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Surya Pharma to enter healthcare retail

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Vijay C Roy New Delhi/ Chandigarh
Last Updated : Jan 19 2013 | 11:26 PM IST

To invest Rs 250 cr in the proposed venture

Chandigarh-based Surya Pharmaceutical Limited plans to set up over 500 healthcare and pharma retail stores under the brand Viva in the next three years. Of this, 100 stores would come up in Delhi and in the National Capital Region by March 2010.

The company would invest around Rs 250 crore in the proposed venture. It would raise the amount through a combination of promoters, equity, venture capital, private equity and borrowings from banks, said Rajiv Goyal, chairman and managing director, Surya Pharmaceutical Limited.

“The presence of a huge spurious drug market along with an increasing number of lifestyle and stress-related ailments prompted us to foray into healthcare retail,” said Goyal.

The company would also soon launch a chain of chemist and wellness outlets in north India under the Viva brand and expand to other parts in the next 3 years.

“Stores ranging from 150 sft to 1,000 sft would sell medicines as well as health and fitness products. The retail business would initially be company-owned and later come under the franchise format,” he added.

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The company is expected to touch a turnover of Rs 1,500 crore by 2011 from Rs 500 crore in 2008. It also plans to enter European and American pharmaceutical markets by 2011.

Besides growing organically through a year-on-year growth rate of 40-45 per cent, Surya Pharmaceutical proposes to grow inorganically. The company is in talks with a German company and another in India for possible acquisitions.

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First Published: Mar 25 2009 | 12:27 AM IST

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