How Zeelab Is Turning Its Affordable Pharma Play Into A ₹200 Cr Business

Zeelab Pharmacy, founded by Rohit Mukul, is transforming its affordable pharmaceutical business into a ₹200 crore enterprise. Mukul's company aims to correct a market where consumers have historically had limited choices by cutting out unnecessary intermediaries in the supply chain. This approach stems from Mukul's socialist-inspired thesis, which began forming in 2018 after he studied India's pharmaceutical ecosystem.

A key revelation was that a ₹10 medicine could cost ₹100 due to multiple layers of intermediaries. Zeelab started operations in April 2020, initially in Delhi's Rohini. The company's first strategic lesson came when it attempted to scale through franchisees but found that franchisees couldn't ensure inventory maintenance, which threatened the company's affordability promise.

Consequently, Zeelab shifted to a company-owned model for control over its retail network and inventory. This decision increased operational responsibility but also allowed Zeelab to maintain a strong customer experience. The company's stores are typically around 200 sq ft, standardised, and strategically located near customers.

They also serve as local fulfilment points for online orders, creating an "unlimited shelf" effect where the physical store's limitations are compensated by the wider Zeelab network's digital reach. Zeelab's omnichannel advantage lies in its integrated online and offline operations, which contribute equally to its revenue. This approach allows customers to order online and collect or return through an offline store, or order a product not in stock and have it delivered to their home.