India’s pharmaceutical retail industry is growing. This growth is attributed to several factors. And the industry is also transforming from unorganized to organized. Another indicator is that the pharmacy business is profitable.
In this article, discover the top 14 pharmacy franchises in India.
Indian Pharmaceutical Retail Industry Overview
Pharmacy retail stores sell prescription and over-the-counter drugs. And most of these stores also sell fast-moving consumer products (FMCG) and offer certain testing services like blood testing, sugar testing, etc.
In India, they are the primary distribution channel of medicines. As high as 85% of the total pharmaceutical sales comes from these retail stores.
The Indian pharmacy retail industry is divided into two: unorganized and organized. The neighborhood pharmacy is an example of an unorganized pharmacy retail store. Each neighborhood pharmacy operates on its own.
An organized pharmacy retail store is a store that belongs to a chain of pharmacy retail stores. Currently, unorganized retail stores still dominate the Indian pharmacy retail industry. However, organized retail stores are increasing in number. People prefer them for their clean, modern, and attractive look. Aside from those, they also have a wide array of products.
This is good for those who are looking for a pharmacy franchise. The organized retail stores are the ones offering franchises.
Types of Pharmacy Stores in India
There are several types of pharmacy stores in India depending on classification. But here, we will classify them according to the use of technology and the type of medicines sold. These types are ones that are available for pharmacy franchises.
Use of technology
There are three types under this classification.
Brick and mortar retail pharmacy
This pharmacy has a physical building just like the traditional store.
Online pharmacy or e-pharmacy
There are two types under this:
Digital-only stores
This pharmacy does not have a physical building. You order medicines using their app you download from the internet. They will deliver your order to your location. Examples of this type are Tata 1mg, Easymedico, and NetMeds.
The digital twin of brick-and-mortar pharmacy
This pharmacy is a combination of the brick-and-mortar pharmacy and the digital-only pharmacy. It has a physical building but it operates an online pharmacy too. Examples of this type of pharmacy are MedPlus, and Sanjivani Chemist.
Type of medicines sold
Regular retail store
This pharmacy carries branded patented medicines and branded generic medicines.
Branded patented medicine is a medicine that is manufactured by the originator. The manufacturer still holds the live patent.
Branded generic medicine is a medicine manufactured by the originator but whose patent has lapsed already. Generic manufacturers also produce branded generics. Examples of branded generic drugs are Brufen, Advil, Motrin, and Nurofen. The generic name for all of them is ibuprofen.
Generic store
This pharmacy sells generic medicines only. A generic medicine is a medicine that other pharmaceutical companies manufacture after the originator’s patent has expired. Examples of generic stores are GenMart, Davaindia, and Zeelab Pharmacy.
What Makes Pharmacy Business an Ideal Franchise Business
The pharmacy retail business is profitable in India. Here are some reasons.
The increase in the population
The current population of India is 1,398 million. And it is still growing at 0.97%. On average, 20% of the population is sick on a single day. So, the need for healthcare that includes medicine is there.
The affordability of drugs
India has many pharmaceutical companies producing affordable generic drugs. Another reason for affordability is the increase in income. Medicine is affordable when you have money. Last is the increase in insurance coverage.
The accessibility of drugs
The government is improving the medical infrastructure, especially in the rural areas. Another is e-pharmacy. Many pharmacies have online platforms where customers can order their medicines.
The acceptability of modern medicine and newer therapies
Indians believe in drugs for cure and prevention. One research shows that 67% of the healthcare spending of Indians is on medicine alone.
The current pandemic
Those who do not have Covid would like to boost their immune system. So they would buy some medicine and health supplements that can help strengthen their immune system.
Those who have contracted it need some medicine to ease the complications brought by the Covid virus. Now, there is still no drug for Covid that you can buy from the drugstore. Combining all these makes the pharmacy business franchise an excellent investment.
Pros and Cons of a Pharmacy Business
Before getting into the pharmacy business, you must know its pros and cons.
Pros
Rewarding work
The retail pharmacy business can be very self-satisfying work. You are helping people with their immediate health concerns.
Building essential business connections
As you do the business, you will meet and get to know important figures in the pharmaceutical community and the local community.
