How to Start a Pharmacy Business in India

Pharmacy and Chemist stores are the final steps of the medicines distribution channel, and these are the stores where you get direct contact with customers, i.e., patients and/or their caretakers. Pharmacy and Chemist stores are highly profitable and also charitable businesses. This article will provide you with complete information about how you can start a 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 a good start that is becoming popular in the pharmaceutical sector.

What is Pharmacy?

A pharmacy is a medical store shop or place where drugs and medicines are dispensed, compounded, and prepared under the supervision of a registered Pharmacist and the prescription of a Registered Medical Practitioner.

Difference Between Pharmacy and Chemist Shop

What is the difference between a Pharmacy and a Chemist Shop? Both are medical dispensaries and work the same in many aspects. However, they have some differences in their operation and functioning. Both require the presence and supervision of the Pharmacist during working hours.

A pharmacy is a place where compounding and preparation of drugs and medicines as per patient requirement is conducted along with dispensing of pre-packed drugs and medicines dosage forms, whereas a chemist shop is a place where only dispensing of pre-packed drugs and medicines dosage forms 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 refrigerators, racks, pallets, sitting, etc. Walls and floor should be cemented, and the concreted roof. There should be no cracks and flakes should be present in store premises.

Competent Person (Registered Pharmacist) for Pharmacy Business

The pharmacist is compulsory for handling daily activities in the pharmacy and chemist shop. All the main activities can be carried out in retail pharmacies and chemist shops under the supervision of a Registered Pharmacist. A Registered Pharmacist is a person who holds a diploma, degree, or doctorate in Pharmacy and whose name is entered in the register of the state pharmacy council in which the person resides or carries on his/her profession or business of pharmacy.

Documents and Requirements for Pharmacy Business

Once the application has been submitted in the prescribed form to the district drug inspector or drug-selling authority office. The Application submitted should be filled with detailed information.

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Application Form for Pharmacy Business

Pharmacist registration certificate photocopy. If the business owner or any of the partners are not registered pharmacists, 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 pharmacists.
Date of birth proofs.
Prescribed fees.
Premises documents or, in the case of rented premises, rent agreements.
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 factor that plays a key role in starting retail medicine sales is Location. Your income mainly depends on the location of the chemist shop and pharmacy. The location should be chosen based on factors like doctors, clinics, population, and the already existing number of chemist shops.

Apart from the location, your premises should fulfill minimum requirements like the required area, cemented floor and walls, concrete roof, etc. The next important thing is fulfilling the 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 a competent person to carry out Pharmacy/Chemist/Druggist Daily Activities.

Pharmacy Business Plan

The First step is searching for the required space at the Prime Location.
Do good research and surveys about general medicines, doctors’ prescribing habits, 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 the rental agreement of the premises if the premise is rented.
The Shop should be registered if it’s your own or if it is necessary.
If you are not a professional pharmacist, appoint a professional who has good experience.
Arrange and decorate premises according to the medical store standards.
Prepare blueprint of premises
Get ready with an air conditioner and refrigerator.
Arrange all the documents.
Go to the nearby Drug Control Office.
Submit a request application for a retail license for the sale, purchase, and exhibition of medicines manually and/or online.
After the application is successfully submitted, a drug inspector or any other authorized person by the government will visit and inspect the premises and manually check the authenticity of the documents and premises.
If the Drug Authority is satisfied with all formalities, your application will be approved, and the Drug Authority will issue a letter granting drug retail.
The drug authority will issue a drug license number once they are satisfied with the documents and premises. Once you get the drug license number, you’re authorized to sell and purchase medicines drugs and related products and services on a retail basis.

Initial Investment Required for Pharmacy Business

The initial investment depends on the location, area, city, etc. To start a pharmacy outlet or chemist shop, you need a shop or premises. The shop or premises should be owned or rented. If you own a shop, you can add the purchase cost to the investment. Purchasing a shop or premises is not possible for startups. Instead of purchasing, renting a premises or shop is the 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 pharmacist’s salary also depends on the place. If you appoint a fresher the salary can be around 12000/- to 15000. If appointing an experienced candidate, the salary can be high.

Next, the business plan should be listed with decoration and interior expenses that depend on your needs. A simple interior will cost less, and a high-profile interior will cost high. Furniture, fitting chair, etc. It will cost approximately 30000/-. The refrigerator cost is approximately 9000/-. The License cost and documentation may cost approximately 6000/- to 10000/-. And other miscellaneous expenses can be approximately 15000/- to 20000/-.

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The above-listed expenses are without purchasing medicines. These costs may vary based on many factors. The investment amount for purchasing medicines also varies according to the stock you purchase in the beginning and the cost of medicines you purchase. Most retailers get medicines at credit from wholesalers and distributors.

Inspection in Pharmacy Business

A senior Drug Inspector or any other person appointed by the state government to inspect pharmacies and chemist shops periodically is responsible for inspection. If all facilities, documents, competent persons, and other areas are detailed per the rules, your application file will be processed for issuing a retail drug license. In some cases, the file will be returned for amendments and/or rejection.

Profit Margin in Pharmacy Business

The profits of a chemist shop vary from product to product, but generally, 16-20% margin is provided to retailers by most of the companies with the scheme. In the case of generic medicines, the profit margin increases to the higher side. Pharmacy and Chemist Shops 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 a pharmacy and chemist shop want to sell food and dietary supplements along with medicines and drugs. Then, it must be registered under FSSAI. Read in detail about how to apply for FSSAI Registration.

Shop Registration for Pharmacy Business:

Shop registration requirements depend on the area. Before starting a pharmacy business, the first step is to register the shop or any other registration in the locality.

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 Pharmacist: This is a word used by licensees who employ the services of a Registered Pharmacist and maintain a “Pharmacy.”

Top 8 Pharmacy Franchise Business Opportunities in India:

The healthcare industry is running with huge profits. The increasing number of multi-specialty hospitals, polyclinics, corporate wellness programs, and medical tourism are boosting the market, too. So, just go through the below information to learn about the best pharmacy franchise business opportunities.

Sanjivani Pharmacies: Sanjivani is from NB Marketing Pvt. Ltd. It sells allopathic and homeopathic medicines, as well as Ayurvedic medicines. The company also supplies OTC, surgical, and general daily-use products. Sanjivani was initiated in 2006 and 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 pharmaceutical store would get a 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 pharmacy and service provider in India. The company started franchising/ distribution in 2017. Medlife is a Bengaluru-based health care company. This pharmacy franchise offers great business opportunities. The unit investment for a Medlife International Pvt. Ltd pharmacy franchise 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, presented online on the 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 a 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 stores in 12 states. 1350 Medplus stores are running successful pharmacies. The Franchisee can avail of a credit facility or loan from the State Bank of India. The Medplus pharmacy franchise Unit Investment is Rs. 10 lac to 20 lac.

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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.

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 is that you will benefit from the goodwill that comes with operating under an established brand and being an independent retailer at the same time.