SlideShare una empresa de Scribd logo
1 de 27
NORTHBRIDGE CAPITAL




ORGANISED RETAIL
PHARMACY INDIA




                      JANUARY 2011
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:   +91 22 2464 3612
                                                                     Email:         devanshu.juneja@northbridgeasia.com


                                                  TABLE OF CONTENTS


       EXECUTIVE SUMMARY              …………………………………………………………………………………………………………………… 02

       KEY GROWTH DRIVERS             …………………………………………………………………………………………………………………… 03

       MAJOR INDUSTRY PLAYERS …………………………………………………………………………………………………………………… 10

       APPOLO PHARMACY                …………………………………………………………………………………………………………………… 10

       GUARDIAN PHARMACY              …………………………………………………………………………………………………………………… 11

       HEALTH & GLOW                  …………………………………………………………………………………………………………………… 12

       RELIGARE WELLNESS              …………………………………………………………………………………………………………………… 13

       MEDPLUS                        …………………………………………………………………………………………………………………… 14

       HIMALAYA HEALTHCARE            …………………………………………………………………………………………………………………… 15

       TRUST PHARMACY                 ……………………………………………………………………………………………………………………………… 16

       DIAL FOR HEALTH                ……………………………………………………………………………………………………………………………… 17

       ZYDUS WELLNESS                 ……………………………………………………………………………………………………………………………… 18

       RELIANCE WELLNESS              ……………………………………………………………………………………………………………………………… 19

       GLOBAL HEALTHLINE              ……………………………………………………………………………………………………………………………… 20

       LEGAL REGULATIONS              ……………………………………………………………………………………………………………………………… 21

       M&A/PE DEALS IN RETAIL PHARMA          …………………………………………………………………………………………………………………. 22

       ABOUT NORTHBRIDGE ASIA                 …………………………………………………………………………………………………………………. 24




                                                                                                                   1
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:                   DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:               +91 22 2464 3612
                                                                     Email:                     devanshu.juneja@northbridgeasia.com

       EXECUTIVE SUMMARY

          The Indian pharmaceutical market is one of the
          fastest growing markets in the world. With a
          current valuation of approximately USD 11 billion,                                  Market Share
          it is likely to be valued at USD 20 billion by the
          mid of this decade. The retail side too has been
          posting high growth rates
                                                                                                           3%
          Ranked thirteenth in terms of value, and fourth in
          terms of volume, it is estimated to be ranked
          amongst the top ten markets, by 2015

          Retail pharmaceutical sector in India is highly
          fragmented, and the unorganized channel of
          pharmaceuticals currently dominates this space
          commanding over 97% of the total market share                                              97%

          The total retail pharmacy market has been growing
          at an average of 18% per annum over the last few                            Organised sector      Unorganised sector
          years, and is anticipated to grow by even higher
          numbers in the future
                                                                  Source: weeklynewsletter, expresspharmaonline

          Organised retail pharmacy however, as a subset,
          has been growing at an average of 25%, and is
          expected to grow between 35 – 40% in this next
          decade                                                                       Organised Retail Pharma
                                                                                               Growth
          The sector currently has nearly 15 players serving
          through an aggregate of 2000 stores across the                             100
          country                                                                     90                                 86
                                                                                      80
          Both, the number of players and the total stores in
                                                                                      70                        61
                                                                     USD (milliom)




          operations shall increase with the increase in
          investments in this sector                                                  60
                                                                                      50       44
          Analyst’s consensus suggests the retail pharma                              40
          sector would witness investments in excess of USD                           30
          one billion over the next few years                                         20
                                                                                      10
          High margins of 25-35% make the retail pharmacy
                                                                                       0
          a very lucrative business in India
                                                                                              2010         2011 (E)   2012 (E)
          With increasing consciousness and disposable
          incomes, the organized pharmacy business shall
                                                                  Source: retailing report, expreepharmaonline
          experience plenty of opportunities for growth.


                                                                                                                                 2
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                         Analyst:            DEVANSHU JUNEJA
JANUARY, 2011                                                            Phone & Fax:        +91 22 2464 3612
                                                                         Email:              devanshu.juneja@northbridgeasia.com

       KEY GROWTH DRIVERS

       Key drivers for growth in the Retail Pharmaceutical industry in India have been identified as:

       1. Aggregate growth in the Indian pharmaceutical sector

               Indian pharmaceutical market has been described as ‘Resilient’ and ‘High Yielding’

               Emerged as one of the highest defensive plays during the recent US subprime recession

               Analysts view the journey ahead for Indian pharmacy on a truly optimistic note, and base their opinions
               on:

            A. Increase in the growth rates of the Domestic Pharma industry

                   The industry over the last twelve months grew by a little over 20% as against 11.2% in the previous year

                   Pharma sector in developed countries experienced growth rates of 5-6% during 2010



                                          35
                                          30                                                                         30
                    % growth of markets




                                          25
                                                                                         25
                                          20              20
                                          15   11
                                          10
                                          5               7                              8                          6
                                                5
                                          0
                                           2009       2010                       2011 (E)                      2012 (E)

                                                      Developed Countries        India


          Source: rediff.com


                   Indian Pharmacy market is valued fourth in terms of volumes and thirteenth in terms of value

                   Expected to multiply manifold by the mid of this decade, clocking the highest CAGR of 12.8%, the Indian
                   pharma market shall experience the highest volumes.




                                                                                                                              3
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                                Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                                   Phone & Fax:    +91 22 2464 3612
                                                                                Email:          devanshu.juneja@northbridgeasia.com


                                                 Global market valuations of Pharmacy Markets
                                             444
                                    450
                                    400
                                    350
                                    300
                    USD (billion)




                                          248
                                    250
                                    200
                                    150
                                    100
                                                      31 38    19 32
                                                                                38
                                     50                                    13           9 20        7 15       6 20
                                      0
                                           USA       Germany   UK          China       Brazil      Turkey     India

                                                                    2005   2015 (E)

             Source: IMS word review


            B. Government Stimulus

                  Government of India views growth rates for the domestic pharmaceutical industry more optimistically

                  Its vision 2015 statement indicates a CAGR of over 18% during the next decade

                  Recently announced setting up of a venture fund that shall aim to infuse another USD 5 billion in the
                  Indian pharmaceutical sector through industry players

                  May open the FDI option for the retail sector in India



                                                               GOVERNMENT
                                                                INITIATIVES


                                          VENTURE
                                                               VISION 2015                      FDI IN RETAIL
                                           FUND



                                                                                                                              4
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                                 Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                                    Phone & Fax:    +91 22 2464 3612
                                                                                 Email:          devanshu.juneja@northbridgeasia.com
            C. Attractive Sector Valuations

                            Valuations for pharma continue to be attractive

                            The sector trades at a P/E of 17.9x FY2010 and 16.3x FY2011(E)

                            Large Caps Pharmaceutical companies trade at 18-20x FY2010 earnings; reflecting a 10-30% premium to
                            the broader market

                            Mid Cap companies are trading at 8-14x FY10 earnings



            D. Increased contribution to country’s GDP

                            The pharmaceutical sector currently contributes to about 2-3% of India’s GDP

                            Increase in healthcare spending, Increased medical tourism in India, clubbed with Greater levels of
                            investments, shall grow the total contribution of this sector to an estimated 8% of the country’s GDP by
                            2015




                                                       Increasing contribution to GDP
                                         9.00
                                         8.00
                                         7.00                                                                          8.00
                 % Contribution to GDP




                                         6.00                                                          6.58
                                         5.00                                          5.40
                                         4.00                        4.44
                                         3.00            3.65
                                                3.00
                                         2.00
                                         1.00
                                         0.00
                                            2010       2011(E)      2012(E)          2013(E)          2014(E)          2015(E)


             Source: smeworld.org




                                                                                                                                  5
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                                              Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                                                 Phone & Fax:     +91 22 2464 3612
                                                                                              Email:           devanshu.juneja@northbridgeasia.com

                       Thus, given the above facts, estimates and the sector’s healthy performance on the stock index during
                       2010, next decade certainly spells optimism for the Indian pharmaceutical sector

                       More so, as the sector grows, the organized retail division is bound to scale unprecedented levels


                                7,000.00                                                                                            6,734.00
                                                                                                                     6,433.00
                                6,000.00                                                            5,597.00
                 Index Values




                                                                      5,344.00
                                                4,912.00
                                5,000.00

                                4,000.00

                                3,000.00
                                       Jan-10                 Mar-102                       Jun-10               Sep-10            Dec-10

                                                                             HCI             SENSEX

             Source: bseindia.com


       2. Increasing Domestic population

                       India’s current population equals 1.16 billion

                       Demographers expect India's population to surpass the population of China by 2030

                       Increase in population would call for higher investments and development of the pharmacy sector in
                       India, which in turn implies growth in the retail pharmaceutical sector, more specifically the organized
                       channel


                                1.6                                                                                                      1.53
                                1.5                                                                                1.43
                                                                 1.37                         1.40
                                1.4      1.34
                 Billion




                                1.3                                                                                  1.43               1.46
                                                                                              1.33
                                1.2
                                                                 1.24
                                1.1    1.16
                                  1
                                  2010                     2015 (E)                      2020 (E)               2025 (E)            2030 (E)

                                                                                 India          China

             Source: Wikipedia.org




                                                                                                                                                6
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                          Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                             Phone & Fax:     +91 22 2464 3612
                                                                          Email:           devanshu.juneja@northbridgeasia.com

       3. Higher Disposable incomes

                   India, an emerging economy is currently experience a growth in per capita disposable incomes

                   Average household disposable income in India, during the 20 years prior to 2005, doubled to more than
                   100,000 rupees

                   As a higher percentage of the population turns educated, the income levels would subsequently rise;
                   which would continue increasing the Indian consumer’s consciousness and spends on wellness products


