The pharmaceutical sector in India is on the rise and delving into a PCD Pharma Franchise seems to be the right foray. Many entrepreneurs are trying their luck in this field due to low-risk investments which can yield high returns.
This guide will help you understand how to start a PCD Pharma Franchise in India, including all the legal formalities and tips on choosing the right pharma company.
Defining a PCD Pharma Franchise
A PCD Pharma Franchise is a partnership type in which a company in the pharmaceutical sector gives exclusive rights to an individual or a company to market and sell its products in a particular territory. The franchisee receives exclusive right to market the products, along with prompt assistance in marketing the products and get best quality medicines to sell under his name.
Steps to Take to Open a PCD Pharma Franchise in India
Market Research and Niche Selection
- Determine in advance if you prefer generic versus branded or specialty medicines.
- Select therapeutic segments within anti-diabetic, cardiology, antibiotics, etc.
Choose an Authorised Pharma Company
- Identify GMP certified, WHO-GMP or ISO certified pharma companies.
- Assess their product portfolio, pricing strategies, and franchise conditions.
Legal and Other Compliance Formalities
- Drug License (Wholesaler/Distributor) – Apply for Drug License under the Drugs and Cosmetics Act of 1940.
- GST Registration – To be completed prior to commencement of business activities.
Investment & Infrastructure
- Minimum Investment: ₹2-5 lakhs (varies based on company & location).
- Office & Storage Space: A small office with proper storage facilities.
- Staff: Hire medical representatives (MRs) for marketing.
Agreement & Franchise Terms
- Sign a franchise agreement with the pharma company.
- Clarify monopoly rights, profit margins, and marketing support.
Marketing & Promotion
- Branding: Use company-provided promotional materials.
- Digital Marketing: Create a website, run ads, and use social media.
- Field Marketing: Hire MRs to promote products to doctors & chemists.
Distribution & Sales
- Establish a strong distribution network with hospitals, clinics, and pharmacies.
- Maintain good relationships with retailers for repeat orders.
Advantages of Commencing a PCD Pharma Franchise
- Minimal Investment & Substantial Profits
- Monopolistic Rights in Given Region
- No Need for A Production Facility
- Provision of Supportive Marketing Activities by The Firm
Challenges & Solutions
- Competition – Go for a less competitive niche.
- Compliance Issues – Get a consultant to take care of the necessary licenses.
- Low Sales Initially – Sell with a strong marketing plan.
Summation
With proper strategy and execution, anyone can start a PCD Pharma Franchise in India and reap benefits. Following the above steps of selecting a PCD franchise company, getting the licenses, and using effective marketing will ensure you successfully establish a pharma distribution venture.
Eager to start your own PCD Pharma Franchise? Get in touch with leading pharma companies now!
