pharmaceutical business plan in india

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Tata Capital > Blog > Loan for Business > How to Start a Pharmacy Business in India?

How to start a pharmacy business in india.

Did you know that India’s pharmaceutical market is the third-largest worldwide? Moreover, pharmacies have become an industry worth $42 billion in 2021 -after the onset of the Covid-19 pandemic. If you were planning to start your pharmacy for years, the post-pandemic scenario offers perfect opportunity given the market demand.

So, here’s a guide on how to start a pharmacy businessfrom scratch.

How to Open a Pharmacy/Medical Store in India?

To launch a pharmacy business in India, ensure:

• Minimum area: 10 square meters for retail, 15 square meters for wholesale
• Equipment: Air conditioner, refrigerator
• Pharmaceutical expertise: Qualified pharmacist on-site
• Licenses: Drug license, shop and establishment license, GST registration
• Infrastructure: Proper storage, efficient inventory management, POS system

Type of pharmacy

You must choose a type of pharmacy business. Following are the categories:

#1 Standalone pharmacies usually operate in residential areas.

#2 Hospital pharmacy stores are set up inside hospitals to cater to their medication requirements.

#4 Township pharmacies are independent stores operating in townships.

#3 Chain pharmacies are typically present in malls and backed by healthcare companies, hospitals, or large corporations.

Additional Read: How to Get a Loan to Start a Business in India

Register your store

The Indian Pharmacy Act of 1948 governs and administers the registration of a pharmacy. You must submit relevant paperwork to the state government through an official gazette. A panel then decides on your registration.

Get a drug license

To set up a pharmacy, you need to obtain a drug license from Central Drugs Standard Control Organisation (CDSCO) or your state government.

• If you are starting a general chemist store, you should get a retail drug license.
• If you want to set up a wholesale pharmacy business, get a wholesale drug license.

Get GST registration

Now that you know how to start a pharmacy business in India , you should obtain your GST (Goods and Service Tax) registration.

Explore funding opportunities

Now, create a business plan including all areas that require funding. Outline your financial requirements like store renting expenses, pharmaceutical equipment purchases, stocking your inventory, cash flow support, staff hiring, etc.

You can easily finance these expenses with a business loan from a reliable financier.

Additional Read: Which types of businesses are eligible to opt for a business loan?

Over to you

If you are planning to launch your pharmacy but lack the necessary funds, turn to Tata Capital. Get attractive business loan interest rates , starting at 19%. Enjoy flexible tenures up to 3 years, collateral-free funding, minimal paperwork requirements, and hassle-free processing with us.

You can use our EMI calculator to calculate your EMIs and plan your repayment. Check your business loan eligibility and apply today!

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How To Start A Pharmaceutical Manufacturing Company In India?

Table of Contents:

1. How To Start A Pharmaceutical Company?

2. starting a pharmaceutical company, 3. how to start a pharmaceutical manufacturing company, faqs on starting a pharmaceutical company.

The pharmaceutical industry is one of the fastest-growing industries in the country. India is the third-largest generic drugs manufacturer in the world. Usually, these generic drugs account for 72% of the total production of drugs worldwide. The pandemic that hit the entire world in 2020 proved to be an eye-opener for the country to have inbound manufacturing facilities. Reliance on other countries for drugs and essential medicines is not a good idea, especially in times of hardship. The next decade is going to be a game-changer for the healthcare sector. Preventive healthcare is a top priority in the country, along with export-oriented businesses.

There are different manufacturing companies in this sector, such as branded manufacturers, OTC manufacturers, generic pharma, export-oriented, import-oriented, derma products manufacturers, and pharma distribution and supply companies.

Especially since the pandemic, people are becoming more health-conscious and are constantly looking for ways to adopt preventive health care in their lifestyles. With exports being curbed, the Government of India started promoting the Make in India Movement more vigorously than before. The government is helping business owners who are willing to start manufacturing units across sectors through various subsidies. Small-scale manufacturing business ideas are encouraged and promoted by providing support and facilitating capital and infrastructure.

If you are a business owner or an entrepreneur who plans on starting a pharmaceutical manufacturing plant, this article can help you get started on these plans.

Starting a manufacturing unit in the pharmaceutical sector involves setting up production, processing, packaging, storage, and logistics units. It is very important to have a strong understanding of the pharmaceutical sector to start and survive in this business.

1. Diligent market research

When starting a third-party pharma manufacturing company or a small-scale business, conducting thorough market research is very important. Understand the working of the healthcare and the pharmaceutical sector in India and its performance in recent years. Analyse the different kinds of players that exist in this sector. Decide on what kind of manufacturer you would like to be; a branded pharma company, over-the-counter drug business, generic pharma, export-oriented business, etc. There are many categories and sub-segments that you can explore. Additionally, you can explore options like Ayurvedic medicines, allopathy, homeopathy, Siddha, and Unani, and decide which one works for you and interests you. Conducting a benchmarking study and market research will guide you in the right direction when you start the business.

2. Understand the competition

Understanding your competitors is as important as setting up your business. Analyse the market and understand what your competitor’s product offerings are and their business models. Jot down the best practices of the industry to help you run your business better. Analyse how your competitors perform at each step of the value chain and how you can enter and capture a significant chunk of the market for yourself.

3. Develop a business plan

Once you have done your research and competitor analysis, it is critical to prepare a detailed business plan covering all aspects of setting up a medicine manufacturing company. The most important thing, to begin with, is the capital required to start the business. Although drug manufacturing is a capital-intensive business, you can begin small. Like every business, you will have fixed and operating expenses.

You can plan to either own or outsource your manufacturing unit. There are certain rules and regulations which have to be adhered to before setting up the manufacturing unit. For this, it is necessary to have permission certificates and validation from the respective state departments. Setting up and launching a small business can cost you up to Rs. 5 to 10 lacs depending upon the size and complexity of the business. It is very important to have your financial plan ready for at least the next five years, along with the business strategy. Hire consultants who can help develop a detailed business plan and growth strategy for the next five years.

4. Licensing & registration

Licensing is one of the crucial steps to focus on while setting up a pharmaceutical unit. This is one sector that is extremely sensitive and impacts people's lives. Therefore there is a huge responsibility on the part of the manufacturer. The number and type of licenses and registrations depend on the location of the plant and the type of business entity you are planning to register.

The common types of documentation you will need are drug manufacturing and distribution license, license for laboratory testing, NOC documents from respective departments, GST registration, and company registration. You will also need NOC and permissions from the State Pollution Control Board. If applicable, you might also need to apply for a clearance from the Drugs Controller General of India.

Opting to register your business under Micro, Small & Medium Enterprises (MSME) registration unlocks several benefits. It is advisable for budding entrepreneurs to opt for a provisional certificate. There are many benefits, exemptions, and opportunities available to you if you are an MSME player.

5. Set up the machinery & the plant

From the production of the drugs to when it reaches the customers, the entire supply chain needs different types of tools and products. To manufacture these drugs, you will need high-speed mixing machines, capsule and powder filling machines, loading and capping units, air compressors and filtration machines, and other equipment.

Another important aspect of setting up a plant is having qualified technicians who have deeper domain knowledge and understand the medicine manufacturing process. You will need to hire resources specifically for these processes to ensure quality control and assurance. The technicians and the other staff have to align with Good Manufacturing Process (GMP) norms.

