Amazon looking at $100 million investment in India’s Apollo Pharmacy
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Amazon.com Inc is considering a nearly $100 million investment in India’s pharmacy chain Apollo Pharmacy, facing up to Reliance Industries Ltd and Tata Group in the country’s fast-growing drug market, the Economic Times reported on Wednesday, citing two people aware of the plans.
Amazon already delivers medicines in India and the potential investment would come amid rising competition from Mukesh Ambani’s Reliance, which bought a majority stake in online pharmacy Netmeds.
Tata Group here, meanwhile, was reportedly in talks to pick up a majority stake in e-pharmacy firm 1mg.
Both Amazon and Apollo Hospitals, which owns Apollo Pharmacy, declined to comment.
The growth of e-pharmacies, however, has left many Indian trader groups feeling threatened, who say online drugstores can contribute to medicine sales without proper verification and the entry of large players can cause unemployment in the sector.
Amazon’s plan to further expand in India also comes close on the heels of its launch of an online pharmacy to deliver prescription drugs in the United States, increasing competition with drug retailers such as Walgreens, CVS Health and Walmart.
Questions & Answers
Q.What is driving Amazon's interest in expanding its pharmacy operations in India?
What is driving Amazon's interest in expanding its pharmacy operations in India?
Amazon's potential investment comes amid rising competition in India's fast-growing drug market. Mukesh Ambani's Reliance bought a majority stake in Netmeds, and Tata Group is reportedly in talks for 1mg.
Q.How do Indian trader groups view the expansion of e-pharmacies in the country?
How do Indian trader groups view the expansion of e-pharmacies in the country?
Indian trader groups feel threatened by e-pharmacies. They argue online drugstores may contribute to medicine sales without proper verification and that large players could cause unemployment in the sector.
Q.Has Amazon recently expanded its pharmacy services in other markets?
Has Amazon recently expanded its pharmacy services in other markets?
Yes, Amazon recently launched an online pharmacy service in the United States. This move increases competition with established drug retailers such as Walgreens, CVS Health, and Walmart.
Q.What is the reported value of Amazon's potential investment in Apollo Pharmacy?
What is the reported value of Amazon's potential investment in Apollo Pharmacy?
Amazon is considering a nearly $100 million investment in Apollo Pharmacy. This information was reported by the Economic Times, citing two people aware of the plans.
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