Tips to Start a Wholesale Pharmacy
Pharma industry is among the largest industries in India. It also holds a glorious 4th position in the world in terms of volume. Hence wholesale pharmacy is a profitable business anytime. Pharma professionals have good opportunity to grow with this business.
However, starting a wholesale pharmacy business in India has certain requirements. Here is how you can start the business. This post covers all the legal requirements and eligibility for starting as a seller of medicine.
Wholesale Medicine Business in India
Before we learn the procedure to start wholesale pharma business in India, let us learn areas of business. As a wholesale pharma distributor, you will be supplying drugs to all the medical stores. The store you will serve covers clinical drug stores and independent chemists. You can also supply to chain drug store of any particular pharma manufacturing company. Clinical drug stores are stores of big hospitals and nursing homes.
Requirements for Initiation
Check all the essential requirements for starting a wholesale business in the pharma industry. The checklist will help to make the process faster.
- Arrange for premises or shop of your own or get rented premises for business.
- If you are renting the premises, prepare rent agreement.
- Contact the pharmaceutical companies and get distributorship.
- Purchase office with basic requirements like furniture and computers.
- Purchase a refrigerator.
Also Read – How to Set Up Pharma Manufacturing Unit in India
Legal Procedures for Wholesale Pharmacy Business
Once you setup your premises, complete the licensing requirements. Apply for following documents and obtain from respective authorities.
- The person should be a registered pharmacist with one year experience in the field.
- Drug licence for wholesaling from the Drug Control Authority CDSCO.
- GST registration.
Obtaining drug licence is one of the most essential requirements. Hence we have elaborated it further in details.
Documents Required for Drug Licence Application
While you apply for drug licence for wholesale medicine business, following documents are a must.
- Covering letter to the application for drug licence.
- Application form filled and signed as per the prescribed format.
- Challan of the fee payment.
- Declaration plan.
- Plan of the premises and related certificates.
- Proof of ownership of the premises or rental
- Proof of business – Certificate of Incorporation in the case of business. Partnership deed in the case of partnership firm.
- Proof of appointment of the registered pharmacists.
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Submit the application for the drug licence with all the supporting documents to the authorities. Once you get the drug licence for stocking and wholesaling medicines, you can start a business.
Important Factors for Wholesale Pharma Companies
Collaborate with the local clinics, hospitals, and druggists for supplying. Being a healthcare industry, authorities are particular about the storage too. Hence, make sure you have proper and hygienic storage facilities on your premises. Store the medicines as per the standards to avoid issues. Keep the premises free of pests, unclean materials, and wastes. Cooling appliances like refrigerators and air conditioners are also considered essential to store medicines. You will also need to hire working staff besides the pharmacist.
Considering the requirements, you will need an initial investment of minimum 40 lakhs. The investment also covers fees and expenses for the documentation and registrations. Hence, make sure you plan out an estimate of all the expenses in advance.
Also Check List of Top 10 PCD Pharma Companies in India July 2018