The pharma and healthcare sector is a major contributor to the Indian economy and is growing very rapidly. This is one sector where demand always exists, and the sensitivity is high. People are becoming more aware of the importance of preventive healthcare, and a significant chunk of the population is moving towards allopathy. With the pandemic making it more evident, the pharma business is one of the most profitable manufacturing businesses to start . According to a recent economic survey, the pharmaceutical sector is expected to grow 300% in the next ten years.

1) How to Start a Virtual Event Planning Business During This Pandemic? 2) How to Start a Recycling Business with a Small Investment? 3) How to Start an Oxygen Cylinder Plant in India? 4) How to Ensure Sufficient Stock During this Pandemic in your Business?

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Q. What are the important steps in getting a manufacturing license needed to set up a pharma manufacturing plant?

Ans. The government has simplified the process for business owners contributing to the Make in India Movement. If you are starting a pharmaceutical manufacturing unit, you need to follow the Drugs And Cosmetics Act, 1940 and fill in the required details. Once you submit this, you will need to submit the verified blueprint of your layout and pay the fees. You might also need to fill different types of forms based on the drugs you plan to manufacture.

Q. How do you register your medical manufacturing company?

Ans. Once you decide on the type of manufacturing unit and the business category, you will have to register your company under the Companies Act, 2013. If you plan to set up a partnership firm, you will have to register under the Partnership Act, 1932 as a Limited Liability Partnership (LLP) Company. If you are a small business owner, you could register as an MSME to avail various benefits.

Q. What are advanced manufacturing technologies?

Ans. Advanced manufacturing technologies are those technologies that improve the output and efficiency of the manufacturing processes. They bring innovation, speed, and precision to the system. Some advanced manufacturing technologies include robotics, 3D printing, artificial intelligence, machine learning, cloud computing, and more. These technologies not only improve the efficiency of the systems but also help the business cut down costs and improve profitability in the long term. From a broader perspective, these technologies act as catalysts that boost the economic growth of the country.

Sukanya Mukherjee

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Understanding PCD in Pharma: A Comprehensive Guide to Starting a Pharma Franchise Business in India

How to Start Pharma Franchise Business: In recent years, the pharmaceutical industry in India has witnessed remarkable growth, offering lucrative opportunities for aspiring entrepreneurs. One such avenue gaining traction is the PCD (Propaganda Cum Distribution) Pharma franchise model. This article aims to delve into what PCD entails and how to kickstart a PCD Pharma franchise in India.

What is PCD in Pharma?

PCD, short for Propaganda Cum Distribution, is a business model prevalent in the pharmaceutical industry. Under this arrangement, pharmaceutical companies grant individuals or entities the rights to market and distribute their products in a specific geographic area. PCD franchisees operate as independent entities, promoting the products under the parent company’s brand name.

Embarking on a PCD (Propaganda Cum Distribution) Pharma franchise in India can be a rewarding venture in the thriving pharmaceutical industry. However, before diving into this business opportunity, it’s crucial to understand the fundamental requirements for starting a PCD Pharma franchise. This article outlines the key prerequisites and steps necessary to kickstart your journey in the Indian pharmaceutical market.

Understanding PCD Pharma Franchise

A PCD Pharma franchise operates on the principle of partnership between a pharmaceutical company (franchisor) and an independent distributor or entity (franchisee). The franchisee is granted the rights to promote, market, and distribute the franchisor’s products within a designated geographic area under the franchisor’s brand name.

Requirements to Start a PCD Pharma Franchise in India

Business plan.

Begin by developing a detailed business plan that outlines your objectives, target market, financial projections, marketing strategy, and operational framework. A well-thought-out business plan serves as a roadmap for your PCD Pharma franchise venture.

Choose the Right Company

Research and select a reputable pharmaceutical company with a robust product portfolio, established brand presence, and a commitment to quality and compliance. Evaluate the company’s reputation, product range, support system, and market presence before making a decision.

Legal Compliance

Obtain the necessary licenses and registrations required to operate a pharmaceutical distribution business in India. This includes obtaining a Drug License, Goods and Services Tax (GST) registration, Trade License, and any other permits mandated by local regulatory authorities.

Financial Investment

Determine the initial investment required to establish and operate your PCD Pharma franchise. This includes expenses for licenses, infrastructure setup, inventory procurement, marketing activities, and operational costs. Ensure adequate financial planning and budgeting to sustain your business in the initial phase.

Infrastructure Setup

Set up a suitable infrastructure for your PCD Pharma franchise, including office space, storage facilities, and distribution networks. Ensure compliance with storage requirements for pharmaceutical products, including temperature control, security measures, and hygiene standards.

Product Selection

Choose a diverse range of pharmaceutical products from your franchisor’s portfolio to cater to the healthcare needs of your target market. Select products based on market demand, therapeutic categories, pricing competitiveness, and regulatory compliance.

Marketing Strategy

Develop a comprehensive marketing and promotional strategy to create awareness about your PCD Pharma franchise and the products you offer. Utilize a mix of traditional marketing methods, such as advertisements, brochures, and promotional events, along with digital marketing channels to reach a wider audience.

Sales Team Recruitment and Training

Recruit skilled and motivated sales representatives to promote and sell pharmaceutical products on behalf of your PCD Pharma franchise. Provide them with thorough training on product knowledge, sales techniques, customer engagement, and compliance with regulatory guidelines.

Regulatory Compliance

Ensure strict adherence to regulatory requirements and quality standards prescribed by the Drug Controller General of India (DCGI) and other regulatory authorities. Maintain accurate records of sales, inventory, and distribution activities to demonstrate compliance and transparency.

Customer Support

Establish a dedicated customer support system to address inquiries, complaints, and feedback from customers, healthcare professionals, and other stakeholders. Provide prompt and personalized assistance to build trust and enhance customer satisfaction.

Key Considerations Before Entering into a Partnership with a PCD Franchise Provider

Partnering with a PCD (Propaganda Cum Distribution) franchise provider can be a lucrative opportunity for entrepreneurs looking to establish themselves in the pharmaceutical industry. However, before entering into such a partnership, it’s essential to consider various factors to ensure a successful and mutually beneficial collaboration. This article explores the key considerations to keep in mind before partnering with a PCD franchise provider.

Product Portfolio and Quality

One of the foremost considerations is the product portfolio offered by the PCD franchise provider. Evaluate the range of pharmaceutical products available, their therapeutic categories, and the quality standards maintained by the provider. Ensure that the products meet regulatory requirements and adhere to quality control measures to uphold your reputation as a distributor.

Brand Reputation and Market Presence

Assess the brand reputation and market presence of the PCD franchise provider within the pharmaceutical industry. Research their track record, customer reviews, and market reach to gauge their credibility and reliability. Partnering with a reputable and established provider can enhance your credibility and facilitate business growth.

Support and Training

Consider the level of support and training provided by the PCD franchise provider to their partners. Ensure that they offer comprehensive training programs on product knowledge, sales techniques, and regulatory compliance. Additionally, inquire about the ongoing support and assistance available to address any issues or challenges encountered during business operations.

Exclusive Rights and Territory Allocation

Clarify the exclusivity rights and territory allocation provided by the PCD franchise provider. Determine whether you will have exclusive rights to distribute their products in a specific geographic area or whether multiple distributors will operate in the same territory. Clear communication regarding territory boundaries can prevent conflicts and foster a harmonious partnership.

