Healthcare company Apollo Hospitals Enterprise Ltd. on Tuesday said its decision to divest its front-end pharmacy business to Apollo Pharmacy Ltd. was taken to grow the number of pharmacies to 5,000 and achieve a revenue of Rs 10,000 crore.
In November 2018, the company had said it was divesting its front-end pharmacy business to Apollo Pharmacy Ltd. for a lump-sum cash consideration of Rs 527.8 crore as part of a restructuring exercise.
"Our strategic intent is clear we are focused on growing to 5,000 stores, achieving Rs 10,000 crore in revenues, and increasing sales from private label products, improving Ebitda and return on investment, while simultaneously building our digital play," Apollo Hospitals Enterprise Ltd. said in a statement.
The group has moved ahead with its plans to build a strong digital platform, simultaneously bolstering offline delivery capabilities, it added. "We are confident that this strategy will create significant value for Apollo Hospitals shareholders. We reiterate that value accretion from the growth in standalone Pharmacies business will be fully to all of Apollo Hospital's shareholders," the statement said.
The demerger is targeted at creating a platform for Apollo Hospital Enterprises to execute an omnichannel strategy for its pharmacy business and was the first step in a multi-year journey of unlocking value for the AHEL shareholders, it added.
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