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M. Somasekhar

Hyderabad, Sept. 1 MedPlus Health Services, the fast growing pharmacy retail chain, has set its sights on doubling its store strength across the country from 520, by the end of March 2009.

The company is adopting the franchisee model for its expansion. It has signed up for 200 pharmacy outlets, according to Dr Madhukar Gangadi, Chief Executive Officer.

“We are not into acquisition mould as nobody really has a decent size. In the future, however, we would be open if the size compliments our expansion plans,” he told Business Line in response to questions.

Currently, most retail chains across the country have around 50-75 stores or less. Apollo with over 600, Guardian in Delhi with over 100 are among the bigger ones. MedPlus, the Hyderabad-based company has 520 outlets, placing it in the top rung.

“We are convinced that India requires several thousand pharmacy outlets to meet its growing demand in the near future. There is scope for many players, who can run their business model well,” he said.

The growth States for the ‘Neighbourhood’ medical store as it would be Tamil Nadu, Andhra Pradesh, and Karnataka.

They would be followed by Kerala, Rajasthan, Maharastra and West Bengal in the company’s target to cross 1,000 (stores) in the next six months, Dr Gangadi added.

With a typical MedPlus store requiring an investment of about Rs 50 lakh to start, the franchisee model helps in promoting entrepreneurship among pharmacy graduates or diploma holders.

The company is providing a small loan as well as training to such people, he said.

At least 25 per cent of the company’s stores are run by pharmacy graduates or diploma holders. There is also a licensed pharmacist in the store, who is trained to ensure control on quality of the products, storage facilities and inventory, he explained.

MedPlus has received an investment of Rs 23 crore from iLabs, a Hyderabad-based fund, last year.

“We will use internal accruals and these funds for our expansion plans,” the CEO said, refraining from disclosing the financials of the company.

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