PharmacyRetailMarket Pharmacy Retail Market India

September2009

ExecutiveSummary
Market
ThemarketisvaluedatINR216bnin2009;EstimatedtoreachINR432bnin2011 Themarketisfragmentedanddominatedbytheunorganizedsector Thereare8,00,000pharmaciesinIndiawithabout60,000distributors

Drivers:

Challenges:
Fragmentedindustry Longdistributionandsupplychain Counterfeitdrugs FDIregulations

Drivers& Challenges h ll

Growthinpharmaceuticalssector Increaseinhealthcarespending Changingdiseaseprofile Consumerattitudes Attractivemargins GrowthinOTCSegment

Trends

LoyaltySchemes y y ValueAddedServices TieupswithRetailfirms RuralExpansion EntryofGovernmentinPharmacyRetailing Entry of Government in Pharmacy Retailing EntryofPrivateLabels OrganizedRetailersstartingPharmacyChains Apolloleadsintheorganizedpharmaretailmarketwithhighestnumberofoutlets LeadingorganizedplayersincludeApollo,MedicineShoppe,MedPlus,ReligareWellness, Primarilyorganizedretailchainsoperateeitherasacompanyownedorasafranchiseeoutlet
PHARMACYRETAILMARKET INDIA.PPT

Competition

MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

PHARMACYRETAILMARKET INDIA.PPT

Themarketishighlyfragmentedanddominatedbythe unorganizedsector
MarketOverview
Thereare8,00,000pharmaciesinIndiatoday, withabout60,000distributors Marketisfragmentedanddominatedbythe unorganizedsector Growthinthismarketisdrivenbyincreasing healthcarespending,growthinorganized healthcare spending growth in organized retailingandattractivemargins Theentryoforganizedplayersischangingthe faceofthepharmacybusinessinIndia
Th Theorganizedspaceofpharmacyretailingis i d f h ili i dominatedby1012bigplayers Primarily,organizedretailchainsoperateeitheras acompanyownedormanagedstoresorasa franchiseeoutlet franchisee outlet

OverallMarketSize&Growth
INR bn
600 400 216 200 0

+41%

432

2009

2011

Revenuesplit OrganizedvsUnorganized
Organized 2%

InIndia,pharmacies/drugstoresarethe dominantdistributionchannelgenerating74% oftheoverallpharmaceuticalsales

98% Unorganized

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Pharmacychainsareexpandingoperationsusingvarious storeformats
StoreFormat Description
Theyarehousedinhospitals&dispensealimitednumberofmedicines Theycatermainlytotherequirementsofpatientsadmittedinhospitals

HospitalPharmacies

StandaloneStores

Storesarelocatedneartheresidentialareas Someofthesestoresofferhomedelivery Thetargetcustomersaremiddleandupperclasshouseholds

Malls/ShopinShops

Thesearelocatedinsupermarkets,mallsordepartmentalstores SpencerhastieupwithLifeKenMedicinesforitsDailystoresinSouth India

Townships

Pharmacychainsareplanningtosetupshopintownships ApollohassignedanagreementwithHindustanConstructionCo.(HCC) tosetupamedicityinsidetheupcomingprojectLavasanearPune

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MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

PHARMACYRETAILMARKET INDIA.PPT

Drivers&Challenges

Drivers
Growthinpharmaceuticalssector Increaseinhealthcarespending Changingdiseaseprofile GrowthinOTCsegment Consumerattitude Attractivemargins

Challenges
Fragmentedindustry Longdistributionandsupplychain Counterfeitdrugs FDIregulations

PHARMACYRETAILMARKET INDIA.PPT

Growthinpharmasectorandorganizedpharmaretail isexpectedtoboostpharmacyretailinIndia
Growthinpharmaceuticalssector
TheIndianpharmaceuticalindustryranks4thinvolumetermsand13thinvalueterms Thedomesticpharmaceuticalmarketislargerthantheexportmarket Retailmarketaccountsforthreequartersofthepharmaceuticalswhiledirectsalestothe hospitalsandnursinghomesaccountsfortheremainder GrowthofPharmaceuticalIndustry
INR bn
1,000 500 0 524

