As we reflect on the past eighteen years, we can proudly acknowledge
the strides we have taken in delivering value to all stakeholders. Our reach now extends
to over 640 cities across Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, West Bengal,
Orissa, Maharashtra, Madhya Pradesh, Chhattisgarh and Kerala.
While our success story in the pharmaceutical retail sector continues
to unfold, we recognise the potential of exploring new horizons. During the year, your
Company has launched ‘MedPlus? branded pharmaceutical products in several
therapeutic areas covering acute and chronic ailments. This is in line with our core
principle of offering quality and affordable medicines to our valued customers. We get
these medicines manufactured in the same factories that cater to the needs of large
pharmaceutical companies in the country, ensuring product quality and genuine medicines.
For the year, the revenues from these products amounted to Rs 7,477.35 million on a GMV
basis (#Gross Merchandising Value). This represented 10.70% of our Pharmacy Revenues on a
GMV basis and 8.31% on Net Reported Revenues. We are happy to report that this has
contributed to significant savings for our valued customers.
#GMV=MRP-GST
The organised retail in the pharmacy and wellness category (which
includes organised brick- and-mortar stores as well as E-commerce) was approximately 18%
in FY 2023 in the total retail pharmacy and wellness category and is expected to increase
to approximately 23% by FY 2027, implying a CAGR of ~19% between FY 2023 and FY 2027.
In the case of retail pharmacy, space requirements and unit economics
are favourable to a neighbourhood store location, and advantages of range, discount,
technology, and professional approach make modern pharmacy successful.
The key market characteristics of the domestic pharmaceutical market
include low per capita health expenditure, a high share of private out-of-pocket expenses
(which includes purchases from pharmacies), lower penetration across rural areas and a
growing trend of private sector-led integrated approach to treatment. The sector has a
high opportunity for growth, given the limited penetration of health services both in
rural and urban areas. There are gaps across awareness, access, affordability and
acceptability of products and services
During the financial year:
• We registered Rs 56,248.55 million in revenue from operations in
2023-24, recording a 23.42% growth as compared to the previous year?s revenue of
Rs45,575.76 million.
• Our EBITDA stood at Rs 3,940.90 million in 2023-24, compared to
the previous year when it stood at Rs 3,117.46 million.
As we navigate the future, we remain committed to our core values, the
pursuit of excellence, and our mission of enhancing healthcare accessibility and
affordability.
Your Company continues to focus on providing pharmaceuticals, wellness
items and fast-moving consumer goods guided by the three core principles:
• Providing genuine products
• Offering unparalleled convenience to all consumers (with our
omnichannel model) and
• Ensuring superior storage conditions all while maintaining
competitive pricing.
Through our unwavering dedication, we are poised to continue making a
positive impact on the lives of countless individuals and the larger healthcare ecosystem.
I am truly touched and thankful to each and every individual who has
entrusted us with their well-being. Serving as your companion on this transformative
journey towards improved health and wellness is a privilege that I deeply cherish.
To the distinguished members of our Board, I want to express my
profound gratitude for their enduring trust and unwavering support. Your guidance has been
the cornerstone of our progress, and your belief in our mission has been instrumental in
propelling us forward.
I extend my heartfelt appreciation to our esteemed shareholders, whose
unwavering faith in our vision has been a driving force behind our accomplishments. Your
confidence empowers us to push the boundaries of healthcare delivery and set new
benchmarks for excellence.
Our achievements would not be possible without our dedicated employees.
I thank you for your passion and commitment.
In embracing the challenges and opportunities that lie ahead, let us
stand united, bound by our shared vision and the unwavering support that has brought us
this far. With a heart full of gratitude, I look forward to the continued journey of
elevating healthcare and enriching lives together.
Thanks,
Gangadi Madhukar Reddy
Chairman, MD & CEO