MedPlus launches pharmacy e-commerce service, with a difference

Regulations by the Indian government impose restrictions on e-commerce in purchase and sale of medicines. And with good reasons. Buying medicines is, after all, not quite as simple as picking up a shirt and one needs to present a doctor's prescription.

Despite the restrictions, though, Hyderabad-based MedPlus, the second-largest pharmacy chain after Apollo Hospitals-backed Apollo Pharmacy with 1,240 stores across the country, has launched an innovative 'e-commerce' service. "MedPlus has found a way to legally crack the e-commerce space in medicine retail," says its founder & CEO Madhukar Gangadi.

A doctor by training, he says, this is "India's first-of-its-kind pharmacy e-commerce service - 'Click, Pick & Save' ". Explaining, he says, it is not just a form to be filled up to place an order online (Apollo incidentally offers this on its pharmacy website) but allows a customer to search and select from an inventory of over 30,000 products.

Customers will need to log onto its website, search and select the medicines and FMCG products they need, or just scan and upload their prescription to the site, in which case a MedPlus representative will call and book the order. But the medicines cannot be delivered at home.

Gangadi says, "As current government regulations do not allow medicines to be delivered to buyers' homes, customers can pick up their order from their nearest MedPlus store in Hyderabad within six hours of placing an order after showing the doctor's prescription."

What's the incentive for the customer? Discounts, of course-15 per cent on all medicines purchased currently plus assured availability.

And how does this help the company? This gives it an ability to quickly expand its customer base. Gangadi says, MedPlus, which today has Rs 1,430 crore revenues, is in talks with PE investors to raise over $75 million (Rs 450 crore to Rs 600 crore) to fund the back-up required to match this offer.

Currently, this facility is launched just in Hyderabad and is soon to be offered also in Bangalore and Chennai. Gangadi plans to set up 50 warehouses in 50 cities over the next one year.

However, despite Gangadi's confidence and plans, there are challenges to growth. After all, consider the alternatives a customer has today as compared to logging on to a website and searching the required medicines. All that he or she today needs to do is call up the local pharmacist, typically a next-door outlet. In most cases the pharmacy outlet will 'home deliver' medicines instantly and also offer a discount.

In fact, one customer pointed out that since he regularly picks up all his monthly quota of medicines from the store next door, the pharmacist ensures that the brand of anti-hypertensive he consumes is in stock each time he needs it. Also, he says, it is all done legally for he has a valid prescription from a doctor.

Looks like Gangadi has competition already lined up.