Starting a pharma wholesale business in India can be a rewarding venture, given the country’s rapidly growing healthcare sector and demand for medications. This blog provides a comprehensive, step-by-step guide how to start pharma wholesale business in India.
Covering topics from understanding the industry to securing licences, building partnerships, and managing logistics, it will help you navigate this complex industry.
Understanding the Pharma Wholesale Business
In the pharma wholesale business, wholesalers act as the bridge between manufacturers and retail pharmacies or hospitals.
They buy pharmaceutical products in bulk directly from manufacturers or authorised distributors, then distribute them to pharmacies, clinics, and healthcare providers.
Pharma wholesale businesses can involve:
- Stockists: Maintain inventory for retail distribution.
- Distributors: Focus on moving products from manufacturer to retailer or hospital.
- Super Stockists: Larger businesses supplying to smaller stockists in a wider region.
Types Of Pharma Wholesale Business
Pharmaceutical wholesale businesses cater to different types of customers based on the pharmacy model they serve. Here’s a look at the primary types of pharma wholesale businesses and the specific customers each serves:
1. Clinical Pharmacies
Clinical Pharmacies or drug stores operate within large medical institutions, often set up under major hospitals or prominent doctor’s clinics. As these are private institutions, their success is closely tied to the reputation and popularity of the associated clinic or hospital.
2. Independent Pharmacies
Standalone drug stores are independently operated, either as a sole proprietorship or in partnership. Their success hinges on factors like market competition, store location, and the reputation they build within their community.
3. Pharmacy Chains
Chain drug stores are part of larger pharmacy brands and operate as franchises. These stores benefit from the brand’s established reputation, making it easier to attract customers and generate profits.
These stores serve a broad customer base, ranging from individuals seeking everyday health products to patients filling prescriptions.
Registering and Obtain Necessary Licences
To start a wholesale pharma business, you need to meet a few requirements. Anyone with a pharmacy degree and at least one year of experience in the field is eligible to apply.
The permit for this business is issued by CDSCO, the main regulatory authority. Additionally, GST registration is required to get started.
Here are the necessary documents for the application:
- Filled application form in the specified format
- Proof of fee payment
- Declaration form
- Site plan and layout of the business location
- Cover letter from the applicant
- Ownership proof for the business premises
- Business constitution proof, such as an incorporation certificate, partnership deed, or similar, depending on the business type
- Proof of hiring a registered pharmacist for full-time work in the business
It’s essential to note that CDSCO closely monitors all wholesale medical stores to ensure standards for medicine storage, display, and sale are maintained.
Secure a Storage Facility and Equipment
Pharmaceutical products require specialised storage and handling. Consider:
- Temperature Control: Many drugs need to be stored at specific temperatures, often in air-conditioned spaces.
- Security Systems: To protect valuable medicines from theft.
- Inventory Management System: Track and manage stock levels in real-time.
- Proper Shelving and Labelling: Ensure organisation and accessibility.
The warehouse should comply with Good Storage Practices (GSP) guidelines to maintain product safety and efficacy.
Develop a Marketing Strategy
To build a customer base, consider these marketing strategies:
- Networking: Build connections with pharmacies, hospitals, and clinics.
- Digital Marketing: Use online platforms to promote your business and reach a wider audience.
- Referral Programs: Encourage satisfied clients to refer new customers.
- Participate in Trade Shows: Attend industry events to showcase your products and build relationships.
The aim is to make your business known to healthcare providers who need a reliable supplier.
If you’re looking for a dependable partner in the pharma industry, Cinerea Biotech is an excellent choice. As a trusted PCD pharma company, Cinerea Biotech offers quality products, marketing support, and a strong partnership network.
Connect with Cinerea Biotech to enhance your business potential and make a lasting impact in the pharmaceutical sector.