- Country: India
- Industry: Medical, Health Care, Pharmaceutical
- Stage: Seed
- Investment size: $75,000 / min. $75,000
- ROI: 18% in 1 years
- Type of investment: Debt, Equity
Pharmacy chains like Apollo, Med-plus already have 3000 pharmacies countrywide. I want to start such a business by using a different model.
This will be a pharmacy retail chain across Karnataka only for the time being - at strategic locations with regular inflow of patients. Hyderabad, Mumbai, Bangalore and Ahmedabad are the major pharmaceutical hubs of India, therefore we will start first from Bangalore,Karnataka .Initially we have developed 5 stores in Bangalore.
We will be selling pharmaceutical products on doctors’ prescription. The total market volume is more than $ 13.8 Billion and growing at more than 15% annually as per expected from 2105-2020.
In this model the company will only have to set up a pharmacy, train staff and generate revenue. This project can be continuously in progress until you reach each and every town of Karnataka.
Returns will break even within first year and will grow exponentially. Funds are required to set up more numbers of pharmacies. Current ROI is 15-20 % in the and can go up to 20-35 % in 2 to 3 years.
The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value, as per a report by Equity Master. Branded generics dominate the pharmaceuticals market, constituting nearly 70 to 80 per cent of the market.
The pharma retail sector is not organized. Many big companies are stepping in retail business like Apollo,Med-plus, Medizone and put together they already have 3000 + stores and planning to set up 250 stores per year.
These stores are directly operated by the company and most of the time stocks are not maintained properly which is repeatedly reported as a complaint by customers. Moreover most of these companies don't have employees from pharmaceutical sales but what they do have are only chemist/pharmacist.
Rationale for the deal
Already we have developed 4 retails store and 1 wholesale unit and now we have planned for online platform which will give us better penetration into the market.
We have been making money in the last one year at the rate of 18% now with the wholesale and online platform we can even increase our margin upto 30%
We as a team have experience in this area from last 10 years.
Use of financing
Finances will be used to :
a) Expand our stores upto 10.
b) Revamp our Wholesale stores.
c) Develop our online platform
Opportunity for the investor
Required Loan : $ 75000
Payback Period: 36 Months
Interest Rate: 18-20%
Required Loan : $ 75000
Share Dilution: 15 %
Payback Period: 66 Months
Exit Policy: Buyback
Exit Value:$ 168750
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