MedPlus looks to double pharmacy retail outlets by March
MedPlus Health Services, one of the fastest growing pharmacy retail chains has set its pace in doubling the strength of stores across the country from their present 520, by the end of the March 2009. And to achieve its target the Company is adopting the franchise model for its expansion. Till now it has signed nearly 200 pharmacy outlets which has been confirmed by Dr Madhukar Gangadi, Chief Executive Officer.
DR. Gangadi said to Press, ‘We are not into acquisition mould as nobody really has a decent size. In the future, however, we would be open if the size compliments our expansion plans.’
At present most retail chains of medicines across the country has around 50-75 stores or less. The Apollo with its highest numbers of 600 rules the charts. The Guardian in Delhi has more than 100 and is counted among the bigger ones which is still growing. MedPlus the Hyderabad based company has 520 outlets which put it just below the Apollo and among the top rung.
DR. Gangadi said that India requires several thousands of pharmacy outlets which can serve them better and this growing demand in the near future has scope for many players who want to run a successful business models. And the targeted growth states are the ‘Neighbourhood’ states which are Tamil Nadu, Karnataka and Andhra Pradesh.
These states would be followed by other nearby states like Maharastra, Rajasthan, West Bengal and Kerala. All these states would help to cross the target of 1000 retail outlets in the coming months easily.
With a typical MedPlus store which requires an investment of nearly Rs 50 lakh, the franchise model would help in promoting the entrepreneurship among pharmacy graduates or those diploma holders. The company is willing to provide a small loan and training to carry forward the business.
At least 25% of the company’s stores are run by those Pharmacy graduates or people who are diploma holders. Every retail outlet has a licensed pharmacist to ensure control of quality sale, storage facility and also inventory control.
The MedPlus had received an investment of whopping Rs 23 crore from iLabs, a Hyderabad based fund last year. The CEO of MedPlus has assured that they would be using the internal accruals and such other funds for their expansion plans and refrained from disclosing the financial position of the company.
More Franchise info: Medplus