Big Retail Pharmacy players of 12-15 In India with a growth rate of 30% will account for $9 billion by the year 2011 & create Huge Employment – Pharmaleaders Magazine
Big Retail Pharmacy players of 12-15 In India with a growth rate of 30% will account for $9 billion by the year 2011 & create Huge Employment – Pharmaleaders Magazine
Unorganised Retail Outlets, FDI Norms, Lack of Weak Legislation hamper the Growth of Major Pharma Biggies Like Apollo, Guardian, Medplus, Trust, Religare in the Fiercely Competative Indian Market.
Mumbai, Maharastra, Tuesday 7th Feb 2011 : Pharmaleaders on the eve of the Nation’s much awaited India Leadership Awards ( www.indialeadershipawards.com ) to be held in Mumbai on 22nd April 2011 today released an exclusive report on the leading players of Retail Pharmacy with their strong presence in the highly unorganized Indian market. As roughly 4000 Organized players are trying to mark their distinctive mark in thir effort to consolidate, the stage is now set for a bitter rivalry & competition. 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 The total retail pharmacy market has been growing at an average of 18% per annum over the last few years, and is anticipated to grow by even higher numbers in the future Organized 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 .The sector currently has nearly 15 layers serving through an aggregate of 2000 stores across the country Both, the number of players and the total stores in operations shall increase with the increase in investments in this sector Analyst’s consensus suggests the retail pharma sector would witness investments in excess of USD one billion over the next few years High margins of 25-35% make the retail pharmacy a very lucrative business in India With increasing consciousness and disposable incomes, the organized pharmacy business shall experience plenty of opportunities for growth. Challenges facing Indian retail industry are * The tax structure in India favors small retail business * Lack of adequate infrastructure facilities * High cost of real estate * Dissimilarity in consumer groups * Restrictions in Foreign Direct Investment *Shortage of retail study options * Shortage of trained manpower * Low retail management skill. The pharma retail sector in India, so far dominated by unorganized players, is expected to see a shakeup and consolidation soon. Big retail chains and other organized players have invested long term in it and are going about changing the business landscape. The key players and their growth and expansion plans & Challenges and benefits to the Indian Consumer are going to be a big challenge as there are some unorganized players are coming in small small groups with minimum capitals. They are enjoying the Customer support in plenty in sharp contrast to the Big Major Pharma Retailers featured in the latest edition of Pharma Leaders Magazine ( www.pharmaleaders.co.in) , A division of Network 7 Group, the flagship company of Indian Affairs Magazine ( www.indiaaffairs.in ) such as Medicine Shoppe, Apollo Pharmacy, Subiksha Pharmacy, Reliance Retail, Himalaya, Fortis, Guardian, Health & Glow, MedPlus, Trust, Dial for Health, Religare amongst others despite their many Schemes & “Discounted Pricing Strategy”. Lately one of the big Players in the Market went into offering Life Membership Cards with Credit facilty, a move that was hitherto unknown in the sector that they operate through stores that possess proper storage facilities Reality Check :