Impact

+10%

758

2008

2012

Growthinpharmaceuticalsectorhasattractedmanyorganizedplayersinpharmacyretailing Newplayersincludenotjustthosewithapharmaceuticalorhealthcarebackgroundbutalso corporatesfromothersectors GrowthofOrganizedPharmaRetail

INR bn
50 10.1 0

+40%

38.7

2008

2012

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Increaseinhealthcarespendingisdrivingretailsalesof pharmaceuticalproducts
Increaseinhealthcarespending
Healthcarespendinghas increasedwiththeincreaseindisposableincome Healthcareislikelytobeoneofthefastestgrowingcategoriesapartfromcommunication, educationandrecreation
AverageIndianspendingonhealthcareisexpectedtoreach13% Peoplearereadytospendonpreventivecareandproductintegrity;alongsidevalueaddedservices

Impact

SpendingonhealthcareislikelytoincreaseasIndiaiswitnessingchangesinitsdemographic profileaccompaniedwithlifestylediseasesandincreasingmedicalexpenses fil i d ith lif t l di di i di l HealthcareSpending

%
100 80 60 40 56 20 0 42 34

4 4 11 25

7 7 17 29

9 9 19

13
15

Healthcare Education , Recreation & Communication Transportation Personal household products utilities apparel Food Beverages and Tobacco

20 29 29
25

1995

2005

2015

2025

PHARMACYRETAILMARKET INDIA.PPT

Riseinchronicdiseasesisdrivinggrowthinthissector
Changingdiseaseprofile
ThediseaseprofileinIndiaischangingfrominfectiousdiseasestolifestylediseases,which requiresmoreintensivecare Theincidenceoflifestylediseaseshasincreasedwiththechanginglifestyle
Indiaishometothelargestnumberofdiabetespatients Stressbothatworkandathomeislikelytoresultinincreaseinnumberofpeoplesufferingfrom hypertension

Impact

This will entail medication on an ongoing basis which will in turn make prescriptionbased Thiswillentailmedicationonanongoingbasis,whichwillinturnmakeprescription based medicinemandatory MountingChronicDiseases
Population (mn)
6 4 2 0 3.3

36

62
4.9

31

46

14

34

2.5 2005 (%)

3.7 2.8 28 1.3 0.2 0.2 2.7 27

( ) 2015 (%)

Coronary Heart Disease

Diabetes

Obesity

Cancer

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RisingsalesofOTCproductsisdrivinggrowthinpharmacy retailinginIndia
Growthinoverthecounter(OTC)segment
Retailpharmastoresofferseveralproductsunderoneroof,frommedicinestocosmeticsin ordertotargetvariousneedsofthecustomers IndianconsumershaveincreasedconsumptionofOTCproductslikeanalgesics,cough,coldand allergyremedies,digestiveremediesandmedicatedskincareproducts Medicaldrugsmakeup7080%ofthepharmaciessaleswhilenonpharmaproductsconstitute 2030%
In the next five years this ratio is likely to change to 40: 60 Inthenextfiveyearsthisratioislikelytochangeto40:60

Impact

CoughColdandAllergy
INR bn
20 0 13.7 13 7

Analgesics
INR bn 6.8 68 10
0

Digestives
+16%
8.6 86

+20%
15.0 15 0 19.7

+12%
7.3 73

2005

2006

2007

2005

2006

2007

INR bn 11.0 11 0 10 0 2005

12.1 12 1

14.8 14 8

2006

2007

Vitaminsandminerals
INR bn
40 20 0 22.3

Skintreatment
INR bn +18%
5.7 7.3

Others
INR bn
10 5 0 7.0

+15%
24.6 29.4

+16%
7.8 9.5

10 5 0

5.3

2005

2006

2007

2005

2006

2007

2005

2006

2007

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Favourableconsumerattitudeandattractivemarginsis drivinggrowthinpharmacyretailinginIndia
Consumerattitudes
Indianconsumersconfidentlyselftreatawiderangeofcommonailmentssuchascough,cold, fever,painandsprains,heartburnanddiarrhea. ConsumerBehaviourforMinorAilments
Do nothing 8% Self-medication 23% 45% Go to the pharmacist

