Market Research India - Pharmacy Retail Market in India 2009

Pharmacy Retail Market ‐
Pharmacy Retail Market India
September 2009

Executive Summary

 The market is valued at INR 216 bn in 2009; Estimated to reach INR 432 bn in 2011
Market  The market is fragmented and dominated by the unorganized sector
 There are 8,00,000 pharmacies in India with about 60,000 distributors

Drivers: Challenges:
– Growth in pharmaceuticals sector – Fragmented industry
– Increase in healthcare spending – Long distribution and supply chain
Drivers & – Changing disease profile – Counterfeit drugs
Challenges
h ll – Consumer attitudes – FDI regulations
– Attractive margins
– Growth in OTC Segment

 Loyalty Schemes
y y
 Value Added Services
 Tie‐ups with Retail firms
Trends
 Rural Expansion
 Entry of Government in Pharmacy Retailing
Entry of Government in Pharmacy Retailing
 Entry of Private Labels
 Organized Retailers starting Pharmacy Chains

 Apollo leads in the organized pharma retail market with highest number of outlets
Competition  Leading organized players include Apollo, Medicine Shoppe, MedPlus, Religare Wellness,
 Primarily organized retail chains operate either as a company owned or as a franchisee outlet

PHARMACY RETAIL MARKET – INDIA.PPT 2

•Market Overview
•Market Overview
•Drivers & Challenges
•Trends
T d
•Government Regulations
•Competition
•Key Developments


The market is highly fragmented and dominated by the
unorganized sector
Market Overview Overall Market Size & Growth
•There are 8,00,000 pharmacies in India today,
with about 60,000 distributors INR bn
•Market is fragmented and dominated by the 600
+41% 432
unorganized sector 400
•Growth in this market is driven by increasing 216
200
healthcare spending, growth in organized
healthcare spending growth in organized
retailing and attractive margins 0
2009 2011
•The entry of organized players is changing the
face of the pharmacy business in India Revenue split – Organized vs Unorganized
 Th
The organized space of pharmacy retailing is
i d f h ili i
Organized
dominated by 10‐12 big players
2%
 Primarily, organized retail chains operate either as
a company owned or managed stores or as a
franchisee outlet
franchisee outlet
•In India, pharmacies/drug stores are the
dominant distribution channel generating 74% 98%
of the overall pharmaceutical sales Unorganized


Pharmacy chains are expanding operations using various
store formats
Store Format Description

• They are housed in hospitals & dispense a limited number of medicines
Hospital Pharmacies • They cater mainly to the requirements of patients admitted in hospitals

• Stores are located near the residential areas
Standalone Stores • Some of these stores offer home delivery
• The target customers are middle and upper class households

• These are located in supermarkets, malls or departmental stores
Malls/Shop‐in‐Shops • Spencer has tie‐up with LifeKen Medicines for its Daily stores in South
India

• Pharmacy chains are planning to set up shop in townships
Townships • Apollo has signed an agreement with Hindustan Construction Co. (HCC)
to set up a medicity inside the upcoming project Lavasa near Pune


•Market Overview
•Market Overview
•Trends
T d
•Competition
•Key Developments


Drivers & Challenges

Drivers Challenges
Growth in pharmaceuticals sector Fragmented industry

Increase in healthcare spending Long distribution and supply chain

Changing disease profile Counterfeit drugs

Growth in OTC segment FDI regulations

Consumer attitude

Attractive margins


Growth in pharma sector and organized pharma retail
is expected to boost pharmacy retail in India
Growth in pharmaceuticals sector Impact
• The Indian pharmaceutical industry ranks 4th in volume terms and 13th in value terms
• The domestic pharmaceutical market is larger than the export market
• Retail market accounts for three quarters of the pharmaceuticals while direct sales to the
hospitals and nursing homes accounts for the remainder
Growth of Pharmaceutical Industry
INR bn
+10%
1,000 758
524
500
0
2008 2012
• Growth in pharmaceutical sector has attracted many organized players in pharmacy retailing
• New players include not just those with a pharmaceutical or healthcare background but also
corporates from other sectors
Growth of Organized Pharma Retail
INR bn
+40%
50 38.7
10.1
0
2008 2012


