Zeelab Pharmacy targets ₹200 Cr revenue by cutting medicine prices

Zeelab Pharmacy, an Indian pharmaceutical company, has set an ambitious goal of achieving ₹200 crore in revenue by fiscal year 2027. The company's strategy centers on reducing medicine prices by eliminating intermediaries in the supply chain, enabling it to offer significantly lower-cost medications to consumers.

Founded by Rohit Mukul, who was inspired by his studies at the London School of Economics to address inefficiencies in India's pharmaceutical sector, Zeelab began operations in April 2020. Mukul identified that excessive middlemen inflated medicine costs, turning a ₹10 medicine into a ₹100 product by the time it reached the consumer. Zeelab aims to bridge this gap, offering equivalent products at a fraction of the price, citing an example where a pain-relieving gel costing ₹150 is sold by Zeelab for ₹25.

The company currently operates over 300 stores and processes approximately 10,000 orders daily, with its online and offline businesses contributing roughly equally to revenue. Following ₹110 crore in operating revenue in the last fiscal year, Zeelab is projecting ₹200 crore for FY27. The business model integrates online and offline channels, utilizing small, efficient stores as local fulfillment points for e-commerce orders.

Zeelab transitioned from an initial franchise model to a company-owned network to gain greater control over inventory management and customer experience. Its typical store is around 200 square feet, strategically located to serve local communities while minimizing operational costs. This network acts as a trust layer and fulfillment infrastructure, supporting an "unlimited shelf" concept where products not physically stocked can be ordered and delivered.