Business

Generic injectable focused Gland Pharma’s version of La Jolla Pharma’s Giapreza injection for increasing blood pressure in adults with septic or other distributive shock has received U.S. Food and Drug Administration approval.

It is the exclusive first-to-file and consequently eligible for 180 days of generic drug exclusivity, Gland Pharma said on Wednesday, announcing U.S. FDA approval for its abbreviated new drug application related to Angiotensin II Acetate Injection 2.5 mg/mL.

Bioequivalent and therapeutically equivalent to reference listed drug Giapreza of La Jolla Pharma LLC, the product had U.S. sales of around $58 million for the 12 months ended March 2025, Gland Pharma said citing IQVIA numbers. The company’s shares closed 1.88% higher at ₹1,623.70 apiece on the BSE.

State-owned miner NMDC reduced iron ore prices by ₹140 a tonne of Baila Lump and by ₹150 for the same quantity of Fines effective June 4.

The new, per tonne price of Baila Lump is fixed at ₹6,300, while that of Baila Fines at ₹5,350, the company said in a filing on Wednesday. It is the second month consecutively this fiscal India’s largest iron ore producer revised prices. In May, it had raised iron ore prices by ₹440 per tonne to ₹6,440 for Baila Lump and ₹5,500 for Baila Fines.

In 2025, the latest revision is the third. NMDC had revised the prices effective January 9 to ₹6,000 and ₹5,060 respectively. These are FOR prices inclusive of royalty, DMF as well NMET and exclusive of cess, forest permit fee, transit fee, GST, environmental cess and other taxes.

India’s stainless steel industry has called for a National Stainless Steel Policy to unlock its full potential in manufacturing, innovation, and global competitiveness. 

“India’s stainless steel consumption reached 4.8 million tonnes in FY25, registering an 8% year-on-year growth. Yet, nearly 30% of this is still met by imports, while domestic capacity remains underutilised,” Rajamani Krishnamurti, president of the Indian Stainless Steel Development Association (ISSDA) said, addressing delegates at the Global Stainless Steel Expo 2025 (GSSE 2025) currently underway in Mumbai. 

“For the stainless steel industry to reach its true potential, we need a policy framework that boosts confidence, supports Make in India, and ensures long-term sustainability and competitiveness,” he stressed.  “We are reaffirming our call for a level-playing field, urging policymakers to proactively safeguard the sector while promoting innovation,” he said. 

“As the world paces towards sustainability and resilient infrastructure, stainless steel’s relevance is only growing. However, the influx of unfairly priced imports continues to challenge domestic manufacturers,” he highlighted.

He said ISSDA had consistently cautioned against these risks, emphasising that unchecked trade diversions, particularly from nations like China and Vietnam, could undermine domestic manufacturing and employment in the sector. 

“To safeguard the interests of the Indian stainless steel industry, both the government and industry stakeholders must remain vigilant, closely monitor import trends, and proactively implement necessary safeguard measures,” he said.

Emphasising that stainless steel is no longer just about kitchens, Ratan Jindal, Chairman of Jindal Stainless said its now powering India’s future in nuclear, medical, renewable, and transport sectors.

“With consumption projected to cross 20 million tonnes by 2047 and likely more, we must continue to develop the stainless steel ecosystem through a three-pronged strategy,” Mr. Jindal said.

“First, we must continue to scale our capacity to meet the growing demand. Second, we must strengthen our capability by investing in research, integrating digitalisation in every link of the value chain, increasing industry-academia partnerships, and promoting sustainable manufacturing practices,” he said. “Third, we must work with the government to maintain a level playing field, particularly for MSMEs, by introducing trade remedial measures that prevent the influx of subsidised imports from China, circumvented through other ASEAN countries like Vietnam,” he added. 

To secure the success of our strategy and the future of our industry, there was an immediate need for a dedicated National Stainless Steel Policy that would deliver raw material security, drive long-term growth, and make resources accessible to every member of the ecosystem, especially MSMEs, he emphasised.  India to become a global manufacturing giant, must invest not just in capacity but in capability, through R&D, innovation, and green manufacturing, he stated.

With India now the second-largest consumer and third-largest producer of stainless steel, industry leaders urged the government to frame a dedicated national policy, one that embeds stainless steel across key missions like infrastructure, defence, space, and urban development.

