In India, the pharmacy business is a perennial industry that is not affected by the country's economic cycles. Furthermore, the expansion of medical centres and multi-speciality hospitals in India has resulted in phenomenal growth in the medicare and pharmaceutical industries in the country. Many entrepreneurs in India are finding success in the pharmacy business because it requires little capital and space.
If you've been considering opening a pharmacy for years, the post-pandemic scenario presents an ideal chance due to market need.
Did you know?
The market of pharmaceuticals in India is the 3rd largest in the world in the terms of volume and 13th in the terms of value.
Different Formats of Pharmacy Business in India
In India, most pharmacy firms fall into the unorganised field of stand-alone pharmacies. Yet, the concept of a chain or township pharmacy is slowly gaining traction in India; however, it is still a long way off. Hospital pharmacies, township pharmacies, and chain pharmacies are all founded under the umbrella of a large corporation or hospital - usually a private limited company.
E-pharmacy is another type of pharmacy that is gaining popularity these days. It operates in the digital age through the Internet and provides medications to customers via mail or specialised delivery businesses. "Online companies" include independent Internet-only retailers, electronic subsidiaries of "brick-and-mortar" hospitals, and platforms for pharmacy enterprises. In recent years, we've seen an increase in e-commerce, including online shopping and the sale of prescription and non-prescription pharmaceuticals. The concept of selling medicines over the internet has been around for more than two decades.
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Investment Required in Pharmacy Business
In India, a small amount of capital is required to start a medicine firm. With a capital of roughly ₹15 to 20 lakhs, it is simple to get started. The size of the business also determines the quantity of investment. If you want to learn how to start a pharmaceutical business that makes a lot of money in a short amount of time, you should plan well and market aggressively.
Steps for Starting Pharmacy Business in India
1. Obtaining Medical Store Licence
The first step in starting a medical store is to get a drug license. In India, selling drugs requires a pharmacy licence, and a retail or wholesale medical shop license can be applied for. To start a general medical business, you'll need a retail drug license. If you obtain a retail drug license, you can work as a chemist. A wholesale drug license would allow you to continue operating your wholesale pharmacy.
Getting a medical licence in India is fairly easy. It can be easily obtained from the following organisations:
- Central Drugs Standard Control Organisation
- State Drugs Standard Control Organisation
You need to fill out the application form and meet the eligibility for opening a medical store and obtaining a pharmacy license in India. After paying the fees, the pharmacy license is granted to you.
2. Medical Shop Licence Requirements
Educational Qualifications - You need to have a B.Pharm or M.Pharm degree in medicine. If you don't have the needed degree, look for a pharmacist willing to offer his name in exchange for a small fee. This degree would be required for registration.
Personnel - When selling drugs to customers, a knowledgeable person must be present at the counter. One of the following is an example of a competent person: A individual with a bachelor's degree and one year of drug-selling experience.
- A licensed pharmacist.
- An individual with an SSLC degree and four years of expertise dealing with drugs.
- Only after you meet the above-mentioned medical shop licensing standards will you be issued a medical store licence.
3. Documents Required
To operate a medical store and receive a pharmacy licence in India, you must fill out an application and meet the eligibility requirements. The pharmacist license is provided to you after you have paid the costs.
The following is the list of documents that are required for setting up a medical store –
- Covering letter duly signed by applicant
- Application form
- Payment of fee proof
- Declaration
- Possession proof of premises
- Blueprint of premises
- Identity proof with photograph
- Partnership Deed / MOA / AOA
- Proof of non-conviction as per Drugs and Cosmetics Act
- Affidavit
4. Registration-Related Formalities
The Indian Pharmacy Act, 1948, requires you to register your medical store. Your retail, medical store might be set up as a sole proprietorship or a partnership. If you work as a chain or hospital pharmacist, you can register your company as a private limited company. It is also necessary to register for GST. A GST number should be obtained by all pharmacists, and GST should be paid on time.
5. Financial Requirements
Finance is a critical component of every company's success. For small and medium-sized business entrepreneurs, obtaining the necessary funds can be a daunting challenge. You should conduct extensive research if you want to learn how to build a medical store in India for a little cost. To establish a small pharmacy firm, you'll need between ₹15 and ₹20 lakhs in the capital. By reinvesting your profits, you can progressively expand your company's size. The initial investment would be determined by the location and size of the business. You can make the initial investment either out of owned or borrowed funds.
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6. Supplies Procurement
To run a successful pharmacy business, you'll need to keep a wide range of medications on hand to fulfil the needs of your consumers. You should keep a stock of various pharmaceuticals on hand because it boosts sales and improves your medical store's reputation. You should also have a refrigerator in your store to hold immunisations, insulin injections, sera, and other medications. To increase revenue sources, having a large stock of drugs is critical. To improve sales, you might form partnerships with hospitals and doctors.
7. Staff Hiring
To start a firm, you'll need a workforce. A passionate and committed team of employees propels a company to its pinnacle of success. You'll need a workforce that knows about drugs if you're running a pharmacy. Staff with prior experience working in a medical store and a thorough understanding of medicine should be preferred. Your medical store's employees should be swift and provide prompt service. Customers should not be kept waiting for long periods. Prompt customer service will result in great word-of-mouth for your medical store.
8. Marketing
Every business's success is based on an effective marketing plan. In today's world of fierce competition, it's more important than ever to advertise your company. You should aggressively market your freshly opened medical store. You can market through both old and modern ways. Advertising your medical shop on the internet is also a fantastic idea. You can have your medical store's website built and accept online orders. Your website should be visually appealing as well as informational. For a medical store, an SEO-friendly website would bring in more customers. Customers can also receive free medicine delivery to their homes.
Conclusion
The demand for medications never decreases, making a medicine business a valuable business option for entrepreneurs. In recent years, the number of hospitals and clinics has increased dramatically, and it has increased the demand for medicines even more. As a result, the pharmaceutical industry offers many options to young and prospective entrepreneurs.
The correct documentation is only the first step in getting your pharma-shop up and running. Even after obtaining all necessary documentation, certain eligibility requirements must be completed. Given the projections that the domestic pharmaceutical sector would grow to ₹6500 crores by 2024, now is the best moment to get started. We hope that this article has explained to you in detail the requirements of starting a pharmacy business in India.
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