Pharmaceutical distributor Vardhman Health Specialities (VHS) is investing Rs 100 crore as it plans to venture into the Covid-19 vaccination business. The fresh investment will be in addition to Rs 15 crore that the company has already invested. The investment primarily will go into technology, warehouse infrastructure and R&D.
The company said it has initiated discussions with vaccine manufacturers — it did not name them — and will soon finalise plans for distribution and management of the Covid-19 vaccine.
VHS will also implement a unique delivery model, reaching out to university and educational campuses, corporate organisations and enabling at-home administration for direct end consumers.
Big opportunity
The logistics and distribution of Covid-19 vaccines in India is handled by the government at the moment, but that is not stopping companies such as VHS from investing in cold-chain infrastructure, as they expect the government to open up the vaccination drive to the private sector in a big way. They also see Covid-19 vaccination as something that will be required for several years, before the country reaches herd immunity.
It isn't Vardhman alone; one of India’s largest cold chain logistics companies, Snowman Logistics, is investing Rs 70 crore on two new facilities and expanding existing ones.
India has so far administered 45 million doses of the Covid-19 vaccine. It needs 1.3 billion doses to fully vaccinate at least 50 percent of the population.
Pan-India storage capacity
VHS which is the first Indian pharma distributor to acquire GSDP (Goods Storage & Distribution Practice) certification from the WHO, currently has storage units of 30,000 sq. ft. capacity across 18 locations pan-India, with cold chain logistics for drugs and vaccines that need to be stored at -20 degrees Celsius to 25 degrees Celsius.
The company expects adult vaccines to contribute to 30 percent of the group revenue, which is expected to double to Rs 1,000 crore in the next 2-3 years. It has clocked revenue of Rs 500 crore in FY 20-21.
VHS has also joined hands with the Association of Healthcare Providers (AHPL) and with vaccine providers to increase awareness and access to vaccines for influenza, diphtheria, pertussis, tetanus, typhoid, hepatitis A and B, measles, mumps and rubella, among others, manufactured by Pfizer, Abbott, GSK, Sanofi and other vaccine makers.
“The Covid-19 pandemic has in a very unexpected and sharp manner brought the spotlight on lack of awareness on the importance and availability of adult vaccines in India. We are happy to be leveraging our experience and expertise in this industry to pioneer this effort and increase adult immunisation for some of the fast growing diseases in India,” said JB Chowhan, Chairman, VHS Group.
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