m




m
 

 !"#
"$m"%"#
&m!$'#
('$$)*'+,
M
  

 M 

h ´A Customer is the most important visitor on our
premises. He is not dependent on us. We are
dependent on him. He is not an interruption on our
work. He is the purpose of it. He is not an outside of
our business. He is a part of it and we are not doing
him a favour by servicing him. He is doing us a favor
by giving us an opportunity to do so.µ


 M 
h Õndian retail market is the 5th largest retail
destination globally.
h estimated to grow from the US $ 330 billion in
2007 to US $ 427 billion by 2010 and US $ 637
billion by 2015.
h current pharmacy retail market size was
estimated to be of US$ 8.7 billion by 2010.
h 12-15 dominant players in india

h Retail pharmacy market growing at 15%

organized retail growing at 35-40%
M
 M
   M
M

 

h With revenues of US$ 130 to 140 million in 2006-

07, organised retail constitutes just two per cent
of the pharmaceutical retail market in Õndia
h Õt is expected to grow at a high y-o-y growth of 30
to 40 per cent and is likely to become US$ 400 to
530 million market by 2010
h Government contemplating to increase the FDÕ
cap to 51 per cent in the case of single brand
product
h Sensing the tremendous potential of organised
retail, US retail majors Wal-Mart, Boots and
Asian retailer AS Watson are expected to soon
make a major foray in to the domestic market

-








 MM 
 M
 
 

 !

Apollo Pharmacy (part To operate more than 1000

of the Apollo Hospital outlets by 2009.
Group
Subhiksha Has over 1500 outlets

Medicine Shoppe (part Medicine Shoppe (part

of Medicine Shoppe of Medicine Shoppe
Õnternational Group) Õnternational Group)
Guardian Lifecare Regional player with 65
pharmacies expected to increase
to 3,500 by 2015
98.4 Has a presence of close to 60
outlets and plans to
increase to more than treble its
count to 300 by 2011.
h Fast changing due to the entry of organized
players
h Driven by two main factors ² lower price and
benefits the consumers can·t resist
h Emphasis on innovation in products, process and
services
M  "M

h # $!%

h M%!
#% &
!#% #%

h !! &
#$'' #$

h
#( $
 
)

 M M

h *+## , #%!##
a. Attractiveness
b. Convenience
c. Proximity
h O+
#-,&.-,&)%#% $&

-$$!,%%
h /+%0,%11%% %!#$%#
a. Margin-Turnover position
b. Õnvestment productivity
c. Space Productivity
d. Employee Productivity
e. Average size of transactions
)


 M
 M


M

h ##% #1 !%

h
%#!#,0%

h M%!,%#($2 &,%%
2 !#,(#$%# 2

h  ,0,% #$% 

# -%

h % %3% %$#1

h  #-$%%
DÕSADVANTAGES

h #%##% #1 !%# !!%!

#%

h
!!,%#,$%

h ##%%!0% %0%

h ,-$#1 %! #$ 

h # % 1#%4$#1%%

h  #- #2%#11%%

+++
+

"  M
M M
 

M

%,
h Elimination of spurious drugs.

h Prevention of mal practices like creating artificial

shortage of drugs by intermediaries.
h Busy schedules of customers having less time for detailed
counseling and eventual purchase of drugs, whereas
modern retail results in educated time and cost savings.
h Ready availability of installed capacities with technically
knowledgeable personnel.
h Efficient management of installed manufacturing
capacities resulting in complete sell-out.
%3%

h Due to huge outlay, major share of rural and spread

out population cannot be reached.

h Substantial expenditure in advertising, promotional,

and goodwill activities.

h Fierce competition amongst players in projecting their

own products over others.

h Due to boost in local sales there may be lesser initiative

to export.
$$#-%

h Tapping previously ignored segment of urban

population in non-prescription areas.

h Õdeal for gauging customer preferences

h To export to/ through the tied-up associated

foreign company who have their existing
marketing infrastructure.

h To cement the loose ends in coordination among

customer, doctor, manufacturer and insurer, in
terms of mutual business interests.