Financial Considerations

Evaluate the financial aspects of partnering with the PCD franchise provider, including initial investment requirements, profit margins, and payment terms. Understand the costs involved in obtaining necessary licenses, setting up infrastructure, and procuring inventory. Calculate the potential return on investment and ensure that the partnership offers favorable financial prospects.

Ensure that the PCD franchise provider complies with all regulatory requirements and standards mandated by the authorities. Verify their licenses, certifications, and adherence to Good Manufacturing Practices (GMP) and other quality assurance guidelines. Compliance with regulatory norms is crucial to avoid legal complications and safeguard public health.

Flexibility and Adaptability

Assess the flexibility and adaptability of the PCD franchise provider to accommodate changing market dynamics and business requirements. Evaluate their willingness to introduce new products, adjust pricing strategies, and support promotional activities tailored to your target market. A flexible partner can help you stay competitive and capitalize on emerging opportunities.

Exit Strategy and Termination Clause

Lastly, consider the exit strategy and termination clause outlined in the partnership agreement with the PCD franchise provider. Understand the terms and conditions for terminating the partnership, including notice periods, inventory return policies, and any financial implications. Having a clear exit strategy in place can mitigate risks and facilitate a smooth transition if necessary.

In conclusion, the PCD (Propaganda Cum Distribution) Pharma franchise model presents a compelling opportunity for entrepreneurs to enter the pharmaceutical industry. By understanding the concept of PCD Pharma franchise and its requirements, individuals can lay the groundwork for a successful venture. Initiating a PCD Pharma franchise demands careful consideration of various factors, including legal compliance, financial investment, product quality, and market dynamics.

Additionally, prospective partners should thoroughly assess the reputation, support services, and flexibility offered by PCD franchise providers before entering into any agreements. By prioritizing due diligence and strategic planning, aspiring franchisees can position themselves for long-term success in the dynamic and competitive pharmaceutical market.

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Learn How to Start a Pharmaceutical Company in India

What is a Pharmaceutical Company

Scope in the indian pharmaceutical industry, incentives provided by the indian government for pharmaceutical companies, research & development companies, generic drug manufacturers, distributor companies, otc drug manufacturers, other companies, market research, product portfolio, infrastructure and other facilities, vendors and distribution channel, human resources, branding and marketing, quality control, drug license, fssai license, gst registration, trademark registration, step 1: application for name approval, step 2: application for dsc of directors and shareholders, step 3: collection and preparation of documents, step 4: application for registration, step 5: issue of certificate of incorporation.

India’s pharmaceutical sector is not only a flourishing business opportunity but also a critical pillar of global healthcare, known for its affordable drug, vaccine, and generic medicine production capabilities. Also, considering the increased focus on healthcare, entering the pharmaceutical industry is not just a commercial venture but a chance to contribute significantly to public well-being. In this blog, we will learn how to start a pharmaceutical company along with its different types. Additionally, we will discuss and analyze the scope of the Indian pharmaceutical industry. 

A pharmaceutical company is an organization that is engaged in the – 

• Development;
• Manufacturing;
• Distribution; 
• And marketing

of pharmaceutical products like drugs, medicines, vaccines, etc. These companies majorly invest their time and money in research and discovery of drugs and medicines used to cure different types of diseases. Therefore, healthcare providers like hospitals, nursing homes, doctors, etc. are dependent on pharmaceutical companies to provide medical treatment to patients. 

Some of the famous pharmaceutical companies in India include Sun Pharma, Glenmark, Cipla, Lupin, etc. 

The pharmaceutical sector in India has a broad and promising future on domestic as well as international levels. Major segments of the pharmaceutical industry in India include bulk drugs, Over-The-Counter (OTC) medicines, generic drugs, biosimilars and biologics, contract research and manufacturing, etc. With a population of approx 143 crores people, the market for pharmaceutical goods and medical services is extensive. In addition, factors like the rise in living standards of middle-class people and increasing awareness of healthcare contribute to the industry’s growth. 

Further, India is a significant player in the global pharmaceutical sector, known for its ability to manufacture generic drugs at a low cost. This reputation puts Indian pharmaceutical companies in a good position to meet the demand for affordable medicines worldwide, especially in developing nations. According to Invest India (2023), the current value of the Indian pharmaceutical industry is $50 billion and it is expected to scale up to $65 billion by 2024 and $130 billion by 2030. 

Following are some other facts that highlight the vast scope of the Indian pharmaceutical industry – 

• India exports pharmaceutical products to 200+ countries in the world. 
• India is the leading manufacturer of vaccines and sources 70% of WHO’s vaccines. 
• The nation is the largest supplier of generic medicines, accounting for a 20% share on the global level. 
• There are nearly 10,500 pharmaceutical manufacturing facilities in India, along with 3000+ companies. 
• India achieved success in HIV treatment by providing access to the most affordable services. 

To encourage the setting up of pharmaceutical businesses in India and ensure their growth, the government provides the following incentives – 

• For greenfield and brownfield pharmaceuticals, 100% and 74% Foreign Direct Investment (FDI) is allowed under the automatic route respectively. 
• Financial incentives to eligible businesses for bulk drug manufacturing under Product Linked Incentive (PLI) schemes 
• Setting up Common Infrastructure Facilities (CIF) for bulk drug production to reduce manufacturing costs for companies
• Launch of Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) for MSMEs to help them in upgrading technology. 

Types of Pharmaceutical Companies

Pharmaceutical companies can be divided into the following categories based on the type of activity they undertake – 

These types of companies typically concentrate on creating new and innovative pharmaceuticals and bringing them to the market. In addition, such companies carry out clinical trials. They spend a lot of money on research to find new treatments. For example, Biocon Limited, Dr. Reddy’s Laboratories, Zydus Lifesciences Limited, etc. 

Generic drug manufacturers are companies that are engaged in the production of non-patented medications. In simple words, such companies produce medicines similar to those produced by famous brands. Although generic medicines are equivalent to branded medicines in terms of safety and efficacy, they are more affordable as compared to branded ones. 

Examples of generic drug manufacturers in India include Wockhardt Pharmaceuticals, Sandoz, Endo Pharmaceuticals, etc. 

These types of companies are experts in pharmaceutical product distribution and logistics. They make sure that medications are delivered effectively to pharmacies and healthcare facilities. For example, Jay Pharma, Meher Distributors Pvt Ltd, Dvijay Pharma Pvt Ltd, etc. 

OTC or Over-the-counter drug manufacturing companies produce medicines or drugs that are available over-the-counter, i.e., without a prescription. It includes medicines for cough, cold, pain relief, etc. For example, Procter & Gamble, Dabur India Limited, Emami Limited, etc. 

Other types of pharmaceutical companies include Brand Developers, API Manufacturers, Biotechnology Companies, Contract Research Organizations (CROs), Contract Manufacturing Organizations (CMOs), Specialty Pharmaceutical Companies, Herbal and Neutraceutical Companies, etc. 

Business Plan for Starting a Pharmaceutical Company

Before proceeding forward and learning how to start a pharmaceutical company, it is necessary to understand the elements that you should include in the business plan. 

The following are the considerations that should be included in the business plan of a pharmaceutical company. 

