MedPlus plans to raise $15 mn for expansion

Hyderabad-based organised drug retail chain MedPlus Health Services will soon raise about $15 million (Rs 62.5 crore) from private equity funds and strategic investors to expand its network to 500 pharmacy stores by the year-end.

Venture capital firm iLabs, which invested Rs 23 crore in MedPlus two months ago, may further invest in the company.Talks are also on with two to three venture capital firms to raise fresh capital by June. Some of the leading pharmaceutical companies and healthcare institutions are also negotiating to pick up strategic stake in MedPlus, said Apu Gupta, chief operating officer.

MedPlus, formerly known as Aushadhi, is mainly promoted by a Hyderabad-based physician and businessman Madhukar Gangadi and his family.

MedPlus, which currently operates 75 drug stores in Hyderabad and 30 in Bangalore, will open another 300 stores in three months. These pharmacies will come up mainly in Vizag, Vijayawada, Pune and Chennai, besides Hyderabad and Bangalore.

It plans to expand operations to north Indian cities by opening more than 500 drug stores by 2007-end.

"MedPlus will set up integrated health centres, which will include a diagnostics centre and a medical doctor, along with the pharmacies. A central pathological lab has been set up in Hyderabad with Rs 10 crore investment. About 10 per cent of the pharmacies will have integrated health centres and rest will act as collection centres," said Apu Gupta.