Anitha Raghunath, convenor of GSSE and Director at Virgo Communications said, “With a market worth $22.4 billion and growing fast, India’s stainless steel industry is on an unstoppable rise.” 

“GSSE 2025 is the launchpad for cross-sector innovation, from EVs and aerospace to renewables and defence. This is where the future of stainless steel is being shaped, powering everything from the blue economy to Digital India,” she added.

The government’s emphasis on promoting stainless steel along the country’s 11,000-km coastline is enhancing market awareness and promoting the substitution of conventional materials in coastal and maritime infrastructure, industry officials said.

The logistics sector was also driving growth, with increased adoption of stainless steel in electric vehicles, trailers, and containers, they added.

Besides sectors such as process industries, hydrogen, and nuclear energy have demonstrated substantial growth potential, presenting new avenues for stainless steel applications.

ISSDA projects stainless steel consumption to rise to 12.5–12.7 MT by FY2040 and 19–20 MT by FY2047, aided by expanding applications in green energy, ethanol, water storage, defence, and aerospace.

US stock market today: Markets on Wall Street moved slightly higher in early trading on Wednesday as investors monitored the onset of President Donald Trump’s 50% tariffs on steel and aluminum imports. Meanwhile, U.S. and European trade officials met in Paris to negotiate a resolution to their ongoing tariff dispute.At the open, the Dow Jones Industrial Average was up 64.12 points, or 0.15%, at 42,583.76, while the S&P 500 gained 12.73 points, or 0.21%, to 5,983.10. The Nasdaq Composite also advanced, rising 47.46 points, or 0.25%, to 19,446.42.Meanwhile, Futures on all three major US indices—the S&P 500, Dow Jones Industrial Average, and Nasdaq—rose by 0.2% in early, low-volume trading.The European Union’s top trade negotiator, Maroš Šefčovič, met with US Trade Representative Jamieson Greer on the sidelines of an Organisation for Economic Cooperation and Development (OECD) meeting in Paris. Šefčovič described the discussions as “advancing in the right direction at pace.” However, expectations for a major breakthrough remain low, as key differences between Brussels and Washington are unlikely to be resolved swiftly.As of early Wednesday, there was no formal update regarding the status of the steel and aluminum tariffs, which are anticipated to significantly impact a wide range of industries and contribute to rising costs for consumers.Steel and aluminum sourced from abroad are key components in both everyday items such as soup cans and paper clips, as well as large consumer goods like stainless-steel refrigerators and automobiles. Economists have cautioned that these tariffs could severely strain both businesses and consumers financially.Still, optimism lingers on Wall Street that President Trump may eventually secure trade agreements that ease tariffs, especially with major economies. US officials noted Trump is expected to speak with Chinese President Xi Jinping later this week.Among individual stocks, Wells Fargo advanced 2.5% after the Federal Reserve lifted its asset cap on Tuesday. The central bank stated that the lender is no longer subject to the strict limits imposed in 2018 following its sales scandal. The bank has spent several years working to rebuild trust and demonstrate improved governance.Shares of Dollar Tree fell 1.8% in premarket trading, despite posting strong first-quarter results. The pullback was driven by the company’s cautious forecast, which projected up to a 50% decline in second-quarter earnings per share due to tariff-related cost pressures. A day earlier, rival Dollar General reported record quarterly sales of $10.44 billion and raised its full-year profit and sales outlook, reflecting increased spending at discount retailers.Cybersecurity firm CrowdStrike dropped 7% after its second-quarter guidance fell short of analyst expectations. The company is also facing legal action from Delta Air Lines over a technology outage last summer.In European markets, Germany’s DAX and France’s CAC 40 each rose 0.7% at midday, while the UK’s FTSE 100 edged up 0.2%.In Asia, South Korea’s Kospi led gains, surging 2.7% to 2,770.84 following the election of liberal opposition candidate Lee Jae-myung as president. His win concludes a period of political upheaval triggered by conservative leader Yoon Suk Yeol’s brief imposition of martial law. Lee is expected to prioritize fiscal spending and advance trade negotiations with the USJapan’s Nikkei 225 rose 0.8% to 37,747.45, supported by strength in technology and pharmaceutical stocks.Toyota Motor Corp gained 1.9% after revealing plans to acquire Toyota Industries Corp.—a supplier of auto components and lift trucks—for $33 billion and take the company private. Shares of Toyota Industries declined nearly 12% in response.Hong Kong’s Hang Seng Index was up 0.6% to 23,654.03, and the Shanghai Composite Index rose 0.4% to 3,376.20. In Australia, the S&P/ASX 200 closed 0.9% higher at 8,541.80. Taiwan’s Taiex jumped 2.3%.US Treasury yields remained steady following Tuesday’s upbeat job market data, marking a pause after a two-month upward trend. Yields had previously risen on concerns over the US government’s growing fiscal deficit amid proposed tax cuts. Elevated yields can raise borrowing costs for households and businesses and weigh on stock valuations.In the energy market, US benchmark crude oil rose 3 cents to $63.44 per barrel. Brent crude, the international standard, gained 5 cents to $65.68 per barrel.On the currency front, the US dollar strengthened slightly to 144.19 Japanese yen from 144. The euro edged up to $1.1386 from $1.1370.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday declined to grant interim relief to Gensol Group entities, BluSmart Premium Fleet and Matrix Gas and Renewable, against an asset freeze ordered by the National Company Law Tribunal (NCLT).The appellate tribunal directed the two companies to present their plea before the Ahmedabad bench of the NCLT, where the case is scheduled for hearing on June 12, PTI reported. The freeze was ordered by a vacation bench of the NCLT on May 28 following a petition filed by the Ministry of Corporate Affairs (MCA), targeting Gensol Engineering, its promoters, and related entities.In their appeal to the NCLAT, BluSmart and Matrix argued that the NCLT issued its order without providing a proper hearing, in violation of procedural norms. BluSmart Premium operates the electric vehicle ride-hailing service BluSmart Mobility, while Matrix Gas and Renewable is involved in natural gas aggregation and green hydrogen infrastructure.MCA officials opposed the appeal, stating that the NCLT had considered serious allegations raised in the government’s petition. The original NCLT order cited “serious allegations of fraudulent conduct, including diversion of company funds by the promoters of Gensol Engineering… violation of corporate governance norms, manipulation of financial statements, default in loan repayments despite false declarations, and illegal alienation of company assets.“The companies also urged the NCLAT to consider the hardship caused by the freeze, including the inability to pay salaries and cover operational costs. In response, the Directorate General representing the MCA acknowledged the concern and said the government is examining the issue.Taking these arguments into account, the NCLAT stated: “In view of the above, we dispose of these two appeals by requesting the NCLT to treat these two appeals as applications of the appellants for vacation of stay granted vide order dated May 28, 2025 and its consequent orders; while keeping open all the submissions which may be made before the NCLT by either parties.”The May 28 NCLT order had allowed the MCA to freeze bank accounts and lockers belonging to Gensol Engineering, 10 of its subsidiaries, and several individuals. It also noted that findings by the MCA, Sebi, and the Serious Fraud Investigation Office (SFIO) prima facie support claims of large-scale fraud involving public interest.

