Note: 1 crore = 10 million
Market segmentation

In the financial year 2021, the penetration of the organised pharmacy retail market at a pan-India level was estimated to be
~11%. However, the presence of organised pharmacy retail is concentrated in the metros and mini metros, with the top eight
cities contributing close to 32% to the total pharmacy retail market and 62% to the total organized pharmacy market in India.
The penetration is very low in the rest of the country, contributing to 68% of the overall pharmacy retail. Penetration of modern
pharmacy retail is at ~60-70% in United States, ~35-40% in European Union, and ~30-40% in China which further indicates
the potential for increase in organized pharmacy market growth. The tables below set out the penetration of organised pharmacy
retail across different cities in India (including categorisation by types of cities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Pharmacy Retail Organised Pharma , =
City -Type NoHee ‘Retail Market @ Benetration of Gizaneed
(& Crore) — FY 2021 (& Crore) — FY 2021
Metro & Mini metros 57,960 12,648 22%
Tier I 57,960 4,140 7%
Tier II & beyond 65,205 3,686 6%
Total 1,81,125 20,475 11%
Source: Technopak Research
Note: 1 crore = 10 million
3 Organised
Pharmacy Retail 7 5
City Population in Mn (2021) | Market @ Cr) - FY Mae eee Ged
2021
2021

Greater Mumbai 28 12,625 3,156 25%
Delhi NCR 30 13,561 1,627 12%
Kolkata 20 8,806 1,585 18%
Chennai 12 5,246 1,836 35%
Hyderabad 10 4,674 1,683 36%
Bangalore 12 5,127 1,846 36%
Ahmedabad 9 3,832 383 10%
Pune 9 4,089 532 13%
Total 130 57,960 12,648 22%

 

 

 

 

 

 

 

Source: Technopak Research
Note: 1 crore = 10 million

While modern B&M pharmacy retail outlets in metro and mini-metro cities and Tier 1 cities contribute close to 68% of the total
number of outlets in the country, they are yet to increase penetration into the other markets across the country. While the value
proposition of discounted prices, availability, fill rates, low turnaround time is more relevant for Tier 2 cities and rest of India,
penetration of the organized pharmacy retail segment remains quite low in these cities, indicating a headroom for growth. The
pie chart below sets out the city-type share of organised pharmacy retail outlets across the country.

Total: “10,000 Outlets

 

= Metro & Mini Metro @ Tier! Rest of India

Source: Technopak Research

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