SKNCOP GAurav
How to start a pharmaceutical business in India
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:
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❖
❖
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)
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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
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❖
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