Traditional pharmacies beware: Price warrior Janaushadhi stores gaining popularity, set to proliferate

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A price war is brewing in the pharmaceutical distribution business, and with the common man clearly benefitting from it, the storm will only intensify, with the government deciding to deepen the benefits with its own offering. The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which is attracting the attention of the common man with generic medicine, is all set to extend its service further, taking the battle right up to the doorstep of the private pharmacy store, The Financial Express has reported.

Between April 2022 and April 2024, the number of Janaushadhi Kendras (JAK) have gone up by 34%, data from department of pharmaceuticals show. The number of JAK outlets now stand at 11,719 and is set to rise further to 25,000 across India by March 2026.

Monthly sales have risen more than 100% in April 2024 compared to the corresponding month in 2022. The products sold at JAK outlets, including drugs and surgical items, too have gone up by a great deal.

Sights of people queuing up outside these stores are common.

The key to success: a huge cost advantage compared to the traditional neighbourhood pharmacy.

The prices of medicines sold at these stores are about 50-90% lower than branded generics. According to data quoted by government officials, consumers have made cumulative savings in excess of Rs 28,000 crore in the past nine years in comparison to branded medicines.

“Some 5 years back, people were reluctant to visit these stores due to the perceptional issues. Today, the mindset has changed because consumers have realised that the efficacy of medicines sold at the PMBJP stores are as good as branded generics,” Hari Natarajan, founder & MD, Pronto Consult told the newspaper.

“PMBJP stores have become primary choice for cost-conscious consumers, especially for acute treatments such as painkillers, paracetamol, and cough syrups. In tier-I and II cities, there are multiple stores in each locality. With the rising consumer awareness and wide reach, the scheme is giving a tough competition to pharmacy chains,” said a healthcare expert.

These stores were first launched in 2008. Experts said that over the past few years there has been a marked shift in the attitude of consumers towards PMBJP stores.

JAK stores sell 2,047 medicines and 300 surgical items and consumables. The medicines available are related to address cardiovascular, cancers, diabetes, infections, allergies and gastrointestinal disorders.

At 14-15%, inflation in healthcare is a big tormentor for the common man. Data suggest the common man is becoming aware of these government stores offering a large number of medicines at huge discounts.

(ENDS)