The Pharma industry in India today ranks 4th in volume and 13th in value in the global pharmaceutical market, with exports worth US Dollars 2.6 billion besides domestic sales of over US Dollar 4 million worth. India’s different types of pharmacies are a standalone, hospital, chain pharmacies, and township pharmacies. All of these can be registered under the partnership or as a private limited company and thus can easily be transferred, or profits can be shared among the partners.
Before you proceed any further, I would recommend you to also go through our article on the basic steps of starting a business after reading this one to get a wide view of deciding your target market, fundraising, etc.
Now let’s proceed to how you can start your own medicine wholesale business n India easily.
1. Legal Procedure to Start a Wholesale Pharmacy
The Drugs and Cosmetics Act, 1940 (amended in 1945) states the guidelines for importing, manufacturing, and distributing drugs in India. It contains provisions for the classification of drugs under given schedules. To start a medical pharmacy business, one needs to get a license from the Central Drugs Standard Control Organization (CDSCO) or State Drugs Standard Control body, under form No. 19. The person should have a degree or diploma in pharmacy from a recognized institution or university with one year of experience in dealing with drugs. The pharmacist must also get the GST registration for any payment transaction.
Documents required while applying for the license-
- Application form in the prescribed format.
- Covering letter with the intent of the application signed with the name and designation of the applicant.
- Challan of fee deposited for obtaining drug license.
- Declaration form in the format prescribed.
- Key plan (Blueprint) for the premises
- Site plan (Blueprint) for the premises
- Basis of possession of the premises
- Proof of ownership of the premises, if rented
- Proof of constitution of the business (Incorporation Certificate/ MOA/AOA/Partnership Deed)
- Affidavit of non-conviction of proprietor/ partners/ directors under Drugs and Cosmetics Act, 1940.
- Affidavit of a registered pharmacist or competent person working full-time
- Appointment letter of registered pharmacist/competent person, if an employed person.
The legal bindings do not end here. Regular inspections by a pharmacy inspector are held under the supervision of CDSCO, headed by the Drug Controller General of India. GN Singh being the current DCGI, makes it strict for all the local, retail or wholesale pharmacies to maintain the standards of sale, storage, and display of drugs.
If you want to know some more details on India’s company registration process, you can Click Here.
2. Premises to Stock the Medicines
It is mandatory to submit the proper verifiable documents regarding the pharmacy’s area to be started. The apt space for a wholesale pharmacy is a prerequisite. The requirements change when both retail and wholesale are combined. Refrigerators and air-conditioners are a must for obvious reasons that concern the biomolecular damage to the vaccines, sera, insulin, injections, etc. The place should be kept clean and rodent free to ensure proper hygiene.
3. Investments to Set up a Pharmacy Wholesale
With an initial investment as per the demands of the startup, the otherwise expenditures may include maintenance charges and buying of medicines and drugs.
- Documentation and License:- Approximately 25OOO/- including Rs 3000/- as registration fee
- Furniture:- Shelves and cupboards, air conditioner, and refrigerator may add up to 2 lacs
- Computer system- Rs30,000
- Premises (if rented)
Working staff, including a pharmacist and 2 employees for 24*7 (70,000 / month). An investment of 40-80 lakhs is required in establishing a wholesale business, considering the quantity of stock required.
The cost of drugs stocked in the pharmacy store is included in this. Whereas medicines costing around Rs 20 lakhs – Rs 50 lakhs need to be distributed to the retailers on a loan basis in order to establish a healthy professional relationship.
4. Awareness Related to Current Trends in Drug Dealing
In India, the Schedule B (Rule 98) of the Drugs and Cosmetics Act (1948) specifies the ‘shelf-life’ (mostly 1-5 years) of drugs and the conditions of storage. Beyond the expiry date, the various drug formulations must be discarded to avoid toxicity. The pharmacist or the dealer should be vigilant about the life period of stored medicines and their different schedules. For example, schedule H lists the ‘prescription drugs’ that can be sold only against a prescription issued to a patient by a registered medical practitioner.
