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Hyderabad-based pharmacy chain MedPlus Health Services is looking to raise around $75-80 million from private equity players to fund expansion plans and consolidate its presence in the country.
The second largest pharmacy retail chain in the country after Apollo Pharmacy, MedPlus has a presence across 12 States.
Mom-and-pop stores dominate the Indian pharmacy retail market, which is estimated at ₹80,000 crore annually. Organised retail accounts for 5 per cent of that.
“Apart from expanding our presence in North and Central India, we would also strengthen our existing network by raising the PE funds. The funds are likely to be raised from a new investor,” Madhukar Gangadi, Chief Executive Officer, said here on Tuesday.
This, according to the CEO, will be the third round of fund raising. The last round of funds was raised in 2011.
Private equity (PE) investors, including US-based Mount Kellett Capital Management, TVS Capital Funds Ltd and Piramal Group-backed India Venture Advisors, are some of the existing investors in the company.
It reported a turnover of ₹1,370 crore in FY-15 and is targeting around 24-32 per cent increase in sales this year to ₹1,700-1,800 crore.
Store expansion MedPlus, currently, has a store count of 1,300 with a majority of its presence across Chennai, Bengaluru, Hyderabad and Kolkata.
Store count too, will be increased to around 1,600 (300 more) by the end of this fiscal.
While nearly 97 per cent of the stores are company-owned and operated, the company will also explore the franchisee model, if required. MedPlus is known to follow a hub-and-spoke model under which it has a central warehouse and stores come up around it.
Technology is used extensively for better supply chain management, and to network the stores and warehouses.
Kolkata presence The company will also shore up its Kolkata presence and is targeting to add approximately 200 stores in the city and suburbs over the next two years.
It now has 106 stores here in the city.
“We intend to double our turnover in Kolkata over the next one year,” Gangadi said.
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