The pharma industry is one of the fastest-growing industries in India. It is driven by the rising healthcare needs and increasing demand for good-quality medicines. The PCD pharma franchise model has gained a lot of popularity among the people. Especially those who work in this field.

A person or group collaborates with a reputed pharma franchise company to sell its products in a particular location while enjoying special rights in this model. Other than India, the PCD Franchise model is popular in countries like Nepal, Bangladesh, Sri Lanka, Afghanistan, Myanmar and Bhutan.

In this article, we will see a detailed overview of the PCD Pharma Franchise model and all the other important things related to it:

Understanding the Concept of PCD Pharma Franchise

It is a business model wherein a well-established pharmaceutical company permits a person or a group of people to sell their products in a specific region. Unlike traditional wholesale or retail models, the franchise owner doesn’t need to manufacture the medicines. The franchise owner acts as a distributor for the parent pharma company. They use the company’s brand, product range and marketing support to sell products and build a loyal customer base.

How the PCD Pharma Franchise Model Operates

A person collaborates with a well-established pharma company and receives the right to sell and market its products in a specific area. The company also provides business rights. Also, the parent pharma company provides the person with special business rights and now let’s know more about this business model below:

Establishment of Agreement

Both the parties sign an agreement which is essentially an official franchise agreement. It grants the franchise owners those special rights by which he/she can market and distribute their products in their chosen area.

Selection of Products

The franchise owners get to choose the products that he/she want to sell. Like:

• Tablets
• Capsules
• Syrups
• Ointments
• Injectables and much more based on the local market demand.

Promotion and Marketing

The franchise owner basically promotes the selected products and medicines in his/her designated area. Also, they promote the same to the doctors, pharmacists and clinics, leveraging the marketing and promotional materials that have been provided by the parent PCD pharma company.

Order and Supply Chain

The pharmaceutical company dispatches the products from its warehouse facility to the franchise owners. Once the products and medicines are selected, they make sure that the pharmaceutical goods reach the franchise owners timely. So that the franchise owners can sell the branded medicines and high-quality products to their customers.

Business Development and Relationship Management

Once the franchise owners receive the products then they can distribute it further. To grow their pharma franchise business steadily and efficiently, they manage their day-to-day operations, customer service and build relationships with healthcare professionals.

Key Advantages of a PCD Pharma Franchise

The PCD pharma franchise model offers multiple advantages that make it an attractive opportunity in the pharmaceutical sector.

Some of them are listed below:

Exclusive Monopoly Rights

The parent PCD pharma companies grant special business rights to their franchise owners are known as monopoly rights. The franchise owners become the sole distributor of the area which ultimately results in reducing the competition among the franchise owners.

Extensive and Diverse Product Portfolio

The well-established pharma franchise companies often provide a vast range of products. Including general medicines, antibiotics, nutraceuticals, pediatric, dermatology and gynaecology medicines and products. It allows the franchise owners to cater to a wide customer base.

Read More: best gynecologist in India

Comprehensive Marketing Support

The parent pharma company provides marketing and promotional tools. Like product cards, samples, promotional gifts, and doctor notepads to support the franchise owners. Also, to help them spread the word about themselves in the location where they are operating.

No Production Burden

The franchise owners don’t have to manufacture anything in order to start a pharma franchise business. The parent pharma company provides the stock to its franchises, thus no production costs are involved. The franchise owners just have to focus solely on marketing and distribution of the products.

Eligibility Criteria for Starting a PCD Pharma Franchise

We have discussed the most prominent advantages of starting a PCD pharma franchise above. Now, let’s have a look at the eligibility criteria for the same:

Educational Background

Well, there is no hard and fast rule that a person should have a medical background in order to run a PCD pharma franchise. However, it is highly beneficial if you have a degree in pharmacy, life sciences, business or maybe prior experience in the pharmaceutical sales.

Pharmaceutical Industry Knowledge

If you have a good understanding of pharma sales, distribution of the medicines, pharma categories and the demands of customers in your area. Then it can surely give you a competitive edge in this industry.

Required Documentation

The most important documents that you need to legally operate a pharma franchise business in India are:

Drug License: It is mandatory to sell and distribute medicines in India.

GST Registration: Good and Service Tax registration is required to comply with the tax and invoicing norms.

Franchise Agreement: It describes your role and responsibilities as a franchise owner.

Registration and Licensing Procedure for a PCD Pharma Franchise

Above, we discussed the important documents that are required to legally set up and run a PCD pharma franchise.

Now let’s understand them in more detail:

Drug License

It is basically a license that is issued by the State Drug Control Authority. This license is essential for any company that is engaged in the pharmaceutical product distribution.

It may be in the name of the business owner or a registered pharmacist who is associated with the company and works as their franchise partner.

GST Registration

The most crucial thing for a franchise partner is to get their GST registrations done for legal billing and taxation. It also ensures that all the commercial transactions comply with Indian tax laws.

Franchise Agreement

This is a formal agreement that is drafted by the parent pharma company. It mentions the product range, monopoly rights, payment terms, and area of operation.

Step-by-Step Process to Start a PCD Pharma Franchise

Let’s discuss the essential steps to start a PCD pharma franchise:

Step 1: Conduct Market Research

First of all, understand the demand for products and the existing competition in your area.

Step 2: Shortlist and Select a Pharmaceutical Company

Then the next step is to select a good pharma franchise company to partner with. You should compare the different companies by observing their product range, brand reputation, quality certifications like GMP, ISO, WHO and most importantly their franchise policies.

Step 3: Product Portfolio Selection

After that, select the products that are rising in demand in popular categories based on your research. It is advisable to focus on popular pharma segments like medicines for general health, pain killers, and multivitamins. The reason is, they never run out of demand.

Step 4: Fulfil Legal Requirements

You should apply for a drug license and GST registration if not already obtained them. Ensure all the documents are in place before initiating the business operations to avoid any legal issues.

Step 5: Finalize Agreement and Area

The next step is to sign a legal franchise agreement and receive the exclusive monopoly rights to operate in your desired area. Then confirm the initial product delivery, marketing and promotional support materials, and pricing.

Step 6: Launch and Promote Your Business

Finally, you can start operating your pharma franchise business and build a good network with the doctors, pharmacies, and chemists. Utilize the marketing and promotional materials and focus on building a loyal customer base as well.

Conclusion

The franchise owners promote the parent company’s products by acting as distributors in their area in a PCD pharma franchise business. This business model connects manufacturers and consumers through a region-based marketing system. It is known as a monopoly-based PCD pharma franchise.

Anyone can start a PCD pharma franchise by doing market research, selecting the right products, completing necessary registrations, and building strong relationships with local doctors, chemists, and pharmacies. This model helps provide quality medicines to people across the country, making it a great business decision.