Entry into the pharma business requires a proper roadmap and planning. How to start a PCD pharma company in India is a question many aspiring investors today find themselves asking. The specially designed model provides a safe entry into the medical sector without causing any risk.
Additionally, PCD (Propaganda-Cum-Distribution) pharma model provides a person to control their own region with sole selling rights. The Indian pharmaceutical market stands today at ₹4, 71, 295 crore and is a promising opportunity for those interested in investing in this sector. With proper planning and execution, a successful brand name in this growing sector can easily be created.
What is PCD Pharma in the Pharmaceutical Industry?
PCD is an abbreviation for “Propaganda Cum Distribution.” This unique business model sets itself apart. Here, the parent pharma company assigns rights to a distributor/supplier or individual. As a result, they are free to promote and distribute their products in a particular geographic area. This particular business model is popular with many, as it lowers the manufacturing load on the investor.
Also Check: What is a PCD Pharma Franchise? Complete Beginner’s Guide
Additionally, they handle all aspects of manufacturing, while you focus on sales. Nowadays, it is experiencing a tremendous growth surge with a 10-12% CAGR rate in the market. Aside from that, digital health and telemedicine are increasing their rural presence as well. As a result, even a small-scale PCD pharma company can reach out to a massive population.
How to Set Up PCD Pharma Company in India?
Starting your own PCD pharma concern requires many legal and financial formalities. Follow these detailed instructions to get started right away:
- Research and Analyze Products
- Legal Paperwork and Firm Registration
- Selecting an Appropriate Manufacturing Partner
- Infrastructure and Storage Setup
- Finalize the Franchise Agreement
First, you will have to identify the local demand for the drugs. Afterward, a well-structured business plan should include the targeted physicians as well as the local retailers. This is the first step to becoming a successful PCD pharma firm. You must finalize your products list tablets, syrups, injections, drops, capsules along with segmentation. Medicine segment will finalize in the starting of the business like whether you need general range, pediatrics, gynecology, or neurology range.
Top PCD Pharma Business Products List:
General Range Medicines
Cardiac Diabetic
Gynecology
Pediatrics
Neuropsychiatry
Urology & Nephrology
Nutraceuticals
Dermatology & Cosmetology
You would require registering your business as a proprietorship firm or a private limited company. Also, the GST Registration (approx. INR 1,000) and a Wholesale Drug License (approx. INR 5,000 to 15,000) are also required.
Choosing a reputed PCD pharma company is important to provide high-quality products. It is necessary to check that the company is ISO and WHO-GMP certified.
You would need a small office or storage space that is at least 10 square meters. In addition, the facility would need to have temperature control capabilities to handle sensitive drugs.
An agreement must be signed to ensure the monopoly rights for pharma medicine marketing. As a result, no other individual is allowed to sell the same trademark in that area.
Also Check: How Doctors Can Start a Pharma Franchise Business with Low Investment?
What are the Advantages of Starting a PCD Pharma Company in India?
- This will require only a small investment to begin your journey.
- Products have high profit margins, which range from 20% to 40%.
- The parent pharma firm takes care of the entire manufacturing and quality control.
- You get free marketing materials, samples, and aids relating to your work.
- Get to experience a monopoly market with no competition at all within the geographical area allocated to you.
- Start by offering a couple of products, but then diversify your lineup as you expand with a PCD pharma company.
- There is always a demand for high-quality health care and medicines throughout the year in India.
Final Remarks
Establishing a PCD pharma business is an intelligent decision for a pharma seeker. The reason behind it is that it deals with high-profit margins and the noble job of delivering health care. But the right approach would be to choose the right partner and then stick to the legal procedure strictly.
If you have already set your plan to start PCD pharma business, then you can start with Biomax Biotechnics. It is India’s most trusted and valuable own manufacturing PCD company with WHO-GMP-ISO-certifications. The firm has 500+ different segment DCGI-products and Pan India distribution network.
Final Remarks
Is it legally mandatory to possess a drug license for PCD pharma business?
Yes, having a valid wholesale drug license is a legal requirement to distribute drugs in any state.
Can an individual without prior industry experience start a pharma PCD business?
Experience can be beneficial too. However, the majority of the parent companies are capable of supporting the investors through some kind of training.
Which documents are fundamental for completing the GST registration process?
You would require your PAN card, Aadhaar card, and proof of the business premises if you are applying for a GST number.
How do exclusive monopoly rights function within the pharma distribution sector?
Monopoly rights refer to a company granting you the exclusivity to distribute its products within a given city or district.
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