Organised generic drugs chain Medkart Pharmacy plans national foray

Riding on its organised generic drug store business model, Ahmedabad-based Medkart Pharmacy is looking at a national foray in the near future. While the company says it has been impacted to some extent by online pharmacies (e-pharmacies) in case of branded drugs, its largely generic model has so far been insulated.

By adding over 250 stores in next three years, Medkart is looking to grow its turnover from Rs 20 crore currently to Rs 300 crore in the next three years.

"Trade generic has seen a double digit growth in the last 12 months. While it is only on branded drugs that online pharmacies tend to be cheaper, it has not been so in generic. By providing branded generic drugs options, Medkart has saved around Rs 80 crore for consumers to date. In the next few years, we are looking at opening more stores in bigger and smaller cities," said Ankur Agarwal, founder, and director of Medkart Pharmacy Pvt. Ltd.

According to Agarwal, Gujarat's generic drug market is worth around Rs 300 crore and will reach Rs 800 crore in the next three years.

"As the state has anumber of pharmaceutical companies and contract manufacturers for drugs, it enjoys around 30 per cent share in overall exports of generic drugs from India. As the awareness for generic drugs is rising, the adoption of generic medicines will increase and that will become the new norm. We expect the government to implement the prescription guidelines set by them so that consumers can be benefited," he added.

While it will initially expand its presence in Gujarat, later on it will begin foraying into nearby markets like Rajasthan and Maharashtra.

"Opening more stores is a part of the company's strategy to increase company's retail sales through direct interaction with customers. The company aims to cover 60 per cent of population of Gujarat by opening stores in all the towns, irrespective of company-owned or franchise formats. About 90 per cent of our sales come from chronic segment therapies like diabetes and cardiac problems. The company currently has a turnover of around Rs 20 crore and with this expansion plan, we are expecting a turnover of Rs 300 crore by the year 2023," said Parasharan Chari, founder and director, Medkart Pharmacy Pvt. Ltd.

Started in September 2014 by young entrepreneurs, Medkart Pharmacy has the largest range of 1500+ molecules in generic drugs, more than any generic medical store across Gujarat. More than 1500 doctors buy their own medicines from Medkart.

To date, Medkart Pharmacy has saved around Rs 80 crore for over two lakh patients by providing affordable generic drugs. For every Rs 100 spent on Medkart, Rs 25 is saved by the customer. A customer, who shifts to generic medicines, enjoys an average saving of 65-70 per cent.