Gold rate today: Gold prices rose by Rs 260 to Rs 99,260 per 10 grams in the national capital on Wednesday, tracking strong trends in the global market, according to the All India Sarafa Association.The price of gold with 99.5% purity also increased by Rs 100 to Rs 98,700 per 10 grams, inclusive of all taxes.“Gold showed a slight positive trend on Wednesday due to persistent uncertainties related to trade, along with economic concerns and geopolitical risks, continue to support the safe-haven appeal of the precious metal,” said Saumil Gandhi, Senior Analyst – Commodities, at HDFC Securities, as quoted PTI.Silver prices also witnessed a sharp uptick, rallying Rs 1,900 to Rs 1,02,100 per kg (inclusive of taxes), up from Rs 1,00,200 per kg in the previous session.In global markets, spot gold climbed USD 9.43, or 0.28%, to USD 3,362.6 per ounce, amid safe-haven demand and persistent macroeconomic uncertainties.According to April data, central banks added a net 12 tonnes of gold to their global reserves. However, this marked a 12% decline compared to the previous month, reflecting a slower pace of accumulation.Despite the slowdown, Gandhi noted that central banks are likely to continue increasing their gold reserves, reinforcing gold’s long-term demand outlook.

Reliance Infrastructure Ltd. (RInfra) on Wednesday (June 4, 2025) said National Company Law Appellate Tribunal (NCLAT) has suspended the insolvency proceedings ordered against the company.

“The NCLAT in New Delhi today suspended the National Company Law Tribunal’s (NCLT) May 30 order, admitting the company into the corporate insolvency resolution process (CIRP),” the company said in a stock exchange announcement.

