January 26, 2021

RIL-Netmeds deal: RIL takes on Amazon in e-pharmacy biz, acquires majority stake in Netmeds for Rs 620 crore

Mumbai: Reliance Industries Restricted mentioned late on Tuesday that its retail unit has acquired a majority fairness stake in on-line pharma firm Netmeds for round Rs 620 crore, immediately taking up Amazon which forayed into the the e-pharmacy enterprise final week.

The oil-to-retail conglomerate mentioned Reliance Retail Ventures has acquired a majority stake in Vitalic Well being Pvt. Ltd and its subsidiaries — collectively generally known as Netmeds — for a money consideration of round Rs 620 crore.

This funding represents round 60 per cent holding within the fairness share capital of Vitalic and 100 per cent direct fairness possession of its subsidiaries, viz: Tresara Well being Personal Ltd, Netmeds Market Place Ltd and Dadha Pharma Distribution Pvt Ltd.

“This funding is aligned with our dedication to offer digital entry for everybody in India,” mentioned Isha Ambani, director of Reliance Retail Ventures.

“The addition of Netmeds enhances Reliance Retail’s means to offer good high quality and inexpensive healthcare services, and in addition broadens its digital commerce proposition to incorporate most each day important wants of shoppers,” she added.

Included in 2015, Vitalic and its subsidiaries are within the enterprise of pharma distribution, gross sales, and enterprise help companies. Its subsidiary additionally runs a web-based pharmacy platform – Netmeds – to attach clients to pharmacists and allow door step supply of medicines, dietary well being and wellness merchandise.

Netmeds is promoted by Dadha Pharma, a Chennai-based firm. The Dadha family’s pharmaceutical expertise dates again to 1914, after they ventured first into the pharma retailing enterprise after which into drug manufacturing in 1972, RIL mentioned in a launch.

The e-pharmacy enterprise has seen a variety of motion within the latest week. Whereas Amazon launched its ‘Amazon Pharmacy’ in Bengaluru final week and can conduct pilots in different cities, a Instances of India report suggests Walmart-owned Flipkart can be trying to foray within the house.

Earlier on Tuesday, on-line medical retailer PharmEasy agreed to merge with smaller rival Medlife, filings with India’s antitrust physique present. ET reported the mixed entity could possibly be valued at round $1.2 billion.

Forward of the announcement, RIL shares closed 1.31 per cent greater at Rs 2,118.75. They’ve jumped 144 per cent from the lows seen in March.