In Indian pharmaceutical market is the third largest in terms of volume and 13th largest in

terms of value. Pharmacy retail consists of selling pharmaceutical products. The pharmacy
retail market has increased rapidly in the past few years, owing to the growing population
and patient pool, and affordability of medicines. Consumers have improved access to
medicines because of advanced medical infrastructure, launch of patented drugs. But
factors such as low-profit margins, price control measures, and poor inventory management
hinder market growth.

Market insights:
In 2020, the pharmacy retail market was valued at INR 1,783.83 Bn and is expected to reach
INR 3,078.46 Bn by 2026, expanding at a CAGR of 12.02%. The organized retail pharmacy
sector stood at INR 134.21 Bn in the same year and is anticipated to reach INR 370.39 Bn by
2026. The unorganized sector was valued at INR 1548.55 Bn in 2020 and is likely to reach
INR 2390.20 Bn by 2026. The revenue of online retail sector stood at INR 38.15 Bn in 2020
and is likely to reach 317.87 Bn in 2026. The online retail channels sector is the fastest
growing, owing to the rise in the number of internet users and increase in technological
advancements. It was valued at 38.15 Bn in 2020 and is projected to reach 317.87 Bn in
2026, expanding at a CAGR of 44.44%.

Segment insights:
The pharmacy retail market is segmented into organized, unorganized, and online retail
based on channels. The unorganized segment comprises local medical shop owners and it
held an 88.70% market share in 2021. The organized sector consists of large players
licensed to sell drugs and registered for sales and income tax. It had a share of 8.50% in
2021. Online pharmacy retail is an emerging segment with a 2.80% market share. Owing to
increase in internet users and technological advancements the online pharmacy retail
channels are expected to expand at a CAGR of 44.34% during the 2022 - 2026 period. The
pharmacy retail market is also segmented into generic, OTC, and patented drugs based on
drug types. Generic drugs have identical chemical composition, dosage effects, side effects,
and administration routes such as that of patented original ones. Last year, generic drugs
held a market share of 71%. OTC drugs can be sold to customers without a prescription
through a medical practitioner. The segment had an 18.18% market share in 2021. The
patented drugs were introduced by global drug manufacturers, used in various therapeutic
areas such as oncology, anti-infective and cardiac treatment. Last year, patented drugs held
a share of 10.82%.

COVID-19 impact analysis:

The onslaught of COVID-19 has caused disruptions in the global supply chains.
Pharmaceutical manufacturers in India are highly dependent on China for active
pharmaceutical ingredients (API) and key starting materials (KSM). In 2020, the lockdown in
China caused a severe shortage of these APIs and KSMs in India. As a result, several
indigenous pharmaceutical manufacturers started producing APIs and KSMs to meet the
elevated demand in the market. On the other hand, the online pharmacy business got
traction, owing to increased adoption of digital platforms. In 2020, the union government
launched the production linked incentive scheme (PLI) to provide financial support for the
production of COVID-19 vaccines in the country. In the same year, the government also
introduced a scheme to establish bulk drug parks to produce APIs, KSMs, and drug
intermediates.

India’s Active pharmaceutical API potential.

Active Pharmaceutical Ingredient (or API) is a crucial segment of the pharma industry,
contributing to around 35 per cent of the market. API is the biologically active component of
a drug that causes an intended medical effect. India is the 3rd largest producer of API
accounting for an 8 % share of the Global API Industry. 500+ different APIs are manufactured
in India, and it contributes 57 % of APIs to prequalified list of the WHO. The Indian API
market is anticipated to increase at a CAGR of 13.7 %during the first four years – about 8 %
higher than the generic API industry. The Indian API space has become lucrative for several
investors and venture capitalists. India’s robust domestic market, advanced chemical
industry, skilled workforce, stringent quality and manufacturing standards, and low costs
(about 40 per cent less than that in the West) for setting up and operating a modern plant
give an added advantage.
Some of the major players operating in the India active pharmaceutical ingredient market
include Solara, Aurobindo Pharma Limited, Dr. Reddy's Laboratories, Lupin Limited, Sun
Pharmaceutical Industries Limited, Divi’s Laboratories Ltd., Aarti Drugs Ltd., Neuland Labs,
Century Pharmaceuticals Ltd., and Proventus Life Sciences Pvt Ltd. among others.
To capitalize on its API potential, India is building a holistic and conducive ecosystem. In
2020, the government approved INR 6,940 crore for a production-linked incentive (PLI)
scheme for the promotion of domestic manufacturing of Key Starting Materials (KSMs)/Drug
Intermediaries (DIs), and APIs. Manufacturing of 35 active pharmaceutical ingredients –
representing about 67% of APIs for which India has 90 % import dependence – has already
started in India under the PLI scheme. The Department of Pharmaceuticals has also given
"in-principle" approval to proposals from the states of Himachal Pradesh, Gujarat, and
Andhra Pradesh under the "Promotion of Bulk Drug Parks" scheme. This is a crucial initiative
to support bulk drug manufacturing in India. The scheme, with a budget of INR 3000 crores,
provides financial aid to these three states for the creation of bulk drug parks with the
objective of reducing the cost of manufacturing bulk drugs by establishing world-class
common infrastructure facilities and increasing the competitiveness of the domestic bulk
drug industry. The Government of Assam has also proposed a Pharmaceutical Park in
Chaygaon, Kamrup Rural on a land area of 100 acres with an estimated project cost of INR
153.64 crores.
The organised sector of retail pharmacy in India
India’s urban and semi-urban areas are home to a significant number of organised retail
pharmacy chains. Numerous well known industry players, such as Apollo Pharmacies LTD,
MedPlus, Health Services Private Limited, Wellness Forever, Emani Frank Ross Limited,
etc, dominate the retail pharmacy market in India. Apollo pharmacy led the Indian
pharmacy industry with over 4000 stores in March 202, followed by Medplus and wellness
Forever with 2000 and 220 stores respectively.

