Important Notes

Why Pharmacy business?

- Medicines are an essential need just like food, clothes and shelter (Roti, Kapda aur Makaan)

- Pharmacies can be operated round the year, round the clock

- It’s a recession free business. Families may cut down on luxuries but continue to purchase medicines to maintain health

- If the pharmacy is able to manage its stock well and make the necessary products available in time, then success is assured

What is the future of pharmacy business? Will it continue to be attractive?

- With an increase in the average life span, changing lifestyle conditions and access to healthcare facilities, there is an increasing demand for health care products such as medicines, surgical items and wellness products and services across the country

- As per the market surveys, the current size of the Indian pharmacy market is about Rs 80,000 Crores and is expected to cross Rs 160,000 Crores by year 2020

- Organized retail pharmacy chains like MedPlus have around 6-7% market share

- The retail pharmacy industry is expected to grow around 20% year on year with organized pharmacies increasing their market share to around 30% of the market by 2020

What are the operational activities involved in running a retail pharmacy?

Retail pharmacy is similar to a trading business

Operations primarily consist of sourcing the required medicines and other general products from many suppliers and selling them to the end customers through the retail counter

To be able to do this successfully, a pharmacy should be well versed in these :

- Identifying and estimating the demand for the products in the area

- Maintaining stock levels and ensuring availability of the products

- Minimizing stock loss due to expiry, damage, theft or pilferage

- Identifying multiple suppliers for all the products

- Negotiating prices, discounts and payment terms with the suppliers

- Procuring in time and as per need

- Maintaining necessary registrations, documentation and procedures to comply with the laws of the state and drug regulatory authorities

- Maintaining a record of customer details, sales data and stock outs

- Continuous updating of stock based on knowledge acquired over time

- Managing the staff members involved in the pharmacy operations

- Managing cash with an understanding of costs, revenue, profit and loss

- Satisfying customers with great service

- Generating demand by marketing and promotional schemes

Why MedPlus Franchise?

- MedPlus brand is highly recognized and well trusted for its integrity and the great benefits it offers to its customers

- MedPlus has successfully built the largest retail pharmacy chain in India in the shortest time

- MedPlus operates a network of stores across 12 states and over 150 cities with over 1350 successful pharmacies

- Medplus is well known for providing quality and genuine medicines, superior customer service and great value for money

As a MedPlus Franchisee

- You can carry the pride of their success in your locality in a reputable profession with assured income

- You are assured of the best training, knowledge, and support for running a large pharmacy because of their strong operations expertise and sourcing, technology and execution capabilities

- You get to run a highly recognized brand pharmacy with a large mix of medical and general products at a very reasonable investment of Rs 17 lakhs to Rs 20 lakhs

- You can avail a credit facility or loan from State Bank of India under a special scheme for about 60% of your investment requirement

- You generate a volume of business that is 2 or 3 times higher than competition and enjoy higher customer retention and repeat purchases due to their brand pull and the attractiveness of their loyalty and reward program – FlexiRewards

- You generate higher profits by having access to their high quality private label brands with higher margins

What are the advantages of a MedPlus Franchise in comparison with an independent pharmacy store?

As a MedPlus Franchisee, you are at an unparalleled advantage to address these challenges encountered in operating a pharmacy

Challenege 1

Sourcing a high number of SKUs (Products) from a highly fragmented market

To manage hundreds and thousands of brands and products in terms of sourcing, stocking and payments while managing sales & staff. Advantage @ MedPlus Franchise; their proven process handles this just at the click of a button. All you need to do is to concentrate on counter sales, staff management, and customer relations

Challenge 2

Proper inventory planning.

A pharmacy is only successful if it is able to make all requested products available. However, poor inventory planning leads to lock of capital and losses due to unsold and expired stock. Advantage @ MedPlus Franchise; Inventory management and ordering as per local demand is completely automated to avoid additional capital investment needs and minimize losses.

Challenege 3

Low quality and fake medicines

Due to a fragmented and unregulated supply chain, low grade, poor quality medicines are easily available in the market. Protection from them needs investment in process, time and experience.

