How to Start a Pharmacy Business in India?
Jul 06, 2021
The healthcare industry is growing at a rapid pace in India. People spend thousands on medication to stay healthy and cure ailments. The medicine business is a business that is least affected by the recession. A medical shop business is an evergreen business that prospers in all the phases of the business and economic cycles. Moreover, you can easily get a business loan for a medical store. If you want to find out how to open a medical store, this article will help you.
Investment in Pharmacy Business
A moderate amount of capital is needed to open a medicine business in India. It can easily be started with a capital of around 15 to 20 lakhs. The amount of investment also depends on the scale of operations. If you are wondering how to start a pharmacy business that offers high returns in less time, you should plan meticulously and market aggressively.
Types of Pharmacy Business:
1. Stand-alone Pharmacy
This is a retail medical store opened in a residential area. It is the most common form of setup used for pharmacy business by small and medium-sized business owners.
2. Hospital Pharmacy
You can open a pharmacy inside a hospital to fulfill the needs of the patients of the hospital.
3. Pharmacy Franchise
Pharmacy franchise in India is another convenient way of foraying into the pharmacy business. The medicine franchise in India is gaining popularity as it has low risk and requires less amount of money. Taking a franchise is a good idea as you can take advantage of the brand name to draw more customers.
It is easier to take a medical store franchise in India as you would not have to promote your store too much. The brand would generate ample revenue and footfall at your medical store. The franchise owners provide promotional materials as well, like pamphlets, samples, etc., to improve sales.
4. Township Pharmacy
This type of pharmacy is set up in a township area.
If you are planning to establish your pharmacy business and wondering how to open a medical shop, follow the steps as listed below:
Medical Store License
The first step is to obtain a drug license for your medical business. A pharmacy license in India is required for selling medicines. You can apply for a retail or wholesale medical shop license. A retail drug license is required for opening a general medical store. You can operate as a chemist if you get a retail drug license. A wholesale drug license would entitle you to carry on your wholesale pharmacy business.
Medical Shop License Requirements
Degree in Medicine: If you are new to the medical business and are not aware of how to get a pharmacy license in India, you should know the eligibility for a medical store license. You should have a degree in Medicine – B.Pharm or M.Pharm. If you do not have the required degree, you should look for a pharmacist who would lend his name in return for a goodwill payment. You would require this degree for registration.
Personnel: A competent person must be present at the counter while selling the medicines to the customers. A competent person could be any one of the following:
- A person who is a graduate and has one year of experience in selling drugs
- A person who is a registered pharmacist
- A person who has the degree of SSLC and has experience of 4 years in dealing in drugs
A medical store license is granted only when you fulfill the above-mentioned medical shop license requirements.
How to Get a Pharmacy License in India?
A medical license in India is mandatory to open a medical store. You need not worry about how to get a medical license in India, as it can be easily obtained by the following organizations:
- Central Drugs Standard Control Organization
- State Drugs Standard Control Organization
You need to fill the application form and meet the eligibility for opening a medical store and obtaining a pharmacy license in India. After making the payment of the fees, the pharmacy license is granted to you.
Documents Required for a Medical Shop License
The following documents are required for opening a medical store in India:
- Properly filled application form
- Cover letter stating the intent and signed by the applicant
- Proof of payment of fees
- Declaration form signed by the applicant
- Blueprint for the premises
- Documents stating possession of premises
- Proof of ownership of premises, in case it is rented
- Identity proofs of the owners along with the recent photographs
- Proof of Constitution of Medical Store(Partnership deed, MOA, AOA, etc.)
- Proof of non-conviction of owners as per the Drugs and Cosmetics Act, 1940
- Affidavit of a competent person or registered pharmacist working full-time
- Appointment letter of the registered pharmacist or competent person in case he is employed.
After filing the required documents, you can obtain your drug license.
Registration of Pharmacy Business in India
You have to get your medical store registered under the Indian Pharmacy Act, 1948. You can get your retail medical store registered as a proprietorship or partnership. If you are operating as a chain or hospital pharmacist, you can get yourself registered as a private limited company. It is also required to get GST registration. All pharmacists should obtain a GST number and pay GST on time.
Arranging the Finance
Finance is the key requirement for the success of any business. Arranging the required finance can be a herculean task for small and medium-sized business owners. If you want to know how to open a medical store in India with less investment, you should carry out thorough research.
You would require 15 to 20 lakhs of capital to start your pharmacy business on a small scale. You can gradually increase the scale of your business by reinvesting the profits. The initial investment would vary depending on the location and scale of operations. You can take a business loan for daily operations in the form of a working capital loan.
There are two sources of funds:
Owned Funds: If you are thinking about how to start a medical shop with ease, you can use your past savings as a medical shop requires less capital and generates handsome returns in less time.
Owed Funds: If you are worried and thinking about how to start a pharmacy business due to a lack of funds, you can take help from the banks and financial institutions. You can take a business loan to start your pharmacy business. Flexiloans offers business loans on easy terms and conditions. Business loan interest rates are also very low that makes them an attractive option. FlexiLoans easy and unsecured small business loans turn your dream of starting a pharmacy business into a reality. You can also take advantage of the MSME loans for businesses, which are given at affordable interest rates.
To make your pharmacy business successful, you need to stock a variety of medicines to meet the demands of customers. You need to keep the stock of different medications as it enhances the sales and builds goodwill for your medical store. You should also have a refrigerator in your store to keep certain drugs like vaccines, insulin injections, sera, etc. Ample stock of medicines is immensely crucial to amplify the revenue streams. You can also tie up with the hospitals and doctors to increase the sales.
The workforce is required to start any business. A dedicated and devoted team of workers drives a business to the pinnacle of success. For a pharmacy business, you need a workforce who knows about medicines. Experienced staff who have worked earlier in a medical store and have a sound knowledge of medicine should be preferred. The people working at your medical store should be quick and render prompt service. The customers should not be made to wait for a long time. Prompt customer service would garner positive word-of-mouth for your medical store.
Marketing Your Medical Store
Effective marketing strategy is the reason behind the success of every business. In the current scenario of cut-throat competition, it has become imperative to promote your business. You should market your newly opened medical store aggressively. You can use traditional as well as modern channels of marketing. Online marketing is also a good idea to advertise your medical shop. You can get a website made for your medical store and also accept online orders. Your website should be attractive and informative. An SEO-friendly website for a medical store would fetch more customers. You can also provide free home delivery of medicines to the customers.
A medicine business is a lucrative business opportunity for entrepreneurs as the demand for medicines never dwindles. There has been a sharp growth in the number of hospitals and clinics in recent years. This has further multiplied the demand for medicines. Hence, the pharmacy business is an ocean of opportunities for young and aspiring entrepreneurs.