                                       India's Increasing Disposable Incomes (USD billion)
                                                                                     1,146.37                    1,183.82
                                                  1,075.00     1,110.11
                         984.00




                          2008                     2010        2012(E)               2014(E)                     2016(E)

             Source: euromonitor.org


                   Indians over the last two decades, increased the percentage allotment on health products from a mere 8%
                   to a whopping 20%. Improving lifestyles shall further drive this number to greater levels


                     Current % expenditure on Health                               Projected % expenditure on
                                products                                                 Health products
                                             8%
                                                                                                           20%




                                                                                            80%
                                       92%

                              Health products       Others                               Health products     Others

             Source: weeklynewletter, expresspharmaonline




                                                                                                                            7
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                         Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                            Phone & Fax:     +91 22 2464 3612
                                                                         Email:           devanshu.juneja@northbridgeasia.com
       4. Changing Diseases Profiles

                  Coupled with economic growth, India is witnessing a transition in the disease profile of its citizens

                  As per WHO (World Health Organisation), India shall have the highest number of cases relating to
                  lifestyle disorders in the near future


                                                           LIFESTYLE
                                                           RELATED
                                                          DISORDERS

                                                            CARDIO-
                          DIABETES                         VASCULAR                           OBESITY
                                                           DISEASES
                  In addition to the traditional health risks faced by the country, it shall also witness a new class of risks
                  originating due to physical inactivity, diet related factors, and tobacco and alchohol related health
                  hazards

                  Changes in the disease profiles would only lead to an increase in demand as well as the consumption
                  rates of pharmaceticals

                  Given the improving conciousness amongst indian consumers, improved demands would only call for a
                  higher demand for organised retail pharma stores

       5. Changing Attitudes

                  Increased consciousness towards health and wellness, Rising affordability and Willingness to spend
                  more on fitness is the mantra amongst the new age Indian consumer

                  Such a change only spells tremendous opportunities for the growth of Consumer Wellness Business

                  Given this attitude, and the overseas trend of the pharmacy sector transitioning from ‘Sick care’ to ‘Heath
                  care’, India too shall over time stand on the same ground




                                                                                                                            8
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                          Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                             Phone & Fax:     +91 22 2464 3612
                                                                          Email:           devanshu.juneja@northbridgeasia.com

                 CONSUMERS PUSH OF INCREASING CONCIOUSNESS & BUSINESS’ PUSH OF INCREASED CARE SHALL BOOST
                                            THE ORGANISED RETAIL PHARMACY INDUSTRY




                                  INCREASING
                                  CONSUMER
                                 CONCIOUSNESS




                                            GROWTH OF ORGANISED RETAIL PHARMA BUSINESS




                                                                                  'SICK CARE' TO
                                                                                  'HEALTH CARE'




       6. Attractive Margins

                  Prices of essential drugs in India are controlled

                  Inspite of existence of such controls, high margins of 25-30% prevail in the retail pharma segment

       7. Growth in the OTC segment

                  OTC products are those that do not require a prescription so as for a store to sell it

                  Growing conciousness amongst consumers has lead to an increase in the sale of such products

                  The numbers shall continue the uptrend

       8. Government regulations

                  Government currently does not permit FDI in the retail segment in India. However, 100% FDI exists in
                  the pharmaceutical sector

                  Opening this sector for Foreign investments shall certainly enhance the growth prospects



                                                                                                                         9
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                       Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                          Phone & Fax:   +91 22 2464 3612
                                                                       Email:         devanshu.juneja@northbridgeasia.com

       MAJOR PLAYERS IN THE ORGANISED RETAIL PHARMA INDUSTRY

       APOLLO PHARMACY


       DESCRIPTION                            Division of the Apollo Hospitals enterprises – Asia’s largest healthcare
                                              group
                                              India’s first and largest branded pharmacy network
                                              Over 1000 stores serving 24 hours daily
                                              First pharmacy store opened in Chennai in the year 1983
                                              Operating in 17 states across India
                                              Provides genuine medicines from leading manufacturers
                                              Pharmacy outlets manned by qualified and trained pharmacist

       VALUE ADDED SERVICES                    Personalized pharmacy – refilling services
                                               Free health camps
                                               Toll free Helpline services
                                               Free health insurance on purchases over INR 6000 in a year
                                               Health newsletters
                                               24 hours store operations

       TIE UPS                                 Owned Hospitals
                                               ITC E-Choupals
                                               Godrej Aadhar

       STORE FORMATS                           Shop in Shop
                                               Hospitals
                                               High Street Stores

       PRODUCT RANGE



                                                                    PHARMACY
                                                                    ANTI CANCER
                                                                      DRUGS
                                                                    HEALTH CARE
                                                                    SURGICALS &
                                                                    DISPOSABLES



                                                                                                                         10
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                      Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                         Phone & Fax:   +91 22 2464 3612
                                                                      Email:         devanshu.juneja@northbridgeasia.com


       GUARDIAN PHARMACY


       DESCRIPTION                            Six year old retail chain in India offering Pharmacy, Wellness, Health
                                              and Beauty products
                                              Currently serves through 230 outlets
                                              Aims to have 400 operational stores by 2012
                                              Has presence in 26 cities, spread across North, East and West India
                                              Stores have an international look and feel
                                              Stores managed by professionally trained pharmacists

       VALUE ADDED SERVICES                    Advisory services on drugs and their usage
                                               Maintain record of customer’s medicine requirements
                                               Guardian Xtravalu cards: Help earn points every time a customer shops
                                               Monthly health magazine: Guardian Health Chronicle
                                               Senior citizen discounts: 10% discount on medicines and an additional 1%
                                               discount on prescription medicines
                                               Free health Check up camps
                                               Community service: Provide cut strips of medicines to NGOs
                                               Online shopping option

       TIE UPS                                 Individuals
                                               Corporates
                                               Retailers

       STORE FORMATS                           High Street stores
                                               Malls
                                               Neighbourhood stores

       PRODUCT RANGE


                                                                PRESCRIPTION &
                                                                     OTC
                                                                    FOOD
                                                                 SUPLEMENTS

                                                                   SKIN CARE

                                                               SELF DIAGNOSTIC



                                                                                                                       11
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                       Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                          Phone & Fax:     +91 22 2464 3612
                                                                       Email:           devanshu.juneja@northbridgeasia.com


       HEALTH & GLOW


        DESCRIPTION                            Joint venture in India between Dairy Farm International holdings ltd.
                                               of Hong Kong and Arko ltd
                                               Headquartered in Bangalore
                                               Largest organized health and wellness player in South India
                                               Currently has 65 operational stores across four cities Bangalore,
                                               Hyderabad, Chennai and Mumbai
                                               Aims to have over 200 stores operational in the near future

        VALUE ADDED SERVICES                   Drug advisory services
                                               International ambience
                                               Well qualified & trained staff for specialist care
                                               Home Delivery
                                               Gift coupons

        TIE UPS                                Individuals
                                               Corporate
                                               Retailers

        STORE FORMATS                          Express stores
                                               Concept stores
                                               Malls
                                               Hypermarkets
                                               Supermarkets

        PRODUCT RANGE



                                                                    PHARMACY

                                                                    COSMETICS

                                                                   HERBAL CARE

                                                                   FRAGRANCES




                                                                                                                     12
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:     +91 22 2464 3612
                                                                     Email:           devanshu.juneja@northbridgeasia.com


       RELIGARE WELLNESS


        DESCRIPTION                            Part of the Religare group, which amongst other business interests carries
                                               the ‘Fortis’ brand
                                               Pioneering endeavor within India’s healthcare industry putting health
                                               solutions on the retail map.
                                               Incorporates setting up of a Pan India World Class Retail Network of
                                               health stores that would provide comprehensive solutions under one roof
                                               Hopes to have a chain of 1000 complete health stores all across India
                                               covering 400 cities by 2012
                                               Stores managed by professionally trained employees

        VALUE ADDED SERVICES                   SRL Collection center
                                               Health food & Supplement advisory
                                               Ayurveda & Homeopathy advisory
                                               Customer loyalty programs: points on purchase
                                               Free Home delivery
                                               24 hours operational stores

        TIE UPS                                Individuals
                                               Hospitals
                                               Corporates

        STORE FORMATS                          Hospitals
                                               Company owned stores
                                               Franchisee stores

        PRODUCT RANGE


                                                                   PRESCRIPTION &
                                                                        OTC
                                                                    FMCG & FMHG

                                                                  DIAGNOSTIC KITS

                                                                     PATHOLOGY
                                                                 COLLECTION CENTRE




                                                                                                                       13
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                       Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                          Phone & Fax:   +91 22 2464 3612
                                                                       Email:         devanshu.juneja@northbridgeasia.com


       MEDPLUS


        DESCRIPTION                            Established in the year 2006 with the aim of eliminating the risk of
                                               consumers purchasing fake drugs
                                               First store opened in Hyderabad in February 2006
                                               Presently serves through over 800 pharmacy stores in five states covering
                                               98 cities and towns in Andhra Pradesh, Maharashtra, West Bengal,
                                               Karnataka, and Tamil Nadu
                                               Owns India’s first exclusive hospital pharmacy chain – RiteCure
                                               Launched state-of-the-art diagnostic lab services which can aid in the
                                               prevention, detection, or management of a wide range of illnesses
                                               Guided by three themes - quality, convenience, and low prices
                                               Market share: 30% of the organized retail pharma market

        VALUE ADDED SERVICES                   Eleven integrated health centers
                                               Community Care initiative: Help reduce the pain of finding a good doctor
                                               Strive to Ensure Genuine medicines, accurate lab tests, and experienced
                                               doctors
                                               Points based program: accumulate points on purchase which can be
                                               redeemed for gifts at a later stage
                                               Convenient locations
                                               Discounts on medicines, lab tests
                                               Free lab test vouchers on purchase of medicines

        TIE UPS                                Retailers

        STORE FORMATS                          High street stores
                                               Shop in Shop

