Did you know that the Indian pharmaceutical market is the third largest in the world? In addition, pharmacies have become a $ 2 billion industry in 2021 – since the outbreak of the Covid-19 pandemic. Suppose you have been planning to Start A Pharmacy Business in India for years. In that case, the post-pandemic scenario offers a great opportunity due to the market demand. In India, the pharmacy industry is a stable sector unaffected by economic ups and downs.
In India, corporate and multi-specialty hospitals are becoming increasingly common, significantly strengthening the nation’s pharmaceutical and healthcare sectors. The Pharmacy Business is perfect for many Indian entrepreneurs as it needs little resources and space. This article examines the steps involved with Starting A Pharmacy Business in India. A Pharmacy Business must complete several registrations and legal requirements before its opening.
Here is a guide to Starting A Pharmacy Business in India from scratch which can help you immensely.
Eligibility Criteria to Start A Pharmacy Business in India
- To open a retail store or a Pharmacy Business in India, you must have at least 10 square meters of floor space. In a wholesale Pharmacy Business, an area of 15 square meters is mandatory.
- Your Pharmacy Business should have air conditioning and a refrigerator. In addition, wholesale and retail pharmacies must have a pharmaceutical specialist to sell drugs in the pharmacy.
How you can be a Pharmaceutical Expert
- Pharmacy graduate with at least a year of experience in the Pharmaceutical Business.
- Registered pharmacist approved by the National Pharmacy Council.
- SSLC (Secondary School Leaving Certificate) graduate with minimum years of drug dealing experience as approved by the Narcotics Control Department.
Different Types of Pharmacies
Community Pharmacy
Community pharmacies, often known as retail pharmacies, are the most prevalent and well-known form of Pharmacy. Most of them are engaged in commercial Pharmacy Business and offer both over-the-counter and prescription drugs. Prescription orders are combined and distributed in local pharmacies. Community pharmacists are considered the most accessible health professionals and can provide health advice on the spot without an appointment. Community pharmacies differ from individually owned and operated large retail chains.
Hospital Pharmacy
Hospital pharmacies are departments of a hospital. Medicines are prepared, mixed, stored, and dispensed to patients in the hospital. Hospital pharmacies usually have a more extensive selection of drugs, which are more specialized and more investigational (some are under investigation but still need to be approved).
Hospital pharmacies supply much larger quantities of medication daily, distributed to hospital wards and intensive care units according to patients’ medication schedules. Some hospital pharmacists may also combine sterile products with IV medications for patients, such as newborn antibiotics and chemotherapy.
Clinical Pharmacy
Clinical pharmacists provide direct patient care that promotes wellness, illness prevention, and optimization of drug usage. Clinical pharmacists often work with doctors, nurses, and other healthcare professionals to develop a comprehensive treatment plan for a patient.
Clinical pharmacists have extensive training in biomedicine, medicine, social behaviour, and clinical sciences. Most have a doctorate in pharmacy and continuing education. In some states, clinical pharmacists are licensed under a protocol with a physician.
Industrial Pharmacy
Medicines are researched and planned in industrial pharmacies. Industrial, pharmaceutical laboratories conduct clinical trials with patients, use technology to synthesize new chemicals, and develop proposed treatments for new drugs.
Industrial pharmacists sometimes work in production facilities or near hazardous substances. Industrial pharmacists need the same training as those who administer drugs to patients.
How to Start A Pharmacy Business in India?
Research and Planning to Start A Pharmacy Business in India
- Market Research: Begin by conducting thorough market research to understand the demand for pharmaceutical products in your chosen location.
- Business Plan: Create a detailed business plan that outlines your goals, target audience, budget, and pricing strategy.
Legal Requirements to Open A Pharmacy Business in India
Register A Pharmacy Business in India
Medical businesses must be registered under the Indian Pharmacopoeia Act, 198. You can register your medical, or retail business as ownership or partnership. If you are a chain or hospital pharmacist, you can register as a limited liability company. Also, you need to be GST registered. Every pharmacist must have a GST number and pay her GST on time.
Medical Store Licence to Launch A Pharmacy Business
The second step is to obtain a medical license for your Pharmacy Business in India. A pharmacy license is required to sell medicines in India. You can apply for a medical retail or wholesale license. A drug license is required to open a family doctor’s shop. You can work as a chemist if you have a retail pharmaceutical license. A wholesale drug license would entitle you to carry on the wholesale Pharmacy Business.
Requirements
Medical Degree
Suppose you are new to the medical field and need to learn about getting a pharmacy license in India. In that case, you should know about the eligibility for a pharmacy degree. It would be best if you had a medical degree – B.Pharm or M.Pharm. If the required grade is unavailable, a pharmacist who will lend his name in return for goodwill should be found. It would help if you had this grade to register.
Personnel
When selling medicines to customers, a qualified person must be at the counter. A competent person may be one of the following:
A person who graduated with at least one year of experience in selling drugs.
- A person registered in a pharmacy.
