Do you know that the Indian pharma industry is the 4^th largest as far as volume is concerned? It is amongst the top 15 in the business worth wise global ranking.

To become part of the overwhelming journey of the pharma industry; one doesn’t need to setup a huge manufacturing unit that involves hefty investment.

It is also possible to reap the benefits by launching a pharma distribution company which is a relatively low-cost business.

The process of starting the business is not very complex. Once understood well, one can manage the procedure without hassles.

Legal requirements

The import, manufacturing, and distribution of medicines fall under the Drugs and Cosmetics Act, 1940. It has provisions for the classification of drugs under different schedules.

When one wants to launch the distribution business, a license must be issued from the CDSCO (Central Drug Standard Control Organization) or any equivalent state control body.

The person applying for the license should have a degree or diploma in pharmacy from a recognized institute. There should be at least one years’ experience in dealing with drugs.

GST Registration is mandatory for launching the distribution business.

Documentation requirements

• Application form (in the prescribed format)
• Covering letter with name and designation of the applicant
• Copy of the challan issued after depositing the fee for drug license
• Declaration form (in the prescribed format)
• Site plan and key plan (blueprint) of the premises
• Proof for possession (rent agreement, registration or lease agreement)
• Incorporation certificate, partnership deed or MOR/AOA to prove the constitution of the business
• Affidavit for a full-time appointment of a registered pharmacist or equivalent resource
• Affidavit of non-conviction of director or partners or proprietor

Pharmacy Inspector performs regular inspection, and the business should fulfill all the norms laid by the authorities. Failing which, there is a possibility of canceling the registration.

The apt space is the prerequisite for a pharma distribution company

When an application is submitted for starting distribution company, it is mandatory to furnish the verifiable proof of premises where the business will happen.

There must be necessary infrastructure (storing and refrigeration facilities, hygiene, rodent-free premises, etc.) to keep the medicines safe.

Approximate investment needed

Here are some ballpark figures to give a fair idea about the investment.

• Documentation and license need almost 30000 to 40000 rupees.
• Around two to five lakh rupees for furniture and fixtures.
• IT setup needs one lakh rupees.
• Employee cost is around 10 lakh per annum.

Thus, one requires 50-70 lakh to launch a distribution business.

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