Investment Required to Start a PCD Pharma Franchise: Many entrepreneurs will consider a PCD (Propaganda Cum Distribution) Pharma franchise business as an interesting option due to the low investment of a few lakhs when compared to other businesses. To start this business there are various aspects of business involved for which your ₹2-10 lakhs will be spent.
The first one is a franchise fee. A franchise fee is a fixed amount paid to the parent company for the use of their brand name to sell products. Secondly, when starting a PCD franchise, you will have to purchase inventory. You injure medicines and healthcare products to be distributed from your office.
Also, you should set aside a budget for promotions to promote your business and attract potential customers. That would include not only promotional materials but also potential samples you may need. You may have to consider costs for other infrastructure, like office space and delivery transportation, as well. Overall, although there are costs to start a PCD franchise business, and management might take some time, any investment in the pharmaceutical industry is ultimately rewarding, as we have a growing market demand for pharmaceutical products.
Investment Required to Start a PCD Pharma Franchise
1. Pharma Franchise Fee:
This is the initial fee step or first fee entrepreneurs pay to the parent company for getting the marketing and distribution rights of the pharmaceutical product list of a particular firm. The franchise fee could be anywhere from approx INR 10,000 to 50,000 or more for purchasing a PCD Pharma Franchise Business opportunity in India. This again relies upon the reputation of the selected pharma company and the range of pharma products offered.
2. Initial Stock Purchase Price
It is similar to buying your parent company share. Businesses must buy an initial stock of medicine products to begin a pharma franchise business in their preferred location. It is estimated that can be one of the biggest initial costs, which varies from approximately INR 50, 000 to INR 20,000 or even higher.
3. Infrastructure Cost and Office Setup:
To begin your own pharma franchise company in India, you have some area where you can establish a small office or warehouse, which is an integral part of the business. The typical charge to rent an area, fit it out, and make it compliant with regulations can vary and is location and size-dependent. Roughly, you must incur INR 20,000 to INR 1,00,000.
4. Attractive Promotional and Marketing Tools:
Promotional and marketing tools have a significant impact in terms of developing brand awareness and increasing sales in the pharma industry. Marketing materials such as brochures, visiting cards, templates, samples, gifts, good marketing strategies, and online marketing activities. Typically, an initial budget required for this would be approximately INR 10,000 to INR 50,000
5. Legal and Regulatory Compliance:
The pharma industry is directly associated with individuals’ lives, so it’s required to get several licenses and registrations to run the pharma business legally without any hindrance. It involves GST registration, ISO certification, FSSAI, and DCGI approval. The regulatory owning a PCD Franchise Business in India costs for can vary approximately from INR 5,000 to INR 20,000.
6. Working Capital Investment in Pharma Business
To cover the operational investment required to buy PCD Pharma’s business. Salaries, utilities, accountants, medical representatives, transportation, and so many other miscellaneous things. Entrepreneurs want to have some working capital. That may be about INR 50,000 to INR 1,00,000 or more, based on the scale of your business operation.
Key Factors that Affect The Cost of Starting The Pharma Franchise Business
1. Franchisee Cost:
Franchisee Cost depends on the reputation of the company as a brand and what products they are providing for your region. It relies on your initial need for the products from their product line to include in your business. It usually falls between Rs. 25000-Rs.50000.
2. Infrastructure Cost:
It covers office space, owned or leased based on the requirement, including the storage and distribution area.
3. Licenses & Registration:
Taking the required documents like the Company Registration Certificate, Wholesale or Retail Drug License & GST No. can cost approximately Rs. 25000 – Rs. 30000 based on your location.
4. Marketing & Promotional Expenses:
While starting a new business, brand awareness and advertising your products is crucial in establishing a brand. Typically, marketing inputs are taken care of by the franchisee company without any cost.
5. Human Resources Cost:
Salary payments for administrative personnel, sales representatives, and other staff members might be included. Chemists, sales representatives, and administrative staff are among the skilled workers you will require. To guarantee adherence to rules and safe handling of pharmaceutical products, training may be required.
6. Delivery & Logistics:
We all understand timely and smooth delivery of medicines is important. So, having a good transport or courier system for order delivery should be included.
7. Software & Technology:
In order to make the operations smooth and increase efficiency, some software is needed like to keep the inventory updated. We can either have free software or paid software based on the requirement.