Increase in healthcare spending is driving retail sales of
pharmaceutical products
Increase in healthcare spending Impact
• Healthcare spending has increased with the increase in disposable income
• Healthcare is likely to be one of the fastest growing categories apart from communication,
education and recreation
 Average Indian spending on healthcare is expected to reach 13%
 People are ready to spend on preventive care and product integrity; alongside value‐added services
• Spending on healthcare is likely to increase as India is witnessing changes in its demographic
profile accompanied with lifestyle diseases and increasing medical expenses
fil i d ith lif t l di di i di l
Healthcare Spending
%
100 4 4 7 9 13
7
11 9
80 17 15 Healthcare
25 19 Education , Recreation & Communication
60 20
29 Transportation
29
40 Personal household products utilities apparel
29
56 Food Beverages and Tobacco
20 42
34
25
0
1995 2005 2015 2025


Rise in chronic diseases is driving growth in this sector

Changing disease profile Impact
• The disease profile in India is changing from infectious diseases to lifestyle diseases, which
requires more intensive care
• The incidence of lifestyle diseases has increased with the changing lifestyle
 India is home to the largest number of diabetes patients
 Stress both at work and at home is likely to result in increase in number of people suffering from
hypertension
• This will entail medication on an ongoing basis which will in turn make prescription‐based
This will entail medication on an ongoing basis, which will in turn make prescription based
medicine mandatory

Mounting Chronic Diseases

Population
36 62 31 46 14 34 2 2.5
(mn)
6
4.9
2005 (%)
4 3.3 3.7
2.8
28 2.7
27 2015 (%)
( )
2 1.3
0.2 0.2
0
Coronary Heart Diabetes Obesity Cancer
Disease


Rising sales of OTC products is driving growth in pharmacy
retailing in India
Growth in over‐the‐counter (OTC) segment Impact
• Retail pharma stores offer several products under one roof, from medicines to cosmetics in
order to target various needs of the customers
• Indian consumers have increased consumption of OTC products like analgesics, cough, cold and
allergy remedies, digestive remedies and medicated skin care products
• Medical drugs make up 70‐80% of the pharmacies sales while non‐pharma products constitute
20‐30 %
 In the next five years this ratio is likely to change to 40: 60
In the next five years this ratio is likely to change to 40: 60

Cough Cold and Allergy Analgesics Digestives

+20% +12% +16%
INR bn INR bn
19.7 INR bn 14.8
14 8
20 13.7
13 7 15.0
15 0 6.8
68 7.3
73 8.6
86 11.0
11 0 12.1
12 1
10
10
0 0 0
2005 2006 2007 2005 2006 2007 2005 2006 2007

Vitamins and minerals Skin treatment Others

INR bn +15% INR bn +16%
+18% INR bn
7.8 9.5
40 24.6 29.4 10 7.3 10 7.0
22.3 5.3 5.7
20 5 5
0 0 0
2005 2006 2007 2005 2006 2007 2005 2006 2007


Favourable consumer attitude and attractive margins is
driving growth in pharmacy retailing in India
Consumer attitudes Impact
• Indian consumers confidently self‐treat a wide range of common ailments such as cough, cold,
fever, pain and sprains, heartburn and diarrhea.
Consumer Behaviour for Minor Ailments
Do nothing
8%
Self-medication
23% 45% Go to the pharmacist

24%
Go to the doctor
Attractive margins
• High margins in pharmacy retailing despite price controls have made it a lucrative business

Level Margins
Scheduled Drugs Non Scheduled Drugs
Stockist or distributors 8% 10%
Retailers 16% 20%


Fragmentation in the industry has led to decrease in
revenue per store
Fragmented industry Impact
• The pharmacy retail trade is highly fragmented, unorganized and dominated by small chemists
• In the US and Europe, pharmaceutical retail is significantly consolidated with fewer pharmacies
serving much larger markets
Share of Organized Pharmacy Retail
54%
48%