The ‘non-prescription’ or ‘over-the-counter’ (OTC) drugs can be sold even by grocery stores. It is important to stay in touch with the ongoing trials of drugs held by the government to be informed of the banned medicines. It also helps to know about the drugs popular with the medical practitioners so that they can be stocked adequately. The medicines or cosmetic products which are not popular tend to decrease the profits as they, when stocked, may expire with time and need to be removed from shelves. Segregation of medicines pertaining to age groups can ease the functioning of the pharmacy.
5. Collaboration with the Local Clinics, City Hospitals, and Health Centers
Collaboration with existing medical stores is very beneficial when the dealer can come up with more exciting offers and benefits. Providing the local clinics or the pharmacies with drugs of better quality at the same price or larger incentives at the same selling price can guarantee a wider market for the business. Cheaper drugs from alternate pharmaceutical companies are preferred by pharma stores of tier-2 and tier-3 cities, while medical stores of metropolitan cities prefer larger discounts without reducing the MRP, provided quality is not being compromised.
For Example, if drugs from Ranbaxy are more popular with the pharmacies in an area, but Cipla manufactures similar drugs at a cheaper price. Then, convincing the medical store owners to sell Cipla drugs can help establish the clients.
Collaboration with the local clinics/ hospitals, new medical shops or pharmacies in the area will ensure profits; this is largely based on the trust and professional ethics of the dealing parties.
6. Associating with Government Policies
Under the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) scheme, the government aims to provide generic or cheaper medical drugs to the people. Generic drugs form the largest segment (70%) of the Indian pharmaceutical sector, with OTC medicines (21%) and patented drugs forming the remaining 9%. The National List of Essential Medicines (NLEM) states that the prices of drugs under the First Schedule of Drugs are fixed uniformly for all branded and generic medicines containing the same active molecule. In the case of non-scheduled mode, manufacturers are free to increase the Maximum Retail Price (MRP) by more than 10% of MRP. Selling generic drugs cannot improve the margin so much, but this can help avail the government’s benefits in association with the scheme training of the pharmacist or the other staff members, discounts in prices.
The organized computer-based program helps to reduce investment in resources like human labor and capital. Pharmaceuticals and healthcare companies employ medical sales representatives. They endorse the drugs manufactured by their employer companies by distributing free samples to various clinics and healthcare units. This saves the pharmacist the expenditure on advertising a new brand or equipment. Working with Carrying And Forwarding Agents, more popularly known as C&F dealers, is another feature of the pharmacy wholesale business. They purchase medicines from pharmaceutical companies and sell these to wholesalers. A company can have 2-3 CFAs in each Indian state and then pay them as per the turnover of products in a year. The pharmacy business is an excellent startup if it religiously follows the rules and regulations. With minimum investment, it turns over significant profits. After all, health for all matters!
Want to open a generic medicine Distribution
So what’s stopping you?
I am interested.
I am interested
How much does it cost to open a generic medicine distribution?
My father has started a medicine wholesale business from 20,000 rs only.
I am from Myanmar, I want to import medicines from India
Hi Narnee Pokhrel, please contact us.
I can help you if you want to export the medicines.
Which type of medicine do you buy from India?
I can help
I want to start a generic wholesale medicine business, I’m from Mumbai suburban area Kurla, so what I have to do 1st and give me your contact number.
I want distributors to sell medicine, we are looking for a business partner. Kindly contact
I wanna start medicine distribution business.
Have you started?
I am interested in becoming a dealer and distributor.
Please contact me
JOIN BECOME A FRANCHISE PARTNER
I am ready for that. Kindly contact.
I am interested to start wholesale medicines distribution
Where you have your business bro (which location). If it is near to my location. I will try to join you.
I want to start the medicine distribution business in Nashik.
Hello,
Myself Ayush,
Please let me know which city you are looking for distributors.
