How Much Investment Is Required For Pharma Franchise – Investment is very important in any business. Are you thinking of starting a pharma franchise business in India? Want to know the amount of investment that you will require and other factors affecting your capital requirement? In this post, we will be discussing how much investment is required for a pharma franchise in India.

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Factors Affecting The Capital Requirement For Your Pharma Franchise Business

Study and try to know more about the economic and market conditions. Like if you are going to provide a franchise in any pharma segment like diabetes, cardiac, etc., you should know about its current situation.
Good demand is a good sign but make sure that the demand is good where you want to start your business. Like we say Charity begins at home! So, try to know the demand of the general public and customers your business is going to cover.
You have two situations either you can choose to market a company or you can build a contract with a manufacturing company. Agreement with the company means a genuine business and does not require huge capital formations. On the other hand, a contract with a manufacturing company needs to invest in R&D and other documentation.
Study the weak and strong points of your business location. Accessibility to resources is very important. This helps decrease the cost and expenses of various things like transportation etc.

How Much Investment Is Required For Pharma Franchise from PharmaHopers

Guide To Good Investment For Starting A Pharma Franchise Business in India

Here are some key points if you want to start a pharma franchise business. It will give you an idea about the investment areas to focus on.

As a start-up pharma franchise company, you need to invest in various subjects i.e. doctors, promotional tools, proper delivery facilities, etc.
You should keep aside a certain portion of your capital or money for a later time.
Premises and storage facilities according to the Drugs and Cosmetic Act. It can be rented or owned.
You should have an investment plan for products and medicines. You can choose to market them or get them manufactured.
Promotion is the basis of your new startup! Be ready to spend on medical samples of your products, materials with the company logo, internet promotion, and much more.
Quality is never cheap! Thus, you need to invest in affordable yet quality materials and delivery systems for your company.

Investment Needs to Set Up A Pharma Franchise Business in India

Every business goes through hiccups or a business cycle. It affects the business. If you have newly opened a business you will require a period of 6 to 8 months as a gestation period. The gestation period is the time when you start the business to when you actually start to gain profit. Investment in licensing, documentation, and others are as follows:

Accountant Salary or auditor (If)
Drug License Number: Estimated Expense – Rs5000
Electricity Bills
Employers Salary and Wages for Workers
Expenses of Doctors, Physicians, etc.
Expenses of Medical Representative, Stockiest, or any person appointed (If)
Food Safety & Standard Authority of India (FSSAI): Rs 100 annually for Re-registration.
Marketing and Promotional Expenses
Private Limited Company registration: Estimated Expense – Rs 8000 to Rs 9000.
Rent of the premises and warehousing if hired.
Tax Identification Number (TIN): Estimated Expense –
Third-Party Manufacturing: A minimum of Rs 25,000 is needed.
Trade Mark per product or name: Estimated Expense – Rs 4500 (government fees + advocate fees respectively)

First of all, before jumping to any conclusion or other matter, you should be aware of your business size. The capital requirement differs for a simple pharma franchise client and a pharma franchise company itself. If you are new and want to simply start of PCD pharma franchise business then the investment amount can be as low as Rs 50000. It all depends upon you!