How to Start PCD Pharma Company

India is the third largest pharmaceutical products exporter in the world. It contributes 20% of global generic drugs and 60% of global vaccination products. The country is expected to have $130 billion by 2030 growth at CAGR of around 10%.

During the recent COVID-19 pandemic, India not only exported Covid vaccines to more than 100 countries but also drove world largest vaccination campaign, administering over 2 billion COVID-19 vaccine doses.

The above figures show the strength of Indian pharmaceutical industry in both global and Indian market.

The market has been fueled by increased healthcare spending, infrastructure and healthcare insurance providers.

In the local market, the pharmaceutical industry has successfully adopted the propaganda cum distribution (PCD) pharma business model.

The PCD Pharma business model not only helps pharma companies to their full market potential but also helps expand their reach to rural areas.

Let’s explore the PCD Pharma franchise business model and how one can start it?

Understand the Pharma Franchise Model

PCD Pharma model is a model where a pharma company, offers an authorized distributor for selling and marketing their products under their brand names within a specific area.

Most of the companies offer monopoly based pharma franchise, which means within a certain territory, only one distributor or franchise is allowed to sell company’s products. For example, if the company has authorized a PCD Pharma franchise in Ahmedabad or its sub-area, then it will not authorize any other distributor.

The monopoly based PCD franchise model helps the distributor work independently and avoid conflict.

Who Can Start the PCD Pharma Company?

Fortunately, to start a PCD Pharma franchise business, one does not need any specific degree. You need to have some licensing which we will discuss later in this article.

For running a PCD Pharma company, you should be good in sales and marketing. If you already have been working in pharma business like pharmacist or medical representative, then you can utilise the industry knowledge and contacts.

If you already run a distributorship business, you can add an additional vertical by choosing PCD Pharma company.

How to Start the PCD Pharma Company in India?

Let’s discuss below the steps and requirements to start PCD Pharma franchise business.

Conduct Market Research

Market research is always required before you take the first step to start any business. You should first check the demand for pharmaceutical products in your region or area where you want to start the franchise. Demand for specialized pharma products could vary according to hospitals and medical facilities in the area. For example, areas with more pediatric specialists will require more pediatric PCD pharma franchises. With people opting for more ayurvedic products will require more ayurvedic products PCD franchises.  

Researching the existing competition and local regulatory requirements is indeed will make your job easier.

Choose the Right Pharma Company

Next comes the choosing right pharma company like Jantec Pharma which has 25 years of experience and offer wide range of best quality products. The company offers PCD Pharma company in cities all over India.

Once you have the list read, next make a checklist of following:

• If company offers the product range you are interested in
• Market reputation and experience of the pharma company
• Quality certifications like WHO-GMP, ISO certification, etc company have
• If company offers monopoly rights
• Sales and promotion support company offers

Decide on Your Investment and Business Scope

PCD form of franchise is usually considered a low investment business. You can start with small stock and team, although many pharma companies have a minimum cap for buying first time stock.

You just need to decide the budget for your stock purchase, infrastructure set up, marketing team, and operational cost.

Documents and License Required

To register a PCD Pharma company in India, you just need two primary documents, a drug license and goods & service tax (GST) registration. The GST registration is required if your company's annual turnover exceeds the threshold limit, discussed later in this section.

To start PCD pharma business, you need to register a company, which may include some additional steps like:

Choose a Unique Company Name

Start by selecting a unique and distinguishable name for your company. Ensure that it adheres to the naming guidelines and doesn’t resemble any existing registered company to avoid rejection. Filing a trademark will help you run a business in the long run. 

Obtain a Digital Signature Certificate (DSC)

Since most of the registration process is conducted online, obtaining a Digital Signature Certificate for all proposed directors or partners is essential at this stage. This is optional step.

Apply for a Director Identification Number (DIN)

You need DIN, in case of  Private Limited Company or an LLP (Limited Liability Partnership) firm registration where you need multiple directors. In case of proprietorship or single-owner business, no DIN is required because it doesn't involve directors.

Register the Company with the Registrar of Companies (ROC)

With the DSC and DIN in place, proceed to register your company by filing the required forms with the ROC. Submit essential documents required.