List of best pharmacy franchises in India

1. GENMART GENERIC PVT. LTD.

Founded in: 2018
Franchising since: 2019
Franchise units: Less than 10

GenMart was established in 2018 by GenMart Genric Pvt. Ltd., GenMart is a one-stop-shop
pharmacy for prescribed drugs as well as other healthcare and wellness requirements.
Genmart envisions passing the benefits of low marketing costs associated with generic
pharmaceutical products to the last leg of the consumer shop.

2. CARE PHARMACY

Founded in: 2017
Franchising since: 2018
Franchise units: Less than 10

Established in 2017, Care Pharmacy is one of Gujrat's largest & fastest growing chain of
pharmacy stores. It offers a wide range of more than 4,000 products in different categories
& over 1000 generic molecules. It retails in medicines from various reputed companies like
Cipla, Zydus, Heinz, Glenmark, etc. with 24/7 services.

3. LIVING HEALTHY 24

Founded in: 2016
Franchising since: 2019
Franchise units: Less than 10
Living Healthy 24, a venture of Kolkata-based Culmination Healthcare Private Limited, is an
integrated healthcare solution & service provider. Formed with the motto “Healthcare for
All”, Living Healthy 24 offers genuine medicines, doctor consultation, and health diagnostic
services under one roof. The brand is also coming up with its health portal and mobile app
for the benefit of the people.

4. SANJIVANI

Founded in: 2006
Franchising since: 2015
Franchise units: 20-50

Sanjivani is a well-known name in the pharmacy segment of the country providing

comprehensive, world-class solutions in the field of pharmaceutical retail and distribution.
Sanjivani specializes in providing a complete bouquet of products under its store,
particularly in the pharmaceutical industry. The company is a reputed name in the field of
distribution and aims to provide people with complete solutions catering largely to their
health care needs.

5. EMEDIX

Founded in: 2016
Franchising since: 2018
Franchise units: 20

Though the urban part of India has diversified a lot into pharma retailing business still
people living in the remotest village are forced to travel to nearby towns to access health
care services. Established in 2016 as an online pharmaceutical company that sights to offer
an excellent delivery & flexible payment mechanism, EMEDIX captivates itself as a medical
store that delivers medicinal products by providing even an e-copy of the prescription.

6. SASTASUNDAR

Founded in: 2013
Franchising since: 2013
Franchise units: 100-200
SastaSundar is an innovative digital pharmacy and health care store. They are ensuring the
supply of genuine medicines at low cost at the doorstep, free of cost to your customers.
Apart from medicines, they also offer most of the brands related to Personal Care,
Healthcare, Beauty Care, Herbal and Organic products, currently available in India.

7. DAVAINDIA

Founded in: 1995
Franchising since: 2017
Store: More than 550

Davaindia Generic Pharmacy, part of Zota Healthcare LTD, is India’s leading medicine
platform which specializes in generic medicines letting people get the same ingredient
medicine at a very cheap rate. Brand is going to take a leadership position in transforming
the global healthcare industry by making quality health & wellness products available for all.
DavaIndia pilot store was launched in 2017 and expanded to more than 550 stores across 23
states for 2021.

8. MEDLIFE

Founded in: 2014
Franchising since: 2017
Franchise units: More than 800+

Medlife International Pvt .Ltd, established in Bangalore in 2014 by Mr. Tushar Kumar and Mr.
Prashant Singh and doing business as MedLife, is India's largest online pharmacy store. The
store makes an delivery of about 20000 medicines across 29 states .

