top of page

How Much Investment Is Needed To Start PCD Pharma Franchise?

Updated: Jun 29, 2021

When a business is started, it needs money. Investment is one of the crucial things when it comes to starting a business in the pharma industry. In India, the pharma franchise industry is booming, and if you invest in the right pharma franchise company, you can make a lot of money. Though the pharmaceutical industry offers numerous business opportunities, owning your own company is the best in terms of growth and return on investment.

If you are wondering about the exact amount, then it is quite difficult to mention one amount that will be sufficient.

Many factors affect the decision of how much investment is needed. Do you want to know about those factors? Then there are few things you have to consider while fixing the budget.

1) Initial Investment

The first thing to do is to search the market. You just can't invest without much thinking. Choose three or four top companies and then ask for a quote. The best way to choose one such company is to search for 'top 10 pcd pharma company in Gujrat' or 'list of pcd pharma companies in Gujarat'.

Once you are done with analysing the pharma market, you will learn about the primary investment level. This amount is higher than what you should consider keeping on hand to deal with a product shortage.

2) Emergency requirements

Before investing all the money you have in the business, you better save some for unforeseen circumstances. Save a part for emergency requirements. You never know what tomorrow will bring, so the best option is to be prepared in advance.

3) Keeping product shortages at bay

You must also consider the demand-supply ratio once you have established a supply chain channel and have exclusive rights to market products. It will assist you in avoiding any market shortages and maintaining a constant flow of products to keep demand high. You'll also need to keep a healthy balance in your business account for this.

You will be required to invest your money on a regular basis until your company begins to make a profit. As a result, plan your budget accordingly. Here are a couple of things that you should keep in mind:

◦ Pay for your products in advance.

◦ You'll have to give credit to the chemist and the stockist as well.

◦ Money for product promotion and marketing will be required as well, so make sure you have enough money set aside for this.

There is always a specified way to do certain things. So, to start a pharma business as well, you have to follow a proper process. The things that are mentioned above are crucial things to keep in mind but don't forget about the licence and documentation.

Licensing and approval from various authorities are required for the establishment of a reputable pharmaceutical company. These are one-time investments that can be made prior to the company's formation. If you are thinking you can run the business without documents and a license, then be ready to pay a hefty amount.

So, it is better to spend a few bucks on this step only for a safer and smoother run of your business. If you are wondering how much amount you have to spend on the initial level, then here are some of the basic and important documents.

• The cost of obtaining a Drug License Number is estimated to be around Rs. 5000.

• The cost of obtaining a Tax Identification Number is estimated to be around Rs.4500 (TIN).

• Food Safety and Standard Authority of India (FSSAI): Registration costs Rs. 100 per year.

• The cost of registering your company as a private limited company is estimated to be between Rs 8000 and Rs 9000.

• As government fees and advocate fees, a Trade Mark per product or name will cost a total of Rs. 4500.

So, these are some basic expenses that you have to bore. Now, let's move ahead to another essential thing, and that is how to choose the right pcd pharma company in Kerala? There are a couple of things that are crucial to know.

Company's background

When it comes to selecting the right company, you should consider a variety of factors such as previous client reviews, the company's market reputation, experience, and so on. Always put your money where you know you can make a profit. As a result, you will end up choosing the franchise of the best company. Sending emails to various companies for samples is an excellent place to start.

Product Lifecycle

Check the company's product range. It should be tailored to your requirements. Please look up the company's price list and pick the one that has the product range you need, whether it's 500, 800, or 1000 items.


When researching a company's history, look for the certification that it has successfully passed. It's probably similar to well-being and ensures that you're investing in a trustworthy firm.

Product quality

Don't forget to inspect the products for quality. Requesting samples is the best way to ensure the highest quality product. Don't make a purchase based solely on the product's image. Customers will be able to rely on you in the future if you choose a high-quality product, and they will also be able to recommend you to others if you choose a high-quality product.

Assistance to Clients

When it comes to choosing a good Pharma Company for PCD, customer service is an important factor that is often overlooked. It would be best if you go with a company that offers excellent customer service.

Note - Don't forget to compare different companies before finalising the deal. Ask for a quote of the supplies or items and then after analysing each and every point choose the company.

Now, you know everything from scratch. So, what are you waiting for? Go and start searching about different pharma companies. Don't choose any random company and keep the budget plus the above-mentioned points in mind while carrying forward the investment process.

20 views0 comments
bottom of page