Before entering into any industry, it is necessary to understand and analyze the market dynamics like trends, growth opportunities, competitors’ strategies, etc. Therefore, the first step that you need to take while formulating the business plan is to collect all the necessary information about the market and then analyze it.

Once you have collected and analyzed data about the different segments of the pharmaceutical industry, the next step is to decide what kind of pharmaceutical products you will deal in, e.g., generic drugs, vaccines, specialty drugs, etc. This will lead to the preparation of your product portfolio. 

If you are planning to start a manufacturing unit for producing pharmaceuticals, then you need the following assets and facilities – 

• Land and Building 
• Lab Equipments 
• Heating, Ventilation, and Air Conditioning (HVAC) Unit 
• Water Supply 
• Electricity Supply, etc. 

Therefore, you need to make decisions regarding infrastructure as well, for example, whether you will buy land and building or take it on rent, what will be the arrangements for water and electricity supply to the factory, etc. 

Another important consideration in the business plan of a pharmaceutical company is the distribution network. Plan the distribution network and establish relationships with vendors and medical representatives for marketing and selling your products. 

Decide the sources from which you will raise funds for meeting fixed and working capital requirements. A company can raise funds through the issue of shares, securities, ESOPs, etc. Additionally, it can obtain Foreign Direct Investment (FDI), loans from banks & financial institutions, investment from venture capitalists & angel investors, etc. 

Assess the need for human resources for different positions in the organization and accordingly, design the recruitment plan. For manufacturing medicines, you need to hire skilled and non-skilled workers, technicians, supervisors, etc. In addition, formulate the employee compensation and training strategy. 

Branding includes various activities such as designing a memorable logo, choosing a unique name, creating a powerful tagline, etc. A strong brand in the pharmaceutical industry conveys safety, quality, and innovation. 

In addition, design the marketing strategy for your business which could include hoardings, digital marketing, healthcare conferences, etc. Further, decide the prices for your products which should be competitive enough to secure a sizeable share in the market.

In the pharmaceutical industry, it is very important to take quality control measures. It is advisable to set up a quality control and assurance department within the organization. It will monitor the adoption of quality control processes and standards, do testing and validation of the products, etc. 

Licenses and Registrations Required for Pharmaceutical Companies

Pharmaceutical companies in India are required to obtain the following licenses and registrations – 

A drug license is required for manufacturing, distributing, selling, and marketing pharmaceutical products in India. It is issued by the Central Drugs Standard Control Organization (CDSCO) and State Drugs Standards Control Organization (SDSCO). The following are the types of drug licenses – 

Manufacturing License

Those pharmaceutical companies that are engaged in manufacturing allopathic, ayurvedic, & homeopathic drugs or medicines, cosmetics, etc. shall obtain a manufacturing license. 

Sale License

The pharmaceutical companies that are engaged in selling drugs or medicines shall obtain a sale license. It is further divided into two categories – 

• Wholesale Drug License – Issued to a wholesaler of medicines. 
• Retail Drug License – Issued to persons engaged in the retail supply of medicines such as pharmacists. 

Other Licenses

Other drug licenses include loan licenses, import licenses, multi-drug licenses, etc. 

Apart from drug licenses, pharmaceutical companies are also required to obtain the Food Safety and Standards Authority of India ( FSSAI ) license. Three types of licenses are issued by FSSAI: Basic Registration, State License, and Central License. The type of license that an organization is required to obtain depends on the turnover of the organization. 

Read More: Complete Guide on How to Get FSSAI License in India 

As pharmaceutical companies generally operate on a large scale, it is advisable to obtain Goods and Services Tax (GST) registration as well. GST registration is mandatory if the aggregate turnover of the business exceeds Rs. 10 lakhs in Special Category States and Rs. 20 lakhs in other states. If the business deals in goods only, then registration is required only if the turnover exceeds Rs. 40 lakhs. 

Additionally, GST registration becomes mandatory in case of inter-state supply (from one state to another) of goods and services.

Get in touch with our experts and apply for GST registration today! 

A trademark is a distinctive symbol, design, name, phrase, logo, color, shape, etc., used to distinguish one brand’s identity from another brand offering similar products or services. While it’s not mandatory to register a trademark, it is recommended to do so to safeguard it against unauthorized usage and potential infringement.

Therefore, pharmaceutical companies shall obtain trademark registration for their logo, brand color, design, etc. 

Read More: Trademark Registration Online in India 

Pharmaceutical Company Registration Process

Once you have developed a business plan considering all the requirements mentioned above, the next step is to register the company with the Ministry of Corporate Affairs ( MCA ).

You can either form a public limited company or a private limited company. It depends on the scale on which you want to operate and the control that you are willing to share. If you are planning to operate on a large scale with a huge investment, a public limited company is a better company as it can raise funds from the public and have an unlimited number of shareholders. 

On the other hand, a private limited company is like a closely held company and cannot raise funds from the public. Therefore, it is more suitable for small-to-medium-sized businesses. 

Nevertheless, the process of registration remains the same. The following are the steps that are required to be followed for company registration – 

Apply for Name Approval by submitting Part-A of the SPICE+ form on the MCA portal, providing two proposed company names. MCA will approve one out of the two names. 

For digital signing of forms, obtain Digital Signature Certificates (DSC) of directors and shareholders from certifying authorities of the government However, if the directors/shareholders already have DSC, then this step can be skipped. 

Collect and prepare all necessary company, director, and shareholder documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), or e-MOA and e-AOA if shareholders are ≤ 7.

File the company incorporation application (Part B of SPICE+ form) and, if needed, apply for Director Identification Numbers (DIN) through the same form. Attach all required documents, complete associated forms, and pay the fees based on the authorized capital.

If the registration form is complete in all aspects along with the required documents, the Certificate of Incorporation containing the Corporate Identification Number (CIN), PAN, TAN, and GSTIN (if applied for) of the company will be issued. 

Note: Registration of a company in India requires certification from a Chartered Accountant, Company Secretary, or Cost Accountant. 

Registering a company is made easy! Join hundreds of satisfied entrepreneurs who have trusted our services. Contact us now! 

In conclusion, venturing into the pharmaceutical industry in India offers an exciting opportunity to blend innovation, healthcare advancement, and business acumen. With dedication, adherence to ethical standards, and a commitment to quality, your pharmaceutical venture can not only thrive but also play an important role in enhancing healthcare access and outcomes in India and beyond. 

We at Registration Arena are dedicated to assisting you in the registration and compliance of your business. Call us at +918600544422 or drop an email at [email protected] for more information.

Chandan Todi

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Blog » Pharma information » How to Start a Generic Pharmaceutical Company in India

How to Start a Generic Pharmaceutical Company in India

• Pharma information

How to start a generic pharmaceutical company in India – An ambitious pharma professional always wants to end up having his or her own pharmaceutical company. It is their dream to start project own pharmaceutical company as soon as they can. Most of the pharma professionals could not make it possible because of a lack of knowledge and courage and sometimes due to a lack of money. If you have some experience in the generic medicine field in the beginning then you can possibly give a kick start to your business. But, before that, you should know how much does it cost to start a pharmaceutical company in India or how to start a generic pharmaceutical company in India ?

