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Starting a business is not an easy task; there are a lot of things that matter before starting one. This even goes for a PCD pharma business. PCD (propaganda cum distribution) pharma business is a business model which involves distribution or sales of therapeutics or medicines of a pharmaceutical company in a defined area. There are various features of the PCD pharma business, which include: high profit margin, low initial investment, monopoly rights, a wide range of products, marketing and promotional support, and flexible and zero support.
In India, there is a particularly high chance of a successful PCD pharma business because of favourable government policies and high demand due to a large population; there is high turnover in the pharmaceutical industry of approximately ₹20,000 to over ₹1,50,000+. But before you make any major decision, here are the top 10 factors to know before starting a PCD pharma franchise in India.
keep these factors in mind before starting PCD pharma franchise in India, these can majorly effect the growth of your business;
Choose a reliable company for starting a PCD pharma franchise; try to choose a company that has good experience in the pharmaceutical field. They should have up-to-date technology and machinery for formulation of safe and effective medicines. Make sure that they produce medicine using ethical and sustainable procedures.
Key points:
Monopoly rights are an important feature of a PCD pharma franchise; it involves exclusive rights for the partner franchise to sell medicines and therapeutics in a specific area. It prevents any other competitor from selling therapeutics in that area; it lets you maintain steady pricing for your products and improves customer relationships. It is important that you get monopoly rights written in the contract.
Key points:
If you have just started a business, to get some initial wins, you can start with fast-moving inventories. You can keep general and certain segment-specific medicines such as cardiac-diabetic, orthopaedics, dermatological, and gynecology and obstetrics-related medicines. Then you can keep some medicines that are required throughout the year for all age groups. Do your research for the market you are going to sell in and see what kind of medicine is in demand.
Key points:
Collect legal documents to sell medicinal products legally; the documents may include a drug license from the state authority, GST registration for collecting GST from consumers, PAN card, and identity proof such as Aadhaar card.
Moreover, you will also need quality compliance from authorities like WHO, ISO, GMP, and GLP, and DCGI control.
Compare the company’s net price and the MRP; your profit is mainly dependent on that. It is better if the gap is bigger. Always compare prices from 3-4 companies before finalizing; the competitive rates should be between 20% and 50%.
Almost all pharmaceutical companies provide promotional support to their partner franchise; this marketing support may include visual aids, such as brochures, posters, MR bags, free samples for trials, visiting cards, and portfolio booklets. Make sure you use that promotional support while promoting the PCD business.
Manage your inventory according to the needs of the market in your territory; keep your stock ready with medicines that are in high demand. Inventory should be in a safe and hygienic place. You keep the inventories according to the highly referred medicine by the doctors.
Researching the market is a vital part of the business; make sure you research the demography of the territory and the demands of that demography. Researching the enviroment and socio-economic conditions of that area can also help you keep inventory, and invest on your promotions accordingly in that specific territory.
A PCD pharma company that has good logistics services and network is crucial for PCD business. It is important to have good quality logistics for having supply of products safely and on time. There could be a sudden spike in certain medicines in certain seasons of years; having quick supply of medicine can be crucial.
A strong digital presence through social media marketing and digital promotion of your business can leverage your sales of medicines by increasing the scope of your audience. Let your business shine through a good social media presence.
Medxone is one of the leading pharmaceutical companies that makes high-quality products at affordable prices. We make a range of products such as syrups, tablets, capsules, powders and granules, dry syrups and soft gels. Our mission is to create a customer-centric culture by improving healthcare needs through quality, innocence, and originality. Our vision is to become a leading PCD pharmaceutical company at a global level with an increased focus on standards, visionary research, unmatched quality, and service through affordable and accessible healthcare.
Key features:
Starting a PCD pharma franchise in India can be a smart, low-investment way to enter the pharmaceutical business, but success depends on the decisions you make before you sign any agreement. Choosing a company with valid licenses and WHO-GMP or GMP-certified manufacturing, a product range with real demand in your territory, and a clear agreement on monopoly rights, pricing, and minimum order quantities will protect you from the most common risks. Just as important are the practical details: your own drug license, realistic start-up costs, the company’s marketing support, quality control, timely delivery, and return or expiry policies.
You can choose Medexone for your franchise business, as we provide our partner franchises with the best possible benefits
You can go to the website at www.medxonehealthcare.com and fill out the form given there or call us at +919817867359.
Q.1 What is a PCD pharma franchise?
A.1 A PCD pharma franchise is a business model in which a distributor sells medicines or therapeutics in a specific, defined area given by the parent franchise.
Q.2 What are some of the products that I could keep as initial stock in a PCD pharma franchise?
A.2 It depends on the demand of your market in your territory, but you can start with anti-infectives, anti-analgesics, anti-inflammatory, nutraceuticals, and dietary supplements.
Q.3 What certifications should I check in a PCD company?
A.3 Look for certifications such as WHO, ISO, GMP, and GLP for safety and quality regulations for medicines.
Q.4 Is it mandatory to own a drug license for a PCD pharma franchise?
A.4 Yes, it is mandatory to own a drug license for a PCD pharma franchise to legally sell medicine in a particular area.