Indian pharmacy retail chain MedPlus has unveiled plans to enter the Mumbai market over the next three month.
The retailer currently operates 1,700 stores, with most of them concentrated in the southern region of India. Around 100 of these stores are run by franchisees.
MedPlus raised Rs2bn ($28m) from Wipro Chairman Azim Premji’s family office Premji Invest.
With stores in Pune and Nagpur, Maharashtra, the retailer plans to launch between 30 and 40 stores in Mumbai in the coming months.
The company will face competition in the city against Wellness Forever and Apollo Pharmacy, which is the largest pharmacy retail chain in India.
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In 2006, MedPlus commenced operations as a single store. It operates a hub-and-spoke model under which its own warehouses also act as outlets. Its central warehouse also feeds as many stores possible around it. The cost of maintaining the warehouse is later repaid by these stores. It uses technology for supply chain management, linking stores with warehouses.
Medplus founder Madhukar Gangadi was quoted by Business Standard as saying: “Each year, we open around 100-150 stores. We plan to launch in Mumbai within the next three months as part of the expansion.
“We aim to end the current financial year with a revenue of Rs2.7bn -Rs2.8bn and an earning before interest tax and depreciation of around Rs700m-750m. We have an omnichannel presence and get around 17% of our business from our online platform.”
Last year, Medplus raised around Rs7bn ($98m) from Goldman Sachs. This capital was raised to buy out existing private equity investors.