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MSI puts on hold plans for operations in Chennai

Medicine Shoppe India (MSI), the sole franchisee for US based Medicine Shoppe International, with operations in Mumbai, Navi Mumbai, Baroda and Pune, has dropped Chennai from list of its target for operations in the country. According to informed sources, MSI, which recently drew up plans to expand its franchisee operations from the present 19 outlets to 50 by the end of the current financial year, has decided to put on hold the commencing of operations in Chennai. //

It is not very clear why MSI has put on hold its plans to commence operations in Chennai while it has decided to go ahead with the expansion of operations in the three states it currently operates. Informed sources claim that the company after its wait and watch policy to gauge whether competition in Chennai would wither away has arrived at a conclusion that it would better wait for some more time before the competition melts down. The competition in Chennai among corporate outlets is by way of discounts is quite fierce. The company felt that this would endanger its interests if it began operations.

The latest decision of the company means that Chennai will still continue to have the existing five corporate retailers, viz, Apollo Pharmacy, Subiksha Trading Company, TruValue, Health & Glow and Vitan, which have been offering discounts to attract customers. Subiksha, the first and the largest player in the segment triggered the discount war. The other followed with discounts to counter threats from Subiksha.


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