MedPlus is planning to venture into the Mumbai market. India's second largest pharmacy retail chain will be adding around 30-40 pharmacy stores in Mumbai. It already has a presence in Pune and Nagpur.
MedPlus had earlier raised around Rs 200 crore from Wipro Chairman Azim Premji's family office PremjiInvest. The pharmacy chain is eyeing to open 100 MedPlus shops every year.
The company is operating about 1,700 stores, of which, 100 of the stores are run through franchisee model. It has largely focused on south India till now.
Madhukar Gangadi, Founder and Chief Executive Officer, MedPlus, said, “In Mumbai, we will be setting up our own stores. Mumbai is a great market.”
The pharmacy chain follows a hub and spoke model, where it establishes a central warehouse, around which it puts up as many stores as possible.
“The pharmacy chain plans to end FY20 with Rs 2600 - Rs 2700 crores, we should have an EBITDA of Rs 70-75 crore. Around 17-18 percent of the overall business is generated through a digital platform. The low EBITDA margin is due to discounts they have to offer to retain business,” Gangadi stated.
He further added, “We are offering 20 percent flat discount for customers who are buying medicines of Rs 1000 and above at our stores.”
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