News: Ambanis, Cipla, Cadila to join pharma retail rush
(FE 12/08/2006) Bangalore - After FMCGs and garments, pharma is emerging as the next big hope in retailing, with an increasing number of players including Ambanis planning to roll out branded pharma retail stores.
While Apollo Pharmacy, the biggest pharma chain in the country, is planning to expand its network from the current 250 to 700 by the end of this fiscal, it is learnt that Anil and Mukesh Ambani have been holding talks with the All India Organisation of Chemists and Druggists (AIOCD), to form a 50:50 joint venture for a national level pharmaceutical retailing foray. Zydus Cadila and Cipla too are said to have plans for this segment.
Sources say that the Ambani groups are likely to extend total financial support to corporatise the Indian pharma trade and this includes providing technical infrastructure for supply chain management, cold chain management and warehousing.
The corporates line up in retail pharma sector follows success of existing players including Dr Morepen, Medicine Shoppe, Trust, Lifeken, 98.4 from Global Healthline and CRS Health from SAK Industries.
In the south, RPG group’s Health & Glow and Subhiksha are already in this category while Optival Health Solutions, that runs Aushadhi pharmacies in Andhra Pradesh, plans to go national later this year. Himalaya Drugs is also planning major expansion in India and abroad. It has nearly 100 stores, and is planning for expansion in SAARC countries, China and Japan.
On offer for new players entering the segment is the massive pharma retailing pie in India, currently at Rs 7,000 crore and estimated to touch Rs 16,000 crore by 2010, according to KSA Tecknopak. In fact, according to estimates, 15% of the 55 lakh retail stores in India are chemists.
“Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc),” said a consultant at AT Kearney (India) Ltd.
While Apollo Pharmacy, the biggest pharma chain in the country, is planning to expand its network from the current 250 to 700 by the end of this fiscal, it is learnt that Anil and Mukesh Ambani have been holding talks with the All India Organisation of Chemists and Druggists (AIOCD), to form a 50:50 joint venture for a national level pharmaceutical retailing foray. Zydus Cadila and Cipla too are said to have plans for this segment.
Sources say that the Ambani groups are likely to extend total financial support to corporatise the Indian pharma trade and this includes providing technical infrastructure for supply chain management, cold chain management and warehousing.
The corporates line up in retail pharma sector follows success of existing players including Dr Morepen, Medicine Shoppe, Trust, Lifeken, 98.4 from Global Healthline and CRS Health from SAK Industries.
In the south, RPG group’s Health & Glow and Subhiksha are already in this category while Optival Health Solutions, that runs Aushadhi pharmacies in Andhra Pradesh, plans to go national later this year. Himalaya Drugs is also planning major expansion in India and abroad. It has nearly 100 stores, and is planning for expansion in SAARC countries, China and Japan.
On offer for new players entering the segment is the massive pharma retailing pie in India, currently at Rs 7,000 crore and estimated to touch Rs 16,000 crore by 2010, according to KSA Tecknopak. In fact, according to estimates, 15% of the 55 lakh retail stores in India are chemists.
“Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc),” said a consultant at AT Kearney (India) Ltd.
posted by InCar Group Press Room at 00:23
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