Click to play videoMumbai: Pharma retailing is the next big opportunity everyone is looking to cash in on. From local drug makers to global pharma chains, they all want a piece of the pie.
For Jagannath Shinde – the president of Maharashtra state chemists association – it’s a major challenge to drive his association to shape up into a corporate entity.
As more and more business houses plan direct presence in pharma retailing in India, Shinde says chemists will have to move forward from its traditional past and offer value added services.
MSCDA president J S Shinde says, “We are giving value added service like health insurance, patient counseling, home delivery etc. This will all sum up as part of our new plans.”
In India pharma retailing is a business estimated to be worth Rs 30,000 crore. It is unorganised and unlike in the West it is largely in the hands of traders.
That is the reason why top corporates and retail chains like Pantaloons and Apollo pharmacy are expanding their presence into drug retailing.
There are others like Subhiksha, Health and Glow, Manipal group and Guardian Lifecare that have also lined up mega pharma retail plans. Investment consultants say this trend will benefit the consumers.
Avendus Advisors Shiraz Bugwadia says, “Pharmacy chains want to attract consumers, and through greater interaction models, the consumer will stand to benefit.”
The US based Medicine Shoppe has already branched into more than 100 shops in about six years but it is not been a very easy ride.
Viraj Gandhi from Medicine Shoppe says, ”IMS states that India will become the 13th largest medicine market in dollar terms but all of the hype in pharma retail is going to be through a minefield – if you can survive you can make money.”
For those entering pharmacy retailing it may be a great opportunity but profits may come only after being in the business for years.
That’s because the government controls prices and profit margins on medicines and price-based competition is getting tougher by the day.
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