New Delhi: Pharmacy chain Guardian Lifecare today said it is looking at diluting 20% stake in the company through private placement to fund expansion plans, as it sees revenues growing more than two-fold to touch Rs250 crore mark by 2009-10.
The company is looking to add 150 new pharmacy outlets, entailing an investment of over Rs75 crore, across parts of Northern India over the next 12 months to its existing 100 stores in the region.
“Over the next 12 months, our target is to take our pharmacies in North India to 250 by adding 150 new stores. We are looking at diluting 20% of promoter’s holding in the company to fund the proposed expansion,” Guardian Lifecare Chairman and Managing Director Ashutosh Garg said during a Technopak retail summit here.
He said the company expects revenues to touch over Rs250 crore with the additional 150 stores operational by the end of next fiscal.
The company would close the current fiscal with a top-line of Rs100 crore.
With the proposed expansion, Guardian intends to strengthen its foothold in the Northern Indian market where it already has 100 stores operational.
The company, however, does not intend to tap the Southern and Western Indian cities in the current round of funding.
“Our long-term intention is to be a pan-India player but presently, we are focusing only on strengthening our foothold in North India,” Garg said.
Guardian has tied up with the $1.3 billion General Nutrition Center (GNC) of the US to market its healthcare and nutrition supplements in India. Apart from retailing GNC products through its pharmacies, the company is also selling the products through 17 exclusive outlets.
The company would roll out 30 more GNC stores during the next fiscal in Delhi, Mumbai, Kolkata and parts of Punjab, among other city centres in the country.
“GNC products have been accepted very well in the country and going forward, if we generate encouraging volumes, we might talk to the US firm for manufacturing these products in India,” Goel said.
The company presently operates 17 exclusive GNC stores across Delhi and NCR.
Organised pharmacy retail still forms a very small part of medicine sales in the country. Of the 7.5 lakh pharmacies operational in Delhi and NCR, only 1,000 were of organised retailers, he added.