market research india - pharmacy retail market in india 2009

7/31/2019 Market Research India - Pharmacy Retail Market in India 2009

1/35

September2009


2/35

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


3/35

Drivers&

Challenges

ren s

GovernmentRegulations

Competition

Key

Developments



4/35

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



5/35

Pharmacychainsareexpandingoperationsusingvariousstoreformats

StoreFormat Description

HospitalPharmaciesTheyarehousedinhospitals&dispensealimitednumberofmedicines

Theycatermainlytotherequirementsofpatientsadmittedinhospitals

StandaloneStores Storesarelocatedneartheresidentialareas

Someofthesestoresofferhomedelivery

Thetargetcustomersaremiddleandupperclasshouseholds

Malls/ShopinShopsThesearelocatedinsupermarkets,mallsordepartmentalstores

SpencerhastieupwithLifeKenMedicinesforitsDailystoresinSouth

India

Townships Pharmacychainsareplanningtosetupshopintownships

ApollohassignedanagreementwithHindustanConstructionCo.(HCC)

tosetupamedicityinsidetheupcomingprojectLavasanearPune



6/35

Drivers&

Challenges

ren s


Competition

Key

Developments



7/35

Drivers&Challenges

Drivers

Growthinpharmaceuticalssector

Challenges

Fragmentedindustry

Increaseinhealthcarespending

Changingdisease

profile

Longdistributionandsupplychain

Counterfeitdrugs

GrowthinOTCsegment

Consumerattitude

FDIregulations

Attractivemargins



8/35

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



9/35

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


1995 2005 2015 2025


10/35

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



11/35

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


2005 2006 20072005 2006 2007 2005 2006 2007


12/35

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%


h d h l d d


13/35

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


couldbe

passed

to

the

consumers

and

by

organized

retailers

i ib i h l i f i b h


14/35

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


C f i d d FDI l i i d i d


15/35

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



16/35

Drivers&

Challenges

ren s


Competition

Key

Developments



17/35

Trends

LoyaltySchemes

ValueAddedServices

`Trends RuralExpansion

EntryofGovernmentinPharmacyRetailing

EntryofPrivateLabels


OrganizedRetailers

Starting

Pharmacy

Chains

O i d l ff i l lt h f t i i


18/35

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


po nts nmu t p eso

Eachpoint

has

alife

of

6months

V l dd d i i t d i h


19/35

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


Ti ith t il fi d l i i


20/35

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


Entr of go ernment organi ed retailers and pri ate labels


21/35

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


w n g azaarsan oo azaarsa over oca onsa over n a


22/35

Drivers&

Challenges

ren s


Competition

KeyDevelopments


Drugs & Cosmetics Act 1940 regulates distribution and sale


23/35

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


A recor san registersnee to emaintaine inaccor ancewit t e awsin orce


24/35


25/35

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



26/35

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


Note:Thislistisnotexhaustive


27/35

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




28/35

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




29/35

MajorPlayers(4/7)


of


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




30/35

MajorPlayers(5/7)


of


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




31/35

MajorPlayers(6/7)


of


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




32/35

MajorPlayers(7/7)


of


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




33/35

Drivers&

Challenges

ren s


Competition

KeyDevelopments



34/35

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


h k f


35/35

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