The self-funded startup has managed to sign up 88 retail generic stores on franchisee model in the last 100 days and plans to open one store every 48 hours
StayHappi Pharmacy, the Delhi-based generic pharmacy retail chain, is on a roll.
The self-funded startup has managed to sign up 88 retail generic stores on franchisee model in the last 100 days and plans to open one store every 48 hours.
“The idea is to reach out to as many people as possible,” said Sujit Paul, Managing Director of StayHappi.
Generic drugs are cheap rip-offs sold under molecule or salt name and cost a fraction of branded generic drugs as they don’t incur expenses of promotion and marketing, even as the debate on their quality isn’t a settled matter yet.
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Prime Minister Narendra Modi's administration has been giving a big push to generic drugs to reduce out-of-pocket expenditure of consumers.
The Medical Council of India (MCI) last year directed doctors to compulsorily write molecule or salt name in prescriptions as against practice of writing brand names. This directive, if implemented earnestly, can be a game-changer for generic drugs in the country.
The government ordered drug makers to print molecule names more prominently on their packs over brand names, in addition to issuing directive for drug stores to display generic drugs prominently.
The government is also into the direct business of selling generic medicines through some 4,000 stores under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana.
Entrepreneurs like Paul are trying to take advantage of this generic push.
Started almost a year ago by the 42-year old Paul, who had earlier worked with India’s largest organized medical store chain Apollo Pharmacy, StayHappi is trying to replicate and refine the model of Jan Aushadhi in a more effective manner.
StayHappi stores sell medicines ranging from allopathic to ayurvedic and surgical items to medical devices. The stores are also at liberty to sell certain FMCG products connected to healthcare.
So far, StayHappi has been able to stock upto 406 molecules or products, and plans to scale it by 1,000 molecules in the months ahead.
The company says medicines at its stores are 30 to 80 percent cheaper than other stores.
Paul says he is trying to achieve the twin objectives of giving value proposition to consumers and, in the process, create employment opportunities for pharmacists, doctors and business opportunities for entrepreneurs.
But in essence, he is trying to play on economies of scale by bringing in supply chain efficiencies, using power of bulk sourcing, harnessing technology and aggressive marketing and brand push.
The company has a central warehouse in Delhi NCR and is developing distribution network across all states to ensure the stores do not run out of stock.
To ensure quality of medicines, Paul says he sources drugs sold in his stores from WHO-GMP manufacturing facilities. He also roped in former India cricket captain Saurav Ganguly and Bollywood actress Vidya Balan to promote the stores.
Paul says even at low prices, the margin made by stores on generic drugs as compared to brands is “more or less similar” in addition to the advantage of having large volumes.
Paul says he isn’t perturbed by Jan Aushadhi stores, as the pie is too large, and they are just scratching the surface.