Impact

24% Go to the doctor

Attractivemargins
Highmarginsinpharmacyretailingdespitepricecontrolshavemadeitalucrativebusiness Level ScheduledDrugs Stockistordistributors Retailers 8% 16% Margins NonScheduledDrugs 10% 20%

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Fragmentationintheindustryhasledtodecreasein revenueperstore
Fragmentedindustry
Thepharmacyretailtradeishighlyfragmented,unorganizedanddominatedbysmallchemists IntheUSandEurope,pharmaceuticalretailissignificantlyconsolidatedwithfewerpharmacies servingmuchlargermarkets ShareofOrganizedPharmacyRetail
54% 48%

Impact

3% US UK India

Althoughmarginsarehigh,increasedproliferationandfragmentationhasresultedinlow turnoverperstore Fragmentedstateoftheindustryhasresultedinprotectionistattitudeofunorganizedplayers, whichisusingthestrengthofitsnumbertowardscreatingentrybarriersforlargeandefficient players

AllIndiaOrganizationofChemistsandDruggists(AIOCD),representingover0.55mnchemists,isplanningto corporatiseitsoperationsbybuildingpanIndiandrugretailchains Thisassociationhascontrolonthemanufacturers,hencelimitingthesupplyofdrugsonlythroughthe authorizedwholesaledistributors,limitingthemarginsandcontrollingtheadditionalvolumediscountsthat authorized wholesale distributors, limiting the margins and controlling the additional volume discounts that couldbepassedtotheconsumersandbyorganizedretailers

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Distributionchannelconsistsofmanytiersbetweenthe manufacturersandtheconsumer
Longpharmadistributionandsupplychain
Distributionishighlytieredanditisdifficulttodirectlysourcefrommanufactures PharmasupplychaininIndiacomprisesofmultiplelayersofsuppliers,middlemenandretailers Pharmacompaniesappointcarryingandforwardingagents(CFA)foreverystate,sometimes morethanoneforlargestatessuchasMaharashtraandUttarPradesh
Theymoveproductstoatleastonestockistorwholesalerinsmallercities,whothenpassthemonto neighbourhoodmedicalshops On an average a company has 2030 CFAs while the number of stockists may range from few hundred to Onanaverage,acompanyhas2030CFAs,whilethenumberofstockistsmayrangefromfewhundredto eventhousands

Impact

Manufacturer CFA/CompanyDepot Distributor/Stockist

Hospitals

Pharmacy

RetailChains

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CounterfeitdrugsandFDIregulationsimpedeindustry growth
Counterfeitdrugs
Over35%centofthedrugssoldthroughretailpharmatradeisspuriousorfakeinIndia Thecounterfeitdrugsindustryisnolongerrestrictedtotabletsandcapsulesandhasgraduated toproductionofexpensiveandsophisticatedinjections,expensivetabletsandinhalers Presenceofonlinepharmacieshasledtoanincreaseindrugtrafficking,unauthorisedimportof medicinesandunauthorisedsaleofdrugsresultinginanincreaseinspurious/counterfeitdrugs Inthenext10years,counterfeitdrugsisexpectedtobethesinglebiggestprobleminpublic healthinIndia h lth i I di MonitoringandcontrollingcounterfeitdrugsisdifficultowingtofragmentednatureofIndustry