Advantage @ MedPlus Franchise :

- MedPlus minimizes this by sourcing all products directly from manufacturers and its direct authorized distributors only.

- The stocks are then meticulously maintained in proper storage conditions during warehousing and transportation to the pharmacies.

Challenege 4

Competition

Pharmacy business is a relatively low risk business with a good return on investment, hence competition is high.

Advantage @ MedPlus Franchise; Brand recognition and attractive discount and loyalty schemes attract a high number to customers to the store and retain the customers. An independent pharmacy will never be able to offer 20 to 30% savings on medicines that a MedPlus store is offer.

Challenge 5

Profitability and Gross Margins

The trade margins for many of the products sold in a pharmacy are low and fixed. To address this, an independent pharmacy has to source less priced private label products with best quality which can happen only if volumes are good and have a domain expertise in sourcing. Advantage @ MedPlus Franchise; MedPlus, due to its huge scale is able to offer a wide range of high quality private label products both in medical and general segments with a higher margin.

Challenge 6

Online pharmacies

Online retail is growing by significant leaps and bounds in India and it is just a matter of time before e-pharmacies will become an established feature of the competitive landscape. This is definitely a threat for an independent pharmacy.

Advantage @ MedPlus Franchise; They are an omni-channel retailer. MedPlus Franchise can service both online and offline customers in that area.

Challenge 7

IT systems & technology Support.

To do well, pharmacies need easy to operate, tamper proof, transparent MIS technology and billing systems which are often expensive to procure and difficult to use. Advantage @ MedPlus Franchise; They provide all the systems needed by the franchisee and technology support which enables you to handle the pharmacy – sales, purchases, customer records, bank deposits without any hassle. To reduce billing time they are the first ones in pharmacy business to introduce bar-coded products.

Challenge 8

Additional sources of revenue.

For marketing their products, medical and FMCG brands engage pharmacies to preferentially display their products or to advertise their services to the walk-in customers. Additional revenue benefit will be very minimal as an independent pharmacy.

Advantage @ MedPlus Franchise; Due to their reach and better negotiating capacity, the ability to earn a better income is more through this channel. This is a shared income between the franchise and MedPlus.

Challenge 9

Investment capital.

To start an Independent Pharmacy of a similar standard to a MedPlus store, a capital investment of Rs. 18 - 20 lakhs is needed, plus an additional investment towards working capital to fund non-moving inventory and initial operating losses.

Advantage @ MedPlus Franchise; You will be able to start with a self investment of 6-8 lakhs, and obtain the rest of the capital in the form of a loan through the financial assistance scheme in place with SBI exclusively for MedPlus Franchisees.

What support does MedPlus Provide to the Franchisee?

- Assistance with selecting the right location for the store

- Help with store identification and lease finalization

- Complete layout plan, branding materials and furniture and systems required

- Training for the franchisee and its staff

- Facilitate a bank loan if required

- Supply all products sold through the store

- Operational support through the running of the store

- Audit support

What is the Eligibility Criteria to be a Franchisee or Who can become a Franchisee?

Basic Profile

- Individuals willing to work hard, diligent and dedicated

- Should be willing to personally manage the pharmacy operations rather than through employees

- Should have the ability to do basic mathematics and understand trade terms, margins, profit & loss

Education & Experience

- A pharmacist qualification is helpful, however it is not mandatory

- At a minimum, candidate should have completed SSC or Intermediate level education

- Prior experience in a pharmacy or managing a small business will be favorable

Investment Capacity

Ability to invest about Rs 6 to 7 lakhs and own a collateral property worth at least Rs 6 lakhs to receive a loan under the special scheme towards remaining investment.

In what locations are the franchises offered?

MedPlus Franchises will become available across India. However in the initial phase, franchises are being offered only in the states of Telangana and Andhra Pradesh.

Location & Premises Criteria

Any town with more than 50,000 population would be suitable for a Medplus Pharmacy.