        PRODUCT RANGE



                                                                    PHARMACY

                                                                    LAB SERVICES
                                                                     CLINICAL
                                                                     SERVICES
                                                                      HEALTH
                                                                     ADVISORY



                                                                                                                      14
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:    +91 22 2464 3612
                                                                     Email:          devanshu.juneja@northbridgeasia.com


       HIMALAYA HEALTHCARE


        DESCRIPTION                            Part of the Himalaya drug company that was founded in 1930
                                               Specialises in extending only Ayurvedic products to consumers
                                               Serving across 71 countries
                                               Converted Ayurveda’s herbal tradition into a complete range of
                                               proprietary formulations dedicated to healthy living and longevity

        VALUE ADDED SERVICES                   Online purchase option
                                               Global product delivery model
                                               Monthly contests: ‘Himalaya Babies of the month Contest’
                                               Toll free phone number for Ordering within India
                                               Personalised messages for gifting Himalaya products
                                               Exhaustive Ayurveda knowledge bank on website

        TIE UPS                                Individuals
                                               Manufacturers
                                               Retailers
                                               Doctors

        STORE FORMATS                          Shop in shops
                                               Online purchase options
                                               High street stores

        PRODUCT RANGE




                                                                     PHARMACY

                                                                  PERSONAL CARE

                                                                  ANIMAL HEALTH

                                                                    HEALTH CARE




                                                                                                                    15
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                       Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                          Phone & Fax:     +91 22 2464 3612
                                                                       Email:           devanshu.juneja@northbridgeasia.com


       TRUST PHARMACY


        DESCRIPTION                            Retail drugstore/pharmacy chain, conceptualized on the foundation of
                                               consumer needs; everything from medicines to preventive care, specified
                                               medications to community health camps
                                               Bangalore's largest walk-in one-stop drugstore - a pharma brought to
                                               perfection with its drive to provide for, and its dedication to consumer
                                               service.
                                               Single largest Retail Chain of organized Medical Shops in Karnataka
                                               Over 80 stores in Bangalore and Chennai
                                               Over 20,000 stock keeping units

        VALUE ADDED SERVICES                   Free height and weight check ups
                                               Free health camps for diabetes, blood pressure, bone density, dental and
                                               eye care
                                               Weekly consultations with a professional dietitians
                                               24 hours home delivery
                                               Monthly offers on consumer goods
                                               Offers 1st of its kind ‘Trust Credit card’ for trust customers in association
                                               with Axis Bank

        TIE UPS                                Hospitals
                                               Sri Chandanmal Boathra Charitable Medical Centre, providing free
                                               medical care for the poor
                                               I-mint so as for customers to earn points on every purchase

        STORE FORMATS                          High street stores
                                               Concept stores
                                               Shop in shops

        PRODUCT RANGE



                                                                          OTC

                                                                        FMHG

                                                                        FMCG
                                                                    DIAGNOSTIC
                                                                       KITS


                                                                                                                           16
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:     +91 22 2464 3612
                                                                     Email:           devanshu.juneja@northbridgeasia.com


       DIAL FOR HEALTH


        DESCRIPTION                            An ISO 9001:2000 organisation, and headquartered in Ahmedabad, has
                                               set up several professionally managed pharmacy stores in Mumbai and
                                               Pune
                                               Established so as to do away with the service-gaps prevalent in the Indian
                                               retail pharmaceutical market
                                                ‘Good Purchasing Practices’, whereby the company purchases drugs
                                               directly only from wholesalers who have been authorized by
                                               manufacturing companies of repute
                                               Started operations in from Mumbai in May 2001
                                               Presently 10 stores in aggregate located in Mumbai and Pune. The
                                               company has strategic expansion plans

        VALUE ADDED SERVICES                   Heath desks at all stores
                                               Telephonic orders & Home delivery
                                               Free routine checkups for regular customers
                                               Health camps
                                               Detailed healthcare for regular customers

        TIE UPS                                Physicians
                                               Hospitals
                                               Individuals

        STORE FORMATS                          High Street stores

        PRODUCT RANGE



                                                                     PHARMACY

                                                                          OTC

                                                                     HEALTH CARE

                                                                    PERSONAL CARE




                                                                                                                       17
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                      Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                         Phone & Fax:   +91 22 2464 3612
                                                                      Email:         devanshu.juneja@northbridgeasia.com


       ZYDUS WELLNESS


        DESCRIPTION                            Zydus wellness, headquartered in Ahmedabad, is the Consumer products
                                               business division of the Zydus Cadila group
                                               Spearheads the group’s presence in the consumer and wellness segment
                                               Aims to promote ‘healthy living’ by anticipating the emerging and day-
                                               to-day needs in dietetic / health foods
                                               The Company is focused on empowering individuals who wish to adopt
                                               healthy eating habits and lifestyles.
                                               Offers healthier dietary options to the consumers
                                               First pharmacy brand to be listed on the Bombay and National stock
                                               exchanges
                                               Serves directly in over 850 towns through over 500 strong field force

        VALUE ADDED SERVICES                   Qualified pharmacists at all stores
                                               Health advisory services
                                               Regular discounts and offers
                                               Large well designed & organized stores
                                               Telephonic orders

        TIE UPS                                Institutions
                                               Retailers
                                               Chemists

        STORE FORMATS                          Shop in shop
                                               Retail stores
                                               High street stores

        PRODUCT RANGE



                                                                     PHARMACY
                                                                      CLINICAL
                                                                      SERVICES
                                                                     HEALTH CARE

                                                                    PERSONAL CARE



                                                                                                                   18
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                      Analyst:         DEVANSHU JUNEJA
JANUARY, 2011                                                         Phone & Fax:     +91 22 2464 3612
                                                                      Email:           devanshu.juneja@northbridgeasia.com


       RELIANCE WELLNESS


        DESCRIPTION                            Wellness division of Reliance retail, a subsidiary of Mukesh Ambani led
                                               Reliance Industries limited
                                               Aims to add value to people’s lives by providing products and services
                                               that proactively work to enrich people’s body, mind and soul
                                               One of the latest entrants in the retail pharmacy market.
                                               Opened its latest store measuring 3100 sq. ft. in Mumbai in July last year.
                                               Shall open 1200 stores by 2012-2013
                                               Includes over 8000 stock keeping units (SKU)
                                               Well qualified pharmacists and Optometrists available at the store

        VALUE ADDED SERVICES                   Medication compliance program: Reminder service, which facilitates
                                               convenient & on time replenishment of their health related products
                                               Wellness Events
                                               Local Health directory: Information of local hospitals & doctors for
                                               providing convenience to the consumers seeking specialist health services
                                               Free cashless accidental insurance upon their level of purchase
                                               Wellness Newsletter
                                               Reliance One: Common loyalty program enabling customers to earn and
                                               redeem points across all Reliance retail outlets

        TIE UPS                                Individuals
                                               Reliance group Employees

        STORE FORMATS                          Speciality stores
                                               Company owned

        PRODUCT RANGE




                                                                    PHARMACY
                                                                     FITNESS
                                                                   EQUIPMENTS
                                                                   HEALTH CARE
                                                                    ALTERNATE
                                                                    MEDICINE



                                                                                                                         19
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:   +91 22 2464 3612
                                                                     Email:         devanshu.juneja@northbridgeasia.com


       GLOBAL HEALTHLINE


        DESCRIPTION                            Chain of retail pharmacy stores branded as 98.4 o
                                               Brand of Global Healthline, promoted by Global Influence group
                                               International presence with domestic operations in Delhi and NCR and
                                               overseas operations in Europe and Middle East
                                               Established in the year 2002
                                               Well educated pharmacists attend to customers walking in the company’s
                                               aesthetically beautiful stores
                                               30 stores across the capital region and intends to open near about 400
                                               stores by 2014
                                               Mastered the aspects of pharmaceutical supply chain
                                               Centralized distribution process and location specific warehouses to
                                               ensure faster delivery of products and merchandise to stores

        VALUE ADDED SERVICES                   Qualified pharmacists at all stores
                                               Health advisory services
                                               Regular discounts and offers
                                               Large well designed & organized stores
                                               Telephonic orders

        TIE UPS                                Manufacturers

        STORE FORMATS                          Company Owned
                                               Shop in shops
                                               Institutions

        PRODUCT RANGE




                                                                    PHARMACY

                                                                       FMCG

                                                                       FMHG

                                                                 OTC PRODUCTS




                                                                                                                   20
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                          Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                             Phone & Fax:    +91 22 2464 3612
                                                                          Email:          devanshu.juneja@northbridgeasia.com


       REGULATIONS PERTAINING TO RETAIL PHARMACY IN INDIA


          As stated above, the retail channel of pharmacy currently is not open for Foreign investments

          The government has allowed 100% FDI for the pharmaceutical sector, which are tagged as single brand stores

          Retail pharmacy falls under multi brand stores, FDI options for which at present are still being reviewed by the
          concerned authorities

          Pharmacy stores require a license to set up shop as well as to sell drugs in India

          FDA (Food and Drug administration) grants licenses to those willing to enter the retail pharmacy business

          Licenses are issued as per the provisions of the Food and cosmetics act, 1940

          No license is however required for the sale of Ayurveda products

          The store format and the area of the store are critical determinants in the retail pharmacy sector

          As for the area, a minimum carpet area of ten square meters is mandated

          Factors such as the availability of controlled temperatures for storage of drugs, is also one of the primary
          requirements, as a majority of drugs lose their effectiveness if not stored under the prescribed temperatures

          We thus see, that all organised retail pharmacy stores discussed in this report have highlighted the fact that they
          operate through stores that possess proper storage facilities




                                                                                                                             21
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                        Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                           Phone & Fax:    +91 22 2464 3612
                                                                        Email:          devanshu.juneja@northbridgeasia.com

       M&A/ PE DEALS WITHIN THE RETAIL PHARMA SECTOR

      1.   Fortis Healthworld acquired CRS health

             Fortis HealthWorld, promoted by Ranbaxy Group, acquired 90 percent stake in CRS Health, a Delhi-based
             pharma and wellness retail chain for Rs 15 crore in 2008.

