Ratan Tata, Chairperson of the Tata Company recently purchased 50% shares of the Mumbai teen’s exclusive pharmacy chain. Ratan Tata has taken over the stakes of ‘Generic Aadhar,’ which is endorsed by Arjun Deshpande, an 18 years old.
Generic Aadhar is renowned for supplying drugs at considerably lower prices. Deshpande verified the transaction but declined to share the value of the contract. Deshpande said that before three or four months ago Tata had already heard the proposal and decided to invest and mentor him to operate the venture.
“Sir Ratan Tata has invested in Generic Aadhar two days ago for 50 per cent stake and a formal announcement will be made soon,” Deshpande informed.
Reports say Ratan Tata made the personal expenditure and was not affiliated with the Tata Group. Ratan Tata’s prior acquisitions include Ola, Paytm, Snapdeal, CureFit, Urban Ladder, Lenskart and Lybrate in various start-up firms.
Two years ago Deshpande began Generic Aadhar. Now it has an annual revenue of Rs 6 lakh. The corporation implements a particular operating strategy for the pharmacy aggregator. Generic drugs are manufactured directly by manufacturers and marketed to the retail pharmacy, removing a wholesaler profit of 16-20 percent.
Thirty retail outlets from Mumbai, Pune, Bangalore and Odisha are in the Traditional Aadhar chain and adopt the same pattern of income sharing.
Despande said he expects to get 1,000 tiny medical franchisees in Generic Aadhar within one year. Aadhar’s Generic also falls along in Palghar, Ahmedabad, Pondicherry and Nagpur with four accredited WHO-GMO fabricants.
The business primarily supplies medications for diabetes and elevated blood pressure medication. It would also continue to sell cancer drugs even cheaper than the retail price in the foreseeable future.
“Within a year, plans are to have 1,000 small franchisee medical stores under the Generic Aadhar fold and expand to rest of Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Delhi,” says Deshpande.
In recent years, the government has sought to regulate costs for all the necessary medicines. About 80% of the medications distributed in the world, including more than 50,000 brand names, are noncontroversial and have approximately a 30%-20% profit for distributors and 10% for wholesalers. The profits in markets such as cancer and medical medications are also larger for quality marketed items.
Generic Aadhaar already provides diabetes and hypertension drugs, but soon will begin to sell cancer drugs at lower than the retail level. Four WHO-GMP accredited factories are now affiliated with the start-up in Palghar, Ahmedabad, Pondichéry and Nagpur.
Ratan Tata has previously invested in a huge number of start-ups such as Ola, Paytm, Snapdeal, CureFit and Digital Ladder.