Obtain PAN and TAN

Apply for PAN & TAN at tin.tin.nsdl.com.

Register GST

GST registration is optional for businesses with annual turnover of less than ₹40 lakhs for goods and ₹20 lakhs for services. In case the company’s annual turnover exceeds this limit, register for Goods and Services Tax (GST).

Obtain Drug Licenses

You must have a drug license to run a  PCD pharma franchise.

Open Bank Account

Now you have all the necessary documents in hand and you are ready for transactions. Get your business's current account opened with any bank. 

Set Up Your Business Infrastructure

Once selected the pharma company and acquired the documentation, you need to secure an office space or a physical location for the distribution of products. Make sure you have proper storage for keeping medicines that are sensitive to temperature and light.

Next hire the sales, marketing and other staff.

Stock Selection and Procurement

You must have a list ready from the market research phase for stock selection. Start with a small stock and gradually increase based on the specific product demand.

Medicines usually have adequate expiry time, so keeping a good stock for timely replenishment will help.

Marketing and Promotion

Marketing and promotions are the most important parts of PCD Pharma business. Parent pharma company usually give their franchise sales and promotional material like bags, visual ads, pharma samples, brochures, reminder cards, visiting cards, order books, diaries, catch covers, literature, calendars and more.

Sales and marketing in PCD Pharma business means building good relationships with doctors, pharmacists and hospitals.

Building a Distribution Network

To build good distribution network along with a good distribution team, you need to have competitive prices. Offer time to time beneficial schemes for pharmacists, doctors and hospitals.

Future of PCD Pharma in India

India is most populous country in the world and still growing. As the population grows, health care facilities and products demand will grow.

The awareness of public and health insurance companies out reaching them will certainly have positive impact on pharma industry.

With the government initiatives like Ayushmann Bharat scheme, healthcare facilities will be more accessible and affordable to the general public, boosting demand for pharma products.

Tips for Success

If you want to succeed in PCD Pharma franchise business, you must first choose a reputed company like Jantec Pharma. A company that has a wide range of pharma products. The company delivers the stock on time with the fastest logistic support and have good support for sales and marketing.

As a PCD Pharma franchise, your primary goal should be customer satisfaction. A strong relationship with pharmacists, doctors, and hospitals is the key to sustain and grow.

Stay updated with the market demands and industry trends.

Last, but not least, always comply to healthcare regulations because you are serving for life.

Ready to Get Started?

Jantec Pharma is a top PCD pharma franchise company Delhi. We have a range of 200+ quality products that comes with world class packaging. We offer monopoly based pharma franchise in all over India with fastest logistic support.  Our products are WHO-GMP certified. We provide franchise partners with a range of promotional materials, including MR bags, Visual-Aid, Pharma samples, Catch-cover, Brochures, Literature, Reminder cards, Visiting cards, Chemist order books, Diaries, Calenders, Pens and more to support brand visibility and sales.

Phone: 9910488720

Email: info@jantecpharma.in

Address: 302, 3rd Floor, Plot No. B-9/2, Phase - I, Badli Industrial Area, Badali, DSIIDC, Delhi, 110042

FAQs

What is the investment required to start PCD Pharma Company in India?

The investment to start a PCD pharma company could be divided into two parts. First your business setup and documentation expenses. Second, getting the franchise from a pharma company.

Can I get PCD franchise for more than a company?

Yes, you can get PCD franchise for more than one pharma company if the pharma company agreement allows. This is usually required when a single pharma company does not have a range of all the products you need.

Is GST registration mandatory for PCD pharma companies? 

No, GST registration is not mandatory until your annual turnover reaches ₹40 lakhs. Although having is recommended for tax compliance and trust. 

Can I start PCD pharma franchises in India without a drug license?

No, you cannot start a PCD pharma franchise in India without a drug license. As per the Drugs and Cosmetics Act, 1940, a drug license is mandatory for the sale, distribution, and marketing of pharmaceutical products.

Have more questions?

Reach out to Jantec Pharma for any query you have regarding PCD pharma business. Call 9910488720 or email us at info@jantecpharma.in.