A minimum of 300 Sq. ft. or more in the main market area with good frontage and unrestricted access to the premises.

What are the Investment Details for a Franchise Store?

Total investment required to set up a MedPlus Franchise is between Rs 17.50 to 20 lakhs depending on the location and the size and condition of the premises. This amount covers franchisee fee, refundable security deposit to premises owner (rental advance), interiors, storage racks, furniture, computer systems and printer, branded stationary and initial inventory (stocks).

Of this amount, the franchisee should be able to invest Rs 6-7 lakhs of his own and would be able to obtain the balance as a loan under a special scheme through State Bank of India across India, subject to having a collateral of around 6 lakhs.

MedPlus Health Services Pvt. Ltd.

Address : GSR Estates, C Block, D.No. 11-6-56, Survey no. 257 & 258/1, Opp: IDPL Railway siding Road, Balanagar, Hyderabad, Telangana 500037, India

Phone Number : 040 6700 6700

Business Related Queries

Email Address (Franchise Enquiry) : franchise (at) medplusindia (dot) com

Email Address (Vendors and Product Distributors) : purchase (at) medplusindia (dot) com

Contact Number (Franchise) : +91 868 858 1100 [For AP & Telangana]

Contact Number (Franchise) : +91 730 540 5500 [Tamil Nadu]

Contact Number (Franchise) : +91 843 100 2002 [Karnataka]

Customer Care

Contact Number : +91 924 766 6000 or 040 6700 6700

Email Address : [email protected]

Why Pharmacy business?

- Medicines are an essential need just like food, clothes and shelter (Roti, Kapda aur Makaan)

- Pharmacies can be operated round the year, round the clock

- It’s a recession free business. Families may cut down on luxuries but continue to purchase medicines to maintain health

- If the pharmacy is able to manage its stock well and make the necessary products available in time, then success is assured

What is the future of pharmacy business? Will it continue to be attractive?

- With an increase in the average life span, changing lifestyle conditions and access to healthcare facilities, there is an increasing demand for health care products such as medicines, surgical items and wellness products and services across the country

- As per the market surveys, the current size of the Indian pharmacy market is about Rs 80,000 Crores and is expected to cross Rs 160,000 Crores by year 2020

- Organized retail pharmacy chains like MedPlus have around 6-7% market share

- The retail pharmacy industry is expected to grow around 20% year on year with organized pharmacies increasing their market share to around 30% of the market by 2020

What are the operational activities involved in running a retail pharmacy?

Retail pharmacy is similar to a trading business

Operations primarily consist of sourcing the required medicines and other general products from many suppliers and selling them to the end customers through the retail counter

To be able to do this successfully, a pharmacy should be well versed in these :

- Identifying and estimating the demand for the products in the area

- Maintaining stock levels and ensuring availability of the products

- Minimizing stock loss due to expiry, damage, theft or pilferage

- Identifying multiple suppliers for all the products

- Negotiating prices, discounts and payment terms with the suppliers

- Procuring in time and as per need

- Maintaining necessary registrations, documentation and procedures to comply with the laws of the state and drug regulatory authorities

- Maintaining a record of customer details, sales data and stock outs

- Continuous updating of stock based on knowledge acquired over time

- Managing the staff members involved in the pharmacy operations

- Managing cash with an understanding of costs, revenue, profit and loss

- Satisfying customers with great service

- Generating demand by marketing and promotional schemes

Why MedPlus Franchise?

- MedPlus brand is highly recognized and well trusted for its integrity and the great benefits it offers to its customers

- MedPlus has successfully built the largest retail pharmacy chain in India in the shortest time

- MedPlus operates a network of stores across 12 states and over 150 cities with over 1350 successful pharmacies

- Medplus is well known for providing quality and genuine medicines, superior customer service and great value for money

As a MedPlus Franchisee

- You can carry the pride of their success in your locality in a reputable profession with assured income

- You are assured of the best training, knowledge, and support for running a large pharmacy because of their strong operations expertise and sourcing, technology and execution capabilities

- You get to run a highly recognized brand pharmacy with a large mix of medical and general products at a very reasonable investment of Rs 17 lakhs to Rs 20 lakhs

- You can avail a credit facility or loan from State Bank of India under a special scheme for about 60% of your investment requirement

- You generate a volume of business that is 2 or 3 times higher than competition and enjoy higher customer retention and repeat purchases due to their brand pull and the attractiveness of their loyalty and reward program – FlexiRewards

- You generate higher profits by having access to their high quality private label brands with higher margins

What are the advantages of a MedPlus Franchise in comparison with an independent pharmacy store?

