How to Start A Pharmacy Business In India:
Well, If you are planing to start a Pharmacy in India, then this “How To Start A Pharmacy Business In India” is for you.
Pharmacy and Chemist store are the final step of medicines distribution channel and these are the store where you get direct contact with customers i.e. patient and/or his caretaker. Pharmacy and Chemist store are highly profitable and is also a charitable business. This article will provide you the complete information about how you can start pharmacy and retail business.
For starting a pharmacy or chemist business, you need a Retail Drug License Number which is issued by the Drug Control Department and must employ the services of a registered pharmacist. Along with the drugs, pharmacy and chemist shops should also sell food and dietary supplements, Ayurvedic Preparations, Cosmetic products and OTC products. Online Pharmacy is also good start that is becoming popular in the pharmaceutical sector.
Pharmacy:
Pharmacy is medical store or shop or place where drugs and medicines are dispensed, compounded, prepared under supervision of a registered Pharmacist, under the prescription of a Registered Medical Practitioner.
Difference between Pharmacy and Chemist Shop:
What is the difference between Pharmacy and Chemist Shop. Both are medical dispensaries and work same in many aspects. But have some difference in their operation and functioning. Both these medical dispensaries required the presence and supervision of the Pharmacist during working hours.
Pharmacy is the place where compounding, preparation of drugs and medicines as per patient requirement is conducted along with dispensing of pre packed drugs and medicines dosage form, whereas chemist shop is a place where only dispensing of pre packed drugs and medicines dosage form is conducted.
Area Required and Premises Requirements for Pharmacy Business:
The minimum area required for starting Chemist Shop and Pharmacy is 100 – 200 Sqft. Premises should have enough space for refrigerator, racks, pallets, sitting, etc. Walls and floor should be cemented and concreted roof. There should be no cracks and flake should be present in store premises.
Competent Person (Registered Pharmacist) for Pharmacy Business:
The pharmacist is compulsory for handling daily activity in pharmacy and chemist shop. All the main activities can be carried out in retail pharmacy and chemist shop under the supervision of a Registered Pharmacist.
A Registered Pharmacist is a main concerned person, who holds a diploma, degree or doctorate in Pharmacy and his/her name is entered in the register of the state pharmacy council in which the person is residing or carrying on his profession or business of pharmacy.
Documents and Requirements for Pharmacy Business:
Once the application has submitted in prescribed form to district drug inspector or drug selling authority office. The Application is submitted should be filled with detailed information
Application Form for Pharmacy Business:
Pharmacist registration certificate photo copy. If the business owner orany of thepartnersare not registered pharmacist, You can submit the appointment letter and affidavit of the appointed pharmacist along with a registration certificate copy of the pharmacist.
- Academic qualification certificates of pharmacist.
- Date of birth proofs.
- Prescribed fees.
- Premises documents or in case rented premises, rent agreement.
- Purchase bill receipt photocopy of the refrigerator.
- Partnership deed in case of partnership firm.
- Affidavit of proprietor or partners.
- Address proof.
- Blueprint/layout plan of the premises in 3 copies.
How to Start / Procedure Pharmacy:
The main and important thing that plays key role in starting retail for medicines is Location. Your income mainly depends on the location of the chemist shop and pharmacy. Location should be chosen based on the factors like doctors, clinics, population, already existing number of chemist shops that should be considered before considering a location for opening a pharmacy and chemist shop.
Apart from the location, your premises should fulfill minimum requirements like area require, cemented floor and walls, concrete roof, etc.. And the next important thing is fulfilling requirements of a Pharmacist. If you are a registered pharmacist, then you don’t need any other person, but if you don’t have Pharmacist Registration then you have to employ a Pharmacist as competent person to carry out Pharmacy/Chemist/Druggist Daily Activity.
Pharmacy Business Plan:
- The First step is searching for required space at Prime Location.
- Make good research and survey about general medicines, prescribing habits of doctors, etc.. and the products running in that area.
- Select the distributors and suppliers of medicines and other products near to your location.
- Get ready with rental agreement of the premises, if premise is rented.
- The Shop should be registered if it’s your own or if it is necessary.
- If you are not professional pharmacist, appoint a professional who has good experience.
- Arrange and decorate premises according to the medical store standards.
- Prepare blue print of premises
- Get ready with air conditioner and refrigerator.
- Arrange all the documents.
- Go to nearby Drug Control Office.
- Submit request application for retail license for sale, purchase and exhibition of medicines manually and/or online.
- After successful submission of application, drug inspector or any other authorized person by government will visit and inspect premise and check manually about authenticity of documents and premise
- If Drug Authority is satisfied with all formalities. Your application will be approved, and drug authority will issue a letter for grant of drug retail.
- Drug authority will issue a drug license number once they are satisfied with the documents and premises. Once you get the drug license number, now you’re authorized for sale and purchase of medicines and drugs and related products & services can be carried out at retail basis.
Initial Investment Required for Pharmacy Business:
Initial investment depends on the location, area, city, etc. You need a shop or premises to start Pharmacy outlet or chemist shop. The shop or premises should be owned or rented. In case of owning a shop, you can add the purchase cost in investment. Purchasing own premises or shop is not possible for in case of startups. Instead of purchasing, renting a premises or shop is best option.
Rent and/or cost of premises may vary with the location. So, add the cost of purchasing or rent cost to the initial investment. If rent is 6000/- per month. The Salary of the pharmacist salary also depends on the place. If you appoint a fresher the salary can be around 12000/- to 15000/-, if appointing an experience candidate, the salary can be high.
