Apollo Hospitals: Pharmacy restructuring for growing stores, revenues

Mumbai: Healthcare major Apollo Hospitals Enterprise on Tuesday aforementioned its call to divest its front-end pharmacy business to Apollo Pharmacy Ltd was taken to grow the number of pharmacies to five,000 and accomplish a revenue of Rs ten,000 crores.

In Nov 2018, the company had aforementioned it had been divesting its front-end pharmacy business to Apollo Pharmacy Ltd for a lump-sum money consideration of Rs 527.8 crore as a part of a restructuring exercise.

“Our strategic intent is clear – we are focused on growing to 5,000 stores, achieving Rs 10,000 crore in revenues, and increasing sales from private label products, improving EBITDA & Return on Investment (ROI), while simultaneously building our digital play,” Apollo Hospitals Enterprise Ltd (AHEL) said in a statement

The group has affected ahead with its plans to create a powerful digital platform, at the same time bolstering offline delivery capabilities, it added.

“We are confident that this strategy will create significant value for AHEL shareholders. We reiterate that value accretion from the growth in Stand Alone Pharmacies (SAP) business will be full to all of AHEL’s shareholders,” the statement said.

“We are confident that this strategy will create significant value for AHEL shareholders. We reiterate that value accretion from the growth in Stand Alone Pharmacies (SAP) business will be fully to all of AHEL’s shareholders,” the statement said.

The demerger is targeted at creating a platform for AHEL to execute an omnichannel strategy for its Pharmacy business and was the first step in a multi-year journey of unlocking value for the AHEL shareholders, it added.