As a MedPlus Franchisee, you are at an unparalleled advantage to address these challenges encountered in operating a pharmacy

Challenege 1

Sourcing a high number of SKUs (Products) from a highly fragmented market

To manage hundreds and thousands of brands and products in terms of sourcing, stocking and payments while managing sales & staff. Advantage @ MedPlus Franchise; their proven process handles this just at the click of a button. All you need to do is to concentrate on counter sales, staff management, and customer relations

Challenge 2

Proper inventory planning.

A pharmacy is only successful if it is able to make all requested products available. However, poor inventory planning leads to lock of capital and losses due to unsold and expired stock. Advantage @ MedPlus Franchise; Inventory management and ordering as per local demand is completely automated to avoid additional capital investment needs and minimize losses.

Challenege 3

Low quality and fake medicines

Due to a fragmented and unregulated supply chain, low grade, poor quality medicines are easily available in the market. Protection from them needs investment in process, time and experience.

Advantage @ MedPlus Franchise :

- MedPlus minimizes this by sourcing all products directly from manufacturers and its direct authorized distributors only.

- The stocks are then meticulously maintained in proper storage conditions during warehousing and transportation to the pharmacies.

Challenege 4

Competition

Pharmacy business is a relatively low risk business with a good return on investment, hence competition is high.

Advantage @ MedPlus Franchise; Brand recognition and attractive discount and loyalty schemes attract a high number to customers to the store and retain the customers. An independent pharmacy will never be able to offer 20 to 30% savings on medicines that a MedPlus store is offer.

Challenge 5

Profitability and Gross Margins

The trade margins for many of the products sold in a pharmacy are low and fixed. To address this, an independent pharmacy has to source less priced private label products with best quality which can happen only if volumes are good and have a domain expertise in sourcing. Advantage @ MedPlus Franchise; MedPlus, due to its huge scale is able to offer a wide range of high quality private label products both in medical and general segments with a higher margin.

Challenge 6

Online pharmacies

Online retail is growing by significant leaps and bounds in India and it is just a matter of time before e-pharmacies will become an established feature of the competitive landscape. This is definitely a threat for an independent pharmacy.

Advantage @ MedPlus Franchise; They are an omni-channel retailer. MedPlus Franchise can service both online and offline customers in that area.

Challenge 7

IT systems & technology Support.

To do well, pharmacies need easy to operate, tamper proof, transparent MIS technology and billing systems which are often expensive to procure and difficult to use. Advantage @ MedPlus Franchise; They provide all the systems needed by the franchisee and technology support which enables you to handle the pharmacy – sales, purchases, customer records, bank deposits without any hassle. To reduce billing time they are the first ones in pharmacy business to introduce bar-coded products.

Challenge 8

Additional sources of revenue.

For marketing their products, medical and FMCG brands engage pharmacies to preferentially display their products or to advertise their services to the walk-in customers. Additional revenue benefit will be very minimal as an independent pharmacy.

Advantage @ MedPlus Franchise; Due to their reach and better negotiating capacity, the ability to earn a better income is more through this channel. This is a shared income between the franchise and MedPlus.

Challenge 9

Investment capital.

To start an Independent Pharmacy of a similar standard to a MedPlus store, a capital investment of Rs. 18 - 20 lakhs is needed, plus an additional investment towards working capital to fund non-moving inventory and initial operating losses.

Advantage @ MedPlus Franchise; You will be able to start with a self investment of 6-8 lakhs, and obtain the rest of the capital in the form of a loan through the financial assistance scheme in place with SBI exclusively for MedPlus Franchisees.