Impact

FDIregulations FDI regulations

Currently,regulationspermit100%foreigndirectinvestment(FDI)onlyinsinglebrandstores Pharmaretailfallsintothemultibrandcategoryhenceforeignplayersfinditdifficulttoenter India FDI restrictions has limited the growth of this sector FDIrestrictionshaslimitedthegrowthofthissector

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MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

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Trends
LoyaltySchemes

ValueAddedServices

TieupswithRetailfirms Tie ups with Retail firms

Trends `

RuralExpansion

EntryofGovernmentinPharmacyRetailing

EntryofPrivateLabels

OrganizedRetailersStartingPharmacyChains
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Organisedplayersareofferingloyaltyschemesforretaining customers
LoyaltySchemes
Organizedpharmacychainsareofferingloyaltyschemesintheformofrewards,points,gifts, freehealthinsuranceforretainingcustomers
Pharmacy Apollo LoyaltyScheme AnyTimeMedicineCard Description Cardentitlesitscustomerstoavailahealthvoucherworth INR500orafreehealthinsuranceworthINR20,000on purchaseofproductsworthINR6000fromApollostoresin theconcernedstatewithinaperiodofoneyear the concerned state within a period of one year ItcreditspointsonpurchaseofminimumINR800 Onevery20pointsearnedin6monthsitcredits5bonus points Pointscanberedeemedinmultiplesof10within6months CreditsapointforeveryINR10spent Pointscanberedeemedafteraccumulating200points Forevery200pointsredeemedmembergetsfreeshopping creditworthINR50 PointiscreditedforeveryINR12.5spent Pointscanberedeemedafteraccumulating168points ItcreditsonepointonanexpenditureofINR500 Pointscanberedeemedafteraccumulatingaminimumof10 pointsinmultiplesof10 i t i lti l f 10 Eachpointhasalifeof6months

Loyaltyschemes likelytobenefit likely to benefit organized retailers

CRSHealth

WellbeingClub

Guardian

AdvantageCard

MedicineShoppe 98.4Degrees

ShoppeSelect TotalHealthCard

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Valueaddedservicesemergingasanewtrendinpharmacy retailing
ValueAddedServices
Organizedstoresareofferinghostofvalueaddedservicesapartfromsellingmedicinessuchas:
Diagnosticandpathologicaltests Healthrelatedconsultancy&Medicalinsuranceadvisory HomeDeliveryServices Pharmacy Apollo Services Apolloprovidesmedicinedeliveryservices Apolloalsooffersfreemedicinereminderservice Itsnewconcept NurseStationprovidesnursestoattendtothepatientsattheirhouses,or referthemtoanApolloClinic ItoffersfacilityoforderingmedicinesonPhone Itoffersfreehomedeliveryservicesforitsmembers,between7am 9pmwithout minimumbillingcommitments,italsoacceptsordersthroughemail Ithastiedupwithpharmaceuticalcompaniestoofferfreediagnosisfordiabetes,blood pressureetconceaweek Maintenance of medication history of customers free home delivery free insurance cover Maintenanceofmedicationhistoryofcustomers,freehomedelivery,freeinsurancecover againstpurchase,personalaccidentinsurance,householdfireinsurance,freecriticalcare insurance MedPlusoffersdiagnosticlabservices

Pharmacy retailingmoving retailing moving conventional retailing

Guardian LifeKen Medicine Shoppe

MedPlus

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Tieupswithretailfirmsandruralexpansionareupcoming trendsinthissector
TieupswithRetailfirms
Pharmaciesarealsotyingupwithretailerstoensurewiderdistribution
Pharmacy Pharmacy Apollo Guardian RetailFirm Retail Firm IndianOilCorporation KendriyaBhandar Description SetupstoresacrossitsretailgasstationsinIndia SetuppharmastoresatitsretailoutletsinDelhiandNCR Region To provide medicines and health foods at discounted rates Toprovidemedicinesandhealthfoodsatdiscountedrates SetuppharmacystoresinSpenceroutletsinSouthIndia

