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 with 3 stores.
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 pharmacies. ROI is more than 30-35% in the first three years and can go up to 40-45 % in 5 to 6 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.
There is a huge scope for continuous and uninterrupted growth. I have few more ideas to incorporate within.
It is difficult for developing new pharmacy and getting it break-even from day one, so I have something better in my pocket to do so.
Percentage of profitability will be divided equally, as per equity holding.
Finances will be used to set up pharmacies, hire staff, rent an office and meet running business expenses.
This is a one time investment for three years and once 25+ outlets are set up rest of the things will be taken care from business itself.
Moreover I have a plan to expand up-to 100 store.
I am looking for both silent investors or active investors, who can invest or work hand on hand with me on the project.
Moreover I am ready to give up-to 49% of the firm with assurance that we will break-even from the 1st years.