Omni-channel platform

Our omni-channel platform enables us to service our customers through our stores as well as our online channels, thereby
enabling us to leverage our strong offline channel to establish and grow our online presence.

Our ‘click and pick’ service allows customers to place orders directly online for collection at their preferred store at a convenient
time. Our customers also have the option to return any items purchased through our online channel at their preferred stores,
subject to the standard terms and conditions. Through our ‘door-to-door’ delivery service, in the cities of Hyderabad and
Bangalore, our customers can place orders over the telephone, through our website or our mobile application. According to
Technopak, we were the first omni-channel player to offer these facilities in 2015 and as of March 31, 2021 and September 30,
2021, approximately 8.98% and 8.44% of our revenue from operations was attributed to online sales, respectively.

Pricing

We aim to offer the best value to our customers, and according to Technopak, we offer one of the highest discounts that are
unmatched by any online or offline pharmacy retailer in India. Further, our strategy allows us to effectively segment the market
by offering higher discount to the price-sensitive chronic customers who typically purchase medication for a longer duration
and thereby have a higher average order value. At the same time, we offer lower discounts to other customers who value
convenience. For products other than branded pharmaceutical and FMCG products, the discounts are varied at a product level.

A transparent slab-based discounting model followed by us is set out in the table below:

 

 

 

 

Average Order Value (excl. | Discounts (% of Maximum Retail Price) on Branded | Discounts (° of Maximum Retail
d : Price) on Branded and Private Label
GST) and Private label Pharmaceutical Products =
FMCG products
Greater than INR 1,000 Up to 20% Up to. 5%
Between INR 200 to INR 1,000 Up to 10% Up to 5%
Below INR 200" 0% 0%

 

 

 

 

 

~ Up to 20% discount is offered for bills above INR 1,000 across online and offline stores except the stores operating in Odisha and stores operating in
hospitals.

** Discount of up to 5% on MRP or any manufacturer sponsored discounts or any special discounts on our private label whichever is higher.

*** Minimum threshold of INR 200 in Hyderabad and Bangalore. In all other cities minimum threshold is INR 50.

Supply chain and distribution infrastructure

We operate an integrated supply chain that handles our end-to-end operations including sourcing, stock inward, storage,
distribution, logistics and reverse logistics.

In each state that we operate, we have at least one major warehouse, with additional warehouses in states where we have more
than one major location and a high density of stores. As of September 30, 2021, we had 18 warehouses in 9 cities across 7
states, with an aggregate warehouse space of approximately 0.34 million square feet. The table below sets out the number of
warehouses in each state as of September 30, 2021:

 

 

 

 

 

 

 

 

 

State Number of warehouses as of September 30, 2021
Telangana 4
Tamil Nadu 4
Karnataka 3
Maharashtra 3
Andhra Pradesh 2
West Bengal 1
Odisha 1
Total 18

 

 

 

 

As part of our business operations, each store operated by us is mapped to a primary warehouse from which it sources its stock.
Stock at our stores is replenished on a pre-defined schedule varying generally from daily supply to once every three days,
depending on a number of factors including the proximity of the store to its nearest warehouse. The frequency of stock
replenishment at any store is determined by a system-driven computation based on data analytics and historical sales data
accumulated on a store-to-store basis. This process helps ensure that we have minimal order loss and are able to maintain high
fill rates at our stores and efficiently manage our replenishments in seamless manner.

Inventory Management
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