3%

US UK India
• Although margins are high, increased proliferation and fragmentation has resulted in low
turnover per store
• Fragmented state of the industry has resulted in protectionist attitude of unorganized players,
which is using the strength of its number towards creating entry barriers for large and efficient
players
 All India Organization of Chemists and Druggists (AIOCD), representing over 0.55 mn chemists, is planning to
corporatise its operations by building pan Indian drug retail chains
 This association has control on the manufacturers, hence limiting the supply of drugs only through the
authorized wholesale distributors, limiting the margins and controlling the additional volume discounts that
authorized wholesale distributors, limiting the margins and controlling the additional volume discounts that
could be passed to the consumers and by organized retailers


Distribution channel consists of many tiers between the
manufacturers and the consumer
Long pharma distribution and supply chain Impact
• Distribution is highly tiered and it is difficult to directly source from manufactures
• Pharma supply chain in India comprises of multiple layers of suppliers, middlemen and retailers
• Pharma companies appoint carrying and forwarding agents (CFA) for every state, sometimes
more than one for large states such as Maharashtra and Uttar Pradesh
 They move products to at least one stockist or wholesaler in smaller cities, who then pass them on to
neighbourhood medical shops
 On an average a company has 20‐30 CFAs while the number of stockists may range from few hundred to
On an average, a company has 20‐30 CFAs, while the number of stockists may range from few hundred to
even thousands

Manufacturer

CFA / Company Depot

Distributor / Stockist

Hospitals Pharmacy Retail Chains


Counterfeit drugs and FDI regulations impede industry
growth
Counterfeit drugs Impact
• Over 35% cent of the drugs sold through retail pharma trade is spurious or fake in India
• The counterfeit drugs industry is no longer restricted to tablets and capsules and has graduated
to production of expensive and sophisticated injections, expensive tablets and inhalers
• Presence of online pharmacies has led to an increase in drug trafficking, unauthorised import of
medicines and unauthorised sale of drugs resulting in an increase in spurious/ counterfeit drugs
• In the next 10 years, counterfeit drugs is expected to be the single biggest problem in public
health in India
h lth i I di
• Monitoring and controlling counterfeit drugs is difficult owing to fragmented nature of Industry

FDI regulations
FDI regulations
• Currently, regulations permit 100 % foreign direct investment (FDI) only in single brand stores
• Pharma retail falls into the multi‐brand category hence foreign players find it difficult to enter
India
• FDI restrictions has limited the growth of this sector
FDI restrictions has limited the growth of this sector


•Market Overview
•Market Overview
•Trends
T d
•Competition
•Key Developments


Trends

Loyalty Schemes

Value Added Services

Tie‐ups with Retail firms
Tie ups with Retail firms

Trends ` Rural Expansion


Entry of Private Labels

Organized Retailers Starting Pharmacy Chains


Organised players are offering loyalty schemes for retaining
customers
Loyalty Schemes
• Organized pharmacy chains are offering loyalty schemes in the form of rewards, points, gifts ,
free health insurance for retaining customers Loyalty schemes
likely to benefit
likely to benefit
Pharmacy Loyalty Scheme Description organized
Apollo Any Time Medicine Card • Card entitles its customers to avail a health voucher worth retailers
INR 500 or a free health insurance worth INR 20,000 on
purchase of products worth INR 6000  from Apollo stores in
the concerned state within a period of one year
the concerned state within a period of one year
CRS Health Wellbeing Club • It credits points on purchase of minimum INR 800
• On every 20 points earned in 6 months it credits 5 bonus
points
• Points can be redeemed in multiples of 10 within 6 months
Guardian Advantage Card • Credits a point for every INR 10 spent
• Points can be redeemed  after  accumulating 200 points
• For every 200 points redeemed member gets free shopping
credit worth INR 50
Medicine Shoppe Shoppe Select • Point is credited for every INR 12.5 spent
• Points can be redeemed after accumulating  168 points
98.4 Degrees Total Health Card • It credits one point on an expenditure of INR 500
• Points can be redeemed after accumulating a minimum of 10
points in multiples of 10
i t i lti l f 10
• Each point has a life of 6 months