Tieupsaimedat improving distribution

LifeKen

Spencer

RuralExpansion
O Organizedplayersaretargetingtheruralareasinpartnershipwithexistingretailplayers i d l t ti th l i t hi ith i ti t il l
Pharmacy Apollo Apollo Guardian RetailFirm GodrejAadhar ITCEchoupals ChoupalSaagar DCMShriram Description ToestablishpharmaciesatAadharOutletsinRuralAreasunder thebrandApolloAadharPharmacy Distributingmedicinesinruralareas TosetupitsAushadhichainofruralpharmaretailoutlets withintheHaryaliKisanBazaars,theruralinitiativeofDCM Shriram

Market expandingto ruralareas

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Entryofgovernment,organizedretailersandprivatelabels hashelpedingrowthofpharmacyretailing
EntryofGovernmentinPharmacyRetailing
TheGovernmentofIndiaisplanningtodistributeessentialmedicinesthroughGovernment retailoutletsJanAushadhiStoresataffordableprices ThefirstofsuchJanAushadhioutletswasopenedinPunjabinNovember2008 Unbrandedversionsofgenericdrugsincludingpopularantibiotics,painkillers,coughandcold medicationwillbeavailableatthese'JanAushadhi'stores Entryaimedat providing providing affordable medicines

EntryofPrivateLabels y
Someretailchainsarenowgettinggenericdrugs,suchasparacetamol,contractmanufactured bylicensedthirdpartiesandthenmarketingthemundertheirownbrandnames
MedPlusHealthServicesplanstosell28drugsunderitsownbrandatits600outlets
Tenofthese,includingoverthecounterproductstotreatdiabetesandhypertension,arealreadyonMedPlusshelves Suchmedicineswillbeavailableata15%discounttocomparabledrugs

Privatelabelsto providelowcost alternative medicines

OrganizedRetailersStartingPharmacyChains
RelianceRetailLtd,hasenteredpharmacyretailingthroughitsRelianceWellnessstores
ItestablishedthreesuchstoresinHyderabadandBangaloreandoneinMumbai,andisplanningtoincrease thenumberto30stores TheWellnessstoreswillofferhealthfoods,personalcareandhealthcareproducts

Competitionset Competition set toincrease

MoresupermarketsbyAdityaBirlaRetailisplanningtohouseapharmacy PantaloonsispresentinpharmacyretailthroughTulsi,theMedicineBazaar,apharmacyhoused withinBigBazaarsandFoodBazaarsatover35locationsalloverIndia ithin Big Ba aars and Food Ba aars at o er 35 locations allo er India

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MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

PHARMACYRETAILMARKET INDIA.PPT

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Drugs&CosmeticsAct1940regulatesdistributionandsale ofdrugsandcosmetics
Drugs&CosmeticsAct1940
Objectives
Toregulatetheimport,manufacture,distributionandsaleofdrugsandcosmetics Actspecifiescertainminimumrequirementsforgrantofapharmacylicence TheStateGovernmentappointsLicensingAuthoritiesforgrantofapharmacylicence Anoriginallicenceorarenewedlicencetoselldrugsisvalidforaperiodoffiveyears Fordrugsstockedforsaleatmorethanoneplace,aseparatelicenceisrequired,inrespectofeachsuchplace Thepremisesofapharmacymustbeseparatedfromroomsforprivateuse Thepremisesneedtobewellbuilt,dry,welllitandventilatedandofsufficientdimensions Goodsmustbeclearlyvisible Theareaofthesectiontobeusedasdispensingdepartmentmustnotbelessthan6squaremetersforone pharmacistworkingthereinwithadditional2squaremetersforeachadditionalpharmacist Theheightofthepremisesmustbeatleast2.5meters Thefloorofthepharmacyisrequiredtobesmoothandwashable Drawers,glassesandothercontainersmustbeinapositiontobeclosedtightlytopreventtheentryofdust Everycontainershallbearalabelofappropriatesize,easilyreadablewithnames D Drugs,chemicals,andmedicinesshallbekeptinaroomappropriatetotheirpropertiesandinsuchspecial h i l d di i h ll b k t i i t t th i ti di h i l containersthatwillpreventanydeteriorationintheirproperties ApharmacymustbeoperatedunderthecontinuouspersonalsupervisionofaRegisteredPharmacistwhose nameisrequiredtobedisplayedinthepremises All Allrecordsandregistersneedtobemaintainedinaccordancewiththelawsinforce d d i d b i i di d ih h l i f