             CRS is the retailing arm of the SAK Industries

             Initially branded as Fortis health world and now renamed as Religare Wellness, it currently has over 50 stores.
             And

             The group is working towards having a chain of 1000 complete health stores across India covering 400 cities
             by 2012


      2.   MedPlus Health Services Pvt. Ltd raised USD 25 million through two Venture Capital firms

             MedPlus health services in 2007 received USD 5.2 million funding from Mauritius based iLabs management
             Llc.

             The balance USD 19.8 million was funded by NEA – Indo US Ventures, a Santa Clara, California based
             venture fund

             The funds were utilised to expand MedPlus’ operations across South India, through its partner company
             Optival Health solutions

             Both venture funds invested in MedPlus’ wholesale or cash-and-carry arm, as the so-called cash-and-carry is
             the only retail venture where India permits up to 100% overseas ownership.

      3.   Morepen Laboratories Limited acquired Lifespring

             Morepen Laboratories Limited acquired 95% share in Lifespring, a chain of health & beauty stores from Total
             Care Pvt. Ltd in 2002 for a consideration of USD 2 million.

             At the time of acquisition, Lifespring operated six stores in New Delhi.

       4. Guardian Lifecare raised USD 22 million in 2008

            Guardian Lifecare raised USD 22 million by off-loading about 30% stake to an unnamed private equity in
            August 2008.

            Here too, the funds were utilised for store expansions, however in Northern India

                                                                                                                         22
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                          Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                             Phone & Fax:   +91 22 2464 3612
                                                                          Email:         devanshu.juneja@northbridgeasia.com

            Through this acquisition and other strategic investments, Guardian Lifecare now aims to

                Expand to 1000+ stores in 50 cities across 12 states

                Establish a strong presence in both retail and hospital pharmacies

                Create over 150 store brands in 14 different categories

                Become a dominant player in the nutraceutical segment

                Build preferred relationships with all pharma manufacturers to maximize margins

                Build a strong national distribution company to support the retail network

      5.   LifeKen Healthcare Pvt Ltd acquired Pill & Powder

             LifeKen Healthcare Pvt Ltd acquired Pill & Powder, a pharmacy retail chain based in Bangalore in October
             2006 for an undisclosed amount.

             Through the acquisition, LifeKen achieved a total of 60 retail stores in India, of which 40 were located in
             Bangalore alone.

      6.   Religare Wellness acquired LifeKen Healthcare

             LifeKen, as given above, which acquired Pill and Powder in 2006, sold a controlling stake to Religare wellness
             in 2008.

             Thorough this acquisition, Religare further expanded its footprint in South and West India.




                                                                                                                         23
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                      Analyst:        DEVANSHU JUNEJA
JANUARY, 2011                                                         Phone & Fax:    +91 22 2464 3612
                                                                      Email:          devanshu.juneja@northbridgeasia.com


       ABOUT NORTHBRIDGE CAPITAL

           -   Northbridge Capital is an Investment Bank(Category I Merchant Bank) regulated by the Securities &
               Exchange Board of India.(Sebi Registration: INM000011500)
           -   We assist companies with capital raising through various debt and equity instruments in public and
               private markets and M&As
           -   With offices in Hong Kong, Bangkok and Mumbai, Northbridge assist global companies with M&As,
               identifying local partners, India entry strategies and other merchant banking activities
           -   Northbridge assists domestic companies with raising capital in India and overseas both in equity and debt
               markets and with Acquisitions in India and abroad
           -   Northbridge Capital has 6 Practice areas and offers buy side and sell side advice across these areas:
                   o Consumer
                   o Technology
                   o Financial Services
                   o Life Sciences
                   o Industrials
                   o Real Estate




                                                                                                                       24
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                     Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                        Phone & Fax:   +91 22 2464 3612
                                                                     Email:         devanshu.juneja@northbridgeasia.com
       CONTACT INFORMATION



       INDIA OFFICE

       Pranjal Sanghvi

       Email: pranjal@northbridgeasia.com

       Tel: +91-22-22901715

       Fax: +91-22-42643612



       Northbridge Capital Ltd

       R-501, Remi Bizcourt

       Shah Industrial Area

       Off Veera Desai Road

       Andheri (West), Mumbai 400 053, India



       Website: http://www.northbridgeasia.com



       HONG KONG OFFICE

       Sam Farrimond

       Email: sam.farrimond@northbridgeasia.com

       Tel: +852-28628053

       Fax: +852-22909154



       Northbridge Partners (Asia) Ltd

       22/F, 3 Lockhart Road

       Wanchai, Hong Kong




                                                                                                                 25
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500
ORGANISED RETAIL PHARMACY, INDIA                                             Analyst:       DEVANSHU JUNEJA
JANUARY, 2011                                                                Phone & Fax:   +91 22 2464 3612
                                                                             Email:         devanshu.juneja@northbridgeasia.com
       DISCLAIMER

       - This information is for Institutional Investors and Northbridge Capital clients only. It is not meant for public
         circulation

       - No transmission of this information in any form or medium is allowed without the written authorization of
         Northbridge Capital

       - This is not a solicitation to buy or sell any security in any jurisdiction




                                                                                                                         26
Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI
SEBI Registration: INM000011500

Más contenido relacionado

La actualidad más candente

Chapter 2 pharmaceutical marketing by prof. n. s. lohe
Chapter 2 pharmaceutical marketing by prof. n. s. lohe Chapter 2 pharmaceutical marketing by prof. n. s. lohe
Chapter 2 pharmaceutical marketing by prof. n. s. lohe Prof. Nikhil Lohe
 
medplus supply chain management
medplus supply chain managementmedplus supply chain management
medplus supply chain managementBalaji Naik
 
EVA pharma document
EVA pharma documentEVA pharma document
EVA pharma documentAkramMad1
 
A business plan on kirsu retail pharmasy store
A business plan on kirsu retail pharmasy storeA business plan on kirsu retail pharmasy store
A business plan on kirsu retail pharmasy storeKiran Suwal
 
Drug products through transportation
Drug products through transportationDrug products through transportation
Drug products through transportationUtkarsh Verma
 
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...inventionjournals
 
Overview of the pharmaceutical industry of bangladesh
Overview of the pharmaceutical industry of bangladeshOverview of the pharmaceutical industry of bangladesh
Overview of the pharmaceutical industry of bangladeshSadman Prodhan
 
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALY
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALYPESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALY
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALYRucha Kularkar
 
Nutraceutical gummies market
Nutraceutical gummies marketNutraceutical gummies market
Nutraceutical gummies marketPrasadD21
 
Introduction to Different Services- Retail sector
Introduction to Different Services- Retail sectorIntroduction to Different Services- Retail sector
Introduction to Different Services- Retail sectorMukeshPradhan19
 
bangladesh pharma industry
bangladesh pharma industrybangladesh pharma industry
bangladesh pharma industryshawkat haider
 
Bangladesh pharma industry: Prospects and Challenges (2015)
Bangladesh pharma industry: Prospects and Challenges (2015)Bangladesh pharma industry: Prospects and Challenges (2015)
Bangladesh pharma industry: Prospects and Challenges (2015)shawkat haider
 
Pharmaceutical industry in bangladesh(presentetion)...n iloy
Pharmaceutical industry in bangladesh(presentetion)...n iloyPharmaceutical industry in bangladesh(presentetion)...n iloy
Pharmaceutical industry in bangladesh(presentetion)...n iloyNiloy Saha
 
Export potentiality of pharmaceutical goods in Bangladesh
Export potentiality  of pharmaceutical goods in BangladeshExport potentiality  of pharmaceutical goods in Bangladesh
Export potentiality of pharmaceutical goods in BangladeshSaifur Rahman Samrat
 
Pharmaceutical industry in bangladesh(assigment)...n iloy
Pharmaceutical industry in bangladesh(assigment)...n iloyPharmaceutical industry in bangladesh(assigment)...n iloy
Pharmaceutical industry in bangladesh(assigment)...n iloyNiloy Saha
 
Effect of recent changes on small scale Pharma_Murshidabad_WestBengal
Effect of recent changes on small scale Pharma_Murshidabad_WestBengalEffect of recent changes on small scale Pharma_Murshidabad_WestBengal
Effect of recent changes on small scale Pharma_Murshidabad_WestBengalAtrayee Samal
 
India biomedical waste management market Forecast 2024 | TechSci Research
India biomedical waste management market Forecast 2024 | TechSci ResearchIndia biomedical waste management market Forecast 2024 | TechSci Research
India biomedical waste management market Forecast 2024 | TechSci ResearchTechSci Research
 

La actualidad más candente (20)

e-Pharmacies in INDIA
e-Pharmacies in INDIAe-Pharmacies in INDIA
e-Pharmacies in INDIA
 
Chapter 2 pharmaceutical marketing by prof. n. s. lohe
Chapter 2 pharmaceutical marketing by prof. n. s. lohe Chapter 2 pharmaceutical marketing by prof. n. s. lohe
Chapter 2 pharmaceutical marketing by prof. n. s. lohe
 
medplus supply chain management
medplus supply chain managementmedplus supply chain management
medplus supply chain management
 
EVA pharma document
EVA pharma documentEVA pharma document
EVA pharma document
 
A business plan on kirsu retail pharmasy store
A business plan on kirsu retail pharmasy storeA business plan on kirsu retail pharmasy store
A business plan on kirsu retail pharmasy store
 
Drug products through transportation
Drug products through transportationDrug products through transportation
Drug products through transportation
 
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...
Conceptual paper on Study of FMCG & Pharmaceutical Market: Identifying the Di...
 
