In the last half-decade, the Indian pharmacy retail industry has seen unprecedented growth, with organized chain pharmacies capturing a larger share of this pie. Of these, MedPlus Health Services stands second, with more than 2,000 stores across states. Established in 2006 by Dr. Madhukar Gangadi, MedPlus has transformed access to medicines by innovating the supply chain involving physical stores embraced by digital solutions on the internet.
The COVID-19 pandemic furthered consumers’ shift toward organized pharmacy chains that inspire reliability and authenticity. A MedPlus franchise opportunity is, therefore, one very appealing option for entrepreneurs wishing to invest in this sector. Understanding the MedPlus Franchise Cost is crucial for potential investors looking to enter this growing market. This in-depth guide evaluates the cost structure, inputs required to make investments, potential returns, and a step-by-step application process in order to help interested investors make better decisions with their money.
About Medplus
MedPlus is the second largest pharmacy chain in India and was started by Dr. Madhukar Gangadi in the year 2006. It is famous for revolutionizing the retail pharmacy environment and making it friendlier to clients through technology. The brand currently operates over 2500 outlets nationwide and touches millions of customers directly through its physical stores, an online portal, and a home delivery service. MedPlus has many of its own USPs. First, it is the forerunner in developing a hub-and-spoke model for inventory management in the retail pharmacy sector in India, which helps it enhance supply chain efficiency while having a guaranteed availability of medications. The arduous six-point quality checks ensure that customers receive authentic medications, thus solving one of the most pressing issues in the Indian pharmaceutical market.
MedPlus’s direct presence is complemented by physical stores, a website, and a mobile application so that the customer can access it through various avenues. Medical supplies are sourced directly from manufacturers, eliminating intermediaries to offer competitive pricing. This translates into 10-30% discounts on medicines and nearly 40% discounts on private-label products.
MedPlus is seen as consistently growing in terms of its finances and revenue, from ₹2870 crore in FY 2020-21 to above ₹4000 crore in FY 2023-24. This shows that the company has made profits in the last few years, with net profit being approximately ₹64 crore according to FY2022-23, which indicates extreme operational efficiency and sustainability of business. Being the market leader in the healthcare retail industry, MedPlus is still growing, and it is of great benefit to franchisees to partner with this profitable business in India.
Understanding the MedPlus Franchise Cost is essential for investors looking to partner with this profitable and growing business in India.
Why Choose a Medplus Franchise?
MedPlus is experiencing remarkable growth, with its FY 2023-24 revenue surpassing ₹4,000 crore, reflecting a 22% year-on-year growth rate—well above pharmaceutical market of India growth of 8-10% per annum. The expanding healthcare sector, projected to reach $372 billion by 2025, further cements MedPlus’s position as a market leader.
MedPlus franchisees benefit from a business model that aligns with stable 15-20% industry growth rates year after year.
Additionally, MedPlus has diversified into pathology labs, optical stores, and an e-pharmacy platform, strengthening its competitive edge. Its IPO in December 2021 raised ₹1,398 crore, accelerating its expansion plans to open 6,000+ stores by 2026, creating significant opportunities for new and existing franchise partners.
Here are the reasons why a pharmacy retail franchise is a great investment:
- Proven Business Model – MedPlus operates on a highly effective franchise system with strong operational expertise, ensuring a solid foundation for business growth.
- Established Brand Reputation – With over 2,000 stores nationwide, MedPlus enjoys high brand recognition, driving consistent foot traffic from loyal customers.
- Wide Product Portfolio – The franchise offers an extensive range of medicines, healthcare products, and fast-moving consumer goods (FMCG) to meet diverse customer needs.
- Affordable Entry – The MedPlus Franchise Cost is relatively low compared to other pharmacy chains, making it accessible to new business owners.
- Comprehensive Training & Support – Franchisees receive hands-on training in store operations, inventory management, and customer service, along with continuous marketing and promotional assistance.
- Rising Demand for Healthcare – The increasing need for healthcare and wellness products ensures consistent business growth, making this franchise a stable and profitable investment.
Medplus Franchise Cost Analysis
The initial investment needed in this franchise business is the cost that is distributed over different aspects of the franchise. Here’s a breakdown of the estimated costs:
- Franchise Fee: The initial fee that franchisees pay is between ₹10 to ₹12 lakhs, depending on the room and market area.
- Inventory Cost: The initial product inventory of medicines and health care products involves an investment of about ₹10 to ₹15 lakhs.
- Store Setup: The interior, furniture, and equipment for the store might cost between ₹ 5 lakhs ₹ 8 lakhs.
- Technology and Software: POS along with other necessary software’s for successful operation in Medplus which is available at a price range of ₹1 to ₹2 lakhs.
