Future of retail pharmacies in India

1. FUTURE OF RETAIL
PHARMACIES IN INDIA
PRESENTED BY : ASHISH GOSWAMI (B079)
(B.PHARM + MBA 5TH YEAR)
SPPSPPTM,NMIMS,MUMMBAI

2. TOPICS
• Market overview
• Growth drivers
• Key players in Pharma franchising
• Market Segmentation
• E-Retailing
• Conclusion and Recommendations

3. MARKET OVERVIEW
• The Indian pharmaceuticals market increased at a CAGR of 17.46 per cent in 2015
from US$ 6 billion in 2005 and is expected to expand at a CAGR of 15.92 per cent
to US$ 55 billion by 2020.
• By 2020, India is likely to be among the top three pharmaceutical markets by
incremental growth and sixth largest market globally in absolute size.
• The pharmacy retail market in India has witnessed significant growth and has
grown at a CAGR of 19.4% for the period FY’2010-FY’2015.

4. MARKET OVERVIEW CONTINUED…………
• Over the Counter (OTC) medicines and patented drugs constitute 21 per
cent and 9 per cent, respectively, of total market revenues of US$ 20
billion.
• Recent government decision to liberalize foreign direct investment (FDI)
in the retail sector will open doors for many international players
• There are approximately 8,92,188 Pharma retail outlets, out of these only
20 to 30 per cent is from all the organized retail companies and rest is
dominated by traditional/local chemists.

5. GROWTH DRIVERS
• High prevalence of chronic diseases among population.
• Increased investment by government in health care sector
• Indian Pharma industry is showing a strong upward trajectory.
• Improvement in accessibility of pharmacy stores diversification of products
• Increase in health consciousness amongst the people and a growing middle class
• E-retailing.

6. KEY PLAYERS
• Apollo Pharmacy
• Fortis Health world
• Med Plus Health Services
• Thulasi Pharmacies
• 98.4 Pharmacy
• Viva Pharmacy

7. MARKET SEGMENTATION
• Organized
• Unorganized
• Hospital based

8. E-RETAILING
• The era of online pharmacies began more than a decade ago with the launch of
drug distributing websites in Canada in the late 1990s.
• Online Pharmacies have been a preferred method of buying medicines in
overseas countries and Tier 1 cities in India.
• This segment is at its miniscule stage and is growing at a tremendous rate as
population is becoming more Tech savvy, since it saves a lot of time and also
provides flexibility in terms of making payments and other factors.

9. • India a limited numbers of online pharmacies are operational through different
means.
• The online pharmacy Retail market in India has mainly emerged in the current
fiscal yearFY’2015
• Medidart has been the leading player in this category . Some of the other players
that have their presence in the market are namely Medplus.com, buydrug.in,
online pharmacy and several others.
E-RETAILING CONTINUED……..

10. RECOMENDATIONS AND CONCLUSION
• The Indian Pharma retail market is considered significantly big market but
still it has tremendous scope to grow in the future.
• Currently, there are only 20-30 percent organized pharmacy retail chains in
India and most of them exist in the urban areas. There is still a wide gap
between demand and supply of Pharma products, especially in tier II and
rural areas and scope of e-retailing is also very high..
• Thus, it provides a huge scope for pharmacy retailers to expand their
distribution channels across the length and breadth of the country, to rake
in more profits.