Armenia. The EBRD is helping a leading pharmaceutical company to expand its business

The EBRD has provided a €4.4 million direct investment for 26 per cent equity share to Alfa Pharm, a leading Armenian importer, wholesaler and retailer of pharmaceutical products. The direct loan is supporting the expansion of the company’s network and contributing to stimulating market growth.

The EBRD investment, which is extended under the EBRD Direct Investment Facility programme supporting local enterprises, will help Alfa Pharm continue upgrading its distribution infrastructure, including the introduction of a semi-automated computer-controlled conveying system in the warehouse.

Investment and technical cooperation package
The investment was complemented by several technical cooperation (TC) projects funded by the ETC Fund with a €154,500 grant. The TCs aimed at preparing the Bank’s investment as well as providing post-investment advice.

Thanks to the TC projects the company was able to review and validate the feasibility of its retail development strategy and evaluate expansion options. Financial management accounting was also reviewed and improved and a new internal control system was implemented. In order to streamline Alfa Pharm’s operations the project consultant is helping introduce an Enterprise Resource Planning (ERP), advising on the selection of the best software solution, based on in-depth assessment of the company’s current stance and development plans.

Achieving results
“The consultant’s structured approach was invaluable for identifying an appropriate system and formulating our key requirements,” says Artur Grigoryan, CEO of Alfa Pharm.” The consultants’ team demonstrated a strong sense of partnership, professionalism and hands-on experience throughout the whole process. I highly appreciate the initiative of the EBRD for funding the projects and sourcing such partners for us.”

Since the investment Alfa Pharm has increased its number of employees (over 480 staff), the number of pharmacies it operates (from 48 to 87) and it distributes its products to more than 600 pharmacies and 150 other medical entities in 15 Armenian cities.

Project: Alpha Pharm TCs
Country: Armenia
Sector: Manufacturing and services
Date: 2011
Client: Alfa Pharm
Donor: ETC Fund

Source: EBRD