Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector. 

Equity Research experience of over 20 years. Earlier, Analyst for leading Buy and Sell-side institutions, covering markets in ASEAN, India, and North Asia. Expertise spans various sectors - Consumer Discretionary, Media, Textiles, Oil, Gas, and Coal.
Passionate about mindfulness and meditation.

Investment Research - Asia Consumer Sector

Pharmeasy Acquires Thyrocare: Pre-IPO Move Boosts Valuation & Expands Operations

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Event-Driven

<a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a>, India's Oil &amp; gas -to- Telecom-to-Retail conglomerate,  announced the acquisition of a majority stake in Netmeds, a leading player in India's nascent online pharma retail segment. We believe this marks a significant shift in the outlook and growth trajectory for the e-pharmacy segment in India. Last week <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)'s</a> India had launched Amazon Pharmacy to offer pharmaceutical products online beginning with a pilot in Bangalore. Separately, Temasek Holdings-backed PharmEasy - a leading e-pharmacy in India - has proposed to merge with smaller rival, Medlife, paving the way for further sector consolidation. Online pharma retail in India that was operating under regulatory uncertainty was mostly stuck in an early-stage growth phase. Following COVID-led lockdowns, India's Central Government was prompted to include the delivery of medicines through e-commerce as an essential service. Ensuing demand growth has nearly doubled e-pharmacies' fledgling user base of 3-5mn+ to 9-10 mn+. This could now witness explosive growth with the foray of mass e-commerce players, Amazon and Reliance, in the space enabling online pharma services access to their much wider online shopper base; online product shoppers in India are estimated at over 100-110mn+.
Regulations governing e-pharmacies could be cleared soon. Reliance's announced foray into the online pharma retail segment followed PM Modi's Independence day (Aug. 15) launch of National Digital Health Mission (NDHM) - a Govt. initiative to digitize health services; more than just a coincidence, in our view. We believe that it suggests possible favorable Government action in terms of faster rollout of regulatory guidelines on e-pharmacies. Reliance's initiatives almost always get regulatory tailwind support. The draft e-pharmacy guidelines framed in 2018 to guide operations of online pharmacies are yet to become a law possibly due to active resistance from India's offline retail store operators' lobby.
Pharma retail landscape set for an overhaul. With the Government's accelerated efforts to digitize the country's health services sector space, and likely fast-tracking of the laws governing e-pharmacies, the sector could finally be able to operate and expand without regulatory/legal overhang. India's highly fragmented/unorganized pharma retail sector, dominated by nearly 850,000 physical stores, could then see a structural overhaul as deep-pocketed e-commerce titans try to actively woo customers. Expect online/organized sector's penetration of overall pharma retail increase from current negligible levels.

Reliance Industries (RIL IN), India's Oil &amp; gas -to- Telecom-to-Retail conglomerate,  announced the acquisition of a majority stake in Netmeds, a leading player in India's nascent online pharma retail segment. We believe this marks a significant shift in the outlook and growth trajectory for the e-pharmacy segment in India. Last week Amazon.com Inc (AMZN US)'s India had launched Amazon Pharmacy to offer pharmaceutical products online beginning with a pilot in Bangalore. Separately, Temasek Holdings-backed PharmEasy - a leading e-pharmacy in India - has proposed to merge with smaller rival, Medlife, paving the way for further sector consolidation. Online pharma retail in India that was operating under regulatory uncertainty was mostly stuck in an early-stage growth phase. Following COVID-led lockdowns, India's Central Government was prompted to include the delivery of medicines through e-commerce as an essential service. Ensuing demand growth has nearly doubled e-pharmacies' fledgling user base of 3-5mn+ to 9-10 mn+. This could now witness explosive growth with the foray of mass e-commerce players, Amazon and Reliance, in the space enabling online pharma services access to their much wider online shopper base; online product shoppers in India are estimated at over 100-110mn+.
Regulations governing e-pharmacies could be cleared soon. Reliance's announced foray into the online pharma retail segment followed PM Modi's Independence day (Aug. 15) launch of National Digital Health Mission (NDHM) - a Govt. initiative to digitize health services; more than just a coincidence, in our view. We believe that it suggests possible favorable Government action in terms of faster rollout of regulatory guidelines on e-pharmacies. Reliance's initiatives almost always get regulatory tailwind support. The draft e-pharmacy guidelines framed in 2018 to guide operations of online pharmacies are yet to become a law possibly due to active resistance from India's offline retail store operators' lobby.
Pharma retail landscape set for an overhaul. With the Government's accelerated efforts to digitize the country's health services sector space, and likely fast-tracking of the laws governing e-pharmacies, the sector could finally be able to operate and expand without regulatory/legal overhang. India's highly fragmented/unorganized pharma retail sector, dominated by nearly 850,000 physical stores, could then see a structural overhaul as deep-pocketed e-commerce titans try to actively woo customers. Expect online/organized sector's penetration of overall pharma retail increase from current negligible levels.  

Reliance, Amazon Onboard Online Pharma Retail in India; Sector Now Set for Explosive Growth