9. MEDPLUS PHARMACY

Founded in: 2006
Franchising since: 2015
Franchise units: 20-50

MedPlus is a highly recognized and well-trusted brand for its integrity and the great benefits
it offers to its customers. It has successfully built the largest retail pharmacy chain in India in
the shortest time and 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.
The Rise of E-pharmacy in India.

The e-pharmacies and healthcare companies have only recently grown in India because

of Covid 19, improved Internet reach and smartphone penetration. The Indian e-pharmacy
industry is some of well-known names in the market are Netmeds, EasyMedico and
MedLife. They are many startups that have also come up in the industry such as 1mg, Practo
and Myra, even big retail stores like Apollo pharmacy have introduced their e-pharmacy
segment.
Some of the country’s largest conglomerates and multinational e-commerce companies are
looking to invest and get a foothold in this sector. For example, Amazon has recently
invested over $100 million in the largest Indian pharmacy chain Apollo Pharmacy.
In 2020, Reliance Retail invested Rs 620 crore to get a majority stake in Netmeds which is a
Chennai based startup. Tata group also acquired a major stake in 1mg, while LGT Group and
CDPQ the Canadian pension fund acquired Medlife in 2020. Even Pharmeasy is backed by
the Singapore Temasek Holdings along with TPG a private equity firm from US.

Top 6 e-pharmacy apps/websites in India

1. Netmeds

Netmeds is currently one of the biggest players in the e-pharmacy industry. It provides a
huge variety of medicines, healthcare products and drugs. It is one of the most popular
Indian website to buy medicines online. The company was founded in 2015 and now has a
pan India presence, offering prescription, over the counter drugs and wellness
products. The customers can set up their subscription for the medicines to be delivered
every month and buy healthcare products such as skincare, family care, and baby care
among others.

2. Practo

Practo is one of the most reliable online medical stores. It also has a huge catalog of
medicines and healthcare products. The app offers its services to more than 100 cities and
also connects millions of patients with thousands of healthcare providers around the world.
The company was founded in 2009 and has over 1,00,000 listed doctors from 310 towns
and cities. The app also offers its customers to have an automated prescription refill option,
allows them to check their medicine order and reorder what they want.

3. 1mg

1mg is the country’s leading digital consumer healthcare platform. This app offers its
delivery services to more than 1000 cities across the country. Its customers can order
medicines and health products through the website and get it delivered at home from
licensed pharmacies. It also provides accurate and trustworthy information on medicines.
The best part about the app is that the customers can enter the names of the medicines
needed and get cheaper alternatives with the same compound. The app also offers health
tips according to the medicines you order.

4. PharmEasy

PharmEasy is a well-known health tech startup that offers services such as online doctor
consultation, medicine deliveries and diagnostic test sample collection. PharmaEasy offers
more than 1 lakh products and even delivers it within 24 to 48 hours across 1.2k plus cities
across India. The app allows schedules reminders monthly and even cash on delivery
services.

PharmEasy had acquired a controlling stake in Bengaluru-based healthcare supply chain

startup Aknamed in a primary and secondary deal. Aknamed has approved the allotment of
975,937 equity shares at Rs 3,155.94 to API Holdings to raise Rs 308 crore or close to $42
million from the parent company of PharmEasy, regulatory filings show. PharmEasy had
completely bought out the stake of five promoters (co-founders) of Aknamed who
collectively controlled a 50.67% stake. Post this transaction, Aknamed became a subsidiary
of API Holdings Private Limited (PharmEasy’s holding entity). Investment by PharmEasy in
Aknamed has been concluded at an enterprise valuation of Rs 1,060 crore or $144 million.
In the secondary deal, PharmEasy had spent around Rs 380 crore ($51.6 million) to acquire
stakes of five co-founders: Saurabh Pandey, Mahadevan Narayanmoni, Mayank Kapoor,
Varun Vohra, Shaunak Joshi and around Rs 21 crore ($2.8 million) to acquire stakes of
angels. Pandey and Narayanmoni are the top beneficiaries among co-founders to get an exit
worth $21 million and $17.7 million respectively. After the fresh allotments of shares,
PharmEasy has a total 67.3% stake in Aknamed followed by Lightstone Fund which controls
a 31.3% stake.

5. Apollo Pharmacy

Apollo Pharmacy offers more than 5000 products in various categories online and is also
accredited an international quality certification. Apollo pharmacy over 3500 plus offline
pharmacy outlets across the country. The advantage of ordering medicines from Apollo is
that the customers can order it 24/7 and get the medicines delivered on time and at their
doorstep.