- Working Capital: The operating expenses of the establishment, wages of employees, water, electricity, and rent for the initial months may cost around ₹3 to ₹5 lakhs as working capital.
Here’s a table summarizing the investment breakdown for opening a Medplus franchise:
| Franchise Type | Investment (₹) | Interior/Setup Costs (₹) | Equipment Costs (₹) |
| Medplus Franchise | ₹10 – ₹12 lakhs (Franchise Fee) | ₹5 – ₹8 lakhs (Store Setup) | ₹1 – ₹2 lakhs (Technology & Software) |
Several factors that determine your total investment include :
- Location: Higher rents command top-end prime commercial areas: Rs 3-6 lakh
- Store size: For an average MedPlus outlet, 500-800 sq. ft. is required. Larger format stores require space up to 1,200 sq. ft.
- Regional Variation: Typically, investment is 15-20% higher for metropolitan markets as compared to Tier 2/3 cities
- Store type: MedPlus offers multiple formats-including a regular pharmacy-a MedPlus Mart, a larger format, and MedPlus Lab with diagnostic services.
The company expects its franchisee to keep a minimum liquidity of ₹ 15 lakh so as to provide the franchisee an easy run on the initial growth phase.
Profit Margin and ROI Potential of MedPlus Franchise
A MedPlus franchise has promising profit potential, as the operational margins usually stand between 15% and 22%, compared to 8-10% across independent pharmacies. Added profitability comes through centralized procurement, optimized inventory management, and well-fitted supply-chain relations among MedPlus.
Most new franchisees will reach initial breakeven between 12 and 18 months, while mature stores will earn 25% to 35% annual returns on investment (ROI). The high footfall of locations in Tier 1 cities generates potential monthly sales of ₹12-15 lakh per store, while Tier 2 locations average ₹8-10 lakh, attracting a significant customer base.
Additional income streams for MedPlus franchisees include OTC products, prescription medications, wellness products, and private-label products, which can have margins as high as 40%. Franchisees also benefit from diagnostic services, further increasing revenue potential. The company’s established loyalty program, with approximately 8 million active members, contributes to repeat business and higher average transaction values.
Furthermore, a MedPlus franchise gains a competitive advantage through omnichannel sales capabilities, seamlessly integrating with MedPlus’s e-pharmacy platform for additional revenue opportunities. Given the MedPlus Franchise Cost, this business model ensures a profitable and scalable investment for entrepreneurs looking to enter the organized pharmacy sector.
Space and Location Requirements
To open a Medplus franchise, you’ll need a commercial space with the following specifications:
- Size: The best store size for this business should be between 300 and 500 sq ft, so that the physical layout provides enough space for displaying stock and handling customer traffic.
- Location: The store should be ideally located in an area of through traffic for instance close to apartments, hospitals, or markets.
- Accessibility: Visibility is important, and for customers, facilities for parking, where feasible, should be easily accessible.
Medplus helps its franchisees decide the right location that will impact the target customer base and profitability.Here’s a table summarizing the space and location requirements for opening a this franchise:
| Franchise Type | Space Required (sq ft) | Preferred Location |
| Medplus Franchise | 300 – 500 sq ft | High foot-traffic areas (near apartments, hospitals, or markets) |
Training and Support from Medplus
Medplus also ensures its franchisees are ready to manage their businesses well. Here’s what the company offers:
- Training Programs: Medplus also offers basic and refresher courses in merchandising and stock control, communication and selling skills.
- Operational Support: Clients are helped with the store layout, software acquisition, and general management services.
- Marketing Assistance: Medplus only manages brand-level promotions and offers promotional tools to reach local consumers.
- Supply Chain Support: The company has worked to minimise the supply risks that might cause stockouts, and thus, products are provided.
By providing such a wide range of support, it means that the franchisees can give their attention to important matters, such as business growth and customer satisfaction. Here’s a table summarising the training and support offered by Medplus:
| Category | Details |
| Training Programs | Basic and refresher courses on merchandising, stock control, communication, and selling skills. |
| Operational Support | Assistance with store layout, software acquisition, and general management services. |
| Marketing Assistance | Brand-level promotions and tools for local consumer outreach. |
| Supply Chain Support | Reliable supply chain to minimize stock-out risks and ensure the availability of products. |
| Overall Benefit | Enables franchisees to focus on business growth and customer satisfaction while relying on Medplus for operational and marketing efficiency. |
Steps to Start a Medplus Franchise
- Research and Analysis: Learn how MedPlus has set up its franchises, its market position, and the capital it needs. Then, see how it fits your capacity and investment objective.
- Initial Contact: Interested candidates can walk in directly to MedPlus’ headquarters, Visit their official website, or email the franchise department with their interest and the details required.