Overview of the pharmaceutical industry of bangladesh
Overview of the pharmaceutical industry of bangladeshOverview of the pharmaceutical industry of bangladesh
Overview of the pharmaceutical industry of bangladesh
 
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALY
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALYPESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALY
PESTLE ANAYLSIS ON PHARMACEUTICAL INDUSTRY IN ITALY
 
Nutraceutical gummies market
Nutraceutical gummies marketNutraceutical gummies market
Nutraceutical gummies market
 
Introduction to Different Services- Retail sector
Introduction to Different Services- Retail sectorIntroduction to Different Services- Retail sector
Introduction to Different Services- Retail sector
 
bangladesh pharma industry
bangladesh pharma industrybangladesh pharma industry
bangladesh pharma industry
 
Bangladesh pharma industry: Prospects and Challenges (2015)
Bangladesh pharma industry: Prospects and Challenges (2015)Bangladesh pharma industry: Prospects and Challenges (2015)
Bangladesh pharma industry: Prospects and Challenges (2015)
 
Pharmaceutical industry in bangladesh(presentetion)...n iloy
Pharmaceutical industry in bangladesh(presentetion)...n iloyPharmaceutical industry in bangladesh(presentetion)...n iloy
Pharmaceutical industry in bangladesh(presentetion)...n iloy
 
Export potentiality of pharmaceutical goods in Bangladesh
Export potentiality  of pharmaceutical goods in BangladeshExport potentiality  of pharmaceutical goods in Bangladesh
Export potentiality of pharmaceutical goods in Bangladesh
 
Pharmaceutical industry in bangladesh(assigment)...n iloy
Pharmaceutical industry in bangladesh(assigment)...n iloyPharmaceutical industry in bangladesh(assigment)...n iloy
Pharmaceutical industry in bangladesh(assigment)...n iloy
 
Effect of recent changes on small scale Pharma_Murshidabad_WestBengal
Effect of recent changes on small scale Pharma_Murshidabad_WestBengalEffect of recent changes on small scale Pharma_Murshidabad_WestBengal
Effect of recent changes on small scale Pharma_Murshidabad_WestBengal
 
Epharma Business Plan
Epharma Business PlanEpharma Business Plan
Epharma Business Plan
 
India biomedical waste management market Forecast 2024 | TechSci Research
India biomedical waste management market Forecast 2024 | TechSci ResearchIndia biomedical waste management market Forecast 2024 | TechSci Research
India biomedical waste management market Forecast 2024 | TechSci Research
 
Beximco pharma
Beximco pharmaBeximco pharma
Beximco pharma
 

Destacado

U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020
U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020
U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020IndexBox Marketing
 
Minding your P's and Q's: Enrich-ing Enlighten
Minding your P's and Q's: Enrich-ing EnlightenMinding your P's and Q's: Enrich-ing Enlighten
Minding your P's and Q's: Enrich-ing Enlightenenlightenrepository
 
Gestion de la Innovacion en Cofas
Gestion de la Innovacion en CofasGestion de la Innovacion en Cofas
Gestion de la Innovacion en CofasFarmaceuticos Mundi
 
Palladium Magazine (Special Summer 2014)
Palladium Magazine (Special Summer 2014)Palladium Magazine (Special Summer 2014)
Palladium Magazine (Special Summer 2014)Palladium Hotel Group
 
Act. iv ethernet y planificación y cableado de redes
Act. iv ethernet y planificación y cableado de redesAct. iv ethernet y planificación y cableado de redes
Act. iv ethernet y planificación y cableado de redesAry Roque
 
Raport z monitoringu budżetu obywatelskiego w Sochaczewie
Raport z monitoringu budżetu obywatelskiego w SochaczewieRaport z monitoringu budżetu obywatelskiego w Sochaczewie
Raport z monitoringu budżetu obywatelskiego w SochaczewieMarcin Germanek
 
Cevora ICT Symposium - Graph Databases
Cevora ICT Symposium - Graph DatabasesCevora ICT Symposium - Graph Databases
Cevora ICT Symposium - Graph DatabasesRik Van Bruggen
 
Channel Partner data sheet
Channel Partner data sheetChannel Partner data sheet
Channel Partner data sheetIntelePeer
 
How has the internet affected the way we
How has the internet affected the way weHow has the internet affected the way we
How has the internet affected the way weaimeechh
 
Presentacion historia del facebook y su impacto en la sociedad
Presentacion historia del facebook y su impacto en la sociedadPresentacion historia del facebook y su impacto en la sociedad
Presentacion historia del facebook y su impacto en la sociedadANGELICA YADIRA OYAGUE VELEZ
 
Calidad Del Aire En Torrelavega Red
Calidad Del Aire En Torrelavega RedCalidad Del Aire En Torrelavega Red
Calidad Del Aire En Torrelavega Redplataformabesaya
 
Democracia y Derecho Constitucional - David Mercado Pérez
Democracia y Derecho Constitucional - David Mercado PérezDemocracia y Derecho Constitucional - David Mercado Pérez
Democracia y Derecho Constitucional - David Mercado PérezTaEthekai
 
PresentacióN Movilflota 2011
PresentacióN Movilflota   2011PresentacióN Movilflota   2011
PresentacióN Movilflota 2011jfcuellogarcia
 
Influencias escolha de repertorio
Influencias escolha de repertorioInfluencias escolha de repertorio
Influencias escolha de repertorioMárcia Lyra
 
Hoja de vida ivan definitivo
Hoja de vida ivan definitivoHoja de vida ivan definitivo
Hoja de vida ivan definitivollevatetuweb.com
 
Production Readiness Reviews of Information Systems in Bezeq
Production Readiness Reviews of Information Systems in BezeqProduction Readiness Reviews of Information Systems in Bezeq
Production Readiness Reviews of Information Systems in BezeqLeadersNet.co.il
 
iRON'10 Reputacion Online Cadenas Hoteleras
iRON'10 Reputacion Online Cadenas HotelerasiRON'10 Reputacion Online Cadenas Hoteleras
iRON'10 Reputacion Online Cadenas HotelerasVivential Value
 

Destacado (20)

U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020
U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020
U.S. Travel Trailer And Camper Market. Analysis And Forecast to 2020
 
Minding your P's and Q's: Enrich-ing Enlighten
Minding your P's and Q's: Enrich-ing EnlightenMinding your P's and Q's: Enrich-ing Enlighten
Minding your P's and Q's: Enrich-ing Enlighten
 
Gestion de la Innovacion en Cofas
Gestion de la Innovacion en CofasGestion de la Innovacion en Cofas
Gestion de la Innovacion en Cofas
 
Palladium Magazine (Special Summer 2014)
Palladium Magazine (Special Summer 2014)Palladium Magazine (Special Summer 2014)
Palladium Magazine (Special Summer 2014)
 
Interpolacion POLINOMICA DE NEWTON
Interpolacion POLINOMICA DE NEWTONInterpolacion POLINOMICA DE NEWTON
Interpolacion POLINOMICA DE NEWTON
 
Act. iv ethernet y planificación y cableado de redes
Act. iv ethernet y planificación y cableado de redesAct. iv ethernet y planificación y cableado de redes
Act. iv ethernet y planificación y cableado de redes
 
Raport z monitoringu budżetu obywatelskiego w Sochaczewie
Raport z monitoringu budżetu obywatelskiego w SochaczewieRaport z monitoringu budżetu obywatelskiego w Sochaczewie
Raport z monitoringu budżetu obywatelskiego w Sochaczewie
 
Cevora ICT Symposium - Graph Databases
Cevora ICT Symposium - Graph DatabasesCevora ICT Symposium - Graph Databases
Cevora ICT Symposium - Graph Databases
 
Channel Partner data sheet
Channel Partner data sheetChannel Partner data sheet
Channel Partner data sheet
 
How has the internet affected the way we
How has the internet affected the way weHow has the internet affected the way we
How has the internet affected the way we
 
Texto 3
Texto 3Texto 3
Texto 3
 
Presentacion historia del facebook y su impacto en la sociedad
Presentacion historia del facebook y su impacto en la sociedadPresentacion historia del facebook y su impacto en la sociedad
Presentacion historia del facebook y su impacto en la sociedad
 
Calidad Del Aire En Torrelavega Red
Calidad Del Aire En Torrelavega RedCalidad Del Aire En Torrelavega Red
Calidad Del Aire En Torrelavega Red
 
Democracia y Derecho Constitucional - David Mercado Pérez
Democracia y Derecho Constitucional - David Mercado PérezDemocracia y Derecho Constitucional - David Mercado Pérez
Democracia y Derecho Constitucional - David Mercado Pérez
 
PresentacióN Movilflota 2011
PresentacióN Movilflota   2011PresentacióN Movilflota   2011
PresentacióN Movilflota 2011
 
Influencias escolha de repertorio
Influencias escolha de repertorioInfluencias escolha de repertorio
Influencias escolha de repertorio
 
Hoja de vida ivan definitivo
Hoja de vida ivan definitivoHoja de vida ivan definitivo
Hoja de vida ivan definitivo
 
Production Readiness Reviews of Information Systems in Bezeq
Production Readiness Reviews of Information Systems in BezeqProduction Readiness Reviews of Information Systems in Bezeq
Production Readiness Reviews of Information Systems in Bezeq
 
iRON'10 Reputacion Online Cadenas Hoteleras
iRON'10 Reputacion Online Cadenas HotelerasiRON'10 Reputacion Online Cadenas Hoteleras
iRON'10 Reputacion Online Cadenas Hoteleras
 
Epayments - metodos de pago electronico
Epayments - metodos de pago electronicoEpayments - metodos de pago electronico
Epayments - metodos de pago electronico
 

Similar a Northbridge capital organised retail pharmacy india 2011

Equity Research Report on FMCG sector
Equity Research Report on FMCG sectorEquity Research Report on FMCG sector
Equity Research Report on FMCG sectorNirransh Jain
 