Besides, we all know how well the pharmaceutical sector in India is expanding. Indian pharmaceutical sector has gained an important and reputed position in the global pharmaceutical market. India has become the biggest supplier or exporter of generic medicines all over the world. So at this point in time, it would be highly beneficial to invest in the generic pharmaceutical business. If you are planning to start a generic pharma company franchise or your own generic pharmaceutical company in India then it would be great to have a look at this given article. Here we are going to discuss how to start a generic pharmaceutical company in India in general terms. Hope you will find the information reliable. 

Table of Contents

Follow Few Simple Steps to Start a Generic Pharmaceutical Company in India

Starting your own pharmaceutical firm could be a wise decision for a career as the healthcare and pharma sectors are showing good growth. The future in this particular market seems quite bright. However, if you are really planning to start a generic pharmaceutical company in India then it would be better to start as early as it can be. There are some simple steps you need to follow to complete the pharma company registration procedure. People who are planning to start a generic pharmaceutical company should definitely read the following pointers.

Make a Business Plan

To start a generic pharmaceutical company you need to compose a detailed business plan. A business plan includes plenty of things such as:

• Choose good premises for your office that contain enough space that specifies the norms issued by govt.
• A unique and meaningful brand name for your company or brands. The brand name should not match with any existing entity so it needs deep research before.
• Available with financial background which is the most important practice for starting any business.

Register Company under Company Act

It is you are starting a PCD franchise business then you may need several important things such as drug license no, GST (goods & services tax) registration, trademark registration, and FSSAI registration. But if you are registering a new business you will also require the discussed registration but there are four major steps that are:

• Acquiring Digital Signature Certificate (DSC)
• Acquiring Director Identification no (DIN)
• Get a new user registration or fill out an eForm
• Incorporation of the company

Acquire Drug License No.

Hence, this business includes selling and manufacturing medicines and pharmaceutical drugs, so this business requires a drug license to run. If you run a company without a registered drug license no. then it can be a punishable offense. To get the complete details about the process of how to obtain the drug license number, you should meet the local drug inspector and drug selling authority.

Get the GST Number

GST is the recent introduction in our country that is needed while doing any business. A generic pharma business needs GST no. within three months if the turnover exceeds 2.5 Million. But, here turnover is not only the reason for GST though. There are many more facets of GST rules & regulations. It would be better if you gathered services and knowledge from the experts.

Few Further things that one would require to start a generic pharmaceutical company

• Get the trademark registered
• Get FSSAI registration

If you want to set up a pharma business then these would be the steps to follow. We hope that we have given the most relevant information regarding how to start a generic pharmaceutical company in India. For further details or to sort any query related to the same you can refer to our official website.

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How To Start A Pharmaceutical Company In India

India has a robust pharmaceutical industry that has gained international recognition for its quality and affordability. Starting a pharmaceutical company in India can be a lucrative venture, given the increasing demand for healthcare products both domestically and globally. However, navigating the regulatory landscape and understanding the industry’s nuances is crucial. In this blog post, we’ll provide you with a comprehensive guide on how to start a pharmaceutical company in India.

Table of Contents

Steps To Start a Pharma Company in India

If you are looking to start a pharmaceutical company in India, here are some of the steps you have to take;

Market Research and Business Plan

Before diving into the pharmaceutical business, conduct thorough market research to identify opportunities, competition, and potential niches. Create a detailed business plan that outlines your company’s objectives, target market, product portfolio, and financial projections. This plan will serve as your roadmap throughout the journey.

Legal Structure and Registration

Select a suitable legal structure for your pharmaceutical company, such as a private limited company, partnership firm, or LLP (Limited Liability Partnership). Register your business with the appropriate authorities, including the Registrar of Companies (RoC) and the Drug Controller General of India (DCGI).

Location and Infrastructure

Choose a strategic location for your company, considering factors like proximity to pharmaceutical hubs, transportation facilities, and availability of skilled labor. Invest in the necessary infrastructure, including manufacturing facilities, laboratories, and storage areas, ensuring compliance with Good Manufacturing Practices (GMP).

Licensing and Regulatory Compliance

Obtaining the necessary licenses and approvals is paramount in the pharmaceutical industry. Some key licenses include:

a. Drug Manufacturing License : Apply for a drug manufacturing license from the State Drug Control Authority. b. Goods and Services Tax (GST) Registration : Register for GST to comply with tax regulations. c. Import-Export Code (IEC) : If you plan to engage in international trade, acquire an IEC from the Directorate General of Foreign Trade (DGFT). d. FSSAI License : If you intend to manufacture food supplements or nutraceuticals, obtain a license from the Food Safety and Standards Authority of India (FSSAI).

Ensure that your manufacturing processes and facilities adhere to the guidelines provided by the DCGI and other relevant authorities.

Research and Development

Invest in research and development (R&D) to develop pharmaceutical products. Collaborate with scientists, researchers, and contract research organizations (CROs) to conduct clinical trials and ensure the safety and efficacy of your drugs.

Manufacturing and Quality Control

Establish a robust manufacturing process that adheres to GMP guidelines. Implement a stringent quality control system to ensure the highest product quality and consistency. Regularly audit your manufacturing processes to maintain compliance.

Marketing and Distribution

Develop a marketing strategy to promote your pharmaceutical products. Establish a network of distributors and healthcare professionals to reach your target market. Building strong relationships with healthcare practitioners and hospitals is crucial for success in the pharmaceutical industry.

Intellectual Property Protection

Protect your pharmaceutical formulations and inventions by filing for patents and trademarks. Intellectual property rights are essential to safeguard your innovations and prevent others from copying your products.

Funding and Finance

Pharmaceutical businesses often require significant capital for R&D, manufacturing, and marketing. Explore various funding options, including loans, venture capital, or partnerships, to secure the necessary funds for your company’s growth.

Compliance and Continued Learning

Stay updated with the evolving pharmaceutical regulations in India. Attend industry conferences, join pharmaceutical associations, and regularly train your staff to ensure continuous compliance with the latest standards and practices.

Advantages Of Running A Pharma Business

Running a pharmaceutical business can offer several advantages for entrepreneurs and investors. Here are some of the key advantages of operating a pharma business:

Lucrative Market

The pharmaceutical industry is one of the most profitable sectors globally. It consistently experiences high demand for medicines, healthcare products, and innovations, making it a financially rewarding field.

Stable and Recession-Resistant

Healthcare needs are relatively recession-resistant. People require medications and medical treatments regardless of economic conditions, which provides stability to the pharmaceutical industry.

Continuous Innovation

The pharma industry is driven by innovation. Developing new drugs, therapies, and medical devices is not only fulfilling but also offers opportunities for substantial revenue through patents and exclusivity.

Global Reach

Pharmaceutical businesses have the potential to operate on a global scale. Exporting pharmaceuticals can be highly profitable, especially for companies with a strong product portfolio and regulatory compliance.

Health Impact

Contributing to the improvement of human health is a significant advantage of running a pharmaceutical business. Knowing that your products can save lives and enhance the quality of life for many people can be highly fulfilling.

Intellectual Property

The pharmaceutical sector relies heavily on intellectual property rights. Obtaining patents for novel drugs or formulations can provide a competitive advantage and a significant barrier to entry for competitors.

Diverse Product Portfolio

Pharma companies often have diverse product portfolios, including prescription drugs, over-the-counter medications, medical devices, and nutraceuticals. This diversity can help mitigate risks associated with market fluctuations.

