The Government’s nod to FDI in retail could benefit Apollo Hospitals, which operates one of the largest retail pharmacy chains with ~ 1,300 retail outlets. Apollo Retail Pharmacies has pan-India presence with 40% outlets in NCR and 60% in South. The retail pharmacies come under multi-brand retail concept and hence 51% FDI could help rope in a strategic partner. While management has yet not finalized timelines for the same, the strategy focus to divest stake could move on fast track.
Apollo has been seeking strategic options for its pharmacy business in form of IPO, divestment or spun-off and has tried to operationally stabilize and improve profitability of pharmacies. Retail pharmacies are growing at 30% YoY .