The pharmacy industry in India is ranked at a prestigious 4th position in volume and holds the 13th position in value across the globe. The Indian pharmaceutical industry also exports medicines worth USD 2.6 billion. The pharmacy business is divided into four categories such as Standalone pharmacy, Hospital Pharmacy, Chain Pharmacy and Township pharmacy. All of these categories can be registered under the partnership or as a private company for those who want to know how to start wholesale pharmacy business
With so many options in the industry opening a wholesale pharmacy business startup can be a promising business to invest in.
How to Start Wholesale Pharmacy Business?
1. Conforming to the Legal Procedures
How to start wholesale pharmacy business is not a challenge when you conform to the legal procedures. You can start by understanding the Drugs and Cosmetics Act 1940 (amended -1945) that provides the guideline for import, manufacture and the distribution of drugs in India. You can also enquire the list of documents required for opening a wholesale pharmacy business in your specific state for applying for various licenses.
A list of some of the documents required to apply for the Pharmacy License:
- Application form
- Covering Letter
- Chalan fee deposit slip
- Declaration form
- Blueprint of the pharmacy with measurements
- Basis of possession of the pharmacy premises
- Proof of ownership
- Appointment Letter of registered pharmacist or competent person (if employed)
2. Location of your Wholesale Pharmacy Business
A wholesale pharmacy business must conform to the specific guidelines of the pre-requisite space. These guidelines may vary when your wholesale pharmacy business startup combines with retail. Having a refrigerator and an air-conditioner is a mandate due to specifications for certain medicines.
3. Budgeting and Investments
A challenging question of how to start wholesale pharmacy business can be made easy by evaluating the budgeting and investment possibilities. The initial evaluation of costs can involve wholesale pharmacy business set up and the purchase and maintenance of medicines. To ease the pressure of buying medicines all together, you can collaborate with some suppliers.
4. Collaborating your Wholesale Pharmacy Business Startup
Another form of collaboration can include collaborating with existing medical stores such as local clinics, hospitals and health centers in the city. This can be a very beneficial sales strategy for your startup. You can ensure better quality or rates for medicines and acquire wider share of the market. Low- priced drugs from alternate pharmaceutical industries are preferred by tier-2 and tier- 3 cities when the price, quality is not hampered.
5. Government Policies for How to Start Wholesale Pharmacy Business
The government has launched a scheme referred to as PMBJP (Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme that provides generic or cheaper medicines to people. Generic drugs have become the largest sector in the Indian pharmaceutical industry with 70%, OTC drugs coming up to 21% and the remaining drugs making a contribution of 9%. Sale of generic medicines might not be the most profit generating move gaining you an increased margin but it can help you avail benefits provided by the government for using the PMBJP scheme.
So this was your answer to how to start wholesale pharmacy business. You can follow the steps mentioned to start wholesale pharmacy business startup.
Do you have any questions related to this topic? Mention them in the comments.