Financial Times

Harcourts to expand ‘superdrug’ chain
By Lashica Abeywickrama
Even though leading supermarket chains like Cargills and John Keells have invited Harcourts to set up pharmacies inside their outlets, the Dehiwela-based pharmaceuticals group plans to go it alone and is expanding its own chain of “superdrug” stores.

The company is planning five more branches (in addition to the 10 it already has) this year in areas such as Galewela, Ratnapura and Galle, in an expansion of the new concept of chain-pharmacies. The company’s main competitors are state giant Osu Sala and newcomers Healthguard.

Ahamed Rheyas, Chairman of the Harcourts Group, in a statement last week, disclosed the group plans and future thrust areas like manufacturing, power generation, hospital services, medical malls, Harcourts homes, hotels and travel and the expansion of the pharmacy chain.

In exploring new investment opportunities and diversification, Harcourts is focusing on a mini hydro-power project (Rs 175 million) and waste disposal and recycling project (Rs 150 million).

It has also moved into construction of condominiums with the first project already being initiated at Dehiwala with 48 apartments. To raise money for its increased activities and expansion, Harcourts wants to broaden its share ownership base by offering shares to employees and making them “partners in progress”, in addition to other money-raising options.

“We will be inviting private placements, institutional investors and investment by professional bodies to expand the share base. Still, we will also give preference to our employees by issuing the shares at a nominal value. We then hope to issue shares to the public in two to three years time,” said Mr. Rheyas.

The initial step to train employees for the new moves was held through a recent annual corporate plan workshop titled “VISION -2010” targeting managers and directors from the various departments.

Mr. Rheyas spoke of “change management”. “There is a need to adapt oneself in accordance to the changing business environment. This could be done by being proactive, being transparent, participative and open in working system,” he said, emphasising the need for team building, group working and customer care.

The company will focus more on human resources development, employee career advancement, training and job enrichment. The Human Resources Department is to be strengthened by inducting competent professionals.
Harcourts is the third largest importer of pharmaceuticals in the country.

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