MedPlus plans to open 2,000 stores in South India

MedPlus plans to open 2,000 stores in South India

Hyderabad-based pharmacy retail chain MedPlus Health Services plans to open close to 2,000 stores in four Southern states.

Talking to Deccan Herald on the sidelines of MedPlus 10th anniversary celebration in the City, MedPlus Health Services COO Dr Surendra Mantena said, “In the next 2-3 years, our plan is to have presence in every mandal (revenue units) of four Southern states — Karnataka, Andhra Pradesh, Telangana and Tamil Nadu. These states contribute almost 75-80% of our revenues.”

MedPlus, the second largest pharmacy retail chain in the country, has a network of 1,350 pharmacies in 12 states. The average sales is Rs 1.2 crore per store per year.

Mantena said, “Currently, 99% of MedPlus stores are company-owned-company-operated (COCO) model. We just began the franchisee route, and we have 28 stores in Telangana, and a couple of stores in Ahemedabad as franchisee.”

“From last month, we are piloting the franchisee model. We recently placed an advertisement on the same in Andhra Pradesh and Telangana, and so far we have received over 4,000 responses. We are in the process of shortlisting them,” Mantena said.

To become a franchisee, one has to shell out Rs 16-23 lakh depending on the place and size of the store. For rent and infrastructure alone, it can be around Rs 5-6 lakh, and the rest would be towards the initial inventory stock. The company has tied up with State Bank of India for providing loans to the franchisees with 50% collateral.

Till date, the company has invested over Rs 300-350 crore, as a mix of debt and equity, and employs around 10,000 people. The company clocked Rs 1,800 crore in the last financial year, and it aims to grow at 25-30% in this fiscal year.

The brand serves over 200,000 customers a day, and enjoys a 30% market share in the organised retail pharma industry.

MedPlus aims to raise up to $75 million in the next two months.

Mantena said, “We are in the process of raising $50-$75 million from private equity investors to scale up operations in the next two months. By the end of 2017, we will become the largest retail pharmacy chain in the country.”

The company is also present in Kolkata, Bhubaneswar, Maharashtra, Gujarat, Delhi and Jaipur.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry