Before starting any type of business, investment is the most important thing that comes to the individual mind first. Because in each stage of your business you need a hefty amount to survive your firm. So if you are looking to start a pharma company, you must know how much investment is needed to start a pharmaceutical company.
With the rising demand for affordable and high-quality healthcare, many individuals are exploring ways to start a pharma company with limited investment. ‘
However, venturing into this space requires a proper understanding of the procedures, licences, costs, and strategies involved. This blog provides a step-by-step guide on how to launch a pharmaceutical business with a low budget in India.
How Much Investment is Needed to Start a Pharmaceutical Company?
Before launching a pharma company, it’s crucial to gather details about the expected investments. Knowing the requirements and expenses beforehand helps you plan better.
The first step in the process is getting the necessary certifications. You will need to register your business and get a drug licence number. For this, you should set aside ₹15,000 to ₹20,000, though this is just an estimate. The exact amount can vary, so it’s wise to check with the appropriate authorities for the latest information.
In addition, you’ll need to register for GST (Goods and Services Tax) and obtain FSSAI (Food Safety and Standards Authority of India) registration. These registrations typically cost ₹10,000 or more, but the fees may change over time.
Starting a business isn’t just about the initial investment; you’ll also need ongoing funds to keep things running. Careful financial planning is necessary to cover these recurring costs and keep the company stable over time.
Types of Pharma Companies
There are two main types of pharmaceutical businesses:
- Pharma Marketing Company:
- Pharma Manufacturing Company
When creating your business plan, it’s important to allocate your budget according to the type of business you choose. Marketing companies are less capital-intensive than manufacturing companies, which need advanced infrastructure and machinery to operate efficiently.
Budget Requirements for Setting Up a Pharma Marketing Company
Starting a pharma marketing company in India requires a modest budget compared to manufacturing, as the focus is on branding and distribution rather than production. The necessary expenses involve branding, marketing, and setting up a small office.
These activities, including packaging and promotional campaigns, can range between ₹50,000 to ₹1,00,000. Basic office setup, utilities, and staff salaries might require an additional ₹50,000 to ₹75,000.
Also you need to comply with these regulations to ensure the business operates lawfully and meets industry standards.
In total, a starting budget of ₹2 to ₹3 lakhs should be sufficient to launch operations, especially if you partner with third-party manufacturers for product supply.
Investment Needed to Establish a Pharma Manufacturing Company
To establish a pharma manufacturing company, you’ll need various licences and approvals. These include a drug manufacturing licence, GST registration, and FSSAI registration (if applicable).
Licensing fees and registration processes are part of the initial setup costs.
You can either outsource manufacturing or set up your own production unit, depending on your budget.
On average, the total cost to launch a small-scale pharma manufacturing business ranges from ₹6 to ₹12 lakhs, depending on the scale and complexity of operations. With the growing demand for pharmaceutical products, starting such a business offers good potential for profitability, without requiring enormous capital.
Bottom Line
Cinerea Biotech is a reliable pharma company that offers valuable guidance on investing in or starting a pharmaceutical business. We also provide top-tier pharma franchise services, making it a great partner for those seeking franchise opportunities in the industry.
Cinerea Biotech is known for delivering on its commitments and maintaining high product quality. If you are looking to leverage industry expertise and explore franchise options, Cinerea Biotech can be a trusted partner to help you succeed in the pharmaceutical space.