Though India has among the lowest medicine prices in the world, MSI's confidence stems from the growing economic indicators seen in the local market, Mr Burnett told Business Line. The US market has achieved a certain level of maturity and future growth is expected to come from India and China, he said.

Pharmacy-chain MSI is part of $75 billion Cardinal Health Inc. MSI is present in India through its master franchisee, The Medicine Shop India, managed by licensee Melrose Trading Co Pvt Ltd.

Mr Burnett pointed out that MSI works on the franchisee-model and that was unlikely to change despite the opening up of foreign direct investment in single-brand retail in India.

Both India and China were growing at about seven stores per month, he indicated. In India, he admitted there was concern over spurious drugs.

Mr Burnett was in India on the occasion of the 100th store being opened in the local market. The company is looking to have about 200-plus pharmacy stores by the end of the year, and 700 stores by 2010.

According to Mr Viraj Gandhi, Managing Director of the Indian franchisee, the company is planning a foray into the rural markets by late June. Medicine Shoppe in India has clocked revenues of Rs 24 crore for the year ended March 2006, he said.

Medicine Shoppe in India has also launched smart loyalty cards that had customer details etc to facilitate convenience. The tie-up with a few insurance companies continues to exist, he said, though the benefit would be realised only when health insurance coverage for medicines becomes popular, he said. Other retail pharmacy players include Apollo Pharmacies.

Taken from Business Line