PCD Pharma Franchise Becoming More Prevalent in India

India is a land of opportunity. The economic growth is quite promising, especially in the pharmaceutical segment. Many special economic zones of different states have exceptional infrastructure for the production of pharmaceutical products sold in and outside India. This industry also offers remarkable opportunities based on the PCD pharma franchise. This option is ideal for entrepreneurs who want to enter a pharmaceutical business without spending a fortune!

Why PCD pharma franchise is prevalent?

The pharmaceutical industry in India promises a brilliant CAGR of 22.4%. It has maintained its growth rate for so many years. Even multinational pharmaceutical companies are eyeing to open manufacturing units in India. This scenario will automatically increase the scope of any pharmaceutical business in the near future.

On the other hand, the disposable income of the citizens is also increasing with the rise in the economy. People are spending more on medicines and overall health, giving this segment the boost required. The state and central governments are also coming forth with new plans of setting up new rules for making pharmaceutical business convenient and medicines easily available. Concentrating on such factors, you can easily conclude that collaborating with a PCD pharma franchise company will give you the best opportunities to establish a business.

Your benefits in choosing a pharma franchise plan

When you choose a company for a pharma franchise, you will be the owner of your own business. There is no sales target. You can choose a product line and start selling the products in a market of your choice. When you are done with a proper plan, approach a PCD pharma franchise company to understand its propositions.

Get the rights to sell the products in a market of your choice and enter this industry. You can also increase your investment as per the market condition. Take minimum risks and enjoy doing PCD pharma franchise business!

Five Reasons Why Small Business Should Opt for Pharma Franchise

Entering the pharmaceutical business is not a dream anymore. It can be easily availed of by choosing the best options from a reputed pharma franchise company. This plan is an excellent way to get into a less risky business plan with the aid of a suitable franchise provider. Below is a list of 5 benefits you can add to your business career:

  1. Start with a limited amount

You will not have to spend a fortune when you are willing to become a business partner with a pharma franchise company. Start with a small amount and then proceed as per the market flow or your supervision. There is no need to take a huge risk during the preliminary stage of your pharmaceutical business.

  1. You will make your own decisions

You will be a business owner and you will make your decisions. There is no need to depend on the pharma companies either. You will decide the product line you want to keep in your store. In fact, you will set your revenue targets and sales level. Depending on the requirement, you will make the appropriate decisions.

  1. Highly potential business model

Pharmaceuticals and healthcare are two very potential industrial segments where you can initiate a business plan. You can look for the best pharma franchise company and decide on the product line to invest in. Medicines and healthcare products will always be on the top list of mandatory items.

  1. Brand image

You can gain from the pre-established brand image of a pharmaceutical franchise company to promote your business. This image will help you establish your business in a particular market.

  1. Success rate

There is no doubt that doing business with essential commodities will always bear fruit in the long run.

For this, you will need the best pharma franchise company to find the ideal products!

Investment Required to Start PCD Pharma Franchise Company

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Starting a business needs money and intuition. Your calculation will decide what amount you need to invest in a business. Apart from your budget, you will also have to consider the specific criteria of a pharmaceutical brand when you want to start a PCD pharma franchise company. This is where you will have to consider the following points to fixate on a budget.

Points to ponder:

You will have to check on the prices of the medicinal products sold in a particular field of this domain. The product range of a company in this field will decide the investment you will have to make.

Consult the pharmaceutical companies you are interested in, to seek an opportunity to establish a PCD pharma franchise company and ask for quotations. You will get to know the level of primary investment. This sum is comparatively higher than what you need to consider keeping handy to overcome product shortage.

Once you have established a supply chain channel and enjoying the exclusive rights to market products, you will also have to take care of the demand-supply ratio. It will help you to avoid any shortage in a respective market and to maintain a constant flow of products to keep the demand up. For this, you will also have to maintain a good balance in your business account.

In business, it is always necessary to be ready with an emergency fund you can use to overcome any unprecedented situation. Your infirmary should not fall short of any product.

Final words

An investment in establishing a PCD pharma franchise company will be decided based on the product range you have chosen and an infrastructure to operate. Consider seeking professional support from the pharma companies to get an idea of the investment!

Latest Strategies to Succeed As a Pharma PCD Franchise Company

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The pharma franchise creates many opportunities for the people who want to set up themselves as budding businessmen even when they do not possess a great deal of knowledge about the medicine sector. Currently, a majority of pharma PCD franchise companies are witnessing significant growth in their business throughout the world. Hence, you can be a part of their success by applying for one of the leading pharma PCD companies' franchises.

