Is Medical Franchise Profitable in 2023?

on Jan 19, 2023 | 277 views

By Fadheela 

 

The medical and healthcare industry in India is the third largest in the world. Medical franchises in India and worldwide have recently been on the rise. This is no surprise. With the continual waves of COVID-19, people now more than ever need medication.

Depending on the medical franchise you choose to open, it can be as high-cost or as affordable as you want it to be. Especially after the pandemic, many people have realized that it can be a profitable business to get into.  

In this article, we’ll be talking about why medical franchises are important, and why you should consider owning a medical franchise. We will also be discussing some top medical franchises in India.

Why Is Medical Franchise Important in India?

India has a huge scope for business in the medical industry. Especially in terms of franchising. A key player in this would be pharmaceutical franchises and the pharma product franchises or PCD franchise.

They’re mainly significant because they manage the lives and well-being of many people. A lot of people are reliant on life-saving medications for many illnesses. Having reliable and accessible medical shops in the area plays a huge role in winning customer loyalty.  

 

Types of Medical Franchise in India

The medical franchise is more of an umbrella term used to define the many subcategories of healthcare franchises.

Top 5 Pharmaceutical Franchise And PCD Pharmaceutical Franchise In India

Sastasundar, MedPlus, Trumac Healthcare, Elkos Healthcare Pvt. Ltd, and Maxnova Healthcare

Top 5 Hospital Franchise And Clinic Franchise In India

Dr. Batra’s, Apollo Clinic, Max Hospital, Vasan Eye Care, and MantraCare

Top 5 Diagnostic Center Franchise And Pathology Labs Franchise In India

Max Lab, Thyrocare, Ranbaxy Pathology Lab, Apollo Diagnostics, and Dr. Lal Pathlabs

 

Healthcare Industry in India

The Indian healthcare industry is primarily driven by hospitals. They account for 70% of the healthcare industry. So, investing in a hospital can be highly profitable for business owners in India.

In the coming years, external factors like inflation, growing demand for affordable healthcare services, changes in demographics, etc. are all expected to spur the growth of this industry.

 

Pharmaceutical Industry in India

India supplies about 20% of the world’s pharmaceuticals when it comes to generic drugs. Since 2020, there has been an increasing need for healthcare and wellness products.

The pharmaceutical and PCD industries have seen a massive rise in demand for their products and services.

From recent reports, the Indian pharmaceutical industry is expected to grow by a whopping 754% by 2060. And the retail pharmaceutical industry in India is growing by approximately 20% each year.

The Top 5 Medical Franchises in India for 2023

1. OH!Man

A fairly new medical franchise, focused on men’s health. OH!Man was founded and established under the Institute Andrology and Sexual Health (IASH) at Bhandari Healthcare Pvt Ltd. in Jaipur. OH! Man is a one-stop healthcare destination for men’s health and wellness.  

Initial investment: Rs. 75 Lakhs - Rs. 1 Crore

Franchise Fee: Rs. 2 Lakhs - Rs. 5 Lakhs 

Royalty Fee: 5%

As a franchisee, owning an OH!Man franchise in India gives you a competitive edge over other medical franchises. Your franchise would provide specialized treatment for specific ailments making your franchise a unique and profitable venture. 

2. MedPlus

MedPlus is India’s leading pharmaceutical retail chain. It was started in 2006, by Dr. Madhukar Gangadi. Today MedPlus has over 1400 pharmacies in India and serves over 2 Lakh customers daily. 

Here’s an overview of how much it would cost to open a MedPlus franchise in India.

Initial investment: Rs. 10 Lakhs - Rs. 20 Lakhs

Franchise Fee: Not Disclosed

Royalty Fee: 10%

Owning a MedPlus franchise will give you access to thousands of brands and products. As a franchisee, you stand to get immediate customer loyalty and trust because of MedPlus’s brand value. You also stand to gain a high income from operating a MedPlus franchise in India. 

3. Dr.Batra’s

Dr.Batra’s homeopathy clinics are the top clinic franchise in India. Founded in 1982, they’ve been franchising since 2012. Today, Dr.Batra’s has over 100 clinics across India and employs more than 250 trained homeopaths.

Here’s an overview of how much it would cost to open a Dr.Batra’s franchise in India.

Initial investment: Rs. 20 Lakhs - 30 Lakhs

Franchise Fee: Not Disclosed

Royalty Fee: 5%

In the future, Dr.Batra’s plans to open more than 300 franchises pan-India. So if you want to invest in a Dr.Batra’s franchise or are interested in medical franchises, now is your chance.

4. Dr. Lal PathLabs

India’s top diagnostic healthcare franchise. Dr. Lal PathLabs has over 60 years of experience in the pathology lab industry. The company has over 12 million customers that rely on its services. Some services and tests they provide are immunophenotyping, endocrinology, genetics, nutrition, metabolism, oncology, and biophysics.

Here’s an overview of how much it would cost to open a Dr. Lal PathLabs franchise in India.

Initial investment: Rs. 1 Crore - 1.5 Crore

Franchise Fee: Approx. Rs. 50 Lakhs

Royalty Fee: 15%

The Dr. Lal PathLabs Franchise provides ongoing support, training, and marketing assistance to all its franchise partners. Their franchise model provides a low-risk franchise opportunity for franchisees. 

5. Sastasundar

One of the best medical franchises in India. Established in 2014, Sastasundar is a digital pharmacy and healthcare company. They were able to capitalize on the growing demand and trend of E-Pharmacy brands. This is something they have also attributed to their early success and popularity.   

Here’s an overview of how much it would cost to open a Sastasundar franchise in India.

Initial investment: Rs. 50,000 - Rs. 2 Lakhs

Franchise Fee: Not Disclosed

Royalty Fee: 10%

Along with pharmacy products, they also sell beauty and personal care products. The Sastasundar franchise in India is a great franchise opportunity for anyone looking into pharma product distributorship companies.

 

How Are Medical Franchises in India Profitable?

Medical franchises in India generate huge amounts of profit. According to Statista, the Indian medical industry was estimated to be worth $280 billion, and it rose to $372 billion in 2022.

So, if you’re asking, “How much does a medical shop owner earn in India?”. We have you covered. Starting a medical store in India would cost you around Rs. 3 to 4 Lakhs. In a major city, it would cost you Rs. 7 to 8 Lakhs. The profit margin for these stores would be 16% - 22% for branded medicines and 20% – 50% for generic medicines.

This shows that medical franchises, specifically pharma product franchises, provide low-investment and high-profit opportunities in India. A good example of a pharma product franchise that satisfies these conditions would be, Sastasundar.

Furthermore, the Indian hospital industry also attracts a lot of foreign direct investments.

Conclusion

Everyone has had to visit the hospital or go to the pharmacy at one point in time. Being able to access affordable healthcare and medication is important to everyone. So, opening a medical franchise that can provide these things for its customers is a good choice as a business venture.

If you are interested in investing or owning a medical franchise, visit Franchise Bazar. Contact our franchise consultants today to book a consultation and see what business suits you. 

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