Equity Research Report on FMCG sector
Equity Research Report on FMCG sectorEquity Research Report on FMCG sector
Equity Research Report on FMCG sectorNirransh Jain
 
Indian pharma industry 2015
Indian pharma industry 2015Indian pharma industry 2015
Indian pharma industry 2015CLARAsteven7
 

Similar a Northbridge capital organised retail pharmacy india 2011 (20)

Equity Research Report on FMCG sector
Equity Research Report on FMCG sectorEquity Research Report on FMCG sector
Equity Research Report on FMCG sector
 
FMCG Sector Report
FMCG Sector ReportFMCG Sector Report
FMCG Sector Report
 
Equity Research Report on FMCG sector
Equity Research Report on FMCG sectorEquity Research Report on FMCG sector
Equity Research Report on FMCG sector
 
Indian pharma industry 2015
Indian pharma industry 2015Indian pharma industry 2015
Indian pharma industry 2015
 
Pharmaceutical Sectore Report - January 2017
Pharmaceutical Sectore Report - January 2017Pharmaceutical Sectore Report - January 2017
Pharmaceutical Sectore Report - January 2017
 
Pharmaceuticals Sector Report - July 2018
Pharmaceuticals Sector Report - July 2018Pharmaceuticals Sector Report - July 2018
Pharmaceuticals Sector Report - July 2018
 
Pharmaceutical Sector Report July 2017
Pharmaceutical Sector Report July 2017Pharmaceutical Sector Report July 2017
Pharmaceutical Sector Report July 2017
 
Pharmaceuticals Sector Report - September 2018
Pharmaceuticals Sector Report - September 2018Pharmaceuticals Sector Report - September 2018
Pharmaceuticals Sector Report - September 2018
 
Pharmaceuticals Sector Repor June 2018
Pharmaceuticals Sector Repor June 2018Pharmaceuticals Sector Repor June 2018
Pharmaceuticals Sector Repor June 2018
 
Pharmaceuticals Sector Report October 2017
Pharmaceuticals Sector Report October 2017Pharmaceuticals Sector Report October 2017
Pharmaceuticals Sector Report October 2017
 
Vipul Patil P.Marketing Assignment
Vipul Patil P.Marketing AssignmentVipul Patil P.Marketing Assignment
Vipul Patil P.Marketing Assignment
 
Pharmaceutical Sectore Report - February 2017
Pharmaceutical Sectore Report - February 2017Pharmaceutical Sectore Report - February 2017
Pharmaceutical Sectore Report - February 2017
 
A report IBEF
A report IBEFA report IBEF
A report IBEF
 
Pharmaceuticals Sector Report May 2018
Pharmaceuticals Sector Report May 2018Pharmaceuticals Sector Report May 2018
Pharmaceuticals Sector Report May 2018
 
Pharmaceuticals Sector Report December 2017
Pharmaceuticals Sector Report December 2017Pharmaceuticals Sector Report December 2017
Pharmaceuticals Sector Report December 2017
 
Pharmaceuticals Sector Report November 2017
Pharmaceuticals Sector Report November 2017Pharmaceuticals Sector Report November 2017
Pharmaceuticals Sector Report November 2017
 
Pharmaceuticals Sector Report September 2017
Pharmaceuticals Sector Report September 2017Pharmaceuticals Sector Report September 2017
Pharmaceuticals Sector Report September 2017
 
Pharmaceutical november-2016
Pharmaceutical november-2016Pharmaceutical november-2016
Pharmaceutical november-2016
 
Pharmaceuticals Sector Report - January 2018
Pharmaceuticals Sector Report - January 2018Pharmaceuticals Sector Report - January 2018
Pharmaceuticals Sector Report - January 2018
 
Pharmaceutical Sector Report - March2017
Pharmaceutical Sector Report - March2017Pharmaceutical Sector Report - March2017
Pharmaceutical Sector Report - March2017
 

Último

Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 

Último (20)

Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 

Northbridge capital organised retail pharmacy india 2011

  • 2. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com TABLE OF CONTENTS EXECUTIVE SUMMARY …………………………………………………………………………………………………………………… 02 KEY GROWTH DRIVERS …………………………………………………………………………………………………………………… 03 MAJOR INDUSTRY PLAYERS …………………………………………………………………………………………………………………… 10 APPOLO PHARMACY …………………………………………………………………………………………………………………… 10 GUARDIAN PHARMACY …………………………………………………………………………………………………………………… 11 HEALTH & GLOW …………………………………………………………………………………………………………………… 12 RELIGARE WELLNESS …………………………………………………………………………………………………………………… 13 MEDPLUS …………………………………………………………………………………………………………………… 14 HIMALAYA HEALTHCARE …………………………………………………………………………………………………………………… 15 TRUST PHARMACY ……………………………………………………………………………………………………………………………… 16 DIAL FOR HEALTH ……………………………………………………………………………………………………………………………… 17 ZYDUS WELLNESS ……………………………………………………………………………………………………………………………… 18 RELIANCE WELLNESS ……………………………………………………………………………………………………………………………… 19 GLOBAL HEALTHLINE ……………………………………………………………………………………………………………………………… 20 LEGAL REGULATIONS ……………………………………………………………………………………………………………………………… 21 M&A/PE DEALS IN RETAIL PHARMA …………………………………………………………………………………………………………………. 22 ABOUT NORTHBRIDGE ASIA …………………………………………………………………………………………………………………. 24 1 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 3. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com EXECUTIVE SUMMARY The Indian pharmaceutical market is one of the fastest growing markets in the world. With a current valuation of approximately USD 11 billion, Market Share it is likely to be valued at USD 20 billion by the mid of this decade. The retail side too has been posting high growth rates 3% Ranked thirteenth in terms of value, and fourth in terms of volume, it is estimated to be ranked amongst the top ten markets, by 2015 Retail pharmaceutical sector in India is highly fragmented, and the unorganized channel of pharmaceuticals currently dominates this space commanding over 97% of the total market share 97% The total retail pharmacy market has been growing at an average of 18% per annum over the last few Organised sector Unorganised sector years, and is anticipated to grow by even higher numbers in the future Source: weeklynewsletter, expresspharmaonline Organised retail pharmacy however, as a subset, has been growing at an average of 25%, and is expected to grow between 35 – 40% in this next decade Organised Retail Pharma Growth The sector currently has nearly 15 players serving through an aggregate of 2000 stores across the 100 country 90 86 80 Both, the number of players and the total stores in 70 61 USD (milliom) operations shall increase with the increase in investments in this sector 60 50 44 Analyst’s consensus suggests the retail pharma 40 sector would witness investments in excess of USD 30 one billion over the next few years 20 10 High margins of 25-35% make the retail pharmacy 0 a very lucrative business in India 2010 2011 (E) 2012 (E) With increasing consciousness and disposable incomes, the organized pharmacy business shall Source: retailing report, expreepharmaonline experience plenty of opportunities for growth. 2 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 4. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com KEY GROWTH DRIVERS Key drivers for growth in the Retail Pharmaceutical industry in India have been identified as: 1. Aggregate growth in the Indian pharmaceutical sector Indian pharmaceutical market has been described as ‘Resilient’ and ‘High Yielding’ Emerged as one of the highest defensive plays during the recent US subprime recession Analysts view the journey ahead for Indian pharmacy on a truly optimistic note, and base their opinions on: A. Increase in the growth rates of the Domestic Pharma industry The industry over the last twelve months grew by a little over 20% as against 11.2% in the previous year Pharma sector in developed countries experienced growth rates of 5-6% during 2010 35 30 30 % growth of markets 25 25 20 20 15 11 10 5 7 8 6 5 0 2009 2010 2011 (E) 2012 (E) Developed Countries India Source: rediff.com Indian Pharmacy market is valued fourth in terms of volumes and thirteenth in terms of value Expected to multiply manifold by the mid of this decade, clocking the highest CAGR of 12.8%, the Indian pharma market shall experience the highest volumes. 3 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 5. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com Global market valuations of Pharmacy Markets 444 450 400 350 300 USD (billion) 248 250 200 150 100 31 38 19 32 38 50 13 9 20 7 15 6 20 0 USA Germany UK China Brazil Turkey India 2005 2015 (E) Source: IMS word review B. Government Stimulus Government of India views growth rates for the domestic pharmaceutical industry more optimistically Its vision 2015 statement indicates a CAGR of over 18% during the next decade Recently announced setting up of a venture fund that shall aim to infuse another USD 5 billion in the Indian pharmaceutical sector through industry players May open the FDI option for the retail sector in India GOVERNMENT INITIATIVES VENTURE VISION 2015 FDI IN RETAIL FUND 4 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 6. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com C. Attractive Sector Valuations Valuations for pharma continue to be attractive The sector trades at a P/E of 17.9x FY2010 and 16.3x FY2011(E) Large Caps Pharmaceutical companies trade at 18-20x FY2010 earnings; reflecting a 10-30% premium to the broader market Mid Cap companies are trading at 8-14x FY10 earnings D. Increased contribution to country’s GDP The pharmaceutical sector currently contributes to about 2-3% of India’s GDP Increase in healthcare spending, Increased medical tourism in India, clubbed with Greater levels of investments, shall grow the total contribution of this sector to an estimated 8% of the country’s GDP by 2015 Increasing contribution to GDP 9.00 8.00 7.00 8.00 % Contribution to GDP 6.00 6.58 5.00 5.40 4.00 4.44 3.00 3.65 3.00 2.00 1.00 0.00 2010 2011(E) 2012(E) 2013(E) 2014(E) 2015(E) Source: smeworld.org 5 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 7. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com Thus, given the above facts, estimates and the sector’s healthy performance on the stock index during 2010, next decade certainly spells optimism for the Indian pharmaceutical sector More so, as the sector grows, the organized retail division is bound to scale unprecedented levels 7,000.00 6,734.00 6,433.00 6,000.00 5,597.00 Index Values 5,344.00 4,912.00 5,000.00 4,000.00 3,000.00 Jan-10 Mar-102 Jun-10 Sep-10 Dec-10 HCI SENSEX Source: bseindia.com 2. Increasing Domestic population India’s current population equals 1.16 billion Demographers expect India's population to surpass the population of China by 2030 Increase in population would call for higher investments and development of the pharmacy sector in India, which in turn implies growth in the retail pharmaceutical sector, more specifically the organized channel 1.6 1.53 1.5 1.43 1.37 1.40 1.4 1.34 Billion 1.3 1.43 1.46 1.33 1.2 1.24 1.1 1.16 1 2010 2015 (E) 2020 (E) 2025 (E) 2030 (E) India China Source: Wikipedia.org 6 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 8. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com 3. Higher Disposable incomes India, an emerging economy is currently experience a growth in per capita disposable incomes Average household disposable income in India, during the 20 years prior to 2005, doubled to more than 100,000 rupees As a higher percentage of the population turns educated, the income levels would subsequently rise; which would continue increasing the Indian consumer’s consciousness and spends on wellness products India's Increasing Disposable Incomes (USD billion) 1,146.37 1,183.82 1,075.00 1,110.11 984.00 2008 2010 2012(E) 2014(E) 2016(E) Source: euromonitor.org Indians over the last two decades, increased the percentage allotment on health products from a mere 8% to a whopping 20%. Improving lifestyles shall further drive this number to greater levels Current % expenditure on Health Projected % expenditure on products Health products 8% 20% 80% 92% Health products Others Health products Others Source: weeklynewletter, expresspharmaonline 7 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 9. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com 4. Changing Diseases Profiles Coupled with economic growth, India is witnessing a transition in the disease profile of its citizens As per WHO (World Health Organisation), India shall have the highest number of cases relating to lifestyle disorders in the near future LIFESTYLE RELATED DISORDERS CARDIO- DIABETES VASCULAR OBESITY DISEASES In addition to the traditional health risks faced by the country, it shall also witness a new class of risks originating due to physical inactivity, diet related factors, and tobacco and alchohol related health hazards Changes in the disease profiles would only lead to an increase in demand as well as the consumption rates of pharmaceticals Given the improving conciousness amongst indian consumers, improved demands would only call for a higher demand for organised retail pharma stores 5. Changing Attitudes Increased consciousness towards health and wellness, Rising affordability and Willingness to spend more on fitness is the mantra amongst the new age Indian consumer Such a change only spells tremendous opportunities for the growth of Consumer Wellness Business Given this attitude, and the overseas trend of the pharmacy sector transitioning from ‘Sick care’ to ‘Heath care’, India too shall over time stand on the same ground 8 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 10. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com CONSUMERS PUSH OF INCREASING CONCIOUSNESS & BUSINESS’ PUSH OF INCREASED CARE SHALL BOOST THE ORGANISED RETAIL PHARMACY INDUSTRY INCREASING CONSUMER CONCIOUSNESS GROWTH OF ORGANISED RETAIL PHARMA BUSINESS 'SICK CARE' TO 'HEALTH CARE' 6. Attractive Margins Prices of essential drugs in India are controlled Inspite of existence of such controls, high margins of 25-30% prevail in the retail pharma segment 7. Growth in the OTC segment OTC products are those that do not require a prescription so as for a store to sell it Growing conciousness amongst consumers has lead to an increase in the sale of such products The numbers shall continue the uptrend 8. Government regulations Government currently does not permit FDI in the retail segment in India. However, 100% FDI exists in the pharmaceutical sector Opening this sector for Foreign investments shall certainly enhance the growth prospects 9 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 11. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com MAJOR PLAYERS IN THE ORGANISED RETAIL PHARMA INDUSTRY APOLLO PHARMACY DESCRIPTION Division of the Apollo Hospitals enterprises – Asia’s largest healthcare group India’s first and largest branded pharmacy network Over 1000 stores serving 24 hours daily First pharmacy store opened in Chennai in the year 1983 Operating in 17 states across India Provides genuine medicines from leading manufacturers Pharmacy outlets manned by qualified and trained pharmacist VALUE ADDED SERVICES Personalized pharmacy – refilling services Free health camps Toll free Helpline services Free health insurance on purchases over INR 6000 in a year Health newsletters 24 hours store operations TIE UPS Owned Hospitals ITC E-Choupals Godrej Aadhar STORE FORMATS Shop in Shop Hospitals High Street Stores PRODUCT RANGE PHARMACY ANTI CANCER DRUGS HEALTH CARE SURGICALS & DISPOSABLES 10 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 12. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com GUARDIAN PHARMACY DESCRIPTION Six year old retail chain in India offering Pharmacy, Wellness, Health and Beauty products Currently serves through 230 outlets Aims to have 400 operational stores by 2012 Has presence in 26 cities, spread across North, East and West India Stores have an international look and feel Stores managed by professionally trained pharmacists VALUE ADDED SERVICES Advisory services on drugs and their usage Maintain record of customer’s medicine requirements Guardian Xtravalu cards: Help earn points every time a customer shops Monthly health magazine: Guardian Health Chronicle Senior citizen discounts: 10% discount on medicines and an additional 1% discount on prescription medicines Free health Check up camps Community service: Provide cut strips of medicines to NGOs Online shopping option TIE UPS Individuals Corporates Retailers STORE FORMATS High Street stores Malls Neighbourhood stores PRODUCT RANGE PRESCRIPTION & OTC FOOD SUPLEMENTS SKIN CARE SELF DIAGNOSTIC 11 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 13. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com HEALTH & GLOW DESCRIPTION Joint venture in India between Dairy Farm International holdings ltd. of Hong Kong and Arko ltd Headquartered in Bangalore Largest organized health and wellness player in South India Currently has 65 operational stores across four cities Bangalore, Hyderabad, Chennai and Mumbai Aims to have over 200 stores operational in the near future VALUE ADDED SERVICES Drug advisory services International ambience Well qualified & trained staff for specialist care Home Delivery Gift coupons TIE UPS Individuals Corporate Retailers STORE FORMATS Express stores Concept stores Malls Hypermarkets Supermarkets PRODUCT RANGE PHARMACY COSMETICS HERBAL CARE FRAGRANCES 12 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 14. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com RELIGARE WELLNESS DESCRIPTION Part of the Religare group, which amongst other business interests carries the ‘Fortis’ brand Pioneering endeavor within India’s healthcare industry putting health solutions on the retail map. Incorporates setting up of a Pan India World Class Retail Network of health stores that would provide comprehensive solutions under one roof Hopes to have a chain of 1000 complete health stores all across India covering 400 cities by 2012 Stores managed by professionally trained employees VALUE ADDED SERVICES SRL Collection center Health food & Supplement advisory Ayurveda & Homeopathy advisory Customer loyalty programs: points on purchase Free Home delivery 24 hours operational stores TIE UPS Individuals Hospitals Corporates STORE FORMATS Hospitals Company owned stores Franchisee stores PRODUCT RANGE PRESCRIPTION & OTC FMCG & FMHG DIAGNOSTIC KITS PATHOLOGY COLLECTION CENTRE 13 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 15. