Did you know India is the largest provider of generic drugs worldwide? Globally, India stands at 3rd position in terms of pharmaceutical production by volume and 14th by value.
Over the years, the Indian pharmaceutical market has grown a lot.
At present, there are more than 3000 drug companies and above 10,500 manufacturing units.
India enjoys a heavy demand for pharmaceutical products which is why most people want to make an investment in the sector.
While many want to start their own PCD pharma franchise business, others wonder how they can get or buy a PCD pharma franchise.
In this blog, we will discuss in detail how you can get a PCD pharma franchise. First, let us clear our basic concepts about the PCD pharma franchise.
What Is a PCD Pharma Franchise?
PCD Pharma stands for Propaganda-cum-distribution. In a PCD pharma franchise, a pharmaceutical company gives legal permission to individuals, businesses, and distributors to legally use its products, proprietary knowledge, trademarks, and other information as a part of its marketing strategy.
This is a great business opportunity for both the franchisor (who provides franchise opportunities) and franchise holders.
How to Get a PCD Pharma Franchise in India?
Pharma companies provide pharma products to franchise holders who then distribute these products with proper marketing strategies to earn profit and run their franchise business.
Now, if you want to take up a PCD pharma franchise and start up your own business, there are a few things you need to follow.
Make a Proper Plan
The most important thing before taking up a PCD franchise is to make a proper business plan.
Your franchise plan must include complete information about different products you want to target, channel partners who you want to work with, marketing techniques, financial investment, etc.
If you are a fresher, you need to work very carefully in a franchise business while an experienced individual would know how to handle things easily.
Register Your Company
Before you apply for a PCD franchise business, you need to register your company first. In addition, you need to have a drug license and GST number for your business.
Select Your Area
The next step is to select the area you wish to work in. For this, you need to study different marketing aspects like your competitors, the products they are selling, product price range, and other important factors.
You could also conduct research on the doctors and chemists in your interested area and analyze what would be the most profitable way of conducting your business.
Decide what products you want to sell in your area. Popular product choices are Gynae, Derma, Skincare, and General medicines. You can do your own research and see what are the most in-demand products in the market.
Select a PCD Pharma Franchise Company
This is the most important step. Select a PCD pharma company that offers franchise services in your location.
Research about good pharma companies and make a list of at least 5-6 companies that you want to work with.
Inquire about things like product range, product pricing, marketing, promotional support, terms & conditions, etc, and decide the best option.
Terms and Conditions for a Pharma Franchise
Once you select a company, the next step is to settle the terms and conditions for the franchise. You can have a meeting with the company and mutually agree on different terms and conditions.
Make sure you agree to the terms after negotiating on genuine aspects like product pricing, etc. Especially, when you buy products in bulk, the company generally agrees to your negotiating terms.
This is a common practice in the franchise business.
Monopoly Rights Agreement
If you wish to take monopoly rights of your products, make sure you ask the company to give you the monopoly right agreement. The agreement should contain complete information about the areas you will get monopoly rights for and other important things.
Place the Order and Take Your Franchise
As soon as you are done with all the documentation, you can place your final order. Your desired company will send you the proforma of products and payment details. You can complete the payment and legally start your franchise business.
- Drug Licence No.
- GST No.
- Tax Identification Number (TIN)
How Much Investment Do I Need to Get a PCD Pharma Franchise?
Starting a PCD franchise business needs a good amount of investment. If you are planning to start on a small scale, you might require a comparatively lesser investment.
The major investments you need are :
- An initial investment in buying the franchise (minimum investment of 12 to 15 lakhs is needed to carry out all the important formalities)
- Investment for the smooth running of your market operations
- Emergency investment fund for unexpected scenarios.
If you have an already established business or a company, you would require a smaller amount of investment. However, if you are stepping into the franchise business from scratch, you would need to invest in the following things too:
- TIN (Tax Identification Number)- 4500 rs.
- Drug Licence No. – 5000 rs.
- Company Registration – 8000 rs.
Note: All the above-mentioned prices are roughly estimated.
How Much Money Can I Make From a Pharma Franchise Business?
You can earn a lot of money from a PCD Pharma franchise business. Due to the ever-rising demand of pharmaceutical products, companies offer a good profit margin to franchise holders.
The net rates and profit margin or MRP depend on various marketing conditions and factors.
Speaking of the general margin, companies give 16% to 19% margin to medical stores, doctors, and other third parties on pharma products. After including the GST, the margin can rise up to approx. 28%. Stockist margin is generally calculated at 10 %. Margins on products also vary from salt to salt.
Overall, if you have good relations with the company, you can get a great profit margin and hence, can earn huge amounts of profits.
Benefits of Taking a PCD Pharma Franchise
- No need for heavy investment
- Low-risk investment
- You get higher returns
- No particular experience or qualification required
- You are your own boss
- You can invest in a pharma franchise as a part-time business
How to Choose the Best PCD Pharma Franchise Company?
Choosing a good and genuine PCD Pharma Company in India is very important for the growth of your franchise business. Below are key points you must consider while picking a pharma franchise company:
- The company should provide good-quality products.
- The company should be GMP, ISO and WHO certified.
- The company should provide a wide range of products at an affordable range.
- The company should provide necessary marketing and promotional support.
- The company should have a good reputation in the market.
There are numerous pharma companies that provide additional support like sending free physical product samples and other minor but important things.
Now, if you really want to invest in a pharma franchise business and earn huge profits, Vivaceutical is here to help you. We are a PCD pharma franchise company headquartered in Panchkula, Haryana. We offer services in the form of franchise opportunities and third-party manufacturing.
Don’t believe us? Book a call at 919785701313 and get a free consultation about our franchise model and how you can take up our franchise.