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How to start a pharmaceutical business in India

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22. Testing Laboratory/ Diagnostic Labs/R&D lab

CONVENTIONAL

CONTEMPRORY

SUBSEQUENT

Conventional

1. Retail Medical

2. Distributorship

3. Stockist/ Super stockist/C&F

4. Manufacturing

5. Recruitment agency

6. Manufactuirng

7. Medicines

8. Medical devices

9. Veterinary

10. Cosmetics

11. Nutraceuticals/cosmeceuticals

12. ayurvedic

13. APIs

14. Retail chain

15. Consultants

16. Marketing agency

17. Digital marketing

18. EXIM

19. Blogging

20. Pharma Packaging Designers

21. Pharma engineering / Machine Mfg


Introduction

Gaurav B. Oswal

(B.Pharm from SKNCOP and PGBDA in Operations from SCDL)

Currently Working as Director At Osbro Pharmaceuticals Pvt Ltd

(Into Mfg of Ointments and Lotions and Tablets)

Also working at Oswal Pharmaceuticals

(Repackaging of Chemicals and Pharmaceuticals, Manufacturing

of Sanitizers and Disinfectants)


Guidance in Starting

Pharmaceuticals Business In India


To start with, most of you would go for higher studies, M.S./M.Pharm/PhD.

Jobs like Marketing, Productions, D.Pharm Academics

M.pharms would go into R&D or academics, Clinical Research Associates, Clinical

Scientist in biochemistry, Regulatory Affairs as in Dossiers. Medical Writings.

Some may try for Govt. Jobs after prescribed experience

Few may just have a thought of Starting Business

Some may have Background, some may want to Join any Relative or Start with

Friends


Retail Medical Store

Prerequisite:

Yourself

Commercial space: 114sqft, Documents

Investments: 3-5 lakhs

Key area:

Approachability for customers, your services, location

❖ There is 37% rise in Pune itself of medical stores Since 2019

❖ Whereas previous was just 3-4%. Closing rate is 2% 1)

Pathway: First you Find a commercials Space, Rent it/buy it, Storage Furnitures, Regfrigirator, while Doing

this approach your Local FDA, Shop Acts, GST( Not Mandatory until 20Lakhs of Turnover)

Submit Documents Online, Pay fees, Inspection, Queries, Grant

https://fdamfg.maharashtra.gov.in/login.aspx


Hospital Pharmacy

Hospital Attached Pharmacy

You may be specific: Gyanec Hospital, Orthopaedic Hospital, or

General Hospital

Investments are huge: You may have to take Partnership along with

the Doctors or share some Profit %

Eg. Poona Hospital,

Rest all same


Retail Chain

Quick Facts

Apollo Pharmacy – 4118 stores

Medplus - 2081 stores

Wellness Forever - 231 stores 2)

More than 80% retails are still Unorganised

Still No computers, its all manual yet

Forget the Rural , Medical in Metro Cities are still on Hand registers

This concepts come from the west and Middle East


Distributorship

What You need

Undercut

Pharmacist

Commercial space 120sqft

Delivery boys

Investments Anywhere above ₹ 20 lakhs

Key factor: Reachability, Service, Procurement network

Distributorship for Ethical brands like Ranbaxy, Dr.Reddy or generic brand can

make you their Stockist

Ayurvedic, Cosmetics, Nutraceuticals, veterinary


Super stockist / C&F

What You need

Pharmacists

Commercial spaces 3000 to 10000 sqft

Manpower, Software's,

Investments Anywhere above ₹ 80 lakhs

Key factor: Company Manager Contacts, very Difficult to get


Manufacturing

Data: Indian drug & pharmaceutical exports stood at US$ 24.60 billion in FY22 and US$ 24.44 billion in FY21. 3)

USD 130 billion-mark in value terms by 2030, according to industry players. 4) Currently is USD 50 Billion and USD 65 Billion 5)

10,000 Mfg PLants in India.