Licensing

Guidelinesfor Premises

Guidelinesfor Furnitureand Apparatus General Provisions

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MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

PHARMACYRETAILMARKET INDIA.PPT

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ApolloPharmacyleadstheoverallmarket
CompetitionOverview
Apolloleadsintheorganizedpharmaretailmarket withhighestnumberofoutlets Sectorhaswitnessedtheentryofnewplayers Almostallplayershaveexpansionplans Organizedpharmaretailchainsoperateinthree models: Fullyownedstores
Apolloprefersfullyownedmodel

OrganizedPharmacyDistribution
Apollo Pharmacy MedPlus Himalaya Medicine Shoppe Religare Wellness Guardian Lifecare LifeKen Trust Chemists Tulsi 98.4 98 4 Degrees Frank Ross Muthu Pharmacy NewU Dial for health Cure & Care Reliance Wellness
0 740 600 350 130 112 110 92 50 35 30 25 14 12 10 6 6 200 400 600

Franchisemodel
MedicineShoppesoperatesinthismodel

Combinationofownedandfranchisestores
Guardianprefersacombinationalmodel

Franchiseemodelhasenabledlossmakingstand alonestorestobeabsorbedbyorganizedretailers
This is likely to trigger consolidation in this sector Thisislikelytotriggerconsolidationinthissector

RetailoutletsofplayerslikeHimalayasellonlyits products Leadingplayersaretargetingruralareasandare tying upwithorganizedretailplayersforexpansion tyingup with organized retail players for expansion

No. of Stores 800

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MajorPlayers(1/7)
Pharmacy Promoter ApolloHospitals Numberof Stores 740 BusinessDescription Itispresentin17statesincludingAndaman&NicobarIslands p p ( p ItsruralinitiativeincludesatieupwithITCsechoupals(Choupal Sagar)andGodrejsAadhaartoprovidemedicinesinruralareas Itisplanningtoexpandusingthefranchiseroute Itisplanningtomeetatargetof1500storesby2010 Itsstoresarepresentinmallsandneighbourhoodstreetswith carpetsizeof7,000to8,000sqft IthastiedupwithAdityaBirlaGroupandJubilantRetailtoopen 100outletsintheirmallsandstoresby2012 ItisthefirstretailhealthcarecompanyinIndiatohavereceived theACHSI(AustralianCouncilonHealthcareStandards International)certification Besidesthepharmacy,itscentresprovidehealthcheckupsand consultancyservices It plans to invest INR 2 bn in the health, wellness and beauty ItplanstoinvestINR2bninthehealth,wellnessandbeauty segmentinthenextthreeyears Itaimstoadd50centresby2011and100shopinshopby2010

Apollo Pharmacy

Cure&Care

ManipalGroup

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(2/7)
Pharmacy Dialforhealth Promoter ZydusCadilla Numberof Stores 10 BusinessDescription IthasninestoresinMumbaiandoneinPune Its pharmacies also offer free routine checkups including weight Itspharmaciesalsoofferfreeroutinecheck upsincludingweight, bloodpressureandbodyfatcontent ItispresentlyfocusingonMumbaiforitsretailoperations Itsstoresareairconditionedandtheyoffervalueaddedservices y y likeautorefillfacilityandfreedeliverywithin3kmsfromthe pharmacy Financials: ZydusCadillareportedtotalsalesofINR17.8bnandprofitafter taxofINR2.3bninFY200708 Thesizeofeachpharmacyis350to600sqft Someofitspharmaciesarelocatedinhospitalsandsomeare standalonestores ItisplanningtoinvestINR980mninordertoexpandto100 storesby2012 b Financials: EmamireportedtotalincomeofINR6bnandanetprofitofINR 927.5mninFY200708

