The Hindu Business Line : Pharma retailing set for makeover

THE next time you hear 98.4°, it could refer to more than the ideal temperature for the human body - the newly launched neighbourhood pharma retail store.

With the aim of attacking the spurious drug trade by providing genuine medicine in a standardised environment - bills, prescriptions and records intact - the pharma retail space is seeing the entry of more corporates, a welcome sign for consumers faced with the lurking threat of spurious medicine.

"The consumer can rest assured that their drugs are at the right price, with bills to facilitate reimbursements or health insurance claims. By maintaining a centralised database of consumers - with details of patient history and prescription - personalised services can be structured, for instance heart patients can be reminded about their medicine. Other services such as home delivery of medicine and sending mailers to keep consumers abreast of new developments in health can also be undertaken," said Mr Rajan Madhu, Director of Global Healthline Pvt Ltd (GHPL), promoters of 98.4.

GHPL is a subsidiary of Global Influence, a 10-year old export house marketing pharmaceutical products to markets in the CIS, West Asia and Europe regions.

The pharma retail space in India has players such as The Medicine Shoppe in the western States and Apollo Pharmacies in some cities.

The latter is part of the Apollo Hospitals group and has tied up with Indian Oil to start a retail pharmacy chain at prime outlets, industry watchers said.

Cadila and Cipla are also rumoured to have plans for pharma retail, though no confirmation is available.

On 98.4's retail plans, Mr Madhu told Business Line that the company hoped to establish a national presence by 2006. Thirty stores are slated every year, with a target of 300 stores by 2008.

The first 10 stores would be rolled out in Delhi and the National Capital Region by March 2004.

The pharma retail chain would have a similar look and feel, professional pharmacists and consumer-friendly atmosphere, he said. With an initial capital outlay of about Rs 10 crore, over 18 months, the rollout would be funded by the parent company.

"We envisage that the first 50 stores would be completely owned by us, the plan will be reviewed after this to explore the possibility of a franchisee model. Further requirement of funds will be assessed as and when required. The company expects to break even in three years."

Currently, India has 51 lakh retailers, of whom 15 per cent are chemists.

By standardising the pharma retail experience, corporates seek to garner loyal customers through a mix of consistent image, superior service and differentiated positioning, according to analysts.

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