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Apollo's large format pharmacy store will need Rs 30 lakh capex

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:40 hrs

pApollo Hospitals Enterprise Ltd AHEL&rsquos plans to set up large format pharmacy stores would require almost double the capex per store compared with the capex into its current formatppThe company is studying the concept and would to roll out the format by the year end said Akhileswaran Krishnan chief financial officer AHEL The capex would be in the range of Rs 30-35 lakh per store as against the current investment of Rs 15 lakhppThe healthcare services major is expecting the new format to have 800-1000 sft on average per store and these would be the flagship stores for Apollo Pharmacy He said the company was studying the format including rentals which had to be factored in before it expands into that investment formatppApollo which has 1399 stores has set a target to launch 100-120 stores by the end of this year It had opened around 42 stores in the first half of the current fiscal according to K Padmanabhan group president Apollo Hospitals It plans to go for more aggressive expansion of stores in the second half of the current fiscalppThe company had shut almost 48 stores in the 2009 batch of stores in the last 24 months mostly in Mumbai and Delhi due to unviable operations including high rentals However more than 850 stores which were opened up to fiscal 2010 had shown EBITDA positive he statedppThe total revenue for the standalone pharmacy business registered a growth of 332 per cent to Rs 27763 crore for the quarter ended September 30 2012 as against Rs 20847 crore during the same period last fiscal EBITDA margin increased to 29 per cent compared with 18 per cent during the same period of the previous fiscalppThis has come from rationalisation of store network buying efficiencies due to increased scale of an operating leverage in addition to private labels &ldquoAs we have always maintained we plan to scale up this business and are hoping for a strategic partnership with a global player which can not only invest but also add value&rdquo said Padmanabhanp


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