FrankRoss

Emami

25

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(3/7)
Pharmacy Promoter GuardianLife Care Numberof Stores 110 BusinessDescription IthasplannedinvestmentsofoverINR1bnforexpansion Its rural initiatives include brand of stores called Aushadhi Itsruralinitiativesincludebrandofstorescalled Aushadhi Itcurrentlyoperatesin15citiesinNorth,East&WestIndia Itisplanningtomeetingitstargetof250storesin2009andhas earmarkedINR1bntowardsexpansion It t ItsstoresshowcaseentirerangeofHimalayadrugs,from h ti f Hi l d f pharmaceutical,personalcaretobabycareandanimalhealthcare atcompetitiveprices Ithas150exclusiveretailoutletformats(300sqft),morethan 200shop in shopoutlets(60 70sqft)andanonlineshopping 200 shopinshop outlets (6070 sq ft) and an online shopping website ItisexpandingitsretailpresenceinIndiaandabroadbyadding 300exclusivestores OperatesstoresinBangalore,ChennaiandMumbai Operates stores in Bangalore, Chennai and Mumbai ItplanstoaddstoresinMumbai,Pune,HyderabadandKochi InOctober2006,LifeKenacquiredPill&Powder,theoldestplayer inpharmacyretailinBangalore Itplanstogrowto700storesby2012 It plans to grow to 700 stores by 2012

Guardian Lifecare

Himalaya Hi l

HimalayaDrug Himalaya Drug Company

350

LifeKen

Lifetime Healthcare Pvt.Ltd

92

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(4/7)
Pharmacy Promoter MelroseTrading CompanyLtd Numberof Stores 130 BusinessDescription ItistheIndianarmretailpharmacychain,MedicineShoppe , y g g j , International,ownedbythedrugtradingmajor,CardinalHealth MelroseTradingCompanyisthemasterfranchiseethatrunsthe operationinIndia Alltheoutletsareaminimum400sqftinsize , j , , , OutletsinseveralcitiesofMaharashtra,Gujarat,Goa,Delhi,Uttar Pradesh,WestBengal,AndhraPradeshandKarnataka ItfollowsthemodeloffranchiseestoresinIndia Itaimstoopenanother1,000storesby2010 ItoperatesstoresinAndhraPradesh,Gujarat,Karnataka,Tamil It operates stores in Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu,MaharashtraandRajasthan InAugust2008,itreceivedfundingofINR1.09bnfromNEA IndoUSVenturesandanunnamedfundfromWestAsiaand fundingofINR230mnfromiLabsinMarch2007 Itplanstoexpandusingthefranchisebasedmodelfor75%ofits storesplannedinexpansionplans ItplanstoachieveaturnoverofINR3bnbynextfiscalandadd 1,500moreoutletsby2010

Medicine Shoppe

MedPlus

Optival p Health Solutions

600

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(5/7)
Pharmacy MuthuPharmacy Promoter MuthuGroup Numberof Stores 14 BusinessDescription Itoperatesachainof14pharmacystoresinChennai Its pharmacies stock all type of medicines and other general Itspharmaciesstockalltypeofmedicinesandothergeneral items Itspharmaciesalsooffercounsellinganddoordeliveryfacilitiesto itscustomers NewUwaslaunchedinMay2008,byDabur sretailsubsidiary, NewU was launched in May 2008 by Daburs retail subsidiary H&BStoresLtd Storesprovidebeauty,healthandwellnessrelatedproducts Itsoutletsstockover14,000internationalanddomesticbrands apartfromDabur sownbrandsinbeauty,healthandwellness apart from Daburs own brands in beauty, health and wellness Storesizerangesbetween8003,000sqft Itplanstoopenanother1215storesby2010 Financials: DaburreportedantotalincomeofINR3.17bnandanetlossof Dabur reported an total income of INR 3.17 bn and a net loss of INR777 mninFY200809

