Investment Requirements to Set Up a PCD Pharma Franchise Company in India

Setting up a business and managing its daily operations require funds. It doesn't matter which type of business you're investing in or the size of the operations, some investment is necessary. The same rule applies to establishing a pharmaceutical company like Vivaceutical or setting up a PCD pharma franchise in India. Pharma companies, whether involved in the manufacturing or marketing of pharmaceuticals, bring world class healthcare solutions to the consumers. However, to bring quality products and a broad range of quality medicines to the forefront, these pharma companies have to invest a good sum in their business.

When it comes to a PCD pharma franchise business, these are responsible for marketing affordable pharmaceutical products that are produced by pharma companies. Since they're not expected to have an elaborate structure, be technologically advanced or take care of production, their investment requirements are comparatively less. However, they're never nil.

If you're thinking about setting up a PCD pharma franchise, you must be prepared for some of the following expenditures.

Investment Requirements of PCD Pharma Companies in India

The owner of a PCD pharma franchise in India is required to set up a business, and apply for all crucial licenses and registrations before they can operate their franchise business. This initial step in itself requires quite a lot of investment from the owner.

Apart from these, the business requires land, an office, some equipment, electricity, a medical representative to recruit, and marketing and promotional costs to pay off. Here is a summary of some of the most crucial investments:

Land/ Area to Set Up Business

If you're setting up a franchise, you can start with an area as small as 15 sq. meters. Therefore, it all comes down to the amount or variety of products you'll be dealing with. Even if you start with a small establishment, you can invest in other storage units and warehouses as your business grows.

Business Registration and License

To collaborate with a PCD pharma franchise company, you must first have a registered business. You will have to apply for some licenses as well.

To register, you decide on the type of business structure you want to follow and then file the necessary documents. This comes with a fee. Registering for a company name, its trademarks, and tax identification number also require some expenditure. Finally, to set up a pharma business, you need to apply for a drug license and more.

Equipment and Storage Requirements

From equipping the outlet with furniture and furnishings, computer and electronic equipment, to heating, ventilation, air conditioning system (HVAC), and airlock system. While these fixed assets only require a one-time expenditure, some of them add to your long-term electricity bill.

You must also invest in refrigerators for different vials or ointments that require cool storage as opposed to other medications. If you're dealing in a larger batch of products, you will have to invest in separate storage units for the safe and hygienic storage of all medications. These units would require a 24/7 supply of electricity and water. You'll also have to increase the number of staff you employ as you grow the size of your business or choose different locations as a storage site.

Wages of Medical Representatives and Healthcare Staff

From skilled staff, medical representatives, and healthcare professionals to dedicated customer service unskilled staff that take care of your storage units, you need to recruit some employees and pay them a regular wage for their services.

Marketing and Promotional Costs

As pharma distributors, PCD pharma franchise companies are responsible for the sole marketing and promotion of the pharma products they're putting out into the market. You'll have to make frequent visits to potential customers to persuade them to do business with you. You might be required to give out free samples of your medications to bring them onboard.

Franchise of a PCD Pharma Company: The Most Economical Business to Invest in?

The investment needs of a PCD pharma franchise are relatively low when compared with the pharma company that has to manufacture all the pharmaceutical products and follow quality measures to stay relevant in the pharma industry. In other words, a franchise can be your most inexpensive and safest bet when establishing a business.

• You do not have to invest in Who Gmp certified facilities and manufacturing units.

• You do not have to take on any manufacturing process for the products you sell.

• Your outlet must only surpass the basic requirement of 15 sq. meters to take a PCD pharma franchise.

• You do not have to invest in the latest technology and machinery as you're not responsible for manufacturing your own pharma products.

Some pharma franchise companies in India might also prefer outsourcing the manufacturing of their pharma products. This is another way to set up your own business without investing in huge manufacturing facilities, quality checks, and more. With third party manufacturing, a pharma company can save up on a lot of initial and recurring expenditures. (However, contract manufacturing is not as economical as a PCD franchise.)

On the contrary, a pharmaceutical manufacturer has to expend a lot more than either of these two businesses.

A pharmaceutical manufacturer has to continuously increase the size of their facilities, as the demand for more products increases.

They're also expected to provide high quality healthcare to the customers. They must ensure the quality of every pharmaceutical formulation before making them available to associates for distribution. Therefore, such companies must follow consistent quality control measures and recruit pharma professionals for the production of medications.

These companies must also take on the task of manufacturing products of all therapeutic segments, whether allopathic medicines, herbal medicines, homeopathic products, or more. They must also have enough bandwidth to manufacture different types of pharma products like capsules, tablets, injections, oral liquid, dry syrups, etc.

Ending Words

A PCD pharma franchise company in India brings one very lucrative business opportunity to the table. Its minimal investment requirements and high returns make it a favorable choice for entrepreneurs across the country. However, it is best realized that minimal investment does not mean 'no investment'. No matter the size of the business, you'll have to plan a budget and make arrangements so you don't end up in a drought too soon. This means that not only do you require an initial and secondary investment, but also need to set some money aside as part of the emergency fund.

The better you plan your expenses, the easier it should be to take on the role of a franchise owner.

Vivaceutical is the nation’s leading PCD pharmaceutical franchise company, garnering the reputation of a high standard pharmaceutical third party manufacturer, distributor and a top PCD Franchise Company in India.