The company also said it will submit the NCLAT order after receiving the same.

On May 30, NCLT, Mumbai had ordered CIRP against RInfra in a case filed by IDBI Trusteeship Services Ltd., being the security trustee of Dhursar Solar Power, alleging a default of ₹88.68 crore as of August 2018 along with interest at 1.25% per month from 30 days of the date of receipt of each invoice until the payment date. It had  also appointed Tehseen Fatima Khatri as the interim resolution professional of the company.

Later, RInfra said it had made the full payment of ₹92.68 crore to  Dhursar Solar Power against the claim of tariff as per the energy purchase agreement with the company. It also preferred an appeal before the NCLAT seeking withdrawal of NCLT order for CIRP and appointment of an interim resolution professional.

The Indian rupee weakened for the second straight session on Wednesday, closing 29 paise lower at 85.90 (provisional) against the US dollar. The decline was driven by risk-averse investor sentiment, foreign fund outflows, and lingering geopolitical tensions.Forex traders attributed the rupee’s fall to concerns over the Russia-Ukraine conflict, elevated crude oil prices, and caution ahead of the Reserve Bank of India’s (RBI) upcoming monetary policy decision.The RBI’s Monetary Policy Committee (MPC) began its three-day meeting on Wednesday, with the policy outcome expected on June 6. Analysts expect the central bank to continue its easing cycle, with a 25 basis point (bps) rate cut anticipated on Friday. SBI Research has predicted a larger, “jumbo” 50 bps reduction in the repo rate this month.At the interbank foreign exchange market, the rupee opened at 85.69, touched a high of 85.69, and fell to a low of 86.05 during intraday trade. It eventually closed at 85.90, marking a loss of 29 paise from its previous close of 85.61. On Tuesday, the rupee had already declined by 22 paise, bringing the two-day cumulative fall to 51 paise.Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.12% at 99.11.Global crude prices also edged higher. Brent crude, the international benchmark, rose 0.41% to USD 65.90 per barrel in futures trade, further pressuring the rupee through concerns about India’s import bill.In equity markets, both benchmark indices ended higher. The BSE Sensex climbed 260.74 points, or 0.32%, to 80,998.25, while the Nifty 50 gained 77.70 points, or 0.32%, to 24,620.20.On the institutional side, Foreign Institutional Investors (FIIs) offloaded shares worth Rs 2,853.83 crore on a net basis on Tuesday, according to exchange data.Domestically, India’s services sector activity remained strong in May, supported by robust demand, new client acquisitions, and expanded hiring. The HSBC India Services PMI Business Activity Index stood at 58.8 in May, marginally up from 58.7 in April, reflecting continued sharp expansion.

The Reserve Bank’s rate-setting panel started its three-day brainstorming on monetary policy as expectations are high of a 25 Basis Points (bps) or even a jumbo 50 bps rate cut to fuel economic growth amid uncertainties created by Donald Trump’s tariff moves.

The decision of the Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Friday (June 6, 2025).

The RBI reduced the key interest rate (repo) by 25 bps each in February and April, bringing it to 6%.

This could be the third back-to-back reduction in the short-term benchmark lending rate.

In response to the 50-bps cut in the policy repo rate since February 2025, most of the banks have reduced their repo-linked External Benchmark-based Lending Rates (EBLRs) and Marginal Cost of funds-based Lending Rate (MCLR).

ALSO READ | How does the repo rate work? 

Experts are of the view that the RBI may reduce the repo rate by 25 bps on Friday (June 26, 2025) and another similar cut in the next policy. However, an SBI research expects the central bank to go in for a “jumbo” rate cut of 50 bps in June itself.

Flexibility to prioritise growth

CareEdge Ratings said falling inflation will give the RBI the flexibility to prioritise growth amidst external headwinds.

“While growth momentum has improved, challenges like uneven consumption recovery, muted private capex growth, and subdued manufacturing growth remain. Consumer Price Index (CPI) inflation is expected to stay comfortable in 2025-26,” it said.

A tough call: On the RBI MPC’s first policy review of 2025

“This opens room for further monetary policy easing. We expect the RBI MPC to cut the policy rate by another 50 bps in FY26 (including 25 bps in June), with chances of a deeper rate cut cycle if growth falters,” it said.

