns ops ores n ore supermar e s n am a u, ecompany sp ann ng oes a s
100storesinTNandKarnatakabyJuly2010anditplanstoinvestINR250mnforitsexpansion
31 Dec 2008 FrankRoss,apharmacyretailchainoftheEmamigroup,isexpandinginEastIndiatoestablish100
outletsacross
India
by
2011
2012
at
acost
of
INR
980
mn
10 Nov2008 ReligareWellness,hasenteredintoanagreementwithRelianceRetailandLM365tosetupshopsin
their storeswheretheylackpresence.Itplanstohaveaboutonefifthofitsstoresthroughsuchtie
ups
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