Government Support

Many governments offer incentives and support for pharmaceutical research and development, including tax incentives, grants, and regulatory assistance.

Long-Term Growth

The aging population in many countries, along with increasing healthcare awareness, ensures a sustained demand for pharmaceutical products, making it a promising industry for long-term growth.

High Entry Barriers

The stringent regulatory requirements and significant upfront investments create high entry barriers for potential competitors, reducing the threat of new entrants.

Lifelong Learning

The pharmaceutical industry encourages lifelong learning and professional development. Staying updated with the latest research and advancements is essential, which can be intellectually stimulating.

Potential for Partnerships

Collaboration with academic institutions, research organizations, and other pharmaceutical companies is common in this industry, which can lead to shared resources, expertise, and innovations.

Ethical and Moral Fulfillment

The pharmaceutical industry allows entrepreneurs to be involved in a field that contributes to the well-being of society, aligning with ethical and moral values.

While running a pharmaceutical business offers numerous advantages, it’s essential to recognize that it also comes with challenges, such as strict regulatory oversight, long development timelines, and ethical considerations. Success in the pharmaceutical sector requires a deep understanding of industry dynamics, a commitment to quality and safety, and a focus on research and innovation.

Can A Doctor Start A Pharmaceutical Company?

Yes, a doctor can start a pharmaceutical company. In fact, having a medical background can be advantageous in the pharmaceutical industry because it provides a deep understanding of healthcare, medical treatments, and patient needs.

Minimum Investment To Start A Pharma Company In India

Starting a pharmaceutical company in India requires significant capital investment, and the exact minimum amount can vary widely depending on various factors such as the scale of operations, the type of pharmaceutical products you plan to manufacture, the location of your facility, and regulatory compliance costs. The overall cost of launching a pharma manufacturing company can cost anything from around 5 lacs to 10 lacs.

Starting a pharmaceutical company in India is a complex but rewarding endeavor. With the right knowledge, dedication, and adherence to regulatory requirements, you can build a successful and sustainable pharmaceutical business in this dynamic industry. Remember that ethical practices, quality assurance, and patient safety should always be at the forefront of your operations.

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A Complete Guide To Starting A Pharmacy Business

What do you know about India's third-largest pharmaceutical market? Since the Covid-19 pandemic, pharmacies have become a $42 billion industry. Post-pandemic is set to be an ideal time to open your pharmacy if you've been thinking about it for years.

Medicine is the oldest profession of humankind. Given that survival is the first and most primal instinct, prevention and curing health risks were one of the first practices that began with the formation of civilisation. And along with advancements in civilisation and technology, there has also been advancement in medicines.

From using technology purely for research and development of drugs, we have now reached a stage where technology has become equally important to sell. You can now book a doctor’s appointment, schedule a medical procedure and even order your medicines online to be delivered to your doorstep.

There are two primary facets of the medical industry: 

• Diagnostics 
• Medication. 

This article will discuss all there is to the pharmacy business. But first, let us look at the different types of pharmacy businesses.

Table of Contents

Types Of Pharmacy Business

There are five primary business models through which pharmacies operate. They are as follows.

Standalone Pharmacy 

These are like regular stores which sell medicines. They operate like any other business, except they have certain additional formalities and regulations. The business model is to operate only stores within a locality. The procurement of drugs by these pharmacies is based on local demand. The sale of medicine happens with the usual cash-and-carry format.

Hospital Pharmacy 

These are pharmacies owned and operated by the hospital and are usually within the hospital premises. They also need to fulfil the same formalities as standalone pharmacies. But these formalities are completed by default with the regulations that have to be completed to open a hospital. These pharmacies procure drugs primarily based on the hospital’s needs and the speciality of the hospital. Non-patients can access these pharmacies also where normal cash and carried transactions occur. But they also supply medication to the hospital’s in-patients or patients under admission.

Chain pharmacy 

Some pharmacies operate as chains, opening multiple shops in different localities under a single brand name. They are not separate from standalone pharmacies except for their wider reach and recognition in the marketplace.

This is the latest business model that many pharmacies are adopting. They operate solely online through a web portal or a web application. Apart from a warehouse or godown to stock the supply of medicines, they need to maintain a physical space for walk-in customers.

Registering A Pharmacy Business

Let us now look at the steps involved in starting a  Pharmacy business .

Forming a Registering a Legal Entity

In every business, this is the first step. Based on the long-term and short-term vision, the founders have to decide which format of business they want to run their business in. According to the Indian Pharmacy Act of 1948, registration is mandatory. To operate a pharmaceutical business, you will need a registration certificate as proof of identity.

Tax Registrations

Again, this is common to almost all kinds of businesses and not just the pharmaceutical industry. It would be best to get all the tax registrations done for the business once the formal incorporation formalities are over. This includes obtaining a P.A.N., T.A.N. & G.S.T. number .

Getting a Drug Licence

In India, drug licences are issued by the Central Drugs Standard Control Organisation (C.D.S.C.O.) and the State Drugs Standard Control Organization (S.D.S.C.O.). In addition to prescribing standards, the state office grants licenses to assess specific parameters and infrastructure requirements (refrigeration, air conditioning to particular drugs, etc.) and engages a pharmacist with prescribed qualifications. These authorities issue two kinds of licences. A Retail Drug License and a Wholesale Drug License.

The documents required to get a drug licence are as follows:

• Application form in the prescribed format
• Covering Letter with the intent of the application signed with the name and designation of the applicant
• Challan of fee deposited for obtaining drug licence
• Declaration form in the format prescribed
• Key plan(Blueprint) for the premises
• Site plan (Blueprint) for the premises
• Basis of possession of the premises
• Proof of ownership of the premises, if rented
• Proof of constitution of the business (Incorporation Certificate / MOA / AOA / Partnership Deed)
• Affidavit of non-conviction of proprietor/partners/ directors under the Drugs and Cosmetics Act, 1940
• Affidavit of a registered pharmacist or competent person working full time
• Appointment letter of registered pharmacist/competent person, if the employed person.

Hiring Technical Staff

Compared to other businesses, the hiring policies of the staff at a pharmacy are not completely at their discretion. To start a pharmacy, one must have a B.Pharm degree (Bachelor in Pharmacy). Similarly, the staff hired in a pharmacy also needs to meet certain educational qualifications. These qualifications depend on the kind of drug licence, whether you have a Wholesale Drug Licence or a Retail Drug Licence. Let us look at the requirements:

The wholesale of drugs requires to be monitored and managed by a person who is registered as a pharmacist with the C.D.S.C.O. or S.D.S.C.O. or a competent person who is graduate with and possesses at least one year’s experience in the pharmaceutical industry or a person who has passed S.S.L.C. with at least four years of experience in the pharmaceutical industry and is specially approved by the department of drug control.

The sale of the drug by retail must be made in the presence of a registered pharmacist approved by C.D.S.C.O. or S.D.S.C.O. The registered pharmacist must be present at the physical location throughout working hours.

Starting any business requires a lot of prerequisites and regulatory formalities. For an essential commodity like medicine, the regulatory formalities are much more to maintain accountability while handing over such a crucial responsibility involving public health. The general registration process itself takes a considerable amount of time. And if any errors of omission or commission while completing the formalities can further delay the process. So it is always better to consult an expert with hands-on experience when it comes to registering a pharmacy business. If you have any other queries regarding the pharmaceutical business or have any requirements with registering your business, get in touch with us today. We will ensure that you get the best possible guidance and advice to help you fulfil your requirements without any hassle.