Value added services emerging as a new trend in pharmacy
retailing
Value Added Services
• Organized stores are offering host of value added services apart from selling medicines such as:
 Diagnostic and pathological tests
Pharmacy
retailing moving
retailing moving
 Health related consultancy & Medical insurance advisory
conventional
 Home Delivery Services
retailing
Pharmacy Services
Apollo • Apollo provides medicine delivery services
• Apollo also offers free medicine reminder service
• Its new concept – NurseStation provides nurses to attend to the patients at their houses, or
refer them to an Apollo Clinic
Guardian • It offers facility of ordering medicines on Phone
LifeKen • It offers free home delivery services for its members, between 7 am ‐ 9 pm without
minimum billing commitments, it also accepts orders through email
Medicine • It has tied up with pharmaceutical companies to offer free diagnosis for diabetes, blood
Shoppe pressure etc once a week
• Maintenance of medication history of customers free home delivery free insurance cover
Maintenance of medication history of customers, free home delivery, free insurance cover
against purchase, personal accident insurance, household fire insurance, free critical care
insurance
MedPlus • MedPlus offers diagnostic lab services


Tie‐ups with retail firms and rural expansion are upcoming
trends in this sector
Tie‐ups with Retail firms
• Pharmacies are also tying up with retailers to ensure wider distribution
Tie‐ups aimed at
Pharmacy
Pharmacy Retail Firm
Retail Firm Description improving
Apollo Indian Oil Corporation • Set‐up stores across its retail gas stations in India distribution
Guardian Kendriya Bhandar • Set‐up pharma stores at its retail outlets in Delhi and NCR
Region
• To provide medicines and health foods at discounted rates
To provide medicines and health foods at discounted rates
LifeKen Spencer • Set‐up pharmacy stores in Spencer outlets in South India

Rural Expansion
•O
Organized players are targeting the rural areas in partnership with existing retail players
i d l t ti th l i t hi ith i ti t il l
Market
Pharmacy Retail Firm Description
expanding to
Apollo Godrej Aadhar • To establish pharmacies at Aadhar Outlets in Rural Areas under rural areas
the brand Apollo Aadhar Pharmacy
Apollo ITC E‐choupals‐ • Distributing medicines in rural areas
Choupal Saagar
Guardian DCM Shriram • To set up its ‘Aushadhi’ chain of rural pharma retail outlets
within the Haryali Kisan Bazaars, the rural initiative of DCM
Shriram


Entry of government, organized retailers and private labels
has helped in growth of pharmacy retailing
• The Government of India is planning to distribute essential medicines through Government
retail outlets Jan Aushadhi Stores at affordable prices Entry aimed at
providing
providing
• The first of such Jan Aushadhi outlets was opened in Punjab in November 2008
affordable
• Unbranded versions of generic drugs including popular antibiotics, pain‐killers, cough and cold medicines
medication will be available at these 'Jan Aushadhi' stores

Entry of Private Labels
y
• Some retail chains are now getting generic drugs, such as paracetamol, contract‐manufactured
by licensed third‐parties and then marketing them under their own brand‐names Private labels to
 MedPlus Health Services plans to sell 28 drugs under its own brand at its 600 outlets provide low cost
– Ten of these, including over‐the‐counter products to treat diabetes and hypertension, are already on MedPlus shelves alternative
– Such medicines will be available at a 15% discount to comparable drugs medicines
Organized Retailers Starting Pharmacy Chains
• Reliance Retail Ltd, has entered pharmacy retailing through its Reliance Wellness stores
 It established three such stores in Hyderabad and Bangalore and one in Mumbai, and is planning to increase
the number to 30 stores Competition set
Competition set
 The Wellness stores will offer health foods, personal care and healthcare products to increase
• ‘More’ supermarkets by Aditya Birla Retail is planning to house a pharmacy
• Pantaloon’s is present in pharmacy retail through Tulsi, the Medicine Bazaar, a pharmacy housed
within Big Bazaars and Food Bazaars at over 35 locations allover India
ithin Big Ba aars and Food Ba aars at o er 35 locations allo er India