%
h An unholy alliance between independent unorganized
pharmacies in shunning products of the organised
´Pharma Manufacturing - Retailingµ giants.
h Containment of rising hostility among ´Pharma
Manufacturing - Retailingµ giants.
h Possible government legislation to protect the
interests of intermediaries and small retailers apart
from government restrictions on more foreign players
entering the market.
h High cost of sales and marketing by way of
advertising, promotional activities,incentive schemes
(gift vouchers, etc), and loyalty programs.-
M) M
5 

) M M

6 5M



 ) M) 
h ¢rganized pharma retail chains operate in three
models:
1. Fully owned store
2. Franchise model
3. Combination of owned and franchise stores
h Leading players are targeting rural areas and are

tying-up with organized retail players for

expansion
 .  M

h Ranbaxy's ("# ),
h Pantaloon (
-! ),

h Reliance Retail's (M%!%%!

)
h Apollo Hospitals Group's ($#!!#) ,
%%
#$$% ,
h =ydus Cadilla's (!1#%!),

h Sagar Drugs & Pharmaceuticals' (!%

%!),
h Morepan's (1%
$,),

h Lifetime Healthcare's (LifeKen),

h Global Healthline ( +7),

h Guardian Lifecare's (-),
%!-
 M
 M 


  M

$#!!#
h Õndia's first and largest branded pharmacy
network,
h 720 outlets in 17 states

h Õnternational Quality Certification

h free health insuranceon purchase of above Rs.

6000 in a year.

"# %!(#!
h Pharmacy chain promoted by the Singh family of
Ranbaxy
h two models - Company owned and operated
stores and Franchisee owned stores.
h 40 stores and planning to expand its presence to
over 100 cities.

%!- %!
%0%
h 500 stores in Andhra Pradesh, Maharashtra,
Karnataka, Tamil Nadu, Gujarat and Rajasthan
and plans to increase it to 1000 by March 2009.
Mauritius based iLabs Management LLC has
invested $5.2 mn in MedPlus.

-! 
h pharmacy retail chain of Future Group.

h 35 Tulsi outlets across the country.

 !%%!
h pharmacy retail of Sagar Drugs &
pharmaceuticals.
h 20 outlets in Gujarat located in Ahmedabad,
Baroda and Gandhinagar.

1% %
h Lifetime Healthcare Pvt. Ltd is a leading
Pharmacy Retail chain in Bangalore and
Chennai.
h 82 Stores in Bangalore, Chennai and Mumbai.
The list comprises
h 37 LifeKen Stores, 11 Pill and Powder Stores and
7 stores in Spencer's Stores in Bangalore.
 -1%%0+
h North Õndia's largest retail chain of Pharmacy,
Wellness, Health and Beauty Retail outlets.
h 149 outlets in 16 cities.

h plans to open another 150 new stores across

Õndia by March 2009 and Guardian chain will
grow to 400 stores by March 2010

 M

h SAK Consumer Retail Services Ltd is a

subsidiary of Delhi based business group, SAK
Õndustries.
h major centres in Õndia to include Delhi, Noida,
Gurgaon, Pune and Chennai.
h more than 30 CRS Health Stores in Õndia.

 

 M
 

h genuine and properly stored products
h health-related merchandise including monitoring
devices
h multiple products and brands including Ayurvedic
products
h counselling for shopping

h counselling for proper administration of products

especially medicines
h home delivery

h 24X7 service

h Tie-up with doctors and other paramedical services

h loyalty programme for a long-term relationship.

 

M
 "
.
 M
 

h Pharmacies only which are 150 square feet in

area.
h Departmental stores plus pharmacies, 1000-1200
square feet, and
h Supermarkets plus Pharmacies, 1600-2000
square feet.
h To be able to offer such a high level of discount
and still be profitable, Subhiksha needed three
things,
1. Command large volumes to enable volume
discounts from
2. Manufacturers and cut out middleman
3. Slash overheads and inventory costs.
h
%
-23 1#%  #(#
$!3

1. Lower prices
2. Neighbourhood stores

h Subhiksha believes that the MRP is just a cap on

prices and prefers to sell everything at less then
MRP. Õt manages to provide discounts in the
range of 10 percent on nearly all products.
Subhiksha's appeal to the average middle class
household is considerable, the price savings mean
a lot for them.
THANK
Y¢U