MedPlus Health Sevices Limited IPO

MedPlus Health Sevices was founded in 2006 by Gangadi Madhukar Reddy, its Managing Director and Chief Executive Officer, with a vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the customer using efficient supply chain technology.

The company had started with just 48 stores in Hyderabad and has expanded its retail network to over 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March 31, 2021, according to the Technopak Report. The company has become India’s second largest pharmacy by focussing on growth and achieved leadership position in key cities in which they operate. Based on revenue from operations, Chennai, Bangalore, Hyderabad and Kolkata contributed approximately 30%, 29%, 30% and 22%, respectively, according to the Technopak report.

MedPlus uses a data analytics driven cluster-based approach for its store network expansion, whereby they first achieve high store density in a densely-populated residential area. This is followed by expanding the store network in the surrounding areas within that city, and expanded to other adjacent cities. This approach has helped the company to achieve an average revenue per store of approximately Rs 15.9 million, as compared to an industry average revenue per store of approximately Rs 2.3 million.

As of September 30, 2021, the company has primary warehouses in Bangalore, Chennai, Hyderabad, Vijayawada, Kolkata, Pune, Bhubaneshwar, Mumbai and Nagpur. These warehouses are further supported by smaller warehouses in cities where it has higher store density.

The company offers a wide range of products including medicines, medical devices, wellness products, test kits, FMCG items such as home and personal care products, toiletries, baby care products, soaps and detergents and sanitizers.