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Pharmacy Retail Market - India - Sample

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The pharmacy retail market is valued at INR 216 bn in 2009 and estimated to reach INR 432 bn in 2011. The market is fragmented and dominated by the unorganized sector.

The report provides a snapshot of the pharmacy retail market. Market overview gives a quick picture of the market with estimated market size, growth rate and revenue split between the organized and unorganized sector. An analysis of drivers reveals that growth in pharmaceuticals sector, increase in healthcare spending, changing disease profile, consumer attitudes, attractive margins and growth in OTC segment is driving growth in this sector. The key challenges identified include fragmented nature of Industry, lengthy supply chain, counterfeit drugs and FDI Regulations.

The report identifies the current market trends including loyalty schemes, value added services, tie-ups with retail firms, rural expansion, entry of Government in pharmacy retailing, entry of private labels, organized retailers starting pharmacy chains. The competitive landscape profiles the major players in this sector including the business description, number of stores and expansion plans for each player. The report also provides details of the key developments in this sector.

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Pharmacy Retail Market - India - Sample

  1. 1. Pharmacy Retail Market - India September 2009
  2. 2. Executive Summary The market is valued at INR XX bn in 20--; Estimated to reach INR YY bn in 20- - Market The market is fragmented and dominated by the unorganized sector There are U pharmacies in India with about V distributors LE Drivers: Challenges: – Increase in healthcare spending – Fragmented industry Drivers & Challenges – – MP Growth in pharmaceuticals sector Changing disease profile – – Long distribution and supply chain Counterfeit drugs A – Consumer attitudes – FDI regulations S – Attractive margins – Growth in OTC Segment Loyalty Schemes Value Added Services Trends Tie-ups with Retail firms Rural Expansion Entry of Government in Pharmacy Retailing Entry of Private Labels Organized Retailers starting Pharmacy Chains Company 1 leads in the organized pharma retail market with highest number of outlets Competition Leading organized players include Company 1, Company 2, Company 3 and Company 4 Primarily organized retail chains operate either as a company owned or as a franchisee outlet PHARMACY RETAIL MARKET – INDIA.PPT 2
  3. 3. •Market Overview •Drivers & Challenges •Trends •Government Regulations •Competition •Key Developments PHARMACY RETAIL MARKET – INDIA.PPT 3
  4. 4. The market is highly fragmented and dominated by the unorganized sector Market Overview Overall Market Size & Growth •There are U pharmacies in India today, with about V distributors INR bn LE •Market is fragmented and dominated by the 600 a% Y unorganized sector P 400 •Growth in this market is driven by increasing X M 200 healthcare spending, growth in organized retailing and attractive margins SA •The entry of organized players is changing the face of the pharmacy business in India The organized space of pharmacy retailing is 0 2009 2011 Revenue split – Organized vs Unorganized Organized dominated by p-q big players v% Primarily, organized retail chains operate either as a company owned or managed stores or as a franchisee outlet •In India, pharmacies/drug stores are the dominant distribution channel generating b% u% of the overall pharmaceutical sales Unorganized Source: PHARMACY RETAIL MARKET – INDIA.PPT 4
  5. 5. Pharmacy chains are expanding operations using various store formats Store Format Description • They are housed in hospitals & dispense a limited number of medicines Hospital Pharmacies • They cater mainly to the requirements of patients admitted in hospitals • Stores are located near the residential areas Standalone Stores • Some of these stores offer home delivery • The target customers are middle and upper class households • These are located in supermarkets, malls or departmental stores Malls/Shop-in-Shops • Company 1has a tie-up with Company 2 for its daily stores in South India • Pharmacy chains are planning to set up shop in townships Townships • Company 3 has signed an agreement with Company 4 to set up a medicity inside the upcoming project T near Pune Source: PHARMACY RETAIL MARKET – INDIA.PPT 5
  6. 6. Drivers & Challenges Drivers Challenges Growth in pharmaceuticals sector Fragmented industry Increase in healthcare spending Long distribution and supply chain Changing disease profile Counterfeit drugs Growth in OTC segment FDI regulations Attractive margins Consumer attitude PHARMACY RETAIL MARKET – INDIA.PPT 6
  7. 7. Trends Loyalty Schemes Value Added Services Tie-ups with Retail firms Trends ` Rural Expansion Entry of Government in Pharmacy Retailing Entry of Private Labels Organized Retailers Starting Pharmacy Chains PHARMACY RETAIL MARKET – INDIA.PPT 7
  8. 8. Company 1 leads the overall market Competition Overview Organized Pharmacy Distribution • Company 1 leads in the organized pharma retail market with highest number of outlets Company 1 740 • Sector has witnessed the entry of new players LE Company 2 600 • Almost all players have expansion plans Company 3 350 P • Organized pharma retail chains operate in three Company 4 130 models: Company 5 112 Fully owned stores – Company 1 prefers fully owned model Franchise model – Company 2 operates in this model SAM Company 6 Company 7 Company 8 Company 9 35 110 92 50 Company 10 30 Combination of owned and franchise stores – Company 3 prefers a combinational model Company 11 25 Company 12 14 • Franchisee model has enabled loss making stand- Company 13 12 alone stores to be absorbed by organized retailers Company 14 10 This is likely to trigger consolidation in this sector Company 15 6 • Retail outlets of players like Company 4 sell only its Company 16 6 products No. of Stores • Leading players are targeting rural areas and are 0 200 400 600 800 tying-up with organized retail players for expansion Source: PHARMACY RETAIL MARKET – INDIA.PPT 8
  9. 9. Thank you for the attention The Pharmacy Retail report is part of Research on India’s Healthcare Industry series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 8448 0449 Phone: +91 98364 71499 E-Mail: natasha.mehta@netscribes.com E-Mail: gagan.uppal@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. PHARMACY RETAIL MARKET – INDIA.PPT 9

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