The rising demand for medicines and affordable healthcare and the eye-catching benefits of a PCD Pharma business has made the pharmaceutical industry one of the fastest-growing industries in the country. The growth rate of the pharmaceutical market has been more than 15 percent over the last five years. This growth is going to be sustained in the coming years if we go by the experts. A PCD Pharma business offering good profit margin promotional support and Monopoly rides along with other benefits and the scope of the growth in the pharmaceutical industry constitutes a pretty luring opportunity.
The PCD Pharma franchise business enabled the Pharma professionals to build a business of their own with comparatively less input. It gives them the opportunity to be their own boss and work for themselves instead of working for a pharmaceutical giant and adding to their wealth directly. Though a PCD Pharma franchise is a business model that attracts almost every person desiring to own their own business there are some requirements to be fulfilled before venturing into this entrepreneurship.
Educational qualification
Though the pharmaceutical company doesn’t demand any specific qualification to grant the PCD franchise it is expected to have a basic level of education and a decent qualification. however, in some cases, it may be compulsory to have at least a senior secondary certificate (SSC) or 12th certificate from a recognized board or a graduation degree in rarer cases.
Experience
A PCD Pharma business is largely a product and money flow business but it does require a certain understanding of the pharmaceutical industry and how things work in this industry. One is supposed to be able to tell a good quality product from a bad quality one. It is also required that one has an idea of how the rate mechanics work and how to negotiate to come to a rate that is suitable for both parties. The PCD Pharma franchise business also demands strong connections with relevant contacts which can be gained through experience. Hence, a working experience of a minimum of two to five years in the marketing or sales department of a pharma company is ideal before getting a PCD Pharma franchise of your own.
Investment
For a business to be owned by oneself, the investment that a PCD Pharma franchise demands is quite low in comparison to other options available in the market. A PCD is a smaller version of a pharma franchise and it has a low sales target (if any at all), hence, it requires a smaller investment. It further varies from company to company that how much you will have to invest in the beginning. The minimum initial investment can be as low as 40,000/- to 50,000/- rupees and can go up to 4 lacs. However, this investment can be further reduced by hiring a stockist who will get a certain percentage of the profit at the end of the transaction.
The investment is broadly divided into two categories which are- fixed capital and liquid capital. The fixed capital is the One Time Investment that goes into fixed assets like building (if applicable), vehicle, equipment, etc. The liquid capital however is the recurring investments that go into liquid assets like rent of the shop (if applicable), office staff wages, promotional and marketing expenses, and other expenses.
Licensing
Since the pharmaceutical industries produce drugs and medicines that may become the reason for the life or death of a person, there are licenses and registration compulsory to run a business in this industry. These licenses act as a legal permit of the government granted to the company to carry out its operations. These licenses are made compulsory under the Drugs and Cosmetics Act, 1940. These licenses are issued by the Central Drugs Standard Control Organisation and State Drugs Standard Control Organisation.
Wholesale drug license
A wholesale drug license in India, issued by a district drug licensing authority appointed by State Drugs Standard Control Organisation, is required to run a PCD Pharma franchise. This license is issued to a person who intends to sell drugs and medicines on a wholesale level. It is necessary for every company to start distribution or marketing in India.
Goods and Services Tax Identification Number (GSTIN)
Another important approval document that is needed to start the PCD Pharma franchise business is a GST number. It is a unique 15 digit number that has replaced the Tax Identification Number after Goods and Services Tax (GST) was implemented. This number is issued to a dealer or supplier within the GST regime.
Registration
Food Safety and Standards Authority of India (FSSAI) registration
To distribute medicine and drugs along with food and dietary supplements an FSSAI registration is mandatory. There are three types of registration under FSSAI. The eligibility and procedure needed to be examined before selecting a specific category.
Shop and Establishment Act Registration
Depending on the area of your business you may or may not be required to register your shop. This is a varying process with respect to the region. This can be confirmed at the local authorities like municipality committee or gram panchayat whether or not shop or establishment registration is required.
With these licenses and registrations, along with PCD business, you can carry out businesses related to:
Prescription Drugs Distribution
Over Counter (OTC) medicine distribution
Surgical Dressings business
Medical devices supply
Active Pharmaceutical Ingredients (API) trading
Food and dietary supplement supply
Ayurvedic and herbal medicine supply