The franchise has been the part of the business for a very long time, and there are specific strategies that can be used by one and all to achieve immense success and growth in the pharma PCD franchise company and sector. We have listed down some of the most critical points and strategies using which you can establish yourself well in the in pharma PCD franchise company and succeed big time:

Start by taking baby steps and slowly move down towards achieving your pharma PCD franchise company's bigger goals and objectives. All the best.

Investment Needed to Establish PCD Pharma Company

Any business without an investment plan is not viable today. Whether it’s a small or large, franchise, or own, a certain amount of money and resources must be invested to start with so that you can meet the industry or market demand. This investment will take of various requisites, including purchasing of goods, promotional and marketing activities, and paying employees.

Today, the PCD Pharma business is one of the most profitable ventures with the increasing demand for quality medicines each day. It has been indicated as one of the best industries to invest in because of the multiple benefits such as monopoly rights, a good profit margin, marketing tools benefits, and genuine investment.

However, if you want to get into this business, it is essential to know how much investment is needed to establish a PCD Pharma Company.

Factors to Consider When Starting Your Own Pharma PCD Company

There are various things that you need to consider before establishing your own company in the Pharma field. Nevertheless, the benefits you will get after venturing into the business will compensate for all the efforts and investments made. some of the essential things you should do before starting your pharma company include;

 

  1. Resolve the types and combinations of products that you want to deal with. Here, you should consider the market value before concluding on the kind of products you will deal with.
  2. Look for a place or property where you can establish your manufacturing unit or company.
  3. Come up with a unique and attractive name for your company.
  4. In case you don’t want to manufacture the products yourself, decide on the manufacturer of your products.
  5. Ensure you have all the needed documents required in establishing a pharma company. If you don't have the documents, apply for them because they play an essential role in determining the company.

 

The Necessary Investment to Start A PCD Pharma Company

To establish a PCD Pharma franchise and run it successfully, you need to divide your investment into various main parts. Otherwise, you might run out of cash or have a shortage later on. some of the things you need to keep in mind when investing in a Pharma PCD company include;

 

 

Invest in Licenses of PCD Pharma Company

To start your own PCD Pharma Company, you will be required to get the necessary licenses to run the company. Getting these licenses will cost you some money; hence you need to put aside some investment for this purpose. The good thing about this is that it will be a one-time investment. Here is a look at the amount of investment you will need for license and documentation for the PCD Pharma franchise.

 

  1. Tax identification number for about 4500rs.
  2. The drug license number for approximately 5000rs
  3. Food Safety and Standard Authority 100rs annually.
  4. Trademark per product for an aggregate fee of 4500rs as both government fees and advocate fees.
  5. Registering under Private Limited Company Registration for about 8000rs.

 

Tip to Remember

When establishing a company or business, you need to keep three situations of investment in mind. These essential aspects to remember include;

 

  1. Initial investment
  2. Investment for smooth operation
  3. Emergency investment for crises

To avoid frequent hiccups in every company, it is important to take into view long term future planning by having a backup plan for all three conditions.

Conclusion

We hope this is useful for you to be conversant with the investment process. Many people hold back their plans for establishing a Pharma PCD company because of the relatively high investment needed to start the business. However, if you make the investment correctly and with the right strategies and plans, you can establish your company easily without any problems.

10 Things Every Pharma Professional Should Know

1. What is Drug License?

A Drug License is a license issued by Drug Control Authority for conducting a particular task for example sale, purchase, stock, manufacture, distribute, import, export or any other covered under Drug and Cosmetic Act and Rules, 1945.

2. What is Drug License Number?

Every Drug License has a unique number which is used to maintain all record related to the holder and his firm. This number is known as Drug License Number.

3. Licenses Required to Start a Pharmaceutical Marketing Company?

4. Licenses Required to Start Pharmaceutical Manufacturing Company?

5. How to register a brand in pharma?

The pharmaceutical sector also has to follow the procedure to register its brand name like other sectors. Go to the website ipindia.nic.in and follow the process.

6. What is Pharmaceutical Trading?

Sale and purchase of pharmaceutical products and services are known as pharmaceutical trading. For pharmaceutical trading, you should have licenses. Doing this without any formalities is a punishable crime. Pharmaceutical traders include chemist, distributors, marketing companies, raw material supplier, etc.

7. What is Pharma Purchase and Pharma Sale?

Purchasing of pharmaceutical products or services from authorized pharmaceutical trader or manufacturer is known as pharma purchase and selling of pharmaceutical products or services to authorized pharma trader or manufacturer is known as Pharmaceutical sale.