Receiving perks and discounts
Doing pharmacy business has its perks and discounts. You get them from the pharmaceutical companies and suppliers of the medicines you sell.
Getting accepted by the local community
Since you are helping them with their medicinal needs, the community will accept and respect you. And this will translate into loyal customers.
Interacting with people
You will meet lots of people such as your customers, employees, and people from the pharmaceutical companies.
Cons
Entering the competition
Since it is lucrative, many want to enter the pharmacy business. Having a good business plan is a necessity. Study the demand and the market. Find a very strategic location.
Finding the right suppliers
Without the suppliers, there is nothing to sell. Finding the right suppliers is vital. Although, this is not an issue for those who are franchising.
Motivating employees
Employees are important since you cannot do all the business work. Make their work exciting and rewarding. Give them incentives for their good work. Provide them with a supportive and positive working environment.
Accomplishing the legalities
Before you start the business, you face so many licenses, permits, and certificates to accomplish. Aside from that, you have to pay taxes.
Dealing with the overhead expenses
To make your business profitable, deal with the overhead expenses. Overhead expenses include rent, utilities, office supplies, salaries, workers’ benefits, and insurances.
Committing time
To succeed, commit time to oversee, evaluating, planning, and forecasting.
List of Top Pharmacies Franchise in India
1. MedPlus
Madhukar Gangadi founded Medplus in 2006. He opened its first branch in Hyderabad under the Aushadhi brand name. After establishing 48 branches, the company became MedPlus. Now, it is the second-largest chain of pharmacies with over 1800 pharmacy stores.
MedPlus sells prescription and over-the-counter medicines and fast-moving consumer goods (FMCG), vitamins, beauty products, and others. It also offers different laboratory tests. It also has an app for those who want to order medicines online and for online doctor consultations.
Initial investment: Rs. 17 - 20 Lakhs
Space Requirements: 300 - 500 sq. ft.
Website: www.medplusmart.com
Email: [email protected]
Contact Number/s: 040 6700 6700
2. Sanjivani Chemist
Sanjivani Chemist is a pharmacy chain. Mayank Garg started Sanjivani Chemist pharmacy in 2006. He launched his first pharmacy in Mehrauli, South Delhi. Franchising is his model for expanding. Today, Sanjivani has over 70 franchise stores across India. It also has an app for online transactions.
Sanjivani pharmacy sells daily care products, OTC products, Ayurvedic products, homeopathic products, allopathic medicines, and surgical supplies.
Franchise Fee: Rs. 3.5 Lakhs
Initial investment: Rs. 12- 15 Lakhs (includes the franchise fee)
Space Requirements: 200 - 400 sq. ft.
Website: https://www.sanjivanichemist.com/
Email: [email protected]
Contact Number/s: +91-74289 -4365
3. SastaSundar
Based in Kolkata, SastaSundar is an online pharmacy and digital healthcare platform. In 2014, Banwari Lal Mittal and Ravi Kant Sharma started SastaSundar.com.
SastaSundar also has a physical presence through its network of counseling and service centers called “Healthbuddies.” Each Healthbuddy has an Independent Licensed Chemist. There are now over 460+ Healthbuddy stores.
Its services include pharmacy, diagnostics, and wellness. Buying a SastaSundar franchise means putting up your own Healthbuddy store.
Initial investment: Rs. 2.50 Lakhs
Space Requirements: 120 sq.ft
Website: https://www.sastasundar.com
Email: [email protected]
Contact Number/s: 9330803080
4. Tata 1mg
Tata 1mg is an online pharmacy and healthcare platform. Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan founded Img in April 2015. The company operates from Gurugram, Haryana.
The founders named their company 1mg after the basic unit of medicine and the company’s first official address, 1 MG Road.
1mg offers online medicine ordering, online appointments for laboratory tests at home, and teleconsultations with their doctors.
Last June 2021, Tata Digital gained a 55% stake in 1MG Technologies Private Ltd. This acquisition makes Tata Digital the majority stakeholder. Thus, 1mg is now Tata 1mg.
Tata 1mg provides franchise opportunities through its "Sehat Ke Saathi" Program.