Time of Collaborations and trend is Single Smart Small Units for start-ups

Previously Bulk Plants, trend shifting to All in One Plants

Now Plant are Specializes Dosage Forms Dedicated, Like External Preparations oint. Lotions. Internal Dosage forms like

Tablets Mfg, Oral Liquids, HG Refilling

Vertical Integration you can have a small separate plant of HGC mfg/ Ready Mix Granules and than filling plant

Parentrals , WFI, Salines , API , soft gelatin is in itself a huge concept


Process and requirements – Part 1

Land and Building : New or Sick Units

ROC filling

GST Registration

Pan card

FDA GMP/WHO-GMP cGMP Compliance is mandatory,

MSME

Approved Pharmacist/ Department Heads/Consultants/Architects

Agencies like, Electricity, Painter, Panels, AHU, Covings, Floor

Epoxies.

To manage all these a Plant Head

Labour Law, Pollution NOC, Electricity Board Consumption, Fire

NOC, Boiler Safety


Process and requirements – Part 2

Break even Comes after at least 3-5 Years.

Still Indian Pharma is growing

Maharashtra, Gujarat, Goa, Karnataka have strict Laws to Abide

with

Still These are the Top 5 states with Highest Mfg Plants and Best

Quality Medicines

JNPT


Non Medicinal Manufacturing

Nutraceuticals

Cosmetics

Color Cosmetics/ Wellbeing Cosmetics/ Medicated

Cosmetics. No sale license required FDA ( Irony we have

a whole Law D&c Act, the Governing body is same)

Lab chemicals

Very Process Specific can be into Mfg or Trading,

Customers can be: Colleges, Testing Labs, Diagnostic

Labs, R&D Labs, Govt and Private

Veterinary

Medicines like Boluses or Cosmetics

Less Norms, Yet Not Regulated

eg B12, Omega

Hospital Furniture

Saline Stands, Stools, Hospital beds, OT Setup

Medical Equipment / Diagnostic Instrument

Xray M/c , Diagnostic kits like Covid kits,

Pregnancy Kits

Surgical

IV sets, Cotton rolls, Bandages, Low Value, Bulky,

Space Consuming, Easy to Mfg, Lenient Norms


Product Positioning – Eg. Coffee

What Category Does Coffee Fit in ??

A) Beverage B) Cosmetic C) Nutraceutical

If its a Beverage: sold for ₹ 15-20 Cup

Coffee powder Nescafe: ₹ 340 100gms

Coffee Naked and raw as a scrub: ₹ 450 for 100gms

If its a Cosmetic Sugar Syrup+ Some preservatives+ Coffee (I made an insta

Cosmetic): sold for ₹ 600 for100gms

As a Nutraceuticals: (Anti-Oxidant): Price varies by Brand

As a Supplement: it is Anti-Obesity coffee Flavoured Protein Shakes no need to

mention rate ₹ 1000 for 100gms


Product Positioning –

Eg. Cough Syrups

Bottles only or Jars for Doctors

Amrutanjan Cough Syrup Sachets

Balms-Inhalers- lozenges- cough syrup-Lungs washing

Caution:

A Company was into Cold and Cough External Treatments, gets in Internal

Dosage forms, claims this preparation as Ayurvedic and skips the strict

norms of previous Slides and still advertising and claiming and selling and

making profits as Cough Syrup


Product Positioning –

Eg. Curcuma Longa

As a Vegetable : ₹ 30-40 for 250gms

As a Beverage:

Haldi Dudh: Famous in Indian Cinemas for some Reasons

Tapris will give you free pinch of haldi in ₹ 20 Glass

Now Turmeric Latte: ₹150/Glass

Turmeric Lozenges, Cough Syrups

Dietary Supplements: for Digestive Disorders

Creams and Lotions - Was traditionally used in wounds: Now we use vicco Turmeric Ayurvedic cream.

Most Expensive use : Wedding Haldi Function

Turmeric Face masks but No turmeric Powder: it is anti-inflammatory and anti oxidant In nature


Ayurvedic Manufacturing

You Can Mfg Cough Syrups

Prickly Heat Powders

Pain relief gels, Oils, Ointments

With less norms and more profit. Still you can present it as a Branded

OTC Product

NO license to Sale required for external dosage forms


EXIM – Part 1

India is the largest exporter of Generic Medicine in the world

Pharmacy of the World

Around 200 countries

North America is the largest Trading Partner followed by UK, Russia, Nigeria

India has highest USFDA Approved Plant Outside USA

The key USP of the Indian Pharmaceutical Industry is affordable price and high

quality

Pharmexcil is a promotion body set up by the Government of India to promote the

Indian pharmaceutical industry


EXIM – Part 2

Basic Steps: Start a Company

First You Get the IEC Code, matter of few Hours if u have other documents ready

Get FDA License

Register your company and Product in the target Country

For That get DCGI Approvals

Then you find Customers/ Agents/ Forwarding Agents

Bank Gurantees,/LOC/

So you have Agencies, Companies will do this for you

If you want to export Paracetamol 650mg, with your brand name

It takes anywhere between lakhs and Months to make your dossier, Clearances, Approvals

