Are you looking to start a business with low investment and high growth potential? A PCD (Propaganda Cum Distribution) Pharma Franchise could be the perfect opportunity for you. This business model allows you to be your own boss without the need to set up a pharmaceutical manufacturing unit.
Unlike other industries that face frequent ups and downs, the healthcare sector continues to grow steadily. With India’s young and growing population and rising disposable income, the demand for quality healthcare and pharmaceuticals is increasing every year. This makes the PCD pharma business a lucrative and future-proof opportunity.
What Is PCD Pharma Franchise and How Does It Work?
A PCD franchise is a business model where Pharma companies grant distributorship rights to small franchises. The pharma company holds the copyrights of the brands but a PCD franchise can sell products under the pharma company’s brand name. This becomes a win-win situation for both pharma company and franchise.
Pharma company can reach to remotest areas without expansion expenses. At the same time, franchises sell products without establishing manufacturing.
Now let’s understand how it works with an example of a pharma company, based in Delhi. They manufacture medicines, trademark them, and do packaging. Now they have ready-to-market products.
India is a big country with 28 states, 8 union territories, and 787 districts. It becomes difficult for pharma companies to reach all the districts and remote areas of the country to sell and market their product.
Here comes the role of a pharma franchise company. The pharma franchise works independently, usually within a specific area, let’s say in a few districts.
For example, the pharma company wants to reach their products in Kolkata, West Bengal, where they don’t have an existing network for distribution.
At the same time, there is a PCD Pharma franchise in Kolkata, West Bengal, looking for pharma companies. They both can connect and benefit.
For instance, a pharmaceutical company wants to distribute its products in Kolkata, West Bengal but lacks an existing distribution network. A PCD Pharma franchise in Kolkata, West Bengal can step in at this stage. By partnering together, the pharma company gains local market access. It allows the franchise exclusive rights to sell and promote the company’s products in that region – a win-win for both.
Pharma company and franchise make an agreement and the franchise company starts by buying a stock of products. Once the relationship matures, they both are profited.
Now the question is how franchise pharma makes a profit.
PCD Franchise purchases products in bulk at a discounted rate from the pharma company.
In addition to buying and selling, pharma companies help PCD franchises with sales and marketing too. Pharma companies provide marketing items like promotional materials, product samples, MR bags, etc.
Most of the pharma companies working in the PCD pharma business work on a monopoly model. Monopoly-based pharma franchise means the pharma company allows only one franchise to sell its products in a specific area.
Who Can Start PCD Pharma Business?
The great news is that starting a PCD Pharma Business doesn’t require any specific degree or diploma. If you have strong sales skills and an interested in working in the healthcare sector, you are all set to begin. With the right business approach and marketing strategies, you can build a successful pharma distribution business with minimal investment.
Documents parts we will discuss later in this article.
Now let’s jump to our main topic. In order to start a PCD pharma business, you need to follow the following steps:
Research & Business Planning
Every business works on the principle of demand and supply. Once you’ve selected the area you want to operate in, the next step is to analyze the demand for pharmaceutical products in that region. If the demand is sufficient, it’s time to evaluate the competition. This will help you position your PCD pharma business strategically for success.
Choose Your Product Range
The second step is to choose the range of products you want to deal in. This will depend upon what kind of healthcare infrastructure your area has. Although having a diverse portfolio makes a larger profit but its a good idea to start with a few and increase gradually.
Company Registration and Documentation
The next step is to register the firm and get the required license. The minimal required document for starting a PCD pharma franchise is a drug license. A drug license is mandatory to deal in the pharma business in India.
Other than a drug license, you need to register a company. You can register a proprietorship, partnership, private limited, or limited type of company.
GST registration is optional till your annual turnover reaches 40 lakhs rupees.
You can also register a trademark of your business to safeguard your brand.
Choose the Right Pharma Company
You are all set now to select the right pharma company. Apart from the product range, you should consider checking the company’s reputation. Check out for certifications like WHO-GMP and ISO certifications.
Once you are satisfied with the company’s reputation, you can make a PCD agreement and buy your first stock.
Branding & Marketing Strategy
You are done with everything and you have stock in hand. It’s time to create your own distribution network in your area and hire a sales team.
You can register and promote a local business on Google so that people searching for medicine distributors in your area can find you.
To keep business in good health, build relationships with medical stores, doctors, and healthcare providers.
Float marketing promotions from time to time and keep an adequate supply of medicines to fulfil demand.
Medicines usually come with long expiry times, so keep a good stock for on-time delivery.