- A person with an SSLC degree and years of experience in the drug business.
How to Get a Pharmacy License in India?
It is mandatory to have a Pharmacy License in India to open a Pharmacy Business. You don’t need to worry about getting medical support in India, as it can be easily obtained from the following organizations:
- Central Medicines Standard Control Organization
You need to fill out the application form and meet the eligibility requirements. To Open A Pharmacy Business and get a pharmacy license in India. After making the payments, you will receive a pharmacy license.
Documents required for a Medical Shop License?
Here is a list of some documents which you require for a medical license:
- Fill out the application form
- A signed cover letter that states the intent.
- Payment fee proof
- Blueprint of your business
- Constitution of Medical Store proof (Partnership deed, MOA, AOA, etc.)
- Affidavit of a registered pharmacist working full-time
- Non-conviction of owners proof as per the Drugs and Cosmetics Act, 1940
- Identity proof of owner with photographs
- Passport size photograph
GST Registration: Register for Goods and Services Tax (GST) to comply with taxation regulations.
Shop Establishment License: Acquire a shop establishment license from your local municipal authority.
Arrange Funds to Open A Pharmacy Business in India
Finance is the most essential requirement for the success of any business. Raising the necessary funding can be a very daunting task for small and medium-sized entrepreneurs. If you want to know how to Open A Pharmacy Business in India with less investment, you need to do some thorough research.
A capital of Rs 15 lakh to Rs 2 lakh is required to Start A Small Pharmacy Business. By reinvesting profits, you can gradually expand the scale of your business. The initial investment amount varies depending on the location and business scale. You can take out a business loan for your day-to-day operations in the form of a working capital loan.
Two Sources of Funds
Own resources
If you wonder how easy it is to Start A Pharmacy Business you can use your previous savings because a Pharmacy Business requires less capital and earns a handsome profit in a shorter time.
Starting Finances
If you are worried and thinking about Starting A Pharmacy Business due to a lack of funds, you can seek help from banks and financial institutions. You can take a business loan to start a pharmaceutical business. Flexi loans offer business loans on simple terms. Interest rates on business loans are also very low, making them attractive. Flexible loans and easy and unsecured small business loans make your dream of Starting A Pharmacy Business a reality. You can also avail of corporate MSME loans that are provided at affordable interest rates.
Demand and Supply Balance to Establish A Pharmacy Business in India
For your Pharmaceutical Business to be successful, you need to stock a variety of medications to meet the needs of your customers. You should keep stock of different medicines as it increases sales and builds goodwill for your Pharmacy Business. Your store should also have a refrigerator where you store certain medications such as vaccines, insulin injections, serums, etc. A large inventory of medicines is very important to boost your income. You can also connect with various hospitals and doctors to increase sales.
Hiring of Staff to Grow A Pharmacy Business
Every business needs work to run. A dedicated team of employees leads the company to the top of success. A Pharmacy Business requires a workforce that knows medicine. Experienced staff who have previously worked in medical practice and have a solid medical background. The people working in your doctor’s office must be quick and provide prompt service. Customers should not have to wait long. Fast customer service would get positive information about your pharmacy business.
Marketing to Promote Your Pharmacy Business in India
Behind the success of any business is an effective marketing strategy. In the current competitive situation, it has become necessary to advertise your company. You need to aggressively market your newly opened Pharmacy Business in India. Both traditional and modern marketing channels can be used. Internet marketing is also a good idea to promote your Pharmacy Business. You can get your medical store website and also take orders online. Your website should be attractive and informative. An SEO-friendly medical store website would bring in more customers. You can also offer free home delivery of medicines to customers.
Conclusion
The Pharmaceutical Business or a Pharmacy Business is a profitable business opportunity for an entrepreneur because the demand for medicines never goes away. In India, the pharmacy industry is a stable sector unaffected by economic ups and downs. In India, corporate hospitals and multi-speciality hospitals are also becoming more and more common, which has significantly strengthened the nation’s pharmaceutical and healthcare sectors. The Pharmacy Business in India is perfect for many Indian entrepreneurs as it needs little resources and space. The number of hospitals and clinics has grown rapidly in recent years. This increased the demand for medicines. Thus, the pharmaceutical industry is an ocean for young people and aspiring entrepreneurs. This article examines the steps involved with opening a pharmacy in India. We hope that you have enjoyed the article. Thank you!
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Frequently Asked Questions (FAQs)
Ques. Is the GST number mandatory for Opening a Pharmacy Business in India?
Ans. Yes, the GST number is mandatory for opening a pharmacy business.
Ques. What kind of paperwork is necessary for a medical store licence?
Ans. Medical Store licence required Documents like ownership verification, owner identification proof, a memorandum of agreement, a partnership agreement, an assurance of ownership, etc.
Ques. What is the degree a person should possess for Setting up A Pharmacy Business in India?
Ans. You should have a medical degree – B.Pharma or M.Pharma to Open A Pharmacy Business in India.
