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The pharmaceutical industry in India is growing at a quick pace. It offers a great opportunity for young budding individuals who want to become entrepreneurs. Starting a pharma franchise business in India can really be exciting and turn out to become a profit-making venture. However, just like any other business, this one too involves an initial investment. The initial cost and investment in a pharma franchise business may vary depending on several factors. It is crucial to know about these factors that influence/impact the investment amount.
What is the pharma franchise business model?
- A pharma franchise business model is one where a company who is the franchisor offers selling and marketing rights of pharmaceutical products under its brand name.
- The individual or the company who gets the selling rights of top quality medicines in a specific area is the franchise.
- In addition to medicines, the franchise also gets assistance in marketing and access to all promotional materials.
Reasons why pharma franchise business has become highly popular in India
Here are some of the reasons why the pharma franchise business is growing at a fast pace and becoming a preferred choice for individuals looking to enter the pharmaceutical industry.
- Low risk, high reward business set up
- Readymade pharmaceutical products
- No tension or stress about manufacturing
- Complete focus on marketing, sales, and distribution
- Less upfront investment
Factors affecting the investment required to start a pharma franchise business in India
Beginning a pharma franchise business involves some specific investments. The investment amount would vary depending on several factors. These include:
Range and type of pharmaceutical products
- The investment amount would depend on the range and type of pharmaceutical products that an individual plans to market and sell.
- A more comprehensive range of pharmaceutical products will require a higher investment amount.
- For example, selling a variety of products, including specialized products such as injectables or healthcare formulations will require a higher investment for inventory and marketing.
Franchise fee
- In order to start a pharma franchise business, there is an initial fee to be paid to the pharmaceutical company.
- This fee helps in getting the rights to sell their products in the market.
- This fee would vary depending on the reputation of the franchise and the range of products they have to offer.
- A well-established name in the industry such as The Kamron group would charge more because of the range and quality of products they have to offer along with the brand value.
Purchase of inventory
- The inventory of pharmaceutical products to be marketed and sold needs to be purchased first from the franchisor company.
- The cost involved in this would depend on the quantity and range of products that an individual is looking to stock.
- For example, purchasing inventory of a combination of different medicine categories such as antibiotics, anti-inflammatory, anti-histaminics, etc. would involve carefully taking in account the cost needed for each category.
In addition to these, some of the other factors that contribute to the investment cost are marketing and sampling expenses, infrastructure and office space, and staff and their salaries.
In general, a minimum investment of Rs. 50,000 to Rs.1 lakh would be required to begin a pharma franchise business.
Are you looking to start a pharma franchise business in India? The Kamron Group can be a reliable and trustworthy partner in this journey. Known for being one of the top PCD pharma franchise companies, Kamron Group offers great opportunities for all to invest in their highly successful PCD pharma franchise business model.