Pharmacy chain MedPlus looks to venture into Mumbai market
MedPlus, India's second largest pharmacy retail chain, is looking at foraying into the Mumbai market. The pharmacy chain will add around 30-40 pharmacy stores in Mumbai. MedPlus already has a presence in Pune and Nagpur.
In April 2019, MedPlus raised had around Rs 200 crore from Wipro Chairman Azim Premji's family office PremjiInvest. The pharmacy chain is eyeing to open 100 stores every year.
MedPlus is operating about 1,700 stores, of which, 100 of the stores are run through franchisee model. The company has largely focused on south India till now.
Madhukar Gangadi, Founder and Chief Executive Officer, MedPlus, “In Mumbai, we will be setting up our own stores. Mumbai is a great market.”
The pharmacy chain is following a hub and spoke model, where it establishes a central warehouse, around which it puts up as many stores as possible.
“The pharmacy chain plans to end FY20 with Rs 2600 - Rs 2700 crores, we should have an EBITDA of Rs 70-75 crore. Around 17-18 percent of the overall business is generated through a digital platform. The low EBITDA margin is due to discounts they have to offer to retain business,” Gangadi stated.
He further added, “We are offering 20 percent flat discount for customers who are buying medicines of Rs 1000 and above at our stores.”
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