Pharmacy chain is transforming the drug dispensing landscape in the country, said Dr Surendra Mantena, COO, MedPlus Health Services.
Currently pharmacy chains in the organised sector constitute 6-7 per cent of the total 8 lakh outlets in the country. Going forward, the growth of pharmacy trade in India will be driven by the rising healthcare expenses and change in consumer outlook, towards convenience to opt for purchases via smart phones. This is where the government should now look at permitting online pharmacy and bring the much-needed regulations for this business model, stated Dr Mantena.
“We see small chemist shops approach us to get the much needed modernisation and visibility. Issues like the Drug Price Control Order and the ban on sale of 344 fixed dose combinations have dented the earnings of pharmacy outlets. The need for total compliance to not just the Drugs & Cosmetics Act & Rules but also the Pharmacy Practice Regulation 2015 are seen to be challenging for small outlets in the towns and villages as they need to invest air-conditioners and have a qualified pharmacist to dispense drugs”, Dr Mantena told Pharmabiz.
We are open to acquisitions of existing chemists-druggists outlets and many have come to us for discussions. The big advantage for these small chemists outlets would be that their supply chain will be streamlined with automated processes. Besides, in order to simplify the process to upgrade, we have initiated the franchisee business model to expand our presence in every mandal or taluka in the states of Andhra Pradesh, Karnataka, Tamil Nadu and Telangana by appointing franchisees. Since the investment requirement is small and a bank loan facility is available, we feel it will empower and enlist a lot of small entrepreneurs from these areas to partner with us as franchisees, he said.
A franchise investment is around Rs.16-20 lakh as it covers both infrastructure and inventory. In our case the State Bank of India is offering a collateral loan which amounts to half of investment cost of Rs.5 -7 lakh. We are confident that many chemists would hop on to our bandwagon to drive growth. By 2018 to 19, MedPlus is looking to add another 2,000 stores taking the total to 3,350 outlets, he said.
The company will also look at increasing its presence in diagnostic tests as part of the community pharmacy initiative which is the future because pharmacists are the first point of contact for patients in rural and semi-urban areas.
Although the D Pharm holders are a dedicated pool to work in pharmacy trade, there is considerable interest evinced by B Pharm candidates. This is because medication dispensing in pharmacy outlets is the best platform to garner much of the know-how for young pharmacy graduates to seek gainful employment opportunity, said Dr Mantena.
In its 10 year of inception, MedPlus serves over 2 lakh customers daily via its 1,350 outlets in 12 states. As the second largest pharmacy chain after Apollo with 2,000 stores, MedPlus has garnered a 30 per cent market share in the organized retail pharmacy industry. It has total workforce of 10,000 employees. Around 80 per cent of its revenues are driven from the southern states. It is also present in Pune, Aurangabad, Kolkotta, Bhubaneswar, Delhi, Jaipur and Ahmedabad.