•Market Overview
•Market Overview
•Trends
T d
•Competition
•Key Developments


Drugs & Cosmetics Act 1940 regulates distribution and sale
of drugs and cosmetics
Drugs & Cosmetics Act 1940

• To regulate the import, manufacture, distribution and sale of drugs and cosmetics
Objectives • Act specifies certain minimum requirements for grant of a pharmacy licence

• The State Government appoints Licensing Authorities for grant of a pharmacy licence
Licensing • An original licence or a renewed licence to sell drugs is valid for a period of five years
• For drugs stocked for sale at more than one place, a separate licence is required, in respect of each such place

• The premises of a pharmacy must be separated from rooms for private use
• The premises need to be well built, dry, well lit and ventilated and of sufficient dimensions
• Goods must be clearly visible
Guidelines for
• The area of the section to be used as dispensing department must not be less than 6 square meters for one
Premises pharmacist working therein with additional 2 square meters for each additional pharmacist
• The height of the premises must be at least 2.5 meters
• The floor of the pharmacy is required to be smooth and washable

Guidelines for • Drawers, glasses and other containers must be in a position to be closed tightly to prevent the entry of dust
• Every container shall bear a label of appropriate size, easily readable with names
Furniture and •DDrugs, chemicals, and medicines shall be kept in a room appropriate to their properties and in such special
h i l d di i h ll b k t i i t t th i ti di h i l
Apparatus containers that will prevent any deterioration in their properties

General • A pharmacy must be operated under the continuous personal supervision of a Registered Pharmacist whose
name is required to be displayed in the premises
Provisions
• All
All records and registers need to be maintained in accordance with the laws in force
d d i d b i i di d ih h l i f


•Market Overview
•Market Overview
•Trends
T d
•Competition
•Key Developments


Apollo Pharmacy leads the overall market

Competition Overview Organized Pharmacy Distribution
• Apollo leads in the organized pharma retail market
with highest number of outlets Apollo Pharmacy 740
• Sector has witnessed the entry of new players MedPlus 600
• Almost all players have expansion plans Himalaya 350
• Organized pharma retail chains operate in three Medicine Shoppe 130
models: Religare Wellness 112
 Fully owned stores Guardian Lifecare 110
– Apollo prefers fully owned model LifeKen 92
 Franchise model Trust Chemists 50
– Medicine Shoppes operates in this model Tulsi 35
98.4
98 4 Degrees 30
 Combination of owned and franchise stores
Frank Ross 25
– Guardian prefers a combinational model
Muthu Pharmacy 14
• Franchisee model has enabled loss making stand‐
NewU 12
alone stores to be absorbed by organized retailers
Dial for health 10
 This is likely to trigger consolidation in this sector
This is likely to trigger consolidation in this sector
Cure & Care 6
• Retail outlets of players like Himalaya sell only its
Reliance Wellness 6
products No. of Stores
• Leading players are targeting rural areas and are 0 200 400 600 800
tying up with organized retail players for expansion
tying‐up with organized retail players for expansion


Major Players (1/7)
Number of
Pharmacy Promoter Stores Business Description
Apollo Apollo Hospitals 740 • It is present in 17 states including Andaman & Nicobar Islands
Pharmacy p p ( p
• Its rural initiative includes a tie up with ITC’s e‐choupals (Choupal
Sagar) and Godrej’s Aadhaar to provide medicines in rural areas
• It is planning to expand using the franchise route
• It is planning to meet a target of 1500 stores by 2010
Cure & Care Manipal Group 6 • Its stores are present in malls and neighbourhood streets with
carpet size of 7,000 to 8,000 sq ft
• It has tied up with Aditya Birla Group and Jubilant Retail to open
100 outlets in their malls and stores by 2012
• It is the first retail healthcare company in India to have received
the ACHSI (Australian Council on Healthcare Standards
International) certification
• Besides the pharmacy, its centres provide health checkups and
consultancy services
• It plans to invest INR 2 bn in the health, wellness and beauty
It plans to invest INR 2 bn in the health, wellness and beauty
segment in the next three years
• It aims to add 50 centres by 2011 and 100 shop‐in‐shop by 2010