• Requirements to Open a Pharmacy in India
• Cost of Opening a Pharmacy in India
• Pharmacy Business Profit in India

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Top 10 Pharma Companies in India [2024 Updated List]

The Pharma Industry in India is one of the important backbones of the Indian medical apparatus. The industry consists of various global and local players. It is rapidly expanding and has a significant influence in the international healthcare landscape, with numerous companies effectively contributing to its growth.

In this comprehensive study, we will explore the top 10 pharma companies in India by market capitalization and showcase their respective contributions to global health solutions through diverse areas of expertise.

Top 10 Pharma Companies in India

1. sun pharmaceutical industries ltd.

• Revenue: ₹48,496 crore (as of 2024)
• Net income : ₹9,576 crore  (as of 2024)
• Number of employees: 36000

Sun Pharmaceutical Industries Ltd., which is now based in Mumbai, was established by Dilip Shanghvi in 1983 at Vapi, Gujarat. The medicines they create are used to treat mental health problems, kidney diseases, issues with gastroenterology and orthopedics.

They also produce drugs for taking care of eyesight troubles as well as heart-related difficulties among other areas in healthcare. This range of products demonstrates their extensive knowledge in various fields within the medical sector. With history of various famous acquisitions, for instance bought a subsidiary Taro Pharmaceuticals in January 2024 costing $347.73 million.

Being one among the top 10 pharma companies in India and also having a workforce of about 38000 people, the Company holds 366,102.53 Crore in market capitalization as per June 2024. 

2. Divis Labs

• Revenue:  ₹9,073 crore   (as of 2024)
• Net income: ₹2,960 crore   (as of 2024)
• Number of employees: 17,000

Divi Labs, is one of top 10 pharma companies in India, headquartered in Hyderabad, They are a major global supplier of some key pharmaceutical ingredients, Currently holding 60-85% of the worldwide market share for generic versions of the drugs naproxen, dextromethorphan, and gabapentin.  

Also, for pregabalin and methylamine ingredients, they hold 20-30% of the global market. Divi’s controls the full production process for these active pharmaceutical ingredients (APIs) from start to finish.

They are a central player contributing significantly to the Indian pharmaceutical industry with current market capitalization of 121,713.36 Crore INR as per June 2024 records.

3. Cipla Ltd

• Revenue: ₹25,455 crore  (as of 2024)
• Net income: ₹4,106 crore   (as of 2024)
• Number of employees: 22,036

Cipla Ltd stands out as another one of top 10 pharma companies in India. Their primary business of Cipla consists of manufacturing active pharmaceutical ingredients to other manufacturers as well as other  pharma and personal care products.

They are famous for creating the world’s first  first oral iron chelator drug, in 1995, also known for their  reverse engineering feats by creating cheaper versions of live saving drugs,  like During the AIDS crisis, they created a $304/year affordable antiretroviral drug and during avian flu in 2006 they created  affordable drug with reverse engineering..

The company is not only a significant pharma player but also a major contributor recruiter, with over 21,891 employees strength.

Holding an impressive 119,351.16 Crore market cap by June 2024. Being the Third largest drug producer in India.

4. Zydus Life

• Revenue: ₹19,547 crore   (as of 2024)
• Net income: ₹3,873 crore    (as of 2024)
• Number of employees: Approx 25,000 

Zydus Life, based in Ahmedabad, is known for their skills in generic drugs and biosimilars. They have a global importance because they deal with these specialties. The pharma industry of India needs Zydus Life’s help to provide important meds and healthcare services in the country.

The company found its place in the 2020 Fortune India 500 list, also being ranked as 100th. Zydus Life is the fourth-largest pharma company of India when we talk about market value which stands at 108,119.84 Crore INR.

5. Dr. Reddy’s Laboratories Ltd

• Revenue: ₹28,905 crore  (as of 2024)
• Net income: ₹5,577 crore    (as of 2024)
• Number of employees: 24,832

Dr.Reddys Labs, which is situated in Hyderabad, has a well-deserved reputation for its wide array of products that cover numerous treatments for different diseases and disorders. Dr. Reddy’s Laboratories makes and markets many types of pharmaceutical products in India and other nations too.

The business generates more than 190 types of medicines, 60 active components applied in drug production, diagnostic testing units, products for crucial medical care and biotechnology items.

Nestlé and Dr. Reddy’s Laboratories have come together in a joint venture to build their range of nutraceutical products across India. This partnership will join the knowledge of Nestlé in nutritional health solutions with Dr. Reddy’s commercial strength within the Indian market.

It stands as the fifth largest pharma company in India by Market cap with a current value of 106,748.49 Crore INR.

6. Torrent Pharma

• Revenue: ₹10,728 crore  (as of 2024)
• Net income: ₹1,656 crore   (as of 2024)
• Number of employees: range from 10,001 to 50,000

Torrent Pharma, with its headquarter in Ahmedabad, has a reputation for being skilled in specialty generics and biosimilars. This company plays an important role in forming the worldwide drug markets.

On June 5th of the year 2024, Torrent Pharmaceuticals shared news that they have made an agreement for non-exclusive patent licensing with Takeda. This is to help in selling Vonoprazan, which is a fresh gastrointestinal drug from Takeda’s range under its own brand name Kabvie in India. The purpose of this move aims at capturing opportunities within the acid reflux disease market valued around INR 8,064 crore and growing at Compound Annual Growth Rate (CAGR) of about 8% over these past four years.

Torrent Pharmaceuticals has more than 2,000 products that are registered worldwide in 40 countries. These cover different therapeutic areas including heart health, brain and nerve systems, stomach treatment, diabetes care along with confronting infections and managing pain.

Torrent Pharma, being one of top 10 pharma companies in India, holds 94,554.89 Crore INR in market cap as per June 2024.

7. Mankind Pharma

• Revenue: ₹10,335 crore   (as of 2024)
• Net income: ₹1,942 crore    (as of 2024)
• Number of employees: Approx 22,000

Mankind Pharma, which has its main office in Delhi, is ranked as the sixth biggest among top 10 pharmaceutical companies in India. They have many different product lines covering areas such as therapeutic treatments, antibiotics, gastrointestinal issues, heart-related medications, skin problems (dermal), and medicines for erectile dysfunction.

By 2023, Mankind Pharma ran 25 factories and had 6 research and development centers in India. The Indian market made up for 97% of their operating income. As per June 2024 its market capitalization is currently at 85,235.13 Crore INR.

• Revenue: ₹19,656 crore   (as of 2024)
• Net income: ₹1,914 crore    (as of 2024)
• Number of employees: Approx more then 20,000

Lupin which is a multinational pharma company based in Mumbai, It is one of the biggest companies in the world that makes and sells generic (non-branded) medicines. The company focuses mainly on making medicines for children, heart conditions, infections, diabetes, asthma, and tuberculosis.

Lupin ranks eighth amongst leading pharmaceutical companies in India, with a valuation of around 74,040.75 Crore INR, as of June 2024.