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com MEDPLUS DESCRIPTION Established in the year 2006 with the aim of eliminating the risk of consumers purchasing fake drugs First store opened in Hyderabad in February 2006 Presently serves through over 800 pharmacy stores in five states covering 98 cities and towns in Andhra Pradesh, Maharashtra, West Bengal, Karnataka, and Tamil Nadu Owns India’s first exclusive hospital pharmacy chain – RiteCure Launched state-of-the-art diagnostic lab services which can aid in the prevention, detection, or management of a wide range of illnesses Guided by three themes - quality, convenience, and low prices Market share: 30% of the organized retail pharma market VALUE ADDED SERVICES Eleven integrated health centers Community Care initiative: Help reduce the pain of finding a good doctor Strive to Ensure Genuine medicines, accurate lab tests, and experienced doctors Points based program: accumulate points on purchase which can be redeemed for gifts at a later stage Convenient locations Discounts on medicines, lab tests Free lab test vouchers on purchase of medicines TIE UPS Retailers STORE FORMATS High street stores Shop in Shop PRODUCT RANGE PHARMACY LAB SERVICES CLINICAL SERVICES HEALTH ADVISORY 14 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 16. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com HIMALAYA HEALTHCARE DESCRIPTION Part of the Himalaya drug company that was founded in 1930 Specialises in extending only Ayurvedic products to consumers Serving across 71 countries Converted Ayurveda’s herbal tradition into a complete range of proprietary formulations dedicated to healthy living and longevity VALUE ADDED SERVICES Online purchase option Global product delivery model Monthly contests: ‘Himalaya Babies of the month Contest’ Toll free phone number for Ordering within India Personalised messages for gifting Himalaya products Exhaustive Ayurveda knowledge bank on website TIE UPS Individuals Manufacturers Retailers Doctors STORE FORMATS Shop in shops Online purchase options High street stores PRODUCT RANGE PHARMACY PERSONAL CARE ANIMAL HEALTH HEALTH CARE 15 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 17. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com TRUST PHARMACY DESCRIPTION Retail drugstore/pharmacy chain, conceptualized on the foundation of consumer needs; everything from medicines to preventive care, specified medications to community health camps Bangalore's largest walk-in one-stop drugstore - a pharma brought to perfection with its drive to provide for, and its dedication to consumer service. Single largest Retail Chain of organized Medical Shops in Karnataka Over 80 stores in Bangalore and Chennai Over 20,000 stock keeping units VALUE ADDED SERVICES Free height and weight check ups Free health camps for diabetes, blood pressure, bone density, dental and eye care Weekly consultations with a professional dietitians 24 hours home delivery Monthly offers on consumer goods Offers 1st of its kind ‘Trust Credit card’ for trust customers in association with Axis Bank TIE UPS Hospitals Sri Chandanmal Boathra Charitable Medical Centre, providing free medical care for the poor I-mint so as for customers to earn points on every purchase STORE FORMATS High street stores Concept stores Shop in shops PRODUCT RANGE OTC FMHG FMCG DIAGNOSTIC KITS 16 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 18. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com DIAL FOR HEALTH DESCRIPTION An ISO 9001:2000 organisation, and headquartered in Ahmedabad, has set up several professionally managed pharmacy stores in Mumbai and Pune Established so as to do away with the service-gaps prevalent in the Indian retail pharmaceutical market ‘Good Purchasing Practices’, whereby the company purchases drugs directly only from wholesalers who have been authorized by manufacturing companies of repute Started operations in from Mumbai in May 2001 Presently 10 stores in aggregate located in Mumbai and Pune. The company has strategic expansion plans VALUE ADDED SERVICES Heath desks at all stores Telephonic orders & Home delivery Free routine checkups for regular customers Health camps Detailed healthcare for regular customers TIE UPS Physicians Hospitals Individuals STORE FORMATS High Street stores PRODUCT RANGE PHARMACY OTC HEALTH CARE PERSONAL CARE 17 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 19. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com ZYDUS WELLNESS DESCRIPTION Zydus wellness, headquartered in Ahmedabad, is the Consumer products business division of the Zydus Cadila group Spearheads the group’s presence in the consumer and wellness segment Aims to promote ‘healthy living’ by anticipating the emerging and day- to-day needs in dietetic / health foods The Company is focused on empowering individuals who wish to adopt healthy eating habits and lifestyles. Offers healthier dietary options to the consumers First pharmacy brand to be listed on the Bombay and National stock exchanges Serves directly in over 850 towns through over 500 strong field force VALUE ADDED SERVICES Qualified pharmacists at all stores Health advisory services Regular discounts and offers Large well designed & organized stores Telephonic orders TIE UPS Institutions Retailers Chemists STORE FORMATS Shop in shop Retail stores High street stores PRODUCT RANGE PHARMACY CLINICAL SERVICES HEALTH CARE PERSONAL CARE 18 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 20. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com RELIANCE WELLNESS DESCRIPTION Wellness division of Reliance retail, a subsidiary of Mukesh Ambani led Reliance Industries limited Aims to add value to people’s lives by providing products and services that proactively work to enrich people’s body, mind and soul One of the latest entrants in the retail pharmacy market. Opened its latest store measuring 3100 sq. ft. in Mumbai in July last year. Shall open 1200 stores by 2012-2013 Includes over 8000 stock keeping units (SKU) Well qualified pharmacists and Optometrists available at the store VALUE ADDED SERVICES Medication compliance program: Reminder service, which facilitates convenient & on time replenishment of their health related products Wellness Events Local Health directory: Information of local hospitals & doctors for providing convenience to the consumers seeking specialist health services Free cashless accidental insurance upon their level of purchase Wellness Newsletter Reliance One: Common loyalty program enabling customers to earn and redeem points across all Reliance retail outlets TIE UPS Individuals Reliance group Employees STORE FORMATS Speciality stores Company owned PRODUCT RANGE PHARMACY FITNESS EQUIPMENTS HEALTH CARE ALTERNATE MEDICINE 19 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 21. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com GLOBAL HEALTHLINE DESCRIPTION Chain of retail pharmacy stores branded as 98.4 o Brand of Global Healthline, promoted by Global Influence group International presence with domestic operations in Delhi and NCR and overseas operations in Europe and Middle East Established in the year 2002 Well educated pharmacists attend to customers walking in the company’s aesthetically beautiful stores 30 stores across the capital region and intends to open near about 400 stores by 2014 Mastered the aspects of pharmaceutical supply chain Centralized distribution process and location specific warehouses to ensure faster delivery of products and merchandise to stores VALUE ADDED SERVICES Qualified pharmacists at all stores Health advisory services Regular discounts and offers Large well designed & organized stores Telephonic orders TIE UPS Manufacturers STORE FORMATS Company Owned Shop in shops Institutions PRODUCT RANGE PHARMACY FMCG FMHG OTC PRODUCTS 20 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 22. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com REGULATIONS PERTAINING TO RETAIL PHARMACY IN INDIA As stated above, the retail channel of pharmacy currently is not open for Foreign investments The government has allowed 100% FDI for the pharmaceutical sector, which are tagged as single brand stores Retail pharmacy falls under multi brand stores, FDI options for which at present are still being reviewed by the concerned authorities Pharmacy stores require a license to set up shop as well as to sell drugs in India FDA (Food and Drug administration) grants licenses to those willing to enter the retail pharmacy business Licenses are issued as per the provisions of the Food and cosmetics act, 1940 No license is however required for the sale of Ayurveda products The store format and the area of the store are critical determinants in the retail pharmacy sector As for the area, a minimum carpet area of ten square meters is mandated Factors such as the availability of controlled temperatures for storage of drugs, is also one of the primary requirements, as a majority of drugs lose their effectiveness if not stored under the prescribed temperatures We thus see, that all organised retail pharmacy stores discussed in this report have highlighted the fact that they operate through stores that possess proper storage facilities 21 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 23. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com M&A/ PE DEALS WITHIN THE RETAIL PHARMA SECTOR 1. Fortis Healthworld acquired CRS health Fortis HealthWorld, promoted by Ranbaxy Group, acquired 90 percent stake in CRS Health, a Delhi-based pharma and wellness retail chain for Rs 15 crore in 2008. CRS is the retailing arm of the SAK Industries Initially branded as Fortis health world and now renamed as Religare Wellness, it currently has over 50 stores. And The group is working towards having a chain of 1000 complete health stores across India covering 400 cities by 2012 2. MedPlus Health Services Pvt. Ltd raised USD 25 million through two Venture Capital firms MedPlus health services in 2007 received USD 5.2 million funding from Mauritius based iLabs management Llc. The balance USD 19.8 million was funded by NEA – Indo US Ventures, a Santa Clara, California based venture fund The funds were utilised to expand MedPlus’ operations across South India, through its partner company Optival Health solutions Both venture funds invested in MedPlus’ wholesale or cash-and-carry arm, as the so-called cash-and-carry is the only retail venture where India permits up to 100% overseas ownership. 3. Morepen Laboratories Limited acquired Lifespring Morepen Laboratories Limited acquired 95% share in Lifespring, a chain of health & beauty stores from Total Care Pvt. Ltd in 2002 for a consideration of USD 2 million. At the time of acquisition, Lifespring operated six stores in New Delhi. 4. Guardian Lifecare raised USD 22 million in 2008 Guardian Lifecare raised USD 22 million by off-loading about 30% stake to an unnamed private equity in August 2008. Here too, the funds were utilised for store expansions, however in Northern India 22 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 24. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com Through this acquisition and other strategic investments, Guardian Lifecare now aims to Expand to 1000+ stores in 50 cities across 12 states Establish a strong presence in both retail and hospital pharmacies Create over 150 store brands in 14 different categories Become a dominant player in the nutraceutical segment Build preferred relationships with all pharma manufacturers to maximize margins Build a strong national distribution company to support the retail network 5. LifeKen Healthcare Pvt Ltd acquired Pill & Powder LifeKen Healthcare Pvt Ltd acquired Pill & Powder, a pharmacy retail chain based in Bangalore in October 2006 for an undisclosed amount. Through the acquisition, LifeKen achieved a total of 60 retail stores in India, of which 40 were located in Bangalore alone. 6. Religare Wellness acquired LifeKen Healthcare LifeKen, as given above, which acquired Pill and Powder in 2006, sold a controlling stake to Religare wellness in 2008. Thorough this acquisition, Religare further expanded its footprint in South and West India. 23 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 25. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com ABOUT NORTHBRIDGE CAPITAL - Northbridge Capital is an Investment Bank(Category I Merchant Bank) regulated by the Securities & Exchange Board of India.(Sebi Registration: INM000011500) - We assist companies with capital raising through various debt and equity instruments in public and private markets and M&As - With offices in Hong Kong, Bangkok and Mumbai, Northbridge assist global companies with M&As, identifying local partners, India entry strategies and other merchant banking activities - Northbridge assists domestic companies with raising capital in India and overseas both in equity and debt markets and with Acquisitions in India and abroad - Northbridge Capital has 6 Practice areas and offers buy side and sell side advice across these areas: o Consumer o Technology o Financial Services o Life Sciences o Industrials o Real Estate 24 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 26. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com CONTACT INFORMATION INDIA OFFICE Pranjal Sanghvi Email: pranjal@northbridgeasia.com Tel: +91-22-22901715 Fax: +91-22-42643612 Northbridge Capital Ltd R-501, Remi Bizcourt Shah Industrial Area Off Veera Desai Road Andheri (West), Mumbai 400 053, India Website: http://www.northbridgeasia.com HONG KONG OFFICE Sam Farrimond Email: sam.farrimond@northbridgeasia.com Tel: +852-28628053 Fax: +852-22909154 Northbridge Partners (Asia) Ltd 22/F, 3 Lockhart Road Wanchai, Hong Kong 25 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500
  • 27. ORGANISED RETAIL PHARMACY, INDIA Analyst: DEVANSHU JUNEJA JANUARY, 2011 Phone & Fax: +91 22 2464 3612 Email: devanshu.juneja@northbridgeasia.com DISCLAIMER - This information is for Institutional Investors and Northbridge Capital clients only. It is not meant for public circulation - No transmission of this information in any form or medium is allowed without the written authorization of Northbridge Capital - This is not a solicitation to buy or sell any security in any jurisdiction 26 Northbridge Capital is an Investment Bank (Category I Merchant Bank) regulated by the SEBI SEBI Registration: INM000011500