What support does MedPlus Provide to the Franchisee?

- Assistance with selecting the right location for the store

- Help with store identification and lease finalization

- Complete layout plan, branding materials and furniture and systems required

- Training for the franchisee and its staff

- Facilitate a bank loan if required

- Supply all products sold through the store

- Operational support through the running of the store

- Audit support

What is the Eligibility Criteria to be a Franchisee or Who can become a Franchisee?

Basic Profile

- Individuals willing to work hard, diligent and dedicated

- Should be willing to personally manage the pharmacy operations rather than through employees

- Should have the ability to do basic mathematics and understand trade terms, margins, profit & loss

Education & Experience

- A pharmacist qualification is helpful, however it is not mandatory

- At a minimum, candidate should have completed SSC or Intermediate level education

- Prior experience in a pharmacy or managing a small business will be favorable

Investment Capacity

Ability to invest about Rs 6 to 7 lakhs and own a collateral property worth at least Rs 6 lakhs to receive a loan under the special scheme towards remaining investment.

In what locations are the franchises offered?

MedPlus Franchises will become available across India. However in the initial phase, franchises are being offered only in the states of Telangana and Andhra Pradesh.

Location & Premises Criteria

Any town with more than 50,000 population would be suitable for a Medplus Pharmacy.

A minimum of 300 Sq. ft. or more in the main market area with good frontage and unrestricted access to the premises.

What are the Investment Details for a Franchise Store?

Total investment required to set up a MedPlus Franchise is between Rs 17.50 to 20 lakhs depending on the location and the size and condition of the premises. This amount covers franchisee fee, refundable security deposit to premises owner (rental advance), interiors, storage racks, furniture, computer systems and printer, branded stationary and initial inventory (stocks).

Of this amount, the franchisee should be able to invest Rs 6-7 lakhs of his own and would be able to obtain the balance as a loan under a special scheme through State Bank of India across India, subject to having a collateral of around 6 lakhs.

When Dr. Madhukar Gangadi came across a WHO report indicating that up to 30% of the fake medicines sold across the world came from India, he decided to study the Indian pharma retail market and sensed an opportunity to make a difference. He envisioned a company that would source all its medicines from reliable, big name suppliers, store medicines in optimal conditions to ensure their efficacy and take the risk out of buying medicines, give customers convenience to buy their medicines and value for their money.. The result was MedPlus.

The first MedPlus pharmacy store opened in February 2006 in Hyderabad and over the last decade has grown into the second largest pharmacy retail chain in the country with over 1350 pharmacies throughout India. Medplus today serves over 2,00,000 customers daily and employs over 10,000 people.

Their online pharmacy & general store, MedPlusMart.com, launched in 2015 has quickly grown to become the biggest e-Pharmacy in the country today. Through MedPlusMart, customers can buy medicines, OTC products, FMCG and nutrition products from the convenience of their home or through mobile, read important information about medicines, store their health records, view their prescription history and redeem rewards.

They have come far but will continue to strive to improve themsleves everyday and aspire to be India's favourite healthcare provider with the highest standards of service excellence.

Vision

To be the first choice of customers for their health and wellness needs by consistently understanding and exceeding their expectations

Mission

To revolutionize healthcare delivery in India

Values

Customer Centricity : They want to build loyalty by adapting to and satisfying their customers' needs

Honesty & Fairness : They value transparency in all their interactions and treating everyone fairly

Team Work : They believe in lending each other a hand for the good of all

Innovation : They value innovations that enhance quality of service delivery

Commitment to equality : They respect the dignity and potential of every individual and treat everyone equally regardless of caste or creed

Businesses

Their services are guided by three themes - Quality, Convenience, and Value.

Quality : They source all their products directly from reputed manufacturers or their authorized representatives. They ensure they are stored and transported properly in optimal containers and conditions. They record their movement from source to destination to ensure transparency and traceability. Stringent quality standards for procurement and storage ensure that their products are 100% genuine and efficacious.

