Bangalore: Dairy products company Heritage Foods (India) Ltd (HFIL), which entered the organized retail business with its ‘Fresh@’ brand in 2006, will now also launch a pharmacy chain at its outlets.
The Hyderabad-based firm’s stores currently provide groceries, toiletries and other daily need products with a focus on fresh vegetables and fruits.
The pharmacies would be housed within Fresh@ stores in a shop-in-shop format. The first pharmacy shop-in-shop will come up at one of the company’s existing Fresh@ store, in Hyderabad next month.
The firm currently has 51 outlets across India—27 in Hyderabad, 16 in Bangalore and 8 in Chennai.
“We are tying up with a Hyderabad-based pharmacy chain for adding medicines at our outlets. This is another step by Heritage Foods to serve everything under one roof for our customers,” said chief executive M. Sambasiva Rao. Rao, however, did not divulge the name of the company.
The?firm?said,?though it plans to serve medicines round the clock, not all stores can be opened for 24 hours. Rao said they were working on a possibility of creating separate entry and exit points for pharmacies at some of its outlets.
HFIL, which ended 2006-07 with revenues of Rs348 crore, has been promoted by family members of former Andhra Pradesh chief minister Nara Chandrababu Naidu. 95% of its current revenues come from the dairy business.
The firm said it plans to add 24 outlets by March 2008. Rao said this expansion plan would be funded through the capital HFIL?borrowed from the Andhra Bank and the Bank of Baroda. He, however, did not divulge the details of the borrowings.
HFIL plans to to have 150 Fresh@ outlets by 2009, the funding for which will come from Kotak India Focus Fund of the Kotak Mahindra Group. Rao said the firm is receiving an investment of Rs35 crore from Kotak. The company has issued 10 lakh equity shares to Kotak on preferential basis.
Shares of the firm closed at Rs303.30 on Friday on the Bombay Stock Exchange.