Online pharmacy Netmeds, which is backed by boutique investment firm MAPE Advisory Services is set to go live next week and targets a market share of three to four percent by 2020, a company executive said. “We are looking at capturing three to four percent of the market share in five years,” Netmeds promoter Pradeep Dadha told agency.
“If we manage this, we should be a USD 1 billion company by 2020,” he said. India’s pharmaceutical market is estimated to touch USD 55 billion by 2020, according to a recent McKinsey report. Drugs consumed for chronic ailments like diabetes, blood pressure and hypertension will account for around 50 percent of it. Earlier this month, Nedmeds’ promoter along with MAPE Advisory Group had invested Rs 30 crore in NetMeds Marketplace which owns the online pharmacy.
They have further committed to infuse Rs 60 crore next year on branding, promotion as well as logistics, Dadha said. Dadha is a fourth generation entrepreneur whose family used to run Tamilnadu Dadha Pharmaceuticals. In 1997, it was merged with Sun Pharmaceutical Industries and its founder S Mohanchand Dadha (Pradeep Dadha’s dad) sits on the company’s board. Netmeds will offer over-the-counter and prescription drugs online as well as pilot its 24-hour delivery in Chennai, from next week, the company said.
“We will begin with 24-hour delivery next week in Chennai. Other cities will have a two to four days delivery schedule. By next year, we will be present in 16 cities and offer same day or next day delivery,” Dadha said. While online sales of drugs have lately come under the scanner, Dadha pointed out that “there are no dedicated online pharmacy laws in India and it is permissible with a legitimate licence.”
Other players in the online pharmacy market include HealthKart, MeraMedicare and Apollo Pharmacy, among others.