Note: This list is not exhaustive


Major Players (2/7)
Number of
Dial for health Zydus Cadilla 10 • It has nine stores in Mumbai and one in Pune
• Its pharmacies also offer free routine check‐ups including weight
Its pharmacies also offer free routine check ups including weight,
blood pressure and body‐fat content
• It is presently focusing on Mumbai for its retail operations
• Its stores are air‐conditioned and they offer value added services
y y
like auto‐refill facility and free delivery within 3 kms from the
pharmacy
Financials:
• Zydus Cadilla reported total sales of INR 17.8 bn and profit after
tax of INR 2.3 bn in FY 2007‐08
Frank Ross Emami 25 • The size of each pharmacy is 350 to 600 sq ft
• Some of its pharmacies are located in hospitals and some are
standalone stores
• It is planning to invest INR 980 mn in order to expand to 100
stores by 2012
b
Financials:
• Emami reported total income of INR 6 bn and a net profit of INR
927.5 mn in FY 2007‐08



Major Players (3/7)
Number of
Guardian Guardian Life 110 • It has planned investments of over INR 1 bn for expansion
Care
Lifecare • Its rural initiatives include brand of stores called ‘Aushadhi’
Its rural initiatives include brand of stores called Aushadhi
• It currently operates in 15 cities in North, East & West India
• It is planning to meeting its target of 250 stores in 2009 and has
earmarked INR 1 bn towards expansion
Himalaya
Hi l Himalaya Drug
Himalaya Drug 350 • It t
Its stores showcase entire range of Himalaya drugs, from
h ti f Hi l d f
Company pharmaceutical, personal care to baby care and animal healthcare
at competitive prices
• It has 150 exclusive retail outlet formats (300 sq ft), more than
200 shop in shop outlets (60 70 sq ft) and an online shopping
200 shop‐in‐shop outlets (60‐70 sq ft) and an online shopping
website
• It is expanding its retail presence in India and abroad by adding
300 exclusive stores
LifeKen Lifetime 92 • Operates stores in Bangalore, Chennai and Mumbai
Operates stores in Bangalore, Chennai and Mumbai
Healthcare • It plans to add stores in Mumbai, Pune, Hyderabad and Kochi
Pvt. Ltd
• In October 2006, LifeKen acquired Pill & Powder, the oldest player
in pharmacy retail in Bangalore
• It plans to grow to 700 stores by 2012
It plans to grow to 700 stores by 2012



Major Players (4/7)
Number of
Medicine Melrose Trading 130 • It is the Indian arm retail pharmacy chain, Medicine Shoppe
Company Ltd , y g g j ,
International, owned by the drug‐trading major, Cardinal Health
Shoppe
• Melrose Trading Company is the master franchisee that runs the
operation in India
• All the outlets are a minimum 400 sq ft in size
, j , , ,
• Outlets in several cities of Maharashtra, Gujarat, Goa, Delhi, Uttar
Pradesh, West Bengal, Andhra Pradesh and Karnataka
• It follows the model of franchisee stores in India
• It aims to open another 1,000 stores by 2010
MedPlus Optival
p 600 • It operates stores in Andhra Pradesh, Gujarat, Karnataka, Tamil
It operates stores in Andhra Pradesh, Gujarat, Karnataka, Tamil
Health Nadu, Maharashtra and Rajasthan
Solutions • In August 2008, it received funding of INR 1.09 bn from NEA‐
IndoUS Ventures and an unnamed fund from West Asia and
funding of INR 230 mn from iLabs in March 2007
• It plans to expand using the franchise‐based model for 75% of its
stores planned in expansion plans
• It plans to achieve a turnover of INR 3 bn by next fiscal and add
1,500 more outlets by 2010