8. What does Franchise mean in Pharma or what is Pharmaceutical Franchise?

Franchise in pharma means authorization by a pharmaceutical company to distributor or person or group of distributors to access or use its company name, brand name, products, services, etc.

9. How to calculate PTR and PTS?

In Pharma marketing, we have to calculate the number of things to provide rates and margin to the retailer, stockist, etc. To calculate PTR and PTS, please use the PTR and PTS calculator developed by Vibcare Pharma. You can find the calculator link below.

PTR & PTR Calculator

10. How much profit margins in Pharma?

Retailer margin is generally 20% or some time with the scheme. Stockist margin is 10% or some time with the scheme. C&f margin is 6-8% or sometimes with the scheme. Discussed margins may vary company to company, products to products or area to area, etc.

PCD Pharma Franchise Business FAQs

Q1. What is pharma franchise?

Pharma Franchise is a franchise business. Let’s understand what a franchise business is. When a company gives permission to a person or other company to sell its products by their name. It is called franchising a business.

A franchise is an agreement between the franchisee and the franchiser. The franchisee is the entrepreneur that is going to buy the franchise from the larger company also known as the franchiser.

 

Q2. What is PCD Pharma and what is its full form?

Same as Pharma Franchise, Pharma PCD (Propaganda cum Distribution) Franchise refers authorization of distribution and marketing rights at monopoly basis provided by a pharmaceutical firm to Pharma distributor to use their company name or brand name on behalf of the company.

PCD Full Form - Propaganda cum Distribution learn more

 

Q3. Is PCD Pharma different from Pharma Franchise?

No, both PCD and Pharma Franchise are the same thing.

 

Q4. Is CD (Cash Discount) better or scheme better for the customer?

CD (Cash Discount) is better for the customer. The illustration is given below:

For example, a person wants to purchase medicine with cost 100 for one box

  1. Under Cash discount

Before Discount Cost of 10 box medicine = 1000 (100*10) i.e. 100 rupees per box and 10 rupees per strip

C.D 10%

After Discount cost of 10 box = (1000-100) 900 i.e. 900/10 = 90 rupees per box and 9 rupee per strip

  1. Under Scheme

In the above case if the customer chooses the scheme (10+1)

The cost will be 1000 rupees for 11 boxes under this scheme i.e. cost of one strip 1000/110 = 9.1 approx.

Hence the Cash discount will be more beneficial to the customer than Scheme.

 

Q5. What are the different modes of transportation of goods?

The different modes of transport which are used for transportation of goods are air, water, and land transport which includes rail, road. The customer has to decide which transport is most suitable for him

different transportation mode in india

 

Name of transport/ Courier Rate/kg (Rupees) Approx. Time (Days) Approx.
VRL 8-12 10-12
TCI EXPRESS 8-12 10-12
TCI Freight 8-12 10-12
Shree Azad Transport co. Pvt Ltd 8-12 10-12
Nav Bharat 8-12 10-12
Jaipur Golden 8-12 10-12
Khushdil Roadways 8-12 10-12
Gati 8-12 10-12
ATC Assam 8-12 10-12
DTDC (Surface) 50 4-6
DTDC (Air) 100 1-2
The Professional (Air) 100 1-2
The Professional (Surface) 50 4-6

 

Q6. What is GR/LR/Bilty?

GR stands for Goods Receipt.  LR Stands for Lorry Receipt.  These terms are the synonyms of Bilty. This receipt is made by the Transporter once the material is loaded on the vehicle for Delivery.

 

Q7. What is Draft on Delivery (DOD)? Which transports provide this facility?

Draft on Delivery (DOD) is a facility by which a customer can pay for his goods at the time of delivery by demand draft. The customer generates the Demand Draft by the name of the company in the bank equal to the number of goods and hands over to the particular transporter and the transporter in return releases the goods to the customer.

Following are some of the transporters which provide the facility of DOD:

Q8. What is Account Ledger and how can you receive payment from a customer?

A general account ledger is an account or record used to sort, store and summarize a company's transactions. In Account Ledger, all the transactions of payment and sale of a customer are recorded in chronological order.

Following are the means by which payments can be received:

Q9. What is PTR, PTS and what are the percentages of PTR, PTS (Including GST)?

PTR – Price To Retailer     (28.5%) is the price at which the goods are sold to a retailer

PTS – Price To Stockist     (10%) is the price at which goods are sold to stockist

Calculate PTR & PTS

 

Q10.  What is GST?

GST (Goods and Services Tax) is an Indirect Tax which has replaced many Indirect Taxes in India. Under GST, the tax is levied at every point of sale.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

GST rates for pharmaceutical products

 

Q11. What is a drug license? What types of Drug License are important for us at Vibcare Pharma?

