Medicare

Medicare has established a modern pharmacy, health and beauty retail franchise in Myanmar.

Overview

  1. Providing a modern and professional pharmacy, health, beauty and personal care store concept which is new in Myanmar but proven in other ASEAN markets such as Thailand, Vietnam
  2. Consumer spending is expected to triple from US$ 35 billion to US$ 100 billion by 2030
  3. The joint venture was set up with experienced partners: (i) an established retail group which runs a leading pharmacy, health and beauty retail chain in Vietnam and (ii) an industry veteran with significant experience leading Asian-based retail concepts including Wal-Mart in Korea and India, VinMart in Vietnam and Reliance Markets in India

Invested : US$895,000, planning to increase this to US$5 million
Date of investment: 4 May 2017
Effective interest held by MIL: 47.1%

Business Attraction / Investment Thesis

McKinsey has predicted that the middle and affluent classes in Myanmar are set to boom in the coming years, with the segment growing to 19 million people by 2030 and tripling consumer spending from US$35 billion to US$100 billion. Elsewhere in Asia the trend has been that consumer spending on semi-necessity items, especially health related goods, grows sharply with this increase in discretionary spending.

Transaction

Having thoroughly investigated the sector in Myanmar, MIL identified a significant gap in the market for a modern and professional pharmacy, health, beauty and personal care retail outlet. MIL, therefore, conducted a regional search for suitable joint venture partners for this start-up business.
In May 2017, MIL set up the joint venture with two partners to introduce the new store concept in Myanmar which, nevertheless, is proven in ASEAN countries like Thailand and Vietnam: an experienced retail group that runs a leading pharmacy, health, beauty and personal care retail chain in Vietnam; and an entrepreneur with decades of experience leading Asian-based retail concepts in 9 countries including Wal-Mart in Korea and India, VinMart in Vietnam and Reliance Markets in India.
MIL invested US$895,000 and holds a 47.1% stake in MIHB and will invest approximately US$4 million more over the next few years as the business expands.

MIL value added

As a proactive Myanmar-based investor, MIL has been engaged with the company both operationally and strategically including on the ground support e.g. site selection, staff recruitment and setting up the financial systems and controls.