How much do I have to invest to own a Pharmacy Franchise in India?
Medicine is the most important commodity for humans or simply in human life. It may not one of the three very basic needs but indeed more important than those in reality. From business perspectives also, medicine is one of the most profitable niches. The best part about the medicine business is that there is no threat of recession in this business.
In fact, one may compromise with the budget in any other segment, but never on medicines. The business remains active all season, 24×7. Keeping all these aspects in mind, the pharmacy franchise business is obvious to be one of the most preferred business options. Specifically, it is one of the most lucrative business options in India.
Why go for a Pharmacy Franchise in India?
A Pharmacy Franchise business can deliver incredible profit if someone operates it the right way. In fact, if someone simply handles stocks in a strategic way, the business can be very promising. The pharmacy business is all about providing the right product at the right time. And, distinguishing part about the pharmacy franchise is that product supply is always in abundance here. This is the reason that so many people are now going for pharmacy franchise investment.
Be it about changing lifestyle or environment, demand for healthcare products is on a growing spree. It’s not just about diseases; people are quite dependent upon healthcare supplements to fulfill the nutritional requirements as well. Apart from the medicines, the other dimension of this business is about surgical products.
All these factors cumulatively make pharmacy as one of the most enriched business segments in India, as well as across the world. According to studies, the Indian pharmacy business market would go beyond 80 crores at present. Moreover, it may go to the most height within a year or two.
How much investment is needed to own a pharma franchise?
There is sufficient scope for interested people to own a Pharmacy Franchise in India. However, it is important to be careful while selecting the right franchise for the best profit. It is thus recommended to check the market share percentage of the concerned company prior to hiring it. Coming to investment, one should be ready with at least 15 lakhs INR to own a franchise pharmacy.
Those who can’t arrange this much, should at least keep a sum of around six lakhs ready, and then think about loans. However, it is important to own a collateral property of around 5 lakh to be eligible for such loans. On such occasions, one can certainly be able to bag a loan under special schemes. Any bank can provide loans for a pharma franchise if someone owns a collateral property worth around six lakhs.
Investment Figures for opening a Franchise store and things included in it
As discussed above, the budget associated with a franchise is very much dependent upon its market share. In fact, a company with around 7% market share may demand around 20 lakhs investment as well. The factors like location, overall area, and state of the concerned premise also play a crucial role in determining the budget
The overall cost to own a franchise, as cited above, includes amounts for refundable security, advance amounts for the rents, various furniture, technology setup, and inventory expenses as well, apart from franchise amounts.
The cost or investment amount for a franchise may also differ in accordance with the type of Franchise one chooses. For example, some companies come up with single-unit franchise opportunities, as well as a master franchise opportunity. Investment in all aspects, starting from rent to stock, everything varies for a single unit from the master franchise.
- The cost of the rent often varies between 12 to 26k per month for Single Unit franchise. Things vary mostly in accordance with the location.
- One should be prepared for a monthly expense of around 30k for a single unit franchise. In addition, there remain additional costs associated with refrigeration.
- One must keep stock of worth of at least 100k INR. However, the investment amount may vary as per the demand of the concerned product.
- The cost of licensing for the single unit franchise would be around 25k INR, apart from registration costs.
- Apart from all these, there remains an additional cost of technical accessories. It can go around Rs. 50,000.
- Coming to master franchise mode, the cost of investment often varies in between 12-17 lakhs. In addition, one has to invest an amount of around two lakhs INR as the salary of a pharmacist.
Assistance expected for your investment
A reputed company with a considerably good market can offer the following assistance for the investments made on it.
- Needful help for finding the best location for establishing the store.
- Assisting with finalizing the lease making process.
- Providing complete material for branding purpose, as well as furniture.
- Providing training to the franchise owner and its staff.
- Helping in having a loan.
- Providing a whole range of products that can sold directly through the store.
- Needful support initially for business operation.
- Needful support regarding audit works.
Apart from these, a resourced pharmacy company provides useful technological support as well. Their help regarding the branding of the items is indeed the most crucial.
A smart inventory planning can assure return for your Investment
One of the primary aspects that matters the most for the success of the Pharmacy Franchise business is indeed effective inventory planning. Your investment may simply get blocked if it is poorly strategized. Eventually, it may lead to the accumulation of expired products in the stock, hence causing the losses.
Hence, inventory planning should always be done in accordance with the demand in the market. Upon addressing this factor effectively, one can entirely avoid any further investment needs. Apart from these, effective market research can also be helpful towards the execution of business. Specifically, one should understand the demand and pricing structure well while strategizing for the business.
Ultimately, a franchise pharmacy business is quite successful and proven in the Indian business scenario. It can be a great recommendation for people having prior experience in running the pharmacy business.
or you can visit us at PharmaBizConnect or you can call us at 7388111103.