Initial investment: Rs. 10,000
Website: https://www.1mg.com/sehatkesathi
Email: [email protected]; [email protected]
Contact Number/s: 0124-4166666
5. Easymedico
Easymedico is an online pharmacy and healthcare portal. Ankit Alya, Vinay Chhajlani, and Suresh Naagar founded Easymedico in 2014. Based in Indore, Madhya Pradesh, Easymedico is a business venture of Vinilok Solutions Pvt Ltd.
What sets Easymedico apart from the other e-pharmacies is that its app helps in health management. It can keep medical records for easy access. It also helps the customer in managing their medications. It alerts the customer when it is time to take the medicine.
Its services include pharmacy, diagnostics, and healthcare.
As to franchising, it adopts the Franchise owned and Franchise operated (FOFO) model.
Initial investment: Rs. 8 Lakhs (includes the franchise fee)
Space Requirements: min.150 - 200 sq. ft. with a minimum frontage of 10 ft. on ground floor
Website: https://www.easymedico.com
Email: [email protected]
Contact Number/s: 9174444464, 0731-4715900
6. NetMeds - India Ki Pharmacy
NetMeds is an online pharmacy and healthcare platform. Pradeep Dadha launched NetMeds in 2010. It belongs to the Dadha & Company in Chennai.
It is one of the most trusted e-pharmacies in India because of its experience in the pharmacy business. 100 years of experience back the company. Pradeep Dadha’s family has been in the pharmacy retail business since 1914.
Its business covers pharmacy, diagnostics, and wellness. Its online app alerts customers when their medicine stock needs refilling.
Initial investment: Rs.10 Lakhs
Space Requirements: 300 sq. ft
Website: https://www.netmeds.com
Email: [email protected]
Contact Number/s: 7200712525
7. PharmEasy
Based in Mumbai, PharmEasy is an e-pharmacy and healthcare portal. Dr. Dhaval Shah and Saumil Parekh started the company in 2014. Today, it covers close to 98% of the Indian pin codes. It also has over 800 franchisees across India.
Last May 2021, Pharmeasy acquired another e-pharmacy player, MedLife. Medlife’s healthcare app operates in over 2500+ cities and over 25,000 pin codes. This addition could push the company to the top in India’s e-pharmacy.
PharmEasy sells through its app prescription and OTC medicines other consumer healthcare products. It also provides diagnostic test services with the booking done through its app and teleconsultations with its doctors.
Franchise Fee: RS. 20,000
Initial investment: Rs. 20,000
Website: https://pharmeasy.in
Email: [email protected]
Contact Number/s: 7666100300
8. Affordable Medicine Store
The Affordable Medicine Store is a chain of generic medicine stores. Its base is in Uttarakhand.
The aim of the company is to sell medicines at affordable prices with the same effect as branded ones. Its medicines are 50% to 80% lower than the branded ones.
It does not have an app for online orders and delivery. However, one can order medicine through its website. They will deliver the medicine to his location. Soon, they will provide free online consultations with their doctors.
Franchise Fee: Rs. 100,000
Initial investment: Rs. 400,000 (includes the franchise fee)
Space Requirement: 110 sq ft
Royalty Fee: 1%
Website: http://www.affordablemedicinestore.com
Email: [email protected]
Contact Number/s: +91-135-2716853, +91-9412059653
9. EMEDIX
Based in Patna, EMEDIX is an online pharmacy. Shiraz Imam and Danish Ashraf founded EMEDIX in 2016. But they did not offer franchising not until 2018. What makes e-pharmacy unique is that it delivers the ordered medicines together with an e-copy of the prescription.
Initial investment: Rs. 5 Lakhs
Space Requirement: 250 sq. ft.
Website: https://www.emedix.in
Email: [email protected]
Contact Number/s: +91-7281999988
10. GenMart Pharmacy
Genmart began in 2018 but it started franchising in the following year 2019. The company operates in Mumbai.
Genmart Pharmacy is a chain of generic medicine stores. It provides prescription and OTC drugs. It also sells other healthcare and wellness products.
