In India the pharmaceutical company enjoys being positioned at 4th with respect to the volume and 13th rank in the international pharmaceutical exports market for a whopping valuation of over 2.5 billion dollars apart from the local sales of USD 4 million in worth. The various categories of pharmacy in India such as hospital, chain pharmacy, township pharmacy and standalone pharmacy. All of the mentioned can be enlisted with the private limited company or partnership hence can easily be moved and profits can be divided in between the partners with ease for medicine wholesale.
So right before we start discussion about pharmaceuticals or medicine distributorship business we suggest you to go through a thorough check on the fundamentals of beginning a pharmaceuticals business to get a complete view on determination of the fundraising, target market etc.
how you can start of your very own medical venture in India.
1. Litigations to begin a wholesale Pharmacy
As stated in the rules and regulations of import amended in 1945, Drugs and Cosmetics Act 1940 for importing, manufacturing and distributing of drugs in India, it pertains rules for the bifurcation of drugs under given provisions, To begin a medical pharmacy one will have to get a license from the CDSCO (Central Drugs Standard Control Organization/ State Drugs Standard Control body) with the form no 19. An individual should have a diploma or a degree from an accredited university or medical institution with a minimum of 1 year experience in drug dealing. Also one will need to have a GST registration for the paymenttransactions to be carried smoothly for the medicine business in India.
The required documents when applying for the license:
- Application form in the required format.
- A cover letter along with intent application with authorized signatory and designation/name of the person applying.
- Receipt of deposited fee for acquiring a drug license.
- Site Plan & Key Plan Blueprint of the premises.
- Foundation of site possession.
- The premises if rented, proof of ownership.
- Constitution proof of business
- Non conviction affidavit of partners/directors/proprietor under drug and Cosmetics Act, 1940.
- Affidavit of an enrolled competent person or pharmacist working full time.
- The letter of appointment authorized competent/pharmacist, just in case of an employed individual.
The legal procedure just doesn’t come to an end here as there will be frequent inspections by a pharmacy invigilator under the supervision of CDSO, led by DCG of India.
2. The need for premises in order to store the medicines
It is equally important for an individual to get the acceptable documents which later would be verified/scrutinized with respect to the area whereupon the pharmacy is going to be started. The appropriate place for a wholesale pharmacy is a mandate. The need can change as and when the wholesale and retail are conjoined. Air conditioners and refrigerators is a must have for reasons that is concerned with the bimolecular degradation of sera, vaccines, injections, insulin etc.
3. Capital investments to start a Pharmacy Wholesale
According to the prior demands of the newly formed company an initial investment will be needed whereupon the expenditures may include the buying of drugs and medicines and maintenance charges for medical distribution business.
- License and documentation: Roughly 25000/- which includes the registration surcharge of 3000/-
- Expense of furniture: Cupboards and Shelves, refrigerator and air conditioner may cost around 2 lacs.
- A personal computer/laptop: 30,000 to 35,000.
- Rented Space (if premises not owned)
- The employees with a certified pharmacist for 24 hours will cost around 50,000 to 70,000 per month.
4. Precise understanding of present affairs of Drug dealing.
With respect to the Schedule B under rule 98, in India of drugs and cosmetics act (1948) categorizes the life of medicines and drugs roughly between 1-5 years years of life depending on the conditions of storage. After the medicines has surpassed the expiry date then there is a medical procedure to discard them to avert from toxicity. The dealer or the pharmacist should be very much careful with the validity period of medicines stored along with the various schedules. The over counter or non-prescription medicines can be sold even through a general stores. However it is very much important to stay in touch with the present drug trials which are led by the government to spread the awareness of popular medicines along with the cosmetic products.
5. Tying up with the clinics, health centers and city hospitals
Tying up is a great way for a pharmaceutical business as whenever the dealers show up with attractive offers an benefits it is a good to go signal for the pharmacist. Offering the best medicines at the similar selling price can be a perfect window for bigger business. The medicines which come at a cheaper rate are often preferred by the pharmacy stores. Whereas the medical stores in metropolitan cities opt for the bigger discounts without compromising on MRP, where the quality of medicines are not at all compromised in the critical medical wholesale business.
6. Bracketing with the Government Policies
Underneath the PMBJP (Pradhan Mantri Bharatiya Janaushadhi Pariyojana) scheme the government’s objective is to offer cheaper or generic medicines to the people. The generic drugs together sum up to the biggest sector (68%) of pharmaceutical sector. The NLEM (National List of Essential Medicines) acclaimed that the prices of all the medicines falling in the category of First Schedule of Drugs are all generic as well as branded medicines which does have the exact molecules. So the manufacturers are free to up the price of medicines by 10%.
So now you know how to start medical agency. Getting in a pharmacy business is extremely profitable and a good sector to begin with. However one needs to follow each and every rules and regulations abiding to the pharmacy in India. Whereas one can start with small investment, however one cannot deny the fact that health is something that matters for all.