To start the Pharma business, a drug license is required. The central drugs standard control organization and state drugs standard control organization issue the drug license in India. Normally, the drug control organization issues two types DL, one is Retail drug license which is issued to a person who runs a chemist shop and another one is a Wholesale drug license which is issued to a person who wants to sell drugs on a wholesale level. In some states, retail drug license is issued only to that person who possesses the degree or diploma in Pharma from the recognized university.

At Vibcare Pharma, we do the billing on both Retail DL and wholesale DL.

 

Q12. What is NEFT/ IMPS/ Cheque / Demand Draft?

NEFT – It stands for National Electronic Funds Transfer.  It is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country.

RTGS – It stands for Real Time Gross Settlement. It is an electronic form of funds transfer where the transmission takes place on a real time basis. In India, the transfer of funds with RTGS is done for the high-value transaction, the minimum amount being Rs 2 lakh. The beneficiary account receives the funds transferred, on a real time basis.

Demand Drafts – Demand Draft is a pre-paid Negotiable Instrument, wherein the drawee bank undertakes to make payment in full when the instrument is presented by the payee for payment. The demand draft is made payable on a specified branch of a bank at a specified Centre. So, in such cases, Demand draft is accepted where the transfer of money is guaranteed. Demand draft is valid for a period of 3 months.

Cheque – It is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued it is issued by an individual. Cheque may be written only by an account holder. Cheque can be dishonored due to insufficient balance. But it may take 3-4 days to transfer the amount by cheque.

 

Q13.  What is third-party manufacturing?

Third party or contract manufacturing is referred to the outsourcing of pharmaceutical products or to get products manufactured from other manufacturing units with your own brand names.

Start Third Party Manufacturing Business

 

Q14.  How many products do we have at Vibcare Pharma and how many divisions with Therapeutic Segments?

We at the Vibcare are dealing in Six Main Divisions namely with more than 700 products in our portfolio.

Vibcare Pharma Divisions

 

Q15. What is credit? what is Vibcare Pharma’s credit policy? 

Credit means receiving something of value now and promising to pay for it later, often with a finance charge added by the lender. Vibcare pharma’s credit policy is that no credit selling and if there is any credit selling then the customer needs to provide Bank Guarantee against the credit amount.

 

Q16. What is the full form of PI and what is its meaning? What is the difference between PI and Tax invoice?

PI - The full form of PI is pro forma Invoice. A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information such as the rates, MRP, Batch number and expiry. PI is not valid for Input Tax.

Tax invoice - A commercial instrument delivered to the buyer containing the details of products or services provided by the seller is known as an invoice. Tax Invoice is valid for Input Tax.

 

Q17. List all promotional materials provided by Vibcare Pharma.

The promotional materials which are being provided by Vibcare Pharma are as follows:

 

Q18. What is monopoly Right?

The monopoly means the only supplier of a particular commodity in a particular area. In a monopoly, a single person or entity controls the market. A Pharma Franchise monopoly agreement means one person or company at one location as said in the agreement. If you want to have the monopoly right then it is best to look for the vacancy in the particular location you are looking for.

 

Q19. What is the sales tax?

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Sales tax is levied on the sale of goods and services which have been produced or imported. If the same goods and services are re-sold without any value addition, then sales tax is not levied again. Sales tax is levied under the authority of both Central government as well as state governments.

 

Q20. What is WHO and GMP?

The World Health Organization (WHO) is a specialized agency of the United Nations that is concerned with international public health. WHO system ensures that products are produced and controlled according to the WHO quality standards. More strictness is followed in WHO manufacturing process than GMP.

A GMP is a system for ensuring that products are consistently produced and controlled according to quality standards. GMP covers all aspects of production from the starting materials, premises, and equipment to the training and personal hygiene of staff. There must be systems to provide documented proof that correct procedures are consistently followed at each step in the manufacturing process - every time a product is made.

WHO-GMP certificates are of great value. These certificates show that the company’s quality is maintained in each department (in case of GMP certificate) and is also producing formulations, which are of international quality standards (in case of WHO GMP certificate).

 

Q21. What is the difference between ethical, PCD and generic medicines?

Generic medicines are the same as compare to ethical medicines in all aspects i.e. strength, dosage, efficacy, results, uses, etc. but it is cheap in price as compared to branded or ethical products. Same is the case with PCD franchise medicine; the same medicine is used as in case of generic and ethical. The only difference is the channel of distribution. We cannot say which medicine is better, medicine is the same, the manufacturing process is the same, and raw material origin is the same. The difference is created by the marketing team.