Then set your market channels and then you enjoy


Laboratory

FDA Approved labs are rare and more rare are NABL Approved

laboratories

You can have Product Testing Lab, or a Research Based Lab

Most Manufacturers outsource this Facility

You can Have a Diagnostic Laboratory as you are well versed with

Terminologies, Medical Conditions, or You have dealt with Tissue

level, You done this mobility experiments You can read an ECG

Pharmacist is a link between Engineers and Doctors


Machine Manufacturer

Wanted to be an engineer but landed up in pharmacy, Pharma engineering is your

Subject

Along with the knowledge of Physics you need knowledge of Pharmaceutics, which

teaches you the properties of product, its behaviour

If the Powder product Is hygroscopic, free flowing, is it static

Then you design the hopper accordingly by weight or by volume

If its Solution than the Viscosity would determine the flow rate, that determines the speed of filling

If its ointment than the consistency would determine the flow rate and sealing rate of tube

Engineering of whole M/c for special Formulations like Sterile Products, the design of class

of room Desire


Recruitment Agency

You need a Good Data Base of Candidates and Companies

Work as a Bridge between Them

Colleges best source of data, Social Medias, referrals, Advertisements

Collaborations with Corporates like TCS, Small and Big Industries,

Medical Stores

Work From Home (WFH), You need a HR.

Services : Hire Candidates, Give them Training (Company Specific also),

3 rd Party HR services, Take interviews


Consultant

Govt. connections, Agencies

Thorough Knowledge of D&C Act

You can Source Funding's, get investments, mediate Deals

Process Consultant opportunity or work as Agency yourself

Experience 10-12years in various fields


Marketing Agency

Most needed Today

Pharma Specific Marketing Agencies

Marketing to Customers, Comsumers

Retails Stores

Doctors

Distributors

Schemes, Targets,

The right way, the fastest way the cheapest way


Digital Marketing

A Type of Service in marketing

You like Spending time on Instagram , use it to make money

But Most fastest and smartest way

Social Media Posts, target Audience, Hit their Problems,

Use Influencers, Online Sales

QR codes


Designers

The are the buzz

Package Design is must.

First Impression ,Packing is utmost important now

Even salt and water bottles need to look appealing

Thousands of rupees are being charged

Design of Monocartons, Alu-Alu pack, Outer box, Syrup Labels, Gift

Items Design for Corporate Giftings


Bloggers and Medical Writings

Dossiers are so expensive which are mandatory for you to Register

product for Exports

Clinical Trials

Online Blogs

Research Papers

Patents



Know your Business ?

How Many USFDA Approved Plants in India

a) Around 50 b) Around 350 c) Around 550 d) Above 1000

Which Company has the Highest Market Capitalization in India

a) IPCA b) Sun Pharma c) Alkem d) NOTA


References

1) https://timesofindia.indiatimes.com/city/pune/its-good-business-pmr-sees-37-rise-in-number-ofmedical-shops/articleshow/90191063.cms

2) https://www.statista.com/statistics/1318770/india-number-of-stores-of-pharmacy-chains-bycompany/

3) https://www.google.com/search?q=pharma+growth+in+india&rlz=1C1CHBF_enIN884IN884&oq=

pharma+growth+in+india&aqs=chrome.0.0i512l2j0i22i30j0i15i22i30l3j0i22i30l4.9378j0j7&sourceid=ch

rome&ie=UTF-8

4) https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/indianpharma-sector-set-for-volume-to-value-leadership-journey-in-2023/articleshow/96389955.cms

5) https://www.investindia.gov.in/sector/pharmaceuticals#:~:text=The%20pharmaceutical%20indust

ry%20in%20India%20is%20currently%20valued%20at%20%2450,served%20by%20Indian%20pharma

%20exports.


THANK YOU

GAURAV B. OSWAL

9923854525

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