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PCD (propaganda cum distribution) pharma franchise is one of the best business models in India, which involves distribution or sales of medicines in a specific area, with monopoly rights. India is a good place for this business because of the large population and high demand for medicines in any segment.
Starting a PCD pharma franchise is an amazing idea, but let’s be realistic, and we need money for everything, even if it is for a small business. You might have a lot of questions in your mind about how you should invest in the business, what products to buy for initial stock, and how much the segments actually cost. We assure you that this blog has everything you need. In this article, we will discuss what PCD pharma franchise cost and profit in India.
A PCD franchise is given by the pharmaceutical company to entrepreneurs, health professionals, pharmacists, and sometimes even wholesaler/retailers to sell their therapeutics in a specific territory. There are various benefits of starting a PCD franchise, such as monopoly rights, high margins in certain segments, low investment in R&D, marketing support, and more.
Now you might be thinking, how much will it take me to buy this franchise?
The investment you will require to buy a franchise is from ₹50,000 to ₹2,00,000.
If it is a small setup, then it would be between ₹15,000 and ₹30,000, but if the setup is big, it can be up to ₹5 lakhs
Initial stock
For initial stocking, you can keep some basic and general medicines such as anti-infectives, Antibiotics, antivirals, anti-bacterials, anti-analgesics, anti-inflammatories, nutraceuticals, etc. The minimum cost of investment you would require is ₹30,000 and ₹100,000.
Drug license and GST registration
A drug license is necessary to own a PCD pharma franchise; it is a certification by the state authority to sell medicines legally. GST registration is also important for collecting GST while billing; the cost of both is ₹10,000 and ₹25,000.
Marketing cost
Marketing cost is a necessity in any business so that you can generate more leads; some pharma companies give visual support for marketing, such as posters, product portfolios, MR bags, visiting cards, etc. However, a lot of companies require some money to have marketing support. The average marketing cost is ₹2,000 to ₹30,000. If you are planning to have independent marketing in clinics and hospitals, you may require ₹5,000 to ₹30,000.
Office
The average cost of an office for operating your business can be ₹10,000 to ₹20,000, but you can start from home if you want to cut some costs.
Size territory
Size of territory determines your cost of investment; it determines your stock and the marketing support needed. Here is a breakdown of cost based on size:
|
Village or tehsil |
₹25,000 to ₹50,000 |
|
Small district or town district |
₹50,000 to ₹1,50,000 |
|
Standard district or |
₹1,50,000 to ₹3,00,000 |
Transportation
Transportation is another crucial aspect of the business, which involves timely delivery of medicines to clinics and hospitals; estimated transportation cost can be ₹5,000 to ₹15,000.
Now you might be having questions about how much stock from each segment costs; we have carefully researched everything for you in the given table below:
|
General medicines (tablets, syrups, and basics) |
₹25,000 – ₹50,000 |
|
Chronic care (cardiac, diabetic, and hypertensive) |
₹40,000 – ₹80,000+ |
|
Speciality products (injectables and heavy care) |
₹1,00,000 – ₹3,00,000+ |
|
Derma and cosmetics (skin cream, ointment, and lotions) |
₹50,000 – ₹1,00,000 |
|
Nutraceuticals and wellness |
₹30,000 – ₹75,000 |
You can refer to this table if you are confused about what segment you should start with.
|
Tablets and Capsules |
20-35% |
|
Syrups and Suspensions |
25-40% |
|
Injectables |
15-25% |
|
Dermatology products |
40-60% |
|
Nutraceutical and Ayurvedic products |
35-55% |
Some tips to keep in mind while investing in a PCD pharma franchise in India:
Medexone is considered the best PCD pharma franchise in India; we were established in 2010. We provide high-quality medicines that are certified by ISO and GMP. We are proud to say that we sell unique category pharma products such as liver, cardiac, and urologic. We also offer distributorship for our pharmaceutical products on PCD, as well as franchises. Our distributors and franchisees are supported with all types of promotional materials, including literature, samples, M.R Bags and visuals. Our esteemed clients also have access to contract manufacturing services. We invite you to become our partner in the pursuit of your dreams and help us achieve them.
Key features:
One of our partner franchises started their business from home by having a range of basic products such as anti-infectives, anti-inflammatories, gastrointestinal, and cardiac-diabetic. The start was slow, but it grew over time. They started seeing their ROIs increase by 30% in 6 months, and it became 70% in 10 Months.
If you are looking to start a PCD pharma franchise in India, investment is a crucial part; you will invest from Rs 20,000 to Rs 5 lakhs on average to start this business model. You will need cost for diffrent aspects of from basic stock to transportation. Medxone is the best PCD pharma franchise company to start that fill all the requirement of good quality of medicines for your business.
Q.1 Which segment product should I buy for initial stock?
A.1 The segment that can be bought as initial stock is anti-analgesics, anti-inflammatory, anti-infectives, nutraceuticals, ayurvedic range as their product can be bought by everyone.
Q.2 Can a PCD pharma franchise be started from home?
A.2 If you are trying to start a franchise but you want to cut costs, you can start from home.
Q.3 Why are speciality medicines more expensive?
A.3 Speciality medicines are more expensive because they require extra care for manufacturing and packaging.
Q.4 Do I need a drug license to start a PCD pharma franchise?
A.4 Owning the drug license is mandatory to start a PCD pharma Franchise.
Q.5 How long does it take to have a return on investment in a PCD pharma franchise?
A.5 It takes up to 6 to 12 months to have a return of investment in PCD pharma franchise.