The Mukesh Ambani-owned Reliance Retail is eyeing a major chunk of revenue from healthcare retail industry in India within the next five years. Reliance?s healthcare retail venture, Reliance Wellness, has set a target of about Rs 6,500 crore by 2013. The company, which plans to set up 1,800 wellness stores across the country, is expecting to garner a sales revenue of Rs 3.5 crore from each wellness stores within two years from the date of operation. Also, Reliance Wellness is looking for non-exclusive tie-ups with leading pathology labs in the country to make available services to its customers.
According to sources, the company targets revenue of Rs 50 per square feet for each store in two years of operation. The company has been spending about Rs 25 per sq ft for each store, which comes about Rs 80 lakh to Rs 1 crore, for setting up and operating a store. ?We plan to achieve a sales target of Rs 3.5 crore for each store within two years of operation. Once the 1,800 stores start full-fledged operations, we can achieve a sales target of Rs 6,500 crore by 2013,? sources added. The company plans to open about 200 stores across the country in 2008.
Reliance Wellness, where about 20% of the products remain medicines, plans to give pathlab services at discount rates to its customers by tieing-up with leading laboratories in the country. The customer will also be benefited with Rs 50,000 free medical insurance once he becomes member of the Reliance Wellness store.
Reliance Wellness, which is planning Rs 1,500 crore investment to set up stores across the country by 2011, as reported by FE in 2007, is targeting 51 major towns in India.