Deepak Aggarwal, Co-founder and Co-CEO of Moneyboxx Finance, said, “With inflation expected to remain below the RBI’s 4% target and growth holding steady, the upcoming MPC meeting presents an encouraging window for a calibrated rate cut.”

“A lower interest rate regime, supported by targeted liquidity measures, can meaningfully strengthen credit flow to MSMEs and NBFCs, especially those serving rural and semi-urban regions,” Mr. Aggarwal said.

Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, said, “There are strong indications and widespread expectations that the RBI will implement a third round of rate cut later this week.”

Should another 25 bps rate cut occur, it would bring the cumulative rate reduction in the calendar year 2025 to a notable 75 basis points.

“The easing of rates not only provides immediate financial relief but also stimulates consumer spending and investment, potentially bolstering overall economic growth. As a result, both existing and potential borrowers can look forward to a more favourable borrowing landscape in the coming months,” Mr. Kapoor said.

Mandar Pitale, Head, Financial Markets, SBM Bank (India), opined that the upcoming RBI MPC meeting is coming at the backdrop of a strong GDP growth print of 7.4%, which was significantly higher than the market expectation of 6.8%.

“We expect a 25 bp cut in policy rate at the June MPC meeting. This, coupled with the ongoing accommodative stance, will position MPC to react to any data surprises on either side,” Mr. Pitale said, and added “there may be another 25 bps reduction in August by the RBI.”

On his expectations from the 55th meeting of MPC, Rohit Arora, CEO and Co-Founder of Biz2X & Biz2Credit, said, “A rate cut in the range of 25- 50 basis points appears likely, supported by inflation staying below the 4% target and continued moderation in core inflation.”

“This would provide a timely boost to credit flow, especially for MSMEs and housing, while reinforcing growth momentum. While the RBI remains focused on domestic conditions, global cues like the US Fed’s projection of two rate cuts in 2025 also provide comfort on the external front,” Mr. Arora said.

The MPC consists of three members from the RBI and three external members appointed by the government.

RBI members are: Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan.

The external members are: Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi; Shri Saugata Bhattacharya, Economist, Mumbai; and Professor Ram Singh, Director, Delhi School of Economics, Delhi.

Medical inflation is often being mentioned about in the industry. In this paradigm, which product serves better – a co-branding card or insurance, considering you have also forayed into insurance recently?

Mr. Balakrishnan: I do not see it as a conflict. A credit card is an emergency and convenience-driven device whereas insurance is a purely emergency device for which you have been paying for over a period. It is complementary and one of the reasons why Apollo 24|7 got into both is because card as a payment mechanism and insurance as a protective mechanism are very mandatory, and core to my business. They are not extra-curricular. In fact, they cover my proposition.

Our aspiration is to bring in both the provider (hospitals, pharmacy, diagnostics and wellness) and payer (cards, UPI and insurance) under one umbrella. Thus, providing our customers both affordability and best possible services. That is how we endeavour to build our circle of health.  

How do you look at insurance and co-branding ensuring profitability for Apollo?

Mr. Balakrishnan: Our pharmacy business is the primary driver. We do about 59,000-60,000 deliveries every day which touches 1,00,000 if you consider home deliveries utilising through our digital platforms. With respect to diagnostics, we test around 80,000 to 1,00,000 samples every month primarily from our pharmacy customers as well as independent customers. Finally, we do about 3,000 consultations every day. All of it pertains to our digital platforms and not the offline centres.

So, this business is growing slowly and steadily unlike quick commerce – we are not growth on steroids. Our growth is built on a sustainable model. We start by focussing on top six cities, then the next ten cities and so forth. While we are servicing 19,000 pin codes, a big chunk of our business is derived from these markets.

For me, growing my pharmacy, diagnostics and consult business is core.

With credit card or an insurance ensure, I get more repeat business and thereby the core business continue to grow. The insurance customers also become my primary customers. In the sense that we would be able to give them a much better experience within the Apollo ecosystem and other hospitals outside it as well.

While we earn some margins from the insurance business, for it is viable as a standalone business, we might not make too much money with credit card business. However, it is imperative to note that we do not lose money with the latter, for the credit card customers become a driver of growth for the three core businesses, that is, pharmacy, diagnostics, and consultations.  

What is the outlook for profitability?     

Mr. Balakrishnan: We hope to break profitability between the five units of business, that is, pharmacy, diagnostics, consultations, insurance and cards, by the end of this financial year. We have been bringing down costs dramatically and making our unit economics better. I believe this would help drive profitability much faster. Hopefully, by the third or fourth quarter we should be able to turn this around. As an entity we are positive but as a pure digital line, we are still burning cash. We should be able to eliminate that by the end of this year.   

