Surya Pharma Plans Rs 250-crore Foray into Healthcare Retail

Source: http://www.outlookindia.com/
March 24th, 2009

Chandigarh

Surya Pharmaceutical today 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 clock 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.

Health and Fitness Report

The company-owned stores, ranging from 150 square feet to 1000 square feet, would sell medicines as well as health and fitness products, Goyal said.

The firm is looking to achieve sales of Rs 800 crore by 2010-11, which would constitute 35 per cent of Group's total turnover, from the new business .

Surya Pharmaceuticals President Mr. Hari Om Bhatia said, "...The pharma market is growing at an annual pace of 15 per cent with a total pharma retail market size of Rs 40,000 crore and organised players in retail have only 3 per cent share..."

Bhatia expects the organised players' share reaches 20 per cent in the next three years," he said.

Besides, the firm is planning to acquire pharma companies in Germany and India for a sum of Rs 100 crore.

"We are in talks with German based logistics provider to pharma industry and a manufacturer of formulations for acquiring them. But it will take some to time get things materialised," said Goyal.

Surya Pharmaceuticals is also in the process of setting up a new greenfield facility at Jammu entailing an investment of Rs 60 crore for catering to US and European markets. It is expected to be commissioned in two months.

"This facility will make sterile products and antibiotic range and we expect to get US FDA approval within the next 9-10 months for having access to regulated markets. Besides, we will also export products to Australia, New Zealand, Middle East countries from here," he said.

Surya Pharmaceutical is a manufacturer and supplier of pharmaceuticals, API's, Fine Intermediates, formulations, herbal products and Mint/Menthol derivatives. The company is expecting to touch sales of Rs. 1500 crore in 2011.

Surya to set up ‘Wellness’ Chain of 500 Stores under ‘VIVA’ Brand Name

Source: indiaretailbiz.com

March 25th, 2009

Surya Pharmaceutical, a Chandigarh-based pharmaceuticals manufacturer, owned by Rajiv Goyal, is foraying into Wellness Retail. The company has chosen the brand name of ‘Viva’ for its proposed retail chain of healthcare and medicines stores.

The medicines market in India is highly fragmented with over 500,000 family-owned small sized chemists & drug stores operating across the country.

Only a few organised retailers have entered this business, which together with wellness products (health foods, personal care products, rehabilitation products, devices, etc) offers over Rs 60,000 crore opportunity. Medicines markets alone contributes over Rs 35,000 crore of turnover.

Currently, Apollo Pharmacy and Reliance Wellness are the only retail chains that have pan-India presence, though many big and small regional players like Religare Fortis (ex-Ranbaxy), Med Plus, Guardian, 98.4, Lifecan (now Religare), Medicine Shoppee, Dial for Health, Planet Health, Medi Plus, etc, who have entered the segment with national ambitions. Even trade associations of chemists in several states are trying to form cooperatives/companies to fight the emerging challenge from organised pharmacy chains.

To begin with, the company will set up 100 Viva stores in the next one year. Almost all of these stores will be located in and around Delhi (NCR).

The company will, however, set up a chain of 500 stores, of 150 to 1,000 sq ft size, over a period of next three years. This will entail an investment of Rs 250 crore ($50 million), which will be funded through a combination of equity and debt. The company will also seek induction of private equity in the proposed venture.

While, initially the company will set up company owned stores, later on it will try to extend the network through franchisee owned model.

“The presence of a huge spurious drug market along with an increasing number of lifestyle and stress-related ailments prompted us to foray into healthcare retail,” said Rajiv Goyal, Chairman and Managing Director of the company.

Currently, the company is clocking a turnover of Rs 500 crore. This is expected to grow three-fold to Rs 1,500 crore within three years by 2011. The company has ambitious plans to also enter European and American pharmaceutical markets by 2011.

Apart from organic growth, the company is also seeking growth via acquisition route. It is said to be in talks with an Indian firm and a German firm for acquisition of their businesses.

Surya Launches Healthcare Retail Brand "VIVA"

Indian Express Healthcare June 2009

Surya Health Care Retail, a subsidiary of Surya Group, under the brand name 'VIVA' has opened the first five pharma retail outlets in Delhi. The company targets to set up more than 500 stores and create a pan-India presence in next three years.

According to Mr. Rajiv Goyal, Chairman and Managing Director of the Surya Group, investments in the expansion plans of the parent company and in subsidiary companies are projected to be Rs 1,000 crore in next three years. These investments will be funded through a judicious mix of equity and debt and internal accruals. He further said that with implementation of all the plans, the group targets to surpass consolidate topline of Rs 2,000 crores in three years' time frame and also the present head count of 1,200 people in Surya Group is slated to increase to 2,500 by the current year end.

In the coming years, the company expects to maintain its upward growth through contributions from mint-based products. Then, there is the new Rs-200-crore manufacturing facility coming up at Sambha, Jammu, state-of-the-art research & development (CRAMS) facility, highly sophisticated formulations unit and entry into regulated markets and herbal products category.

Surya launches 'Green Ideas' campaign

Surya Group of Institutes has launched a campaign to plant trees in five Indian cities of Chandigarh, Panchkula, Mohali, Ambala and Patiala and would be distributing plants to the people free-of-cost.


Chandigarh, UT, IND, 2009-06-03 15:42:22 (IndiaPRwire.com)


As a run up to the world environment day on June 5, Surya Foundation, which has set up Surya Group of Institutes near Rajpura, is launching a “Green Idea” campaign to generate environment awareness amongst the residents of tri-city.


Mr. Rajiv Goyal, President of the Surya Education & Charitable Society, said that every right-minded person is concerned about the growing global warming and until and unless the next generation takes some concrete steps and imbibes the habits of thinking about it, the issue cannot be tackled.


He said that Surya Group of Institutes are joining UNEP’s challenge to plant seven billion trees during this year around the world, and underwrite its commitment to this year’s World Environment Day theme “Your Planet Needs You: Unite to combat climate change”.


On June 5, Surya Group shall distribute plants to the people of five cities i.e. Chandigarh, Panchkula, Mohali, Ambala and Patiala, as well as put up graffiti walls in all places to make people give ideas and suggestions on what they would do to tackle global warming.


Mr. Rajeev Goyal informed that Surya shall be promoting environment clubs in every school and provide them with environment kit for each member to be an ambassador of “Green World” which will include a membership card, lapel button, poster, stickers, note book of ideas, and pen, and would hold competition and other activities to reward the students and schools for generating energy saving and environment protection ideas.


Surya Foundation comprises of Centers of Academic Excellence establishedunder the aegis of Surya Educational & Charitable Trust (SECT) to impartworld-class education in five streams namely Engineering, MBA, MCA, Pharmacyand Architecture. Surya Educational and Charitable Trust is being supported bythe Surya Group which has interests in Pharmaceuticals, Healthcare Retail, Infrastructure and Communications.


Website www.suryafoundation.edu.in