Did you know that India’s pharmaceutical market is the third-largest worldwide? Moreover, pharmacies have become an industry worth $42 billion in 2021 -after the onset of the Covid-19 pandemic. If you were planning to start your pharmacy for years, the post-pandemic scenario offers perfect opportunity given the market demand.
So, here’s a guide on how to start a pharmacy businessfrom scratch.
Fulfil eligibility conditions
- To open a retail drugstore, you must own a minimum area of 10 sq meters. For a wholesale pharmacy, an area of 15 sq meters is mandatory.
- Your drugstore should have an air conditioner and a refrigerator.
Besides, both wholesale and retail pharmacies must have a person with expertise in pharmacy present at the store to sell medicines. Here, an expert in pharmacy can be:
- A pharmacy graduate with at least 1 year of experience in dealing in drugs
- A registered pharmacist approved by the state pharmacy council
- A Secondary School Leaving Certificate (SSLC) graduate with a minimum of 4 years of experience in dealing in drugs, approved by the Department of Drug Control
Type of pharmacy
You must choose a type of pharmacy business. Following are the categories:
#1 Standalone pharmacies usually operate in residential areas.
#2 Hospital pharmacy stores are set up inside hospitals to cater to their medication requirements.
#4 Township pharmacies are independent stores operating in townships.
#3 Chain pharmacies are typically present in malls and backed by healthcare companies, hospitals, or large corporations.
Additional Read: How to Get a Loan to Start a Business in India
Register your store
The Indian Pharmacy Act of 1948 governs and administers the registration of a pharmacy. You must submit relevant paperwork to the state government through an official gazette. A panel then decides on your registration.
Get a drug license
To set up a pharmacy, you need to obtain a drug license from Central Drugs Standard Control Organisation (CDSCO) or your state government.
- If you are starting a general chemist store, you should get a retail drug license.
- If you want to set up a wholesale pharmacy business, get a wholesale drug license.
Get GST registration
Now that you know how to start a pharmacy business in India, you should obtain your GST (Goods and Service Tax) registration.
Explore funding opportunities
Now, create a business plan including all areas that require funding. Outline your financial requirements like store renting expenses, pharmaceutical equipment purchases, stocking your inventory, cash flow support, staff hiring, etc.
You can easily finance these expenses with a business loan from a reliable financier.
Additional Read: Which types of businesses are eligible to opt for a business loan?
Over to you
If you are planning to launch your pharmacy but lack the necessary funds, turn to Tata Capital. Get attractive business loan interest rates, starting at 19%. Enjoy flexible tenures up to 3 years, collateral-free funding, minimal paperwork requirements, and hassle-free processing with us.
You can use our EMI calculator to calculate your EMIs and plan your repayment. Check your business loan eligibility and apply today!