Pharmacy chains on oxygen

Current position

Fortis Healthworld

1,000

by 201245 Cure & Care100by 20082 MedPlus800by early-2008260 Lifeken700by 2009

less than 100

Medicine Shoppe500by 2010130  These chains put a large part of the blame on soaring real estate prices. Medicine Shoppe, the Indian arm of global chain Medicine Shoppe International, has almost shelved its plans of setting up 500 medical stores and now intends to offer "value-added services" and set up community medical stores in rural areas, where real estate prices are still reasonable.  "It is not viable to start a pharmacy by paying Rs 35-50 per sq ft rent in places like Mumbai or Delhi," said a Medicine Shoppe executive.  The other factor is the lack of qualified pharmacists to run their shops. Under law, pharmacists alone can sell drugs. And, in the last two years, their salaries have shot up by over 200 per cent.  Meanwhile, standalone pharmacies are readying themselves to take on the large chains.  Though their plans of floating companies in about 16 states to supply drugs to their members have not taken off as expected, they are now planning regional clusters for procurement of drugs and to offer value-added services.