“ It is rather sad but due to the increased urbanization and increased consumption of sugars and microplasts, pharmacy will be the one of the biggest industry in the coming future”_ Namita Thapar(Founder, Emcure)
The above quote by the Shark Tank Host is indeed a great assessment of the downside of the rapid urbanization of the country with one of the biggest consumer market on the planet. So if you are a budding pharmaceutical professional looking to start your business in this rapidly evolving field with one of the potential to be the biggest industry in our country in just a few years, this might be the wakeup call for you.
Since Pharmaceutical Distribution Business requires quite a lot of factors that have to be kept in mind before starting the business, here are key insights and strategies, so that you don’t feel “out” because of your “lack of expertise”.
The Three Key Aspects to building any distribution business are as follows:
1. Licensing
2. Capital
3. Location
4. Contacting Manufacturers
Pharmaceutical Business is of two types Wholesale Business and Retail Business. We shall be incorporating our three key aspects with both these businesses.
LICENSING: For setting up both retail as well as wholesale pharmacy distributors, the documents are required to be submitted so that the business is recognized as a legit pharmaceutical practice by the Government of India. These are some documents :
1.FDA License:It is a license obtained under the Federal Food and Drugs Act.
2. Area: The minimum area required to start a pharmacy, medical shop or wholesale outlet is 10 square meter .
3. Storage Facility: Certain Drugs such as insulin, sera, vaccines etc. are required to be stored in a refrigerator. The outlet is required to have a refrigerator and air conditioned premise.
4. Educational Certificates: You should be qualified with a degree of B. Pharma or M.Pharma.
5. Licensing Fee: For both retail and wholesale licensing fee is Rs.3000/-
6. Registered Pharmacist Certificate: The owner should be a registered pharmacist.
7.Premise Proof: The owner have address proof of the premise if the place is owned or rent agreement with the landlord/landlady, if the place is rented.
Without proper documentation, any pharmacy business is always on the risk of being an illegal business that is guaranteed to be taken down by the authorities along with criminal action against the owner. So the licensing and documentation should be the foremost priority before setting up any pharmaceutical business.
CAPITAL: Any business on the planet requires capital and pharmaceuticals is no exception. Due to the many intricate drugs and medicines that are required with this business the capital can be a bit on the higher side as compared to other businesses however as the saying goes “the higher the risk, the greater the reward” and that is exactly the case with pharmaceuticals. In this field the profit can go up to 10 folds of the amount invested since medicines are a basic need and a daily requirement as essential as food for the chronically ill. For a small scale retail shop, the capital can be around 10-25 lakhs. As for a bigger wholesale the capital can be around 20lakhs-1crore. The capital can be acquired through loans from investors or through the banks. The Government of India also provides Mudra Loan for setting up businesses with amount up to Rs.10 Lakh. The investments should be made properly with sufficient planning and aggressive marketing of your services in order to retain all the expenses made in the business, which makes your business efficient for a long term goal to expand your business or solidify your retail shop in the specific area.
LOCATION: The location of your business plays an important part in determining the sales of your product. This aspect of the business is more essential to retail pharmaceutical shops not so much for the wholesale traders as their business is more driven by distributors, however for retail shop owners location is a very integral part of their business. The ideal location for a retail shop would be near a crowded locality where due to the high population density it would provide a bigger consumer market for the medicines. The retail shop owners can also tie up with a hospital where after giving the required rent for the area can set up the shop inside the hospital where drugs, medicines etc. are needed often on an urgent basis. Once the retail store is successful the owner can expand the business to open more retail stores across different areas in order to set up a franchise of pharmaceutical stores that can help them to maximize the profits through multiple stores. The owner should very carefully decide the location of the store and acquire the required rights to that place in order to avoid any trouble with the locals as well as the law.
CONTACTING MANUFACTURES: In order to successfully run a pharmaceutical business the owner must contact trustworthy drug manufacturers that have been approved by FDA(Federal Food and Drug Association) as having shady manufacturers especially in the pharmaceutical business is not only detrimental to the business owner but also puts the lives of your customers at risk from consuming contaminated drugs. In the case of wholesale sellers they must network with trustworthy distributors whom deliver the right drugs to the retail shop owners as well as the customers.
Thus, these are the key insights and strategies that a pharmaceutical business distributor must keep in mind in order to build a flourishing business in this ever growing and rising field. The world out there has countless opportunities one must strategize and play analytically to grab them, which in turn can reap a huge profit for the risk takers. However as mentioned before the risk should be well thought in order for it bear the desired results. The ever rising need for medicines in the urban world is the perfect opportunity for the rise of pharmaceutical industries , one must cautiously understand the trends and step into this ocean of opportunities to become the next big thing in the country.
Hamswell Life Care stands as the best PCD pharma company, offering high-quality pharmaceutical products, innovative solutions, and comprehensive support. With a commitment to excellence and customer satisfaction, Hamswell Life Care provides reliable and effective healthcare solutions, ensuring the well-being and trust of its clients and partners.
