Can you Get an Apollo Pharmacy Franchise? – Cost & Profit

Are you interested in owning a well-established pharmacy franchise with a renowned brand? Do you currently own a pharmacy store and aspire to elevate it to new heights? Are you seeking a partnership opportunity with Apollo Pharmacy, a trusted name in the pharmaceutical industry?

Look no further! Welcome to FranchiseGoal India, In this comprehensive blog, we’ll explore about the Apollo Pharmacy Franchise and along with its cost, fee, and profit margin – we’ll also answer some of the most asked questions on this chain.

There is no doubt in stating that the pharmaceutical industry has grown significantly over the years and we saw a huge demand of a proper healthcare system during the pandemic. Though there are several pharmaceutical franchises available in the market, but Apollo Pharmacy certainly stands out as a well-established and trusted brand among them.

• Brand: Apollo Pharmacy
• Founded: 1983
• HQ: Chennai, TN, India
• Founder: Dr. Prathap C. Reddy
• Area Required: Min. 200 sq. ft.
• Revenue: ₹16,612 crore FY23
• Model: Company-owned and operated
• Deposit Fee: NA
• Profit Margin: Varies
• Showroom Frontage: min. 15-20 ft
• Est. Initial cost : ₹10 Lakh – ₹20 Lakh

Overview of Apollo Pharmacy Franchise

Apollo Pharmacy, a subsidiary of Apollo Hospitals, was established in 1983 that has emerged as a leading and well-established chain of retail pharmacies in India. The chain was founded by Dr. Prathap C. Reddy, who had a vision to provide quality healthcare to every indian citizen.

Over the period, Apollo as a unit grew further and became a pioneer in the industry that also gained immense trust and respect from patients and medical professionals alike.

After quickly recognizing the need for accessible and reliable pharmacy services, as well as extending its commitment to patient care beyond the hospital walls, the franchise established its first pharmacy store in Chennai, Tamil Nadu.

The business model became an instant hit in the market, drawing the attention of several pharma enthusiasts looking to capitalize on their proven business setup. That’s when, Apollo Pharmacy started its franchise program and expanded its stores across Indian cities.

The franchise also boasts the title of being India’s largest retail pharmacy chain, offering a diverse range of medicines and healthcare services through its expansive network of over 5500 stores spread across 21 states.

Apollo Hospitals, also offers telehealth consultation, online medicine ordering and delivery, and in-home diagnostics among other services through its digital healthcare platform, named Apollo 24/7.

According to the official report, “Apollo has opened its 5,000th store in Chennai, India and is well poised to become the first choice for consumers looking for a trusted health and wellness partner,” – Shobana Kamineni, Executive Vice Chairperson.

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The Journey of Apollo Pharmacy

Their humble beginning started with a vision to provide accessible and reliable pharmacy services beyond the walls of hospitals. The visionary founder recognized the potential of the pharmacy industry and the need for convenient and trusted healthcare solutions.

They went on to establish their first pharmacy store in Chennai, Tamil Nadu. Since then, they haven’t looked back and went on to open their 5000th store in Chennai last year.

With its customer-centric approach and commitment to patient care, Apollo Pharmacy quickly gained popularity and witnessed significant growth. The success of its business model drew the attention of many pharmaceutical enthusiasts who saw the potential to capitalize on its proven setup.

At present, over 60 crore Indians have physical access to an Apollo Pharmacy, which serves nearly 7 lakhs consumers per day. The franchise has ambitious plans to further expand its reach and aims to cater to 10 lakhs consumers daily in the future.

Key Facts on Apollo Pharmacy

Why Consider Owning an Apollo Pharmacy Franchise(if offered)?

1. India’s leading healthcare brand:
   • Apollo Pharmacy is one of India’s leading and renowned healthcare brand that currently serves over 7 lakhs consumers daily.
     • It may also offer an extra advantage to new franchisee prospects, allowing them to capitalize on the brand image and tap into its enormous customer base.
2. Brand with highest number of locations:
   • Currently, the chain has over 5500+ offline stores spread across 1100+ cities and towns, which is approximately more than twice the number of stores operated by the second-largest pharmacy store operator in India, Medplus.
     • FYI, The Medplus currently operates over 3000+ offline stores.
3. Solid Future growth plan:
   • Undoubtedly, the chain has shown a humongous growth rate in every aspects of its business and has certainly provided a consistent return to its investors.
   • Despite of that Apollo Pharmacy has laid out its future plan to establish over 10,000 offline stores across India, which will definitely create an opportunity for its franchise enthusiasts.
4. Comprehensive Support System:
   • To make the entrepreneurial journey smooth and rewarding, Apollo Pharmacy offers extended support to its franchises.
     • You’ll be guided at every stage, right from site selection, store setup, and ongoing operational assistance.
5. Diverse Product Portfolio:
   • As an approved Franchisee, you’ll offer a wide range of prescription and over-the-counter medicines, wellness products, personal care items, and healthcare accessories.
     • It may eventually allow the franchise owner to cater to the healthcare demand of every consumer under a single roof.

