Fortis' Foray into the Retail Pharmacy Business in India - ICMR Case Studies and Management Resources

Details

Case Code : CLBS088
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

Fortis, HealthWorld, Ranbaxy, pharmacy, retail, Aasish Pandit, Hariyali Kisaan Bazaars, DCM Shriram Consolidated Ltd

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Abstract:

This caselet discusses Fortis' foray into the pharmacy business in India. Fortis announced in early 2007 that it would open pharmacy stores under the name HealthWorld. Apart from selling medicines, these stores would offer facilities like diagnostic centers and telemedicine. HealthWorld hoped that the facilities offered at its stores and its association with the Fortis chain of hospitals and Ranbaxy Pharmaceuticals, would enable it to do well in the pharmacy business.

Introduction

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. 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.

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...

Fortis' Foray into the Retail Pharmacy Business in India*