6. Medlife

Medlife is another popular online pharmacy in India that was founded in 2014. Medlife is
easier for ordering medicines as the customers can just upload their prescription, confirm it
on call and get the medicines delivered at their doorstep. If the customer does not have a
prescription, they can also consult a Medlife doctor.
Medical Devices Industry in India
India is in the top 20 medical device markets worldwide and is the fourth-largest market for
medical devices in Asia. The healthcare and medical device sectors in India have grown
significantly in the last decade. A wide range of medical devices, from consumables to
implantable medical devices, are produced in India. Most medical devices manufactured in
India are disposables like catheters, perfusion sets, extension lines, cannulas, feeding
tubes, needles, and syringes, as well as implants like cardiac stents, drug-eluting stents,
intraocular lenses, and orthopaedic implants. The medical devices sector is highly capital
intensive, and requires continuous training of the healthcare system providers to adapt to
new technologies.
However, there is still a huge gap in the current demand and supply of medical devices in
India, as India has an overall 70-80% import dependency on medical devices. The
government has come up with multiple initiatives and policies to promote India’s medical
device sector. It was recognised as a focus sector in 2014 by the government during the
Make in India campaign.

MARKET SIZE

The medical devices sector in India comprises large multinationals, small and midsized
companies. As of 2020, the medical devices market is estimated to be at US$ 12 billion in
India, and it is expected to grow at a CAGR of 15%, which is 2.5 times the global growth
rate. India is the 4th largest Asian medical devices market after Japan, China, and South
Korea, and among the top 20 medical devices markets globally. Between 2020-25, the
diagnostic imaging market is likely to expand at a CAGR of 13.5%. Export of medical devices
from India stood at US$ 2.90 billion in FY22, and are expected to rise to US$ 10 billion by
2025. To increase export of medical devices in the country, the Ministry of Health and
Family Welfare (MOHFW) and Central Drugs Standard Control Organisation (CDSCO)
implemented the following initiatives:

 Re-examination and implementation of Schedule MIII (a draft guidance on good

manufacturing practices and facility requirements)
 System for export labelling
 Clinical evaluation and adverse reporting clarification
 State licencing authority to extend free sales certificate validity from 2 years to 5
years to allow exports
 Create a list of manufacturers with export licencing for easy access to regulatory
authorities worldwide.

INVESTMENTS

Some major investments and developments in the medical devices sector are as follows:
  BeatO, a supplier of diabetes treatment, has raised US$ 33 million in a Series B
fundraising, which was headed by Lightrock India. HealthQuad and current investors
Orios Venture Partners, Blume Ventures, and Leo Capital also participated.
 In August 2022, Wipro GE Healthcare announced that it had partnered with medical
device maker Boston Scientific to offer comprehensive, cutting-edge cardiac
interventional care solutions in India.
 FDI inflow in the medical and surgical appliances sector stood at US$ 2.71 billion
between April 2000-June 2022.
 In July 2022, Godrej Appliances launched the new InsuliCool product range – Godrej
InsuliCool and Godrej InsuliCool+, which are innovative cooling solutions especially
designed for insulin storage, to address the challenge faced by diabetic patients with
respect to insulin storage at recommended temperatures.
 In July 2022, the Rajiv Gandhi Cancer Institute and Research Centre (RGCI) in New
Delhi received its first-ever Made-in-India Surgical Robotic System, the SSI-Mantra,
which was developed by med-tech startup SS Innovations.
 In July 2022, Ultrahuman announced its latest wearable: the Ultrahuman Ring,
which can track users’ metabolism, measure movement, sleep and other body
dynamics in real-time.
 Medtronic has launched a Surgical Robot Experience Centre (SREC) in Gurugram,
Haryana, the first of its kind in South Asia. The SREC will be focused on the education
and training of surgeons in robot-assisted surgery.

GOVERNMENT INITIATIVES

The Government of India has commenced various initiatives to strengthen the medical
devices sector, with emphasis on research and development (R&D) and 100% FDI for
medical devices to boost the market.

 In September 2022, the government of India approved the setting up of an export

promotion council for medical devices, under the Department of pharmaceuticals,
with its headquarters in Noida.
 In August 2022, the Department of Pharmaceuticals greenlit the "Promotion of
Medical Device Parks" programme from FY21-25 with a total financial investment of
Rs. 400 crore (US$ 48.97 million), with a maximum support under the programme of
Rs. 100 crore (US$ 12.24 million) for each Medical Device Park.
 In August 2022, the Department of Pharmaceuticals reconstituted the National
Medical Devices Promotion Council (NMDPC) under the Chairmanship of the
Secretary of the Department of Pharmaceuticals.
 In July 2022, the government tabled a draft for the new Drugs, Medical Devices and
Cosmetics Bill 2022, to assure and offer thorough legal protections to ensure that
the medical items sold in India are reliable, efficient, and up to required standards.
 In the Union Budget 2022-23, Rs. 86,200 crore (US$ 11.3 billion) was allocated as a
budget for the pharmaceutical and healthcare sector.