NewU

Dabur

12

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(6/7)
Pharmacy Promoter RelianceRetail Numberof Stores 6 BusinessDescription Itsstoresofferhealthfoods,personalcare,healthcareand p pharmaceuticalsproducts p Itsstoresstocksover8,000products&offerdiscountsbetween5 25%onselectcategories PresentinMumbai,HyderabadandBangalore p p y Itplanstoopen150storeswithaninvestmentoutlayofINR9bn in20082010 IthastieupwithUKbased,AllianceBootsforawholesale business,andtooperatefrontendstoresthroughafranchise agreement Itplanstorepositionitselfasahealth&wellnesscompany offeringawiderarrayofservices In2008,itacquiredCRSHealth,aDelhibasedpharma&wellness retailchain Its expansion plans include tie ups with existing retail chains for Itsexpansionplansincludetieupswithexistingretailchainsfor openingstoreinstoreformatsintheirstores Itisplanningtogrowtoa1,000storesandcover400citiesby 2012

Reliance Wellness

Religare Wellness

Fortis HealthWorld

112

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MajorPlayers(7/7)
Pharmacy Promoter TrustChemists &Druggists Ltd Numberof Stores 50 BusinessDescription Ithas40airconditionedoutletsinBangaloreand10outletsin Chennai Itisthesinglelargestretailchainoforganizedmedicalshopsin Karnataka HasatieupwithAxisBankforcobrandedcreditcard , p Ithasstoresinthreeformats:Standalonestores,hospital pharmaciesandconceptstores MostoftheTulsioutletsarelocatedinBigBazaar FutureGroupcurrentlyhasover35Tulsioutletsacrossthe country IthasstoresacrossDelhiandGurgaon Itstocksalargerangeofprescriptionmedicines,OTCdrugs, healthfoods,supplementsandbabycare,beautyandpersonal careproducts care products Thecompanyplanstogrowtoa300400storechainby2014

TrustChemists

Tulsi

FutureGroup

35

98.4Degrees

Global Healthline

30

Note:Thislistisnotexhaustive PHARMACYRETAILMARKET INDIA.PPT

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MarketOverview Market Overview Drivers&Challenges Trends T d GovernmentRegulations Competition KeyDevelopments

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KeyDevelopments
Date 13 May2009 Development GuardianPharmacyhasenteredintoanalliancewiththeKendriyaBhandarchainofcooperativeretail storesforopeningpharmacyretailoutletsinDelhiandtheNationalCapitalRegioninordertoprovide medicinesandhealthfoodsatdiscountedrates medicines and health foods at discounted rates Thefirst`JanAushadhi'shopinDelhi,wasinauguratedinKendriyaBhandaroutletinShastriBhavan, `JanAushadhioutletswillsellquality,unbrandedgenericmedicinesataffordableprices TrustChemistsandDruggistshastiedupwiththeAdityaBirlagrouprunMoresupermarketstoset upshopinshopstoresinMoresupermarketsinTamilNadu,thecompanyisplanningtoestablish h i h t i M k t i T il N d th i l i t t bli h 100storesinTNandKarnatakabyJuly2010anditplanstoinvestINR250mnforitsexpansion FrankRoss,apharmacyretailchainoftheEmamigroup,isexpandinginEastIndiatoestablish100 outletsacrossIndiaby20112012atacostofINR980mn ReligareWellness,hasenteredintoanagreementwithRelianceRetailandLM365tosetupshopsin theirstoreswheretheylackpresence.Itplanstohaveaboutonefifthofitsstoresthroughsuchtie ups

7Feb2009 22Jan2009

31 Dec 2008 10 Nov2008

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Thankyouforyourtime
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