Apollo HealthCo Ltd, a subsidiary of Apollo Hospitals Group and the operator of Apollo Pharmacy and online platform Apollo 24/7, has announced a significant expansion of its offline pharmacy network in West Bengal. Over the next two years, the company aims to establish 80 to 100 new pharmacy outlets across the state, bolstering its market share from the current 25% to 40%.

Aggressive Expansion to Capture Market Share

At present, Apollo operates approximately 900 pharmacy outlets in West Bengal, with 500 stores located in Kolkata. With the upcoming expansion, the total number of stores in the region will increase to around 1,000. This initiative aligns with Apollo HealthCo’s strategy to deepen its presence in tier-2 cities while maintaining its strong foothold in Kolkata, which currently contributes 35% of the company’s total sales in the state.

Madhivanan Balakrishnan, CEO of Apollo HealthCo Ltd and Chief Digital and Technology Officer at Apollo Group, emphasized the company’s growth trajectory, stating, “Our goal is to boost our market share to 35%-40% in Bengal and 50% in Kolkata in the coming years. This will be achieved through a combination of expanding our offline network and enhancing our online quick delivery services. Currently, our pharmacy outlets in Bengal generate approximately 1.5 lakh invoices daily, with Kolkata contributing a significant portion of this volume.”

Enhancing Quick Delivery & Infrastructure

To complement its offline expansion, Apollo HealthCo is strengthening its digital and logistics capabilities. The company launched a 29-minute delivery service in Kolkata last year, significantly enhancing its customer service efficiency. 

According to Madhivanan Balakrishnan, CEO of Apollo HealthCo Ltd and Chief Digital and Technology Officer at Apollo Group, “Over 85% of Kolkata’s pharmacy orders are now covered under this rapid delivery service, with 80% being fulfilled in under 29 minutes and the remainder within two hours.”

Furthermore, Apollo is investing in micro-warehousing infrastructure at its pharmacies to ensure the availability of fast-moving medicines, optimizing inventory management, and reducing fulfillment times.

National Expansion and Revenue Growth

This regional expansion is part of a broader nationwide strategy by Apollo Hospitals Group to strengthen its offline pharmacy presence. The company plans to add 500-600 new outlets across India in the current fiscal year, with the goal of reaching INR 10,000 crore in pharmacy revenue by year-end.

In FY23, Apollo’s combined pharmacy business reported revenue of INR 8,238 crore, marking a substantial increase from INR 6,768 crore in FY22. This growth was primarily driven by the addition of 1,012 new pharmacy stores in the preceding fiscal year, building on the 411 stores added in FY22. As of June 2023, Apollo operates 5,573 pharmacy outlets nationwide.

Despite this rapid expansion, Apollo remains focused on stabilizing its newer outlets. During the company’s Q1 FY24 earnings call, Obul Reddy, CFO of the Pharmacy Division, noted that 20% of Apollo’s pharmacies are still working towards profitability. “These outlets may require another quarter or two to achieve break-even,” he added.

Also Read :- Himachal Pradesh Government Implements Cadre Separation to Strengthen Healthcare Services

Competitive Landscape & Future Outlook

Apollo’s aggressive expansion in the pharmacy sector is taking place amid increasing competition from online and offline players, including Tata 1mg, PharmEasy, and MedPlus. By leveraging its omnichannel model—integrating physical stores with digital healthcare services—Apollo aims to provide a seamless and efficient pharmacy experience for consumers.

The company has also been at the forefront of healthcare technology innovations. Recently, Apollo Hospitals introduced a 5G-connected ambulance service in Kolkata, equipped with state-of-the-art medical equipment and telemetry devices. This initiative underscores Apollo’s commitment to leveraging technology to enhance patient care.

Through its continued investment in both offline and digital pharmacy infrastructure, Apollo HealthCo is poised to reinforce its leadership in India’s healthcare retail sector, making quality healthcare and medicines more accessible to a wider population.

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