- Site Selection and Approval: Select a suitable site based on the factors the company has set out, such as accessibility, population density, and visibility. It is recommended that the proposed location be forwarded to MedPlus for its approval.
- Application and Agreement: After filling out the forms, ensure you provide other important documents to complete the application process. You agree to the terms of the franchise that governs the relationship between me and the franchiser, commonly referred to as the franchise agreement.
- Setup and Training: Build the store to MedPlus specifications in terms of interior layout, stock placement and arrangement, and computer and information technology infrastructure. MedPlus offers operational and system training to the staff for effective operation.
- Store Launch: MedPlus helps with store launches and initial marketing and supplies them with stock to help them commence operations efficiently.
Profit Margins and Return on Investment (ROI)
The MedPlus franchises usually work on profit percentages that vary between 6% and 15%, depending on product types such as pharmaceuticals, OTC, or FMCG products. Pharmaceuticals are less profitable because of the low margins associated with them, but this is offset by the higher units sold, while FMCG may be more profitable.
The initial investment can start from ₹20-50 lakhs, which will cover franchise fees and initial investment in infrastructure and stock. Sales are constant, and the franchises yield their investment returns within 2-3 years. Volumetric sales, low working expenses, and customer loyalty are the success factors for developing profitability. It also ensures perfectly transparent pricing policies, which help gain and retain clients and, therefore, greatly influence the sustainable increase in profitability.
Is Medplus a Profitable Business?
Yes, MedPlus is a highly profitable business. As one of the largest pharmacy chains in India, it is well-positioned to capitalize on the rising demand for healthcare products and services. The MedPlus franchise business model is cost-effective, customer-focused, and offers multiple profit avenues, making it a lucrative investment opportunity.
Franchisees can achieve healthy margins of 15% to 20% on medicines, with even higher margins on wellness and personal care products. MedPlus’s strong control over supply chain costs and revenue streams also helps lower operational expenses, further increasing profitability.
With ROI typically realized between 18 months and 2 years, the MedPlus franchise benefits from high consumer demand and a proven operational model. Franchisees also receive continuous support in inventory supply, employee training, and product marketing, ensuring a smooth business experience. Given the MedPlus Franchise Cost and its long-term profitability, it stands out as one of the best franchise business opportunities for those seeking a stable and rewarding investment in the healthcare sector.
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Pros & Cons
Pros
- Established Brand: A name that is trusted is a name that will guarantee the customers.
- Comprehensive Support: Medplus offers training, operational, and marketing support in its service.
- Wide Product Range: Serves different and multiple customers in the sense that they sell all sorts of products ranging from medicines and other
- Proven Model: Established business years lower the possibility of risks.
- Multi-Channel Sales: Sales are made both in physical stores and through online sites.
- High Demand: Advances in health care mean a constant stream of customers is always flowing in.
Cons
- High Initial Investment: That is why it takes a lot of capital at the beginning of the business.
- Location Sensitivity: The key factor of success is the store’s location.
- Limited Flexibility: Franchise rules limit independence because it is necessary to follow them.
- Operational Challenges: Handling inventory and compliance issues may not be easy.
- Market Competition: Faces competition with other pharmacy chains and the internet marketplace.
Conclusion
The MedPlus franchise business opportunity best suits those looking to invest in the healthcare industry. MedPlus has a well-established brand, strong support services, and benefits from the growing market demand for quality healthcare products, making it a solid business model to invest in. However, while the MedPlus Franchise Cost involves a relatively high initial investment, the business remains location-sensitive, ensuring long-term profitability and stable revenue.
Additional advantages include high margins, a well-integrated supply chain, and MedPlus’s broad and flexible sales channels, which enhance profitability.
For those dedicated to offering healthcare solutions and willing to invest in a proven and successful business model, a MedPlus franchise presents an excellent opportunity to establish a vibrant and lucrative business.
FAQs
Is this pharmacy franchise making money?
Indeed, this particular franchise of pharmacy stores yields high profitability and sure returns on the invested amount in this business.
How much does this company make per year?
It is a leading company in the market, with an annual revenue of more than ₹4,000 crores, which demonstrates the company’s position and performance in the market.
Should one invest in this retail pharmacy business?
Absolutely. It is one of the largest and most reputed retail pharmacy chains. It is also reliable and lucrative because it runs smoothly; customers are often loyal to this chain, and franchises are popular.
Who is the CEO of the company?
Madhukar Gangadi, this pharmacy chain’s chief executive officer and founder has been vital in its expansion.
Who are its competitors?
Some main competitors are Apollo Pharmacy, Netmeds, Tata 1mg, and Wellness Forever, the main players in the same retail healthcare market.
