The rapid growth in the healthcare sector in India leads to an increase medicine business as well. Now a day’s people are spending thousands of rupees on their health and for a better lifestyle. The Medicine business is ever-growing business and least affected by the recession. India is the third largest country in the pharmaceutical market in the world. India has a 42 billion dollar industry in pharmacy. Medicine business is a more growing business as compared to other businesses. However, you can easily start a medicine business in India. This article will help you that how can you start a medicine business?

Types of pharmacy business

There are four types of the pharmacy industry.

Stand alone 

In this type of pharmacy, a retail store is opened in a local residential area. Small and medium scale business owner usually run such type store. It requires less investment and give profit in less time.

Hospital pharmacy 

In this type of pharmacy, a store is opened in hospital and fulfill the requirement of medicine for the patient of the hospital usually they tie-up with hospitals.

Township pharmacy 

In this type of pharmacy, a store is opened in town areas.

Chain pharmacies 

Chain pharmacies is a modern form of medicine business in India. It is also known as a franchise pharmacy. Franchise pharmacy gaining popularity because it requires less investment and it has less risk. Taking a franchise is more profitable instead of opening a store on its own. Because all the franchises have brand value and goodwill and it also attracts customer and gives good profit as well. You can take franchise of any pharmacies like Apollo Pharmacy, Shanjivani pharmacy, Medlife pharmacy, etc. and you can start a pharmacy store.

Opt for a franchise is a good option because it has lots of additional benefits like you would not have to promote your store the franchise goodwill will attract customers by itself. And the owner of the franchise provides promotional materials such as pamphlets, samples for the store.

License for pharmacy

The first step before opening a medical store in India is obtaining a drug license. To run a pharmacy business drug license is mandatory for selling medicines in India. There are two types of license retail store license and wholesale license. A retail drug license is required for opening a general medical store and a wholesale drug license is required when you are supplying medicines to the retailer in large quantities.

Eligibilities for medical store license

Degree in medicine 

If you are planning to open a medical store but are not aware of how to get a medical store license in India. You should be aware of the eligibility for a medical store license. First of all, you shall have a degree in B. pharm, M. pharm or diploma from a recognized university or institute. And if you do not have a degree then in this case you shall look for a pharmacist you would lend his license to you for return of good profit.

Competent personnel 

Competent staff or persons shall be present on the counter at the time selling medicines.

Qualification of the competent staff 

• A graduate person and have one year experience of selling drugs.
• A registered pharmacist.
• A degree holder in SSLC (Secondary School Leaving Certificate) and have 4 years of experience in selling drugs.

Mandatory Documents for a Medical Shop License

• Application form shall be filled properly 
• Cover letter stating the intent and signed by the applicant 
• Payment proof of fees
• Signed declaration form by the applicant 
• Premises blueprint 
• Documents stating possession of premises 
• Proof of ownership of premises, in case it is rented 
• Identity proof of the owner along with the recent photographs
• Proof of constitution of medical store (partnership deed, MOM, AOA, ect.)
• Proof of non-conviction of owners as per the Drugs and Cosmetics Act, 1940^[1]
• Affidavit of a competent person or registered pharmacist working full-time 
• Appointment letter of the registered pharmacist or competent person in case he is employed 

You can obtain your drug license after filing the mandatory documents.

Registration of pharmacy business in India

If you are planning to open a medical store you shall get registered Pharmacy Act, 1940. Registration of a medical store is mandatory, without registration you cannot run a medical store. If you are planning to open a general medical store you can get registered as a proprietor or partnership. If you planning to open a chain or hospital store you can get registered as a private limited company as well. GST registration is also mandatory. All the pharmacists shall be registered under GST and shall have to pay GST on time.

Investment required for pharmacy in India

As compared to profit the investment capital is a lot less in the pharmacy business. Although it varies on what type of pharmacy business you want to opt for and where do want to opt. But it requires around 15-20 lakhs capital for a small-scale pharmacy business. You can gradually increase the size of your business by reinvesting your profit from your business. Although nowadays business loans are easily available.

Types of sources for investment

Owned: In this source of investment you invest your previous saving into your pharmacy business.

Owed: In this source of investment, you take loan from banks or other financial institutions to invest in your pharmacy business.

Enough supplies

Having enough supplies of stock help every business to grow in the market. And the same case goes for the pharmacy business as well having enough supplies of stock help to meet the demand of customers. You need to keep different kinds of medicine so that you can fulfill the demand of the customers. It will help you build goodwill in the market and attract more customers.

Conclusion – Pharmacy Business

Starting a pharmacy business in India is a very good choice due to the demand for medicines in India and it is also very profitable. The requirement of assets and capital is also very low as compared to other businesses. But before starting a pharmacy business in India one needs to fulfill all the necessary requirements and paperwork.

Read our article:How to Get FSSAI Registration in Maharashtra?