According to him,45,000 crore worth medicines are sold by largely fragmented small pharma shops controlled by about 7.5 lakh chemists across the country.I found that a small retail shop that can offer all medicines under one roof will help attract customers, he says. He started the business in 2003 with 10 crore pooled in from family members,friends and his own savings. The first outlet was set up in the NCR region and later opened another one in Delhi.
What changed the future of the business was its exclusive master franchisee agreement with GNC in 2004,considered to be the worlds largest chain for vitamins and health products.Subsequently,it has also partnered with Yves Rocher,a France-based natural beauty company.
...In 2008,Guardian received its first round of funding from Samara Capital.It had invested 100 crore in the company. Though started as a company focusing on northern market,Guardian now has a presence in southern markets including Tamil Nadu and Karnataka.Currently,it has 230 outlets and revenues to the tune of 110 crore. It expects revenues to touch 155 crore next year. It also achieved breakeven this financial year. The pharma retail market is over $10 billion and is a growing opportunity in India. The high growth,evolution of consumers and under penetration (less than 4%) of modern formats is attracting organised retailers.
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at email@example.com