Surya Pharmaceutical said it is foraying into the healthcare retail by opening around 500 outlets in the next three years at an investment of Rs 250 crore and expressed the hope that the retail segment clocks a turnover of Rs 800 crore by 2011.
Besides, the company has also decided to acquire two pharma companies with a sum of Rs 100 crore in a bid to consolidate its position in the pharmaceutical market.
"The presence of huge spurious drug market along with increasing number of life style and stress related ailments prompted us to foray into healthcare retail," Surya Pharmaceutical Chairman and Managing Director Rajiv Goyal told reporters.
Goyal said the proposed capital expenditure of Rs 250 crore on retail segment would be met through a combination of promoter's equity, venture capital and private equity and borrowings from banks.
Surya Healthcare has been floated to look after retail business. The company, as per the proposed plan, would initially open 100 stores in Delhi and NCR region by March 2010 under the brand of 'Viva'. "Thereafter, the other parts of the country would be covered to take stores' total strength to 500," he said.