Best Time To Invest In Pharmacy Franchise Business During Covid Pandemic
Written by Shakti Sep 6 , 2021
The pharmacy sector has become one of the largest sectors in terms of earning high revenue and better employment in the Indian economy. This sector has been growing at a CAGR of around 23% and employing 4.7 million people directly since 2016.
The Pharmacy franchise has the potential to generate approx. 2.9 million additional jobs in our nation between 2017-2022 (over 5,00,000 new jobs per year).
There are various factors that are driving the growth of the Indian Pharmacy sector. These include-
▪ an ageing population,
▪ a growing middle class,
▪ the rising proportion of diseases due to unhealthy,
▪ an increased emphasis on public-private partnerships & accelerated adoption of digital technologies like telemedicine, having high interest from investors and increased FDI inflows over the last 20 years.
The Government has also undertaken deep structural and sustained reforms to strengthen the pharmacy business and announced conducive policies for encouraging FDI. These reforms consist of various short-term & longer-term measures for the health system along with Production-Linked Incentive (PLI) schemes in order to raise domestic manufacturing of pharmaceuticals and related medical equipment.
Nowadays, India is working towards becoming a hub for health and wellness programs on Ayurvedic medicines and related products.
No doubt that the COVID-19 pandemic has presented many challenges but on the other hand, it has come up with several opportunities for India to grow in the Pharmacy business. The business crisis has opened the gates for Indian start-ups & franchises to rise and accelerate the development of low-cost, scalable, and quick solutions in this sector. Further, the pandemic has made an impulsive expansion of telemedicine and the home healthcare market in our nation.
Pharmacy Franchise Cost in India: The cost of Investment is about 10 to 20 lakhs for commercial retail space to open the pharmacy store.
Thus, in the current situation, India’s pharmacy industry is ready to deal with ongoing huge & attractive investment opportunities. The opportunity to boost the domestic manufacturing of pharmaceuticals is supported by the recent investment avenues in segments like contract manufacturing and research over-the-counter drugs, generic drugs, Active Pharmaceutical Ingredients (API)/bulk drugs, and vaccines.
The Pharmacy Franchise business provides insights about the employment generation potential, the prevailing business, and investment climate that helps in highlighting the key growth drivers for this franchise business. The pharmacy industry mainly focuses on the elaboration of enabling policies and investment opportunities in 7 key segments that include hospitals and infrastructure, health insurance, pharmaceuticals and
biotechnology, medical devices, medical tourism, home healthcare as well as telemedicine, and other technology-related health services.
FDI in India’s Health Sector (2000-2020) (Total Health-related FDI (USD Million))- 25,357
▪ Drugs & Pharmaceuticals- 16,501
▪ Hospital & Diagnostic Centres- 6,727
▪ Medical & Surgical Appliances- 2,130
In the pharmacy sector, FDI is permitted up to 100% in greenfield projects and 74% in brownfield projects under the automatic route.
The mission of the pharmacy business is to create franchise profit for different management mechanisms in order to process the digital health data and facilitate public and private health service providers, laboratories, and pharmacies.
➢ It also supports clinical decision-making processes related to services like telemedicine. ➢ It has the potential to make the health system more evidence-based, transparent, and efficient.
As per the data of the World Trade Organisation, India is ranked 3rd in terms of volumes of exports and 11th concerning the value of exports of pharmacy-related goods in 2019 across the globe. The pharmaceutical exports grew at a CAGR of approx. 6% and the imports grew at a CAGR of 9.3% between 2016 and 2021. In India, the cost of production in the pharmacy sector is around 33% lower than that of the United States.
Best Pharmacy Franchise Opportunities in India-
→ Dava Discount: The company was incorporated in 2015 as a division of Rajnish Wellness Limited which has a strong network & presence on all major E-commerce platforms as well as medical stores; supplying all pharmaceutical products throughout the nation with its franchisee. It is the only market leader offering a discount of up to 20-25% on branded medicines. Dava Discount franchise offers the best of services for effective and unique marketing skills to ensure a timely supply of branded medicines at competitive pricing.
Franchise Fees: Rs. 2lakhs -5 lakhs
Space Req.: 250 - 500 sq. ft.
Franchise Outlets: 10 – 20
→ MedZone: It is one of the leading pharmacy chains that serve countless customers daily throughout the nation. Its stores are conveniently located near to the customers’ homes and offer a wide range of prescribed medicines and general FMCG goods at discounted prices. MedZone believes in value pricing and treats its customers very well. It is the pharmacy store with the highest standards of service excellence. It comprises more than 500 employees who work to provide world-class pharmacy services across the nation. It also offers ethnic healthcare products at reasonable prices. Franchise Fees: Rs. 1Lakh - 2Lakhs
Space Req.: Less than 250 sq. ft.
Franchise Outlets: 40 – 80
→ Sanjivani: It is a company that was started with an intention to become successful in offering people with best quality medical products at fair and reasonable rates. The journey was tough but the company managed to help people in the best manner. At present, it has more than 40 stores across the nation and has become one of the fastest-growing pharmacies in India. It aims to become one of the largest retailers of the pharmacy industry nationally as well as internationally. The company offers products that include OTC products, surgical goods, and all kinds of medicines.
Franchise Fees: Rs. 2Lakhs- 5Lakhs
Space Req.: Less than 250 sq. ft.
Franchise Outlets: 160 – 300
Thus, Pharmacy Franchise Business opportunities include different profitable aspects such as retailing and manufacturing of medicine and the healthcare industry. This industry needs a good amount of care and quality, along with the best distributors and retailers who can match up with the requirements of the pharmaceutical industry in our nation.
The pharmacy franchise generates profits to create an awareness of various brands in India. Pharmacy franchise opportunities in India have been increasing every year with top brands in the health sector, giving pharmacy franchise profits & sales with some of the brands like Dava Discount pharmacy franchise. This is the best time for entrepreneurs to learn & explore more about the pharmacy franchise cost in India.
Written By: Yukta Palekar
Written by: Divisha Pandey
Written By: Yukta Palekar
Surat, a city in Gujarat, India, is known...
Written By: Moni Evangilin