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Does Apollo Pharmacy gives franchises?

Unfortunately, Apollo Pharmacy does not offer franchising opportunities to any individual or entrepreneurs, and there are no plans to do so in the near future. The chain has come a long way and has successfully operated over 5500+ outlets across Indian cities.

Indeed, it is intriguing to observe that Apollo Pharmacy has ambitious plans to expand its reach further by aiming for over 10,000 offline stores. Such remarkable growth potential might encourage the company to reconsider and explore the possibility of embracing the franchising route in the future.

Though the chain doesn’t offer franchising opportunity for its Pharmacy business but there is certainly an opportunity for its clinics segment, named Apollo Clinics.

How much does Apollo Pharmacy Franchise Cost?

As mentioned earlier, The franchise opportunity for Apollo Pharmacy doesn’t exists in the real world and if someone is claiming to offer you, it could be a SPAM or FRAUD. Its complete outlet of over 5500+ locations are company-owned and operated

However, To setup an Apollo Pharmacy Stores requires a retail space of at least 200-250 sq feet at a highly footfall market. Additionally, being a company-owned operation provides the brand with a unique advantage of understanding the market potential of each proposed location and planning its steps accordingly.

Nevertheless, as per the outlet standard and brand image, Apollo Pharmacy Franchise may invest at least an initial investment of ₹10 lakhs to ₹20 lakhs for a floor space of 200-250 sq feet. This investment covers the cost like site selection analysis, interior decor setup, machinery & equipment, and other miscellaneous expenses.

How much is Apollo Pharmacy Franchisee Fee?

As the chain is entirely owned and operated by the company itself, one can certainly speculate its franchise fee to be Nil.

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Is Apollo Pharmacy Franchise Profitable?

The net profitability of a single Apollo Pharmacy chain is highly dependent on several factors, including the outlet’s geographical location, customer’s footfall at the outlet, and overall market conditions.

According to a report published by Reuters, India’s Apollo Hospitals Enterprise Ltd experienced a 33% drop in the third quarter of 2022. This decline was largely attributed to losses incurred in its overall pharmacy business, which constitutes approximately 4% of the company’s overall revenue.

The franchise aims to make its online business profitable by the end of the next financial year. Although its offline pharmacy business posted a core profit last quarter, the losses in the online business weighed on the combined pharmacy business, which accounts for 41% of the total revenue.

To summarize, Apollo Pharmacy is experiencing exceptional growth, with strong numbers reported for its offline stores despite losses in the online pharmacy business. The company’s future growth plans, company-operated model, reasonable startup costs, and high profit margin present a great opportunity to turn the overall Apollo Pharmacy business profitable in upcoming quarters.

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Eligibility Criteria to Setup an Apollo Pharmacy Franchise(if offered)?

1. First and most important – One should be financially well-qualified and have good credit to start an Apollo Pharmacy, and should be ready to invest minimum ₹10 Lakh – ₹20 Lakh, excluding the cost of land.
2. Applicant should secure an adequate amount of space of at least 200-250 sq feet to put a pharmacy store in your area.
3. Interested applicants are advised to dedicate themselves to the Apollo Pharmacy business and follow the company standards and maintain their legacy.
4. Interested prospects must undergo and complete the necessary training program offered by Apollo Pharmacy team.
5. Interested franchisees should have a passion to work in the Healthcare industry and should possess the leadership and financial skills to operate an Apollo Pharmacy.
6. Interested applicants for Apollo Pharmacy should ideally possess a relevant degree and background experience in the Pharma Industry. Prior experience in the field would be considered an added advantage.

How to Get Apollo Pharmacy Franchise?

If you are still considering franchise opportunities with Apollo Pharmacy, it’s important to note that they do not offer franchises to individuals or entrepreneurs. The chain solely operates and owns all of its pharmacy stores across India.

However, if offered in future, one may need to have a relatively reasonable investment that may offer an impressive gross relatively better margin. Additionally, the Apollo Pharmacy chain may provide several benefits, and interested candidates can take up its outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

1. You may need to visit its official website and fill in the necessary details like Name, Email ID, Phone Number, and more.

Or, you can directly contact them at – customerservice@apollopharmacy.org

Final Takeaway – Conclusion

Undoubtedly, Apollo Pharmacy is one of India’s leading healthcare brand with approximately four decade of experience and has established itself as a trusted and well-established brand in the pharmaceutical industry.

Currently, the chain has a vast network of over 5,500 offline stores across 1,100 cities and towns, which eventually makes the chain as the largest retail pharmacy chain in India. While the company does not offer franchising opportunities, its company-owned operation allows for a deeper understanding of market potential and strategic planning for each location

Despite facing challenges in its online pharmacy business, Apollo Pharmacy’s overall growth trajectory remains exceptional. With future expansion plans and a strong focus on customer care, the chain continues to thrive in the competitive market.

The Bottom Line – Though the chain currently doesn’t embrace franchising model. However, if you are only looking for Apollo Pharmacy, then you should closely monitor Apollo Pharmacy’s progress as its continued success may pave the way for potential opportunities in the future.

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