Gopalganj
Hello sir, I am interested in being your business partner.
We are wholesale distributor in Chennai. We need franchise for generic medicine.
What is stopping you?
Contact me
I am interested in this opportunity and I have two places which I can use as my godown/storehouse, one is in Kolkata (120 Sq ft) and one is in Hooghly (300 Sq Ft), have good sources in local Medical Hall/medicine clinic/houses and I have also good manpower for distributing but I don’t have a license but I want to enter and start this partnership. Can you please send me any opportunities that I can work with you?
I will be looking forward to hearing from you soon.
Hi, I am Md from Kolkata. If you’re not engaged with anyone else, I welcome you to have a discussion to make opportunities for each other.
Contact me
Kindly provide information
I am ready to be a partner for the distribution of medicine. But I have very low capital. If interested to work as a partner and investor, contact me.
Where can I contact for generic distributorship of Alkem, Cipla, Abbot, Intas, Leford?
I want to be your distributor.
I am interested.
I am interested.
I am Warangal district, Telangana state. I would like to open a generic medical wholesale agency with low capital. May I know how much capital is required to start a generic wholesale agency?
I am interested. I am a B.pharma graduate and seriously want this opportunity in my home location.
I want to learn about it. I am interested if it works out.
Can you send me all the details?
Is the option still available for collaboration? Although, I am new to this field.
I want to distribute drugs in our area by opening a wholesale shop in Kaman, Bharatpur, Rajasthan.
I am interested in doing this business.
I’m a fresher, just competed my (pharm d/ doctor of pharmacy) I’m interested in starting the business.
What are the requirements?
Hi, even we want to take a medical distributorship. If you want we can talk about this.
Hello sir/mam, I am really interested in opening the wholesale of medicines, so please tell me how to startup.
I am also interested; please tell me.
I am looking business partner to sell medicines in our district Bijnor U.P. I have a valid license to sell the medicines.
I am interested in your plan; kindly brief me on your necessary information.
I am ready to distribute your medicine, how can I get in touch with you?
Hi, I am interested
Please get in touch with us. We are eagerly waiting to hear from you.
Sir, I am interested and I want to be a distributer.
I want to start a business as distributor of medicines, Please suggest !!!
If anyone does not have pharmacy certification; can he start this business?
Hi sir, I am Mr. Salman Abdul Rasheed Borkar, I want to open a generic medicine in our growing areas. Please guide me 😊
Yes, please tell me the easy procedure.
I Am interested.
I am interested for ethical holscell Medicine
How to be a wholesale generic medicine distributor? Please contact me.
Hi Susheel Paul,
There is no difference in taking a generic medicine franchise. The procedure is completely the same as in the case of other branded company.
1. You need to take wholesale supply license and other drug licenses which are mentioned in the article.
2. Contact companies which manufacture drugs/ medicines and ask for their franchisee.
3. Start selling
Can I get a wholesale medicine store license by hiring another person?
I am also looking for either c & f or distributor in pharma in either Chandigarh or Dehradun
Hi, can you help me in starting the medicine wholesale franchisee?
What kind of help are you looking for?
I am looking to start a generic medicine production plant.
I am from Myanmar, I want to import medicines from India.
Email us for the same, will connect you with the right source.
Pls suggest me how to start
How to become a generic medicine distributor?
Hi, I want to become a wholesale distributor.
Hi
I have 2200square feet basement available in New Delhi. I am planning to start the medicine distribution as I have also good knowledge of cold room. Please tell me the procedure for the same.
Thanks
Contact medicine companies through their official website and tell them about your wholesale business. They will tell how to proceed for the same.
Can i strat generic medicine business within 5 Lacks Investment ? without any space ? (I mean beginning from Home).
You cannot start a wholesale business in that budget. If you are planning to start a medical shop then I don’t think you can get licenses to sell medicines from home. And please don’t try to sell medicines without proper licenses else you might face severe consequences.