Next the business plan should be listed with, decoration and interior expenses that depend on your need. A simple interior will cost less, and high-profile interior will cost high. Furniture, fitting and chair,etc. Will cost approximate 30000/-. Refrigerator cost is approximate 9000/-. The License cost and documentation may cost approximately 6000/- to 10000/-. And other miscellaneous expenses can be approximately 15000/- to 20000/-.
Above listed expenses are without purchasing medicines. These costs may vary based on many factors. Investment amount for purchasing medicines also varies according to stock you purchase in starting and cost of medicines you purchase. All most all the retailers get medicines at credit from wholesaler and distributor.
Inspection in Pharmacy Business:
Inspection is done by Senior Drug Inspector/Drug Inspector or any other person appointed by state government time to time for inspecting pharmacies and chemist shops. If all facilities, documents, competent person detail and other areas per the rules, then your application file ahs will be processed for issuing retail drug license. In some cases, the file will be returned for amendments and/or rejection.
Profit Margin in Chemist/Pharmacy/Pharma Retail Shop for Pharmacy Business:
Profits of chemist shop vary on product to product, but generally 16-20% margin is provided to retailers by most of the companies with the scheme. In case generic medicines, the profit margin increases to higher side Pharmacy and Chemist Shop should also deal with Ayurvedic Medicines and Food/Dietary Supplements along with allopathic medicines.
FSSAI (Food Safety and Standards Authority of India) Registration for Pharmacy Business:
If pharmacy and chemist shop want to sell food and dietary supplements along with medicines and drug. Then it must be registered itself under FSSAI. Read in detail about how to apply for FSSAI Registration?
Shop Registrationfor Pharmacy Business:
- Shop registration requirements depend on the area. Before starting pharmacy business, the first step is to register the shop or any other registration in the locality.
Important Definitions related to Chemist Shop and Pharmacy:
- Drugstore: it is a word is used for such licensees which doesn’t require the services of a qualified person.
- Chemists and Druggists: it is a word is used by such licensees who employ the services of a Registered Pharmacist but who do not maintain a “Pharmacy” for compounding against prescriptions.
- Pharmacy, Dispensing Chemist : it is a word used by such licensees who employ the services of a Registered Pharmacist and maintain a “Pharmacy”.
Top 8 Pharmacy Franchise Business Opportunities in India:
- If you want to start a medical store or medical pharmacy business?
- And are searching for best pharmacy franchise opportunities?
- Find here a list of top 10 best pharmacy business opportunities currently available.
- The medical industry is growing fast. And it is an evergreen industry. Though you can open a medical store of your own, initiating a franchise could be an option for beginners.
- There are numerous brands available in the market for several products. And if you start as a franchise partner of an established brand, you don’t need to think much.
- The healthcare industry is running with huge profits. The increasing number of multi-specialty hospitals, polyclinics, corporate wellness programs, medical tourism are boosting the market too. So, just go through below information to know about the best pharmacy franchise business opportunities.
- Sanjivani Pharmacies: Sanjivani is from NB Marketing Pvt. Ltd. It sells allopathic and homeopathic medicines. Along with that, it also offers Ayurvedic medicines. The company also supplies, OTC, surgical and general daily use products. Sanjivani is initiated in the year 2006. They started franchising in 2015.
The Sanjivani franchise pharmacy has many benefits. The franchise offers visual aids, reminder cards, and gift items from the branded company. Your pharmaceuticals store would get the promotion from the brand company.
This pharmacy franchise offers monopoly rights. Sanjivani pharmacy franchise Unit Investment is Rs. 10 lac to 20 lac.
- Medlife International Pvt. Ltd: Medlife is the largest online pharmacies and service provider in India. The company started the franchising/ distribution in 2017.Medlife is a Bengaluru based health care company. This pharmacy franchise offers great business opportunities. Medlife International Pvt. Ltd pharmacy franchise Unit Investment is Rs. 10,000 to 50,000.
- Easy Medico: Easy Medico is one of the biggest online pharmacies. The franchise offers all kinds of pharmacy and wellness needs. Easy Medico complements its offline format; It is presented online in web and mobile. Easy Medico pharmacy franchise Unit Investment: The investment required is Rs. 10 lac to 20 lac.
- Ria Lifesciences Pvt Ltd: Ria Lifesciences Pvt Ltd is the popular manufacturer, distributor, and supplier of pharmaceutical products. Ria Lifesciences has around 50-100 outlets all around India. Ria Lifesciences Pvt Ltd pharmacy franchise Unit Details is Rs. 10,000 to 50,000.
- Medplus pharmacy:Medplus pharmacy is one of the largest retail franchise chains in India. It has a network of pharmaceutical store in 12 states. There 1350 medplus stores running successfully pharmacies.The Franchisee can avail a credit facility or loan from State Bank of India. Medplus pharmacy franchise Unit Investment is Rs. 10 lac to 20 lac.
- MedZone: MedZone pharmacy outlets from Ethix Healthcare. MedZone Pharmacy offers Ethix pharmaceutical products at very low prices.The investment cost to open a MedZone pharmacy franchise outlet starts from 2 lac rupees depending on the space and location.
- Apollo Pharmacy Franchise: Apollo Clinic franchise can be one of the best franchise opportunities in India if you consider the rising graph of healthcare business. A Single Unit Investment for APOLLO PHARMACY Franchise Investment for Franchise: 5,00,001 – 10,00,000. A Master Franchise Investment for APOLLO PHARMACY Franchise Expected Investment for Franchise: 10,00,001 – 15,00,000
Advantages of Owning a Pharmacy Franchise:
This can be the best method to start a retail pharmacy. You can get into a contract with a franchise that will provide you with everything you need, from a good location to secure financing, and good connections with reputable pharmaceutical wholesalers and vendors. The main advantage of having a franchise, as you will be benefited with the goodwill that comes with operating under an established brand and being an independent retailer at the same time.
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