 

 

 

 

 

 

 

 

 

 

Heads (Share of Net Sales) Pharmacy led Retail Chains Independent Pharmacy

Gross Margins 17-22% 12-14%
Employee Benefit Expense 3-5% 3-5%
Advertisement 0-1% 0-1%
Rent Expense 1-3% 1-3%
Other Store Level Expenses 1-2% 2-4%
Store Level Operating EBITDA 9-12% 3-6%
Crea 0-20% 0-10%

Capex for mat and Opening Ae uaeg ATES

 

 

 

 

Source: Primary Research, Secondary Research, Company filings, Technopak Analysis
All Values based on pharmacy revenue

“Discounts based on MRP of products retailed from pharmacy

“Based on per stores metrices for major retailers

INDICATIVE UNIT ECONOMICS OF ONLINE DELIVERY FOR E-PHARMACIES

The Online pharmacy delivery is in a nascent stage in the country and yet to see profitable growth Driven by high customer
acquisition cost and delivery cost which the industry is projected to rationalize in future. A unit sale from online pharmacy
provides a contribution margin of -4 to -5% on Maximum Retail Price (“MRP”) but has additional costs of returns and customer
acquisition.

 

 

   

Apportioned ona per
order basis
‘ei |
Aov Delivery Discounts ost cocs PG PDS Fulfilment Returns — Marketing

Charge Cost

 

Source: Primary Research, Secondary Research, Technopak Analysis

Contains Variable expenses, fixed expenses such as corporate overheads and investments are not included

AOV - Average order value for online sales currently stands at 950-1050 (on MRP sales)

Delivery charge — Charge levied for delivery on online order, the delivery charge levied currently ranges from 2 20-40 per order
Discounts — Discounts are offered by e-pharmacies to customers on MRP of the order value

GST — Goods & Service Tax, the indirect taxes levied one sales of pharmacy products.

COGS — Cost of Goods Sold

PG Charge — Payment Gateway cost, associated with online transaction for an order

PDS Expenses — Packaging, distribution and storage expenses (warehouse costs) associated with handling an online order by a
E-pharmacy.

Fulfilment Cost — Fulfilment and delivery cost associated with online order, the delivery cost per order is approximately INR
137