Sir my self Nishikant Gupta from Sagar MP
Sir please suggest me how can take franchise of pharmaceutical company.
Contact franchisee company and complete there all terms and conditions. You can also negotiate for a few things.
I wanna start medicine wholesaler how can start and which company medicine perfect? How their premises?
All companies are good as govt. has strict rules and regulations for medicine manufacturing. I didn’t get what you want to ask in your second question.
Hello, my age is 20. I want to start a wholesale medicine distributor and my budget is Rs20 lakhs. Can I go forward? Please tell me the eligibility for license and also tell me how to startup?
if you belong to a normal city like Gurgaon, Delhi, etc then 20 lakh is a low budget for wholesale distributorship. Also, age is not the restriction until you have required licenses and educational degrees which are mentioned in the article.
Hey, contact me for the same.
Good morning sir, I am interested to start medical agency at the municipality. How much budget do I need, and how to approach medical companies?
Go to the official website of the company. Get their phone number and email-id from there and contact them.
Hello sir, I wanna start both wholesale and retail shop of medicine, what should be the approx budget required for all requirements in medium scale?
Hello sir,
I have 20 years of experience in API & formulation manufacturing in quality control as well quality assurance departments, I have completed my B.Sc degree in chemistry, zoology and botony,
I can go budget upto 50 laksh, is any additional qualifications required, please suggest regarding qualifications and procedure mentioned in the Indian drug council guidelines.
Yes, you can start and the budget is enough.
Hi sir, can I get your number because I need guidelines to start pharma distributorship in Mumbai?
Hello Sir,
I HAVE 8 YEARS EXP IN PHARMA TEACHING FIELD AND HAVE GOOD KNOWLEDGE ABOUT PHARMACEUTICALS. I HAVE PLANNED TO ESTABLISH WHOLE SALE OF DRUGS WITH INVESTMENT 1CR AT CITY. I HAVE LESS INCOME SOURCE SO IS THERE ANY CHANCE TO GET LOAN FOR BUSINESS. ALSO I AM PHARMACY BACKGROUND PERSON.
Hi Seenu,
You can apply for a loan in two ways.
1. Before starting the business- Tell the bank that you have your own 1cr and need some more money to start your business in an efficient way. Make a good business plan and projection report and approach the bank.
2. Start with your money and once you start generating money show the statements and ITR to the bank and on that behalf take the loan.
Both the ways are great but in 2nd you take a long time to come into full execution while in 1st you need to visit too many banks. You can decide as per your resources and efforts.
hello sir,
I have a degree in MSc in pharmaceautical Chemistry.
Can i get drug license for wholesale business.
pl, reply .
Thanks & regards,
Anurag.
Hi
I am a pharma graduate but do not have experience in same field. I am interested in starting my own medicine wholesale distribution business. Please guide me on how to establish lead with existing medicals where other distributors also exist.
Also what are the payment terms that are follwed currently. Since the investment is huge what is the return time we can expect?
Would you advise to start a business without having self capital in hand?
If you are taking whole money on interest then I won’t suggest you as you are new and already many competitors are their so you might make many mistakes and loose.
Well if you want to lead from your competitors then you need to take care of many things like consistent approach, relaxation is payments, deal with big hospitals, etc. For more, you can read my articles on “sales”.
https://www.businessalligators.com/?s=sales
You can also do a job for 5-6 months under such person who own medical wholesale contract in starting to understand the complete flow.
Hello sir,
I am working in marketing pharma products from 7 years and have worked with many doctors but I am only 10th pass. Can I start pharma wholesale business?
Please check it with CA
of course
Hi sir, I have done my degree in B.Sc. Chemistry. Can I start wholesale pharmacy business? Any advise? Reply me and ur number also.
Yes, you can start. Contact me on info@businessalligators.com
Hello Lokesh Ji, could an MBBS degree holder apply for wholesale drug distributor license?