Franchise Fee: Rs. 10 Lakhs
Initial investment: Rs. 20 Lakhs
Space Requirement: 200 - 250 sq. ft.
Website: https://genmart.in
Email: [email protected]
Contact Number/s: +91 99679 09538
11. MedZone
Based in Bangalore, Medzone is a chain of medical stores. Thiru M. Daniel started Medzone. In 1997, Medzone started as a marketing firm for pharmaceutical products. In 2007, it went into the manufacturing of injectables, tablets, capsules, and oral syrups.
The first MedZone pharmacy store opened in Bangalore. Ethix Pharmaceuticals is the parent company of Medzone. Medzone carries Ethix Pharmaceuticals products.
Franchise Fee: Rs. 150,000 + 18% GST
Renewal Fee: Rs. 3,500 (renewed once in 5 years)
Royalty Fee: Rs.1,350
Space Requirement: 1,300 sq. ft.
Website: https://medzone.org
Email: [email protected]
Contact Number/s: +917303641642
12. Ria Lifesciences
Ria Lifesciences Pvt Ltd is a pharmaceutical company from Delhi. It manufactures, distributes, and supplies pharmaceutical products all over India and around the world. The company began in 2013. It started franchising from that year on.
Ria Lifescience offers a pharma franchise and PCD (Propaganda Cum Distribution) franchise. Pharma franchise is the regular pharmacy store franchise. PCD franchise is like a pharma franchise except that the investment and area covered is smaller.
Initial Investment: Rs. 10,000 - 50,000
Website: https://www.rialifesciences.com
Email: [email protected]
Contact Number/s: +91-8045335954
13. Davaindia Generic Pharmacy
Davaindia Generic Pharmacy is a venture of Zota Healthcare Company from Surat, Gujara. Zota Healthcare Company launched Davaindia Generic Pharmacy in 2017. Like most of the other generic pharmacies, Davaindia’s launch was a response to Prime Minister Modi’s campaign for generic drugs.
Today, there are over 650 Davaindia stores across India. Davaindia’s growth has not gone unnoticed. News outlets consider its growth as record-breaking. It also has an app for online ordering and delivery of medicines.
Franchise Fee: Rs. 1.5 Lakhs
Initial investment: Rs. 8 - 9 Lakhs
Space Requirement: 150 - 200 sq. ft.
Website: https://www.davaindia.com
Email: [email protected]
Contact Number/s: +91-8471009009
14. Zeelab Pharmacy
Rohit Mukul started Zeelab Pharmacy at the young age of 22 years old in 2019. He started Zeelab with one goal in mind. His goal was to make medicine affordable to people, especially the poor. Based in Delhi, Zeelab sells generic medicines which are 30% to 90% lower than branded medicines.
Today, its network is growing. There are over 1,500 stores all over India and 30 company-owned stores in Delhi. It also has an online presence. It has an app for online transactions.
Regarding franchising, it has two models: Franchise Owned Franchise Operated (FOFO) and Franchise Owned Company Operated (FOCO).
Initial investment: Rs. 5 Lakhs To Rs. 10 Lakhs
Space Requirement: 200 - 250 sq. ft.
Website: https://zeelabpharmacy.com
Email: [email protected]
Contact Number/s: +91 9896112555
Key Takeaways
India’s pharmacy retail industry is growing and adapting. These are responses to the changing market environment.
The growth is attributed to several factors such as the increase in the population, the affordability of drugs, the accessibility of drugs, the acceptability of modern medicine and therapies, and the current pandemic.
As for the adapting pharmacy retail industry, e-pharmacy has penetrated the market. The Indian’s response at first was more of convenience. But lately, the response is more of safety and protection because of the Covid-19 pandemic.
All the pharmacy chains have gone online for order and delivery. Although not all of them have a dedicated app for online transactions.
The emergence of generic pharmacy stores is also an example of adaptation. To offer affordable generic drugs is an adaptation. Indians, especially the poor ones, can have something to cure or ease their ailments.
With this growth and adaptability shown by the pharmacies, buying a pharmacy franchise is a good option. Some of them have low investment costs like the PCD franchise.
Which pharmacy franchise opportunity is attractive to you?
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