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In
February 2007, Fortis HealthWorld (HealthWorld) a joint venture
between Ranbaxy Laboratories (Ranbaxy), one of the largest
pharmaceutical companies in India, and Fortis Healthcare (Fortis),
a hospital chain established by the promoters of Ranbaxy,
announced its foray into the pharmacy business in India.
HealthWorld planned to establish 150 outlets through the
franchisee route by the end of 2007.1 The franchisee outlets
would be in addition to the 250 HealthWorld stores planned to be
set up by the company, by the end of 2008.
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Apart from the franchisee outlets, HealthWorld
planned to invest around Rs. 8 billion for setting up 1,000 HealthWorld
stores in 400 cities and towns across India, by 2012.
During 2006-2007, pharmacy retail sales in India were estimated to be Rs
279.03 billion.2 The pharmacy market in India was highly fragmented, and
the organized sector accounted for only about 3% of the total business.3
The pharmacy business was expected be worth around Rs 500 billion by
2010.4
Some of the key players in the organized pharmacy sector in India
were pharmacy chains like Apollo Pharmacies, Aushadhi, CRS Health, Dial
for Health, Dr. Morepen, Global Healthline, Guardian Pharmacy, Health
and Glow, Lifeken, Medicine Shoppe and 98.4o.
HealthWorld planned to open stores of 500, 1,000 and 2,000 sq. ft area,
depending on the location of the store.5 All the HealthWorld stores were
to stock prescription and over-the-counter drugs, health foods and
supplements, health books and personal care products.6
Apart from the regular Allopathic medicines, the stores would also sell Ayurvedic and
Homeopathic drugs.7
The HealthWorld stores would also include a diagnostic center and would be equipped with telemedicine facilities8 and collection centers linked to SRL Ranbaxy, a chain of clinical reference laboratories owned by the promoters of Ranbaxy.9
The stores would also offer value added services like a prescription reminder service, loyalty programs, Outpatients Department (OPD) appointments at Fortis hospitals, and free home delivery.10 These services were to be made available at all the HealthWorld stores including the franchisee outlets.
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1] "Fortis Pharmacy Takes Franchisee Route for Expansion," www.domain-b.com, May 24, 2007.
2] "Pharma Exports to Surpass Retail Sales," The Economic Times, June 22, 2007.
3] "Ranbaxy Group Forays Into Retail Healthcare," The Economic Times, January 17, 2007.
4] Nandini Patwardhan, “Time For a Makeover," www.expresspharmaonline.com, November 1-15,2006.
5] "Fortis to Invest Rs 800 cr for Foray into Health Stores," The Hindu Business Line, February 7, 2007.
6] "Fortis to Raise Headcount to 10,000 in 5 Yrs," www.oneindia.in, July 8, 2007.
7] "Ranbaxy Group Forays Into Retail Healthcare," The Economic Times, January 17, 2007.
8] Through the telemedicine facility, consumers at HealthWorld stores could contact doctors at Fortis hospitals.
9] "Fortis to Invest Rs 800 Cr for Foray into Health Stores," The Hindu Business Line, February 7, 2007.
10] Gaurav Choudhury "Fortis Lines Up Rs. 800 Cr for Retail Healthcare Chain," Hindustan Times, February 6, 2007.
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