9. Aurobindo Pharma

• Revenue: ₹29,002 crore  (as of 2024)
• Net income: ₹5,843 crore   (as of 2024)
• Number of employees: range from 10,001 to 50,000 

Aurobindo Pharma headquartered in  HITECH City, Hyderabad. Known for their specialty generics, biosimilars, and significant contributions to the global pharmaceutical industry.  

The company’s product line consists of six major  therapeutic areas which consist of antibiotics, antiretrovirals, cardiovascular products, central nervous system products, gastroenterological, and anti-allergics. Also including major generics and pharma ingredients.

Being one of top 10 pharma companies in India, its market  is valued at around 70,734.51 Crore INR as of June 2024.

10. Alkem Laboratories

• Revenue: 2,936 CR (as of 2024)
• Net income: 304 CR (as of 2024)
• Number of employees: More then 16,500

Alkem Laboratories is   known for their innovative products that significantly impact healthcare sector growth and development within our country. Being a crucial player in the Indian pharma industry landscape, Alkem Labs ensures millions get essential medicines and health care solutions daily by contributing towards overall well-being through diverse service provisions targeted at improving public welfare and medical needs across India.

Alkem Labs stands as the tenth biggest pharma company in India, valued at around 59,304.24 Crore INR according to the latest market in June 2024.

The top 10 pharma companies in India, from Sun Pharma to Dr. Reddy’s Labs, all the major players contribute an important role in the healthcare system. They make many different medicines for treating various diseases in India and other countries.

In 2024, these big Indian pharma companies are working to make cheaper versions of the popular weight loss drug Wegovy. Sun Pharma, Cipla, Dr. Reddy’s, and Lupin are developing their own alternatives. They want to meet the high global demand for weight loss treatments at lower costs after Wegovy’s patent ends.

Their advanced medicines are exported globally, driving major growth in the industry. India’s pharma exports reached $27.9 billion in 2023-24, despite a small overall export decline. Major markets like the USA, UK, and Netherlands are key for India’s dynamic pharma sector, which keeps evolving with new opportunities and rising worldwide demand.

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6 Simple Steps to Start a Medicine Wholesale Business in India

Written by BusinessAlligators Support

Start business, 234 comment(s), may 6, 2022.

The Pharma industry in India today ranks 4th in volume and 13th in value in the global pharmaceutical market, with exports worth US Dollars 2.6 billion besides domestic sales of over US Dollar 4 million worth. India’s different types of pharmacies are a standalone, hospital, chain pharmacies, and township pharmacies. All of these can be registered under the partnership or as a private limited company and thus can easily be transferred, or profits can be shared among the partners.

Before you proceed any further, I would recommend you to also go through our article on the basic steps of starting a business after reading this one to get a wide view of deciding your target market, fundraising, etc.

Now let’s proceed to how you can start your own medicine wholesale business n India easily.

1. Legal Procedure to Start a Wholesale Pharmacy

The Drugs and Cosmetics Act, 1940 (amended in 1945) states the guidelines for importing, manufacturing, and distributing drugs in India. It contains provisions for the classification of drugs under given schedules. To start a medical pharmacy business, one needs to get a license from the Central Drugs Standard Control Organization (CDSCO) or State Drugs Standard Control body, under form No. 19. The person should have a degree or diploma in pharmacy from a recognized institution or university with one year of experience in dealing with drugs. The pharmacist must also get the GST registration for any payment transaction.

Documents required while applying for the license-

• Application form in the prescribed format.
• Covering letter with the intent of the application signed with the name and designation of the applicant.
• Challan of fee deposited for obtaining drug license.
• Declaration form in the format prescribed.
• Key plan (Blueprint) for the premises
• Site plan (Blueprint) for the premises
• Basis of possession of the premises
• Proof of ownership of the premises, if rented
• Proof of constitution of the business (Incorporation Certificate/ MOA/AOA/Partnership Deed)
• Affidavit of non-conviction of proprietor/ partners/ directors under Drugs and Cosmetics Act, 1940.
• Affidavit of a registered pharmacist or competent person working full-time
• Appointment letter of registered pharmacist/competent person, if an employed person.

The legal bindings do not end here. Regular inspections by a pharmacy inspector are held under the supervision of CDSCO, headed by the Drug Controller General of India. GN Singh being the current DCGI, makes it strict for all the local, retail or wholesale pharmacies to maintain the standards of sale, storage, and display of drugs.

If you want to know some more details on India’s company registration process, you can Click Here .

2. Premises to Stock the Medicines

It is mandatory to submit the proper verifiable documents regarding the pharmacy’s area to be started. The apt space for a wholesale pharmacy is a prerequisite. The requirements change when both retail and wholesale are combined. Refrigerators and air-conditioners are a must for obvious reasons that concern the biomolecular damage to the vaccines, sera, insulin, injections, etc. The place should be kept clean and rodent free to ensure proper hygiene.

3. Investments to Set up a Pharmacy Wholesale

With an initial investment as per the demands of the startup, the otherwise expenditures may include maintenance charges and buying of medicines and drugs.

• Documentation and License:- Approximately  25OOO/-  including Rs 3000/- as registration fee
• Furniture:- Shelves and cupboards, air conditioner, and refrigerator may add up to 2 lacs
• Computer system- Rs30,000
• Premises (if rented)

Working staff, including a pharmacist and 2 employees for 24*7 (70,000 / month). An investment of 40-80 lakhs is required in establishing a wholesale business, considering the quantity of stock required.

The cost of drugs stocked in the pharmacy store is included in this. Whereas medicines costing around Rs 20 lakhs – Rs 50 lakhs need to be distributed to the retailers on a loan basis in order to establish a healthy professional relationship.

4. Awareness Related to Current Trends in Drug Dealing

In India, the Schedule B (Rule 98) of the Drugs and Cosmetics Act (1948) specifies the ‘shelf-life’ (mostly 1-5 years) of drugs and the conditions of storage. Beyond the expiry date, the various drug formulations must be discarded to avoid toxicity. The pharmacist or the dealer should be vigilant about the life period of stored medicines and their different schedules. For example, schedule H lists the ‘prescription drugs’ that can be sold only against a prescription issued to a patient by a registered medical practitioner.

The ‘non-prescription’ or ‘over-the-counter’ (OTC) drugs can be sold even by grocery stores. It is important to stay in touch with the ongoing trials of drugs held by the government to be informed of the banned medicines. It also helps to know about the drugs popular with the medical practitioners so that they can be stocked adequately. The medicines or cosmetic products which are not popular tend to decrease the profits as they, when stocked, may expire with time and need to be removed from shelves. Segregation of medicines pertaining to age groups can ease the functioning of the pharmacy.

5. Collaboration with the Local Clinics, City Hospitals, and Health Centers

Collaboration with existing medical stores is very beneficial when the dealer can come up with more exciting offers and benefits. Providing the local clinics or the pharmacies with drugs of better quality at the same price or larger incentives at the same selling price can guarantee a wider market for the business. Cheaper drugs from alternate pharmaceutical companies are preferred by pharma stores of tier-2 and tier-3 cities, while medical stores of metropolitan cities prefer larger discounts without reducing the MRP, provided quality is not being compromised.

For Example, if drugs from Ranbaxy are more popular with the pharmacies in an area, but Cipla manufactures similar drugs at a cheaper price. Then, convincing the medical store owners to sell Cipla drugs can help establish the clients.