MedPlus Health Services, the Hyderabad-based pharmacy and wellness retain chain promoted by Dr Madhukar Gangadi, which was growing at a fast pace until recently, has decided to completely shutdown its operations in the state capitals of Gujarat (Ahmedabad) and Rajasthan (Jaipur).
While, according to media reports, the pharma retailer has closed down all the 20 stores in Ahmedabad, it has also decided to down the shutters on 19 stores in Rajasthan. The move ostensibly has come in the wake of unrealistic rentals for store premises. However, some in the know believe that the reason for closure stems from inability of the retailer to properly evaluate the markets.
According to many knowledgeable people in the business, MedPlus, like many othe new-gen retailers, was trying to grow at a very fast pace. The retailer had already opened over 600 stores and was looking at taking the tally of stores to 1,000 stores by March, 2009.
“We plan to have over 1,000 outlets in the eight states by March 2009 and a pan-India presence with another 2,000 stores, with an investment of Rs 10 lakh each, by 2010,” Gangadi had once said.
In March, 2008, MedPlus had launched a new full-service pharmacy retail concept – integrated health centres (IHCs) – in Hyderabad. The concept, claimed to be the first-of-its-kind in India, combines a family clinic, diagnostic lab and a pharmacy under one roof.
MedPlus, like most of its counterparts in modern retail business, was chasing the IPO dream. It was looking at raising Rs 200 crore through public offer in June, 2009.
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5 responses so far ↓
hiren // Apr 17, 2009 at 9:53 am
hello this is very bad news that such regional companies are gonna closed what happend in next time ???
Vipul // Apr 17, 2009 at 2:08 pm
No Body has so far made any money in Pharmacy Retail ,
These retailers do all but not want needs to , hence the failure ,
When as many as 5.5 lacs chemists make money why cant these So called Proffesssional Retailer no do any thing whorthwhile .
Money can be definately be made if the business is done properly .
Chetan // Jun 30, 2009 at 8:15 am
High real state rent and value is a main hurdle in the success of retail chain Pharmacy. In so many countries retail chain pharmacy working successfully, hope in India it will success in future.
Satender Singh // Aug 10, 2009 at 1:54 pm
This is not a breaking news that a professional chain is closing its stores, already Subkhiksa met the same fate launched with lot of fanfare giving 10% discount. Reason might be an average Indian Consumer feels comfortable with a nearby friendly retailer who can sometime give him prescription drugs without prescription as well.
Baljeet Singh // Sep 12, 2009 at 2:55 pm
Keeping all the medicine product at one retail chain is impossible because in every pocket Dr. gives different brand name prescription, salt may be same.
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