IndiaRetailBiz

“Pharma retailing, fragmented as it is controlled by over 600,000 chemists spread across the nation, is slowly but surely getting corporatised with big business houses foraying into the sector.”

Apollo Pharmacies, the retailing arm of Pratap Reddy oened Apollo Hospitals group, among the country’s pioneering pharmaceutical retailers, is expanding its footprint from 220 cities and towns to 320 in the next two years.

Started as an extension of the group’s flagship hospital in Chennai, the retail chain has grown into a pan-India pharmacy chain with 680 stores spread across 220 cities and towns of the country. 220 of the existing 680 pharmacy stores of the chain were set up across 100 towns last year.

The retail chain has drawn up plans to almost double the number of its existing 680 pharmacies to 1,200 pharmacies by investing Rs. 120 crore in the next two years.

Apollo group, according to a DNA report, is looking at divesting 49% of its pharmacy business to a strategic investor. Although, many investors are interested, the group is interested in offering the stake only after achieiving the 1,200 pharmacies’ mark, which in the management’s opinion is a ’critical, level ‘ for unmasking the value of the chain.

“Reaching close to 1,200 would be a critical level to unlock the value of our pharmacy retail segment and get good valuations,” said,Suneeta Reddy, Executive Director-Finance, Apollo Hospitals, while explaning the strategy fo divestment. 

The Chennai-based Apollo Pharmacies has grown very rapidly in the past two years and today no other pharmacy or wellness chain in the country can match it in terms of its size, reach, or scale of operations.

In the past few years, a number of pharmacy chains like Medicine Shoppee, Dial for Health, Fortis Healthworld, Planet Health, Reliance Wellness, Mediplus, Lifespring, etc., have forayed into Rs. 25,000 crore pharmaceuticals and another Rs. 25,000 crore wellness sector.