How do you see the evolving landscape with quick commerce? 

Mr. Balakrishnan: We are typically compared with quick commerce entities experiencing breakneck growth and spending a lot of money. Although we would want to build a sustainable model because we feel healthcare is a long-term business and build a much stronger proposition.  

Although, consumer behaviour is changing with quicker ten-minute deliveries, and we do not live in a vacuum. Thus, we brought in the 19-minute delivery model. However, ours is also a much more complicated and regulated product. It requires validating prescriptions alongside adhering to rules for disbursing medicines.     

At this point, we have the 19-minute delivery service in top 6 cities and intend to roll it out selectively in others. This has genuinely helped us get better propositions. While it may not be economically viable at this point of time, but it helps get customers.

 Our focus has been to ensure that deliveries are either within 19 minutes, especially emergencies, or 90% within the same day.     

Thus, our underlined objectives now also entail quick turnaround time alongside authenticity, discount and accessibility. The faster I can deliver, I become more efficient, and it becomes a better paradigm.

What purpose would the recently introduced SBI co-branding credit serve? 

Mr. Balakrishnan: A typical patient in SEC-A (top socio-economic class in India) would be spending anything between ₹30,000-45,000 on an annualised basis. If we were to take Apollo 24|7 as a yardstick, 27% of the pharmacy transactions happen on a credit card. Further, it is not more than 6-7% at the physical outlets.

We observed more people are using digital means to make payments because it convenient and effective. Additionally, with credit cards one can push the expenses to the end of the month. Thus, the first objective was to consolidate the mechanism of payment for purchasers in a more organised way.

Secondly, giving value to customers. Partnering with SBI drives better value for our customers. This would be by pooling in our (respective) resources and offering customers up to 25% cash back as savings. This can only be done through a credit card and not a debit card. With UPI as well, the economics would be sustainable neither for the bank nor for us.

Furthermore, we are ascertaining that the savings, which is not just at the pharmacy outlet but overall spend, can be ploughed back. Imagine availing cash back and/or points on the entire spending and investing it back for health needs itself.

The final objective relates to testing. This is to facilitate pro-active care especially in a market like ours bearing considerable potentiality for non-communicable diseases. We are putting in some annual tests free of cost as part of the proposition.

 How does the co-branding card help the overall business?  

Mr. Balakrishnan: We hope to spur the 27% figure on pharmacy transactions through credit cards to about 35-40% because this would help enhance our efficiencies. As for numbers, it would be a steady growth because credit card business also entails underwriting, that is, not everybody gets a card.     

We hope to touch anything between 7,50,000 to 1 million cards over the next 18 months as we build it slowly and steadily.  

We intend to target it to our existing customers and are not exploring anybody coming up. The objective is to reach out to our huge (customer) base and rewarding those who engage with us by providing a product that enhances value (for them) and present a loyalty tool for offering them better.  

Finally, you would also be able to build further value propositions by building a strong core.  

With respect to co-branding cards in general, does the proposition of deep discounting not affect the unit economics of a company?

Mr. Balakrishnan: When this industry started, discount was the only product-market fit.

Why would anyone want to learn a new mechanism of buying (medicines) digitally. While the coronavirus pandemic did serve as a catalyst, the paradigm was retained for the (assured) availability of trusted medicines, because the industry is unfortunately plagued by a lot of counterfeit and duplicate medicines. The Apollo brand affirmed trustworthiness. Further, the digital proposition ensured greater reach and trusted medicines were available at any point of time. What is also essential to note is that an offline store can hold 6,000-7,000 SKUs at a given point of time, compared to online where it could be about 60,000.

About discounting, it used to be as high at 20-22% when it started off. There has been a constant winding down since then. At present, it hovers at around 14-16% in the digital space at least depending on varied retailers. The sustainability of the model however, according to me, would be in the range of around 13% weighted average.

The co-branding card (referring to SBI) ensures a more seamless experience and efficiency.

The cost of collecting cash (for deliveries) is very high. Thus, the uptake effectively brings down the cost of operation. It should also not affect unit economics if I am able to grow 30-40% with more repeating customers, instead, the unit economics would start looking better. However, beyond 13-14% in the industry, it will start eating into the unit economics.