Convenience : They are often located within a walking distance of most residential neighborhoods. They provide their customers several options to shop with them, be it online, mobile, call centre or a physical store. Through their online interface, it is easy to place orders and to manage your health records and prescriptions online. Their comprehensive order management system supports tracking and accountability at the user and order level. With same day delivery, multiple and secure payment options, and a worry free returns policy they are committed to provide you an unparalleled experience.

Value : They aim to conduct business in a way that's sustainable for their organization and their customers. They leverage their scale to offer the best price to their customers. Their industry leading rewards programme, offers unparalleled value for money and unmatched savings to their customers.

MedPlus Pharmacy

MedPlus Pharmacy was started with the express purpose of making it safer, convenient & affordable for consumers to purchase medicines. They do this by sourcing and selling only reputable medicines from the most trusted manufacturers and their direct authorized representatives. They maintain a proper cold chain and equip their shops with air conditioners and refrigeration units to ensure that your medicines stay factory-fresh and work as expected. They employ trained and experienced pharmacists who will ensure the right medication is dispensed and are able to answer your queries appropriately.

It is not only safer to shop at MedPlus, it is also cheaper. They pioneered the concept of value retailing in pharmacies. They sell most medicines and FMCG goods at a discount on MRP. FlexiRewards, their one-of-a-kind rewards programme, provides you the opportunity to accrue points for purchases across various MedPlus businesses, and exchange the points for everyday household items like soaps, shampoos, and cleaners or kitchen and luggage items translating into significantly higher discounts.

They have a presence in over 1300 localities across 12 states, so regardless of where you live you can visit a MedPlus store near you today to experience the difference firsthand (Store Locator). They offer free home delivery in several of the locations where their store is present.

MedPlusMart

MedPlusMart is the online gateway to your favourite medical and general store.

At www.medplusmart.com you can order the products you regularly buy from their stores from the convenience of home and have them delivered to your home or pick them up conveniently from a MedPlus store near you. The selection includes a complete range of prescription & OTC medicines and a wide selection of FMCG, general and nutrition products.

At www.medplusmart.com , you can also view or take prints of all your previous MedPlus bills, and conveniently reorder the products you bought earlier. Regardless of how you shop at MedPlus, be assured that they will continue to offer you high quality and genuine products, stored and handled in optimal conditions at attractive discounts.

MedPlus has always been and continue to be your one-stop shop for all your medicines and general product needs, now with the added convenience of shopping from home at the click of a button.

MedPlus Pathlabs

Sometimes the best way to know what’s going on with your body is to know what’s going on inside your body. That’s where MedPlus Pathlabs comes in. They offer state-of-the-art lab testing so that you can prevent, detect, or manage disease.

They collect your lab sample and deliver the report at your home or at many of their pharmacy locations as well as at any of their clinics. You can conveniently make an appointment for collection at www.medpluslab.com

When they receive your sample, they immediately get to work on processing it so that you can get your result fast. They have a stringent quality assurance process and they utilise advanced fully automated equipment to ensure that your results are accurate – always.

MedPlusLens

MedPlusLens A complete optical store with a wide choice of frames, prescription glasses, sun glasses and contact lenses at highly affordable prices.

Their optical stores are often co-located with their pharmacies in selected localities or you can shop with them online from anywhere at www.medpluslens.com

RiteCure

RiteCure is a leading distributor of medical and surgical supplies to hospitals, pharmacies and other healthcare providers and hospital pharmacy management service.

RiteCure presents a comprehensive offering of pharmaceuticals, medical and surgical consumables to hospitals and other healthcare providers encompassing out-patient (OP), in-patient (IP) and operation-theater (OT) services.

RiteCure improves efficiency and profitability by aligning the needs of hospitals, nursing homes, doctors, pharmacies and drug manufacturers. Hospitals and nursing homes benefit from unparalleled cost savings and a streamlined purchasing process. Drug & surgical manufacturers are afforded the ability to reduce sales, marketing and inventory carrying costs.