MedPlus gets Rs 23cr from iLabs

MedPlus Health Services, a Hyderabad-based pharmaceutical product distribution company, on Wednesday announced that it had received Rs 23 crore from private equity firm iLabs as the first round of institutional funding.

The nearly one-year-old company intends to utilise the funds to expand its MedPlus branded (formerly Aushadhi) full-service pharmacy retail store chains in major cities in southern and northern India through its partner company Optival Health Solutions, before launching operations in the rural markets. Optival currently operates over 100 MedPlus outlets across Hyderabad and Bangalore.

"In our first phase, we have successfully developed a highly efficient distribution platform which enabled the launch of 100 stores in Andhra Pradesh and Karnataka. We now intend to expand our footprint in Chennai and Pune this year, and our immediate plan is to add 300 more stores to the existing 100 by June," Madhukar Gangadi, chief executive officer of MedPlus, told mediapersons here today.

The company, the second largest pharmacy chain in the country after Apollo Pharmacy, currently operates around 70 stores in Hyderabad. It plans to take this number to around 110 by this June-end.

According to Madhukar, MedPlus has no plans to take the franchisee route and it will manage all outlets on its own.

"We, however, will look at co-locating our stores in major hospitals and institutions," he said.