Are you thinking of starting a PCD pharma company in India? As you know, to kick-start any company, you need some initial investment to operate the entire operation. The following expenses you need to take care of while opening a PCD Pharma company in India.
Steps to Open a PCD Pharma Company in India
The Given Investment you need to make for establishing a PCD Pharma company in India:
Costs for the License and registration: You need to purchase a Drug Licence for selling a pharmaceutical product in India, which costs around ₹5000 to ₹8000. Also, you have to register for GST registration (₹500 to ₹1,000) and company registration (costs around ₹8000 to ₹10,000).
Infrastructure cost: To open a company, you need a premise, such as an office or warehouse. The infrastructure cost may vary depending on the location and size. Approximately, it costs you around ₹10,000 to ₹1,00,00 per month. Also, you need some basic setups, such as computers for expense records or other climate control systems (if necessary) for sensitive medication. It may cost you around ₹50,000 to ₹1,00,000.
Initial Inventory: This will cover your expenses based on the type of products you are selling, and for that, you need an initial investment. For initial stock and inventory, it may cost you around ₹1,00,000 to ₹5,00,000.
Marketing and Branding: To make a strong presence in the market, you need to do promotional marketing and branding. It is done to promote your company. The cost for promotional material and branding may vary based on your requirements.
Operational expenses: Operational costs cover those things that are required to operate your company, such as hiring staff, transportation costs, and utility costs (monthly expenses for electricity and other utilities).
Miscellaneous Cost: It covers day-to-day operational expenses and expenses for unexpected situations, such as handling unforeseen expenses and last-minute issues.
What Things Should You Take Care of While Opening a PCD Pharma Company in India
Legal & Regulatory Documents:
- Get a license: You need to apply for the license, which is required to operate pharmaceutical products legally in India.
- Sign an Agreement: Make sure to sign a legal agreement with the franchisor.
- Certifications: Ensure that the franchisor has relevant certifications, such as ISO and WHO-GMP.
Choosing a Reputed and Experienced Franchisor
- Choose a reputable partner: Make sure to choose a company who have a positive reputation in the market. Also, they should have years of experience in operations.
- Product Portfolio: Look for a diverse product range with high-quality products that meet market demand.
- Support and Marketing: Inquire from them whether they support marketing and promotional material or not. You need to promote your company first to make a presence in the market.
- Monopoly Rights: Secure a monopoly right from the franchisor to avoid local competition from the same company.
Operational and Market Considerations:
- Market Research: Research to know about the product demand, competition, and target audience.
- Promotional Strategies: Based on the research, develop an effective marketing strategy to promote your company and make a strong presence in the market.
- Financial Planning: Keep a record of your expenses to manage your finances. It will help you to determine investment requirements and to analyze the financial model and profit margins.
- Inventory Management: Use an inventory management tool to track sales records or to manage your stocks.
Conclusion
To open a PCD Pharma company in India, you need to invest in some expenses that are necessary to operate a pharma company effectively. This initial investment will help you to buy a license or register your company to operate legally. The expense is not limited to the licence and register; you need to take care of other expenses as well, which play a crucial role in opening a PCD pharma company in India.
Frequently Asked Questions
Question 1. Do I need a license to open a PCD Pharma Company in India?
Answer: Yes, if you are willing to open a pharma company in Indian, you need a licence to sell any pharmaceutical products. A drug licence and GST registration are mandatory to operate legally. It would cost you around ₹5,000 to ₹15,000, depending on the state.
Question 2. How much investment do I need to open a PCD pharma company on a small scale?
Answer: If you start a company on a small scale, then you may have to invest approximately ₹50,000 to ₹2,00,000. It would include branding, packaging, and stock cost in the investment that you made.
Question 3. How can I reduce the product manufacturing cost?
Answer: To reduce manufacturing costs, you may order in bulk, which will reduce the costs. Also, you don’t need to stress about the manufacturing unit setup. The initial cost may start from ₹20,000.
Question 4. Can I save the company setup expense if I open the company in a home-based setup?
Answer: If you start your company on a small scale, then it would be fine for you to operate in a home-based setup. But if you want to expand your company on a large scale, then you need an office or warehouse. It may cost you around ₹10,000 per month.
