Hyderabad-based Apollo Hospitals Group will soon hive off its pharmacy business into a separate unit. The group also plans to increase the number of pharmacy retail outlets to 1,000 this year from the present over 700 besides acquiring some pharmacies, said executive director Shobana Kamineni.
"The revenues from the pharmacy division are significant to make it a separate business. We are growing at 70 per cent and it will be a matter of time when the retail pharmacy will generate more business than our other wings including the hospital services,'' she said. The pharmacy division is expected to register a turnover of Rs 850 crore this year, as compared with Rs 600 crore last year.
On an average, the company is adding one retail outlet everyday, she said. Apollo has also started expanding through franchisee and is planning to add 2,000 franchisees this year. "The mom and pop shops will find it difficult to grow considering the intense competition and narrow margins,'' she said pointing out that organised pharmacy retail has a $2 billion (Rs 8,000 crore) business potential in India due to its strong supply chain positions.
Apollo will add 3,000 beds in about 15 months by expanding the existing facilities as well as starting new hospitals. "We are looking to acquire hospitals for their reputation and location,'' Shobana. While the hospitals in Bhubaneswar and in Mauritius are getting ready, those in Oman and Yemen have started operations.
It also expects Apollo DKV Health Insurance, a JV between Apollo and Munich Re, to contribute Rs 200 crore next year, from Rs 60 crore and 17,000 policies now. Besides, it would strength its presence in wellness programmes and disease management apart from bringing out a health-related magazine shortly.
On Monday, the company launched NurseStation at its pharmacy outlets to attend to minor treatments and emergencies. The nurses would be mobile and attend to the patients at their houses. They will monitor the blood pressure, do the vaccinations and insulin injection, offer counselling on diet and medications among others.
"This will be a pharmacy-driven service,'' she said, adding NurseStations would gradually contribute 25 per cent to the company's business as all medicines will be bought from Apollo outlets or the patients will be referred to Apollo clinics or hospitals. The company would open 850 NurseStations including in Andhra Pradesh, Chennai, Bangalore, Pune, Mumbai this year.