Major Players (5/7)
Number of
Muthu Pharmacy Muthu Group 14 • It operates a chain of 14 pharmacy stores in Chennai
• Its pharmacies stock all type of medicines and other general
Its pharmacies stock all type of medicines and other general
items
• Its pharmacies also offer counselling and door delivery facilities to
its customers
NewU Dabur 12 • ‘NewU’ was launched in May 2008, by Dabur s retail subsidiary,
NewU was launched in May 2008 by Dabur’s retail subsidiary
H&B Stores Ltd
• Stores provide beauty, health and wellness related products
• Its outlets stock over 14,000 international and domestic brands
apart from Dabur s own brands in beauty, health and wellness
apart from Dabur’s own brands in beauty, health and wellness
• Store size ranges between 800‐3,000 sq ft
• It plans to open another 12‐15 stores by 2010
Financials:
• Dabur reported an total income of INR 3.17 bn and a net loss of
Dabur reported an total income of INR 3.17 bn and a net loss of
INR 777 mn in FY 2008‐09



Major Players (6/7)
Number of
Reliance Reliance Retail 6 • Its stores offer health foods, personal care, healthcare and
Wellness p
pharmaceuticals products
p
• Its stores stocks over 8,000 products & offer discounts between 5‐
25 % on select categories
• Present in Mumbai, Hyderabad and Bangalore
p p y
• It plans to open 150 stores with an investment outlay of INR 9 bn
in 2008‐2010
• It has tie‐up with UK based, Alliance Boots for a wholesale
business, and to operate front‐end stores through a franchise
agreement
Religare Fortis 112 • It plans to reposition itself as a health & wellness company
HealthWorld offering a wider array of services
Wellness
• In 2008, it acquired CRS Health, a Delhi‐based pharma & wellness
retail chain
• Its expansion plans include tie ups with existing retail chains for
Its expansion plans include tie‐ups with existing retail chains for
opening store‐in‐store formats in their stores
• It is planning to grow to a 1,000 stores and cover 400 cities by
2012



Major Players (7/7)
Number of
Trust Chemists Trust Chemists 50 • It has 40 air‐conditioned outlets in Bangalore and 10 outlets in
& Druggists Chennai
Ltd
• It is the single largest retail chain of organized medical shops in
Karnataka
• Has a tie‐up with Axis Bank for co‐branded credit card
, p
• It has stores in three formats: Standalone stores, hospital
pharmacies and concept stores
Tulsi Future Group 35 • Most of the Tulsi outlets are located in Big Bazaar
• Future Group currently has over 35 Tulsi outlets across the
country
98.4 Degrees Global 30 • It has stores across Delhi and Gurgaon
Healthline • It stocks a large range of prescription medicines, OTC drugs,
health foods, supplements and baby care, beauty and personal
care products
care products
• The company plans to grow to a 300‐400 store chain by 2014



•Market Overview
•Market Overview
•Trends
T d
•Competition
•Key Developments


Key Developments

Date Development
13‐ May‐2009 Guardian Pharmacy has entered into an alliance with the Kendriya Bhandar chain of cooperative retail
stores for opening pharmacy retail outlets in Delhi and the National Capital Region in order to provide
medicines and health foods at discounted rates
medicines and health foods at discounted rates
7‐Feb‐2009 The first `Jan Aushadhi' shop in Delhi, was inaugurated in Kendriya Bhandar outlet in Shastri Bhavan,
`Jan Aushadhi‘ outlets will sell quality, unbranded generic medicines at affordable prices
22‐Jan‐2009 Trust Chemists and Druggists has tied up with the Aditya Birla group run ‘More’ supermarkets to set
up shop in shop stores in ‘More’ supermarkets in Tamil Nadu , the company is planning to establish
h i h t i ‘M ’ k t i T il N d th i l i t t bli h
100 stores in TN and Karnataka by July 2010 and it plans to invest INR 250 mn for its expansion
31‐ Dec‐ 2008 Frank Ross, a pharmacy retail chain of the Emami group, is expanding in East India to establish 100
outlets across India by 2011‐2012 at a cost of INR 980 mn
10‐ Nov‐2008 Religare Wellness, has entered into an agreement with Reliance Retail and LM 365 to set up shops in
their stores where they lack presence. It plans to have about one‐fifth of its stores through such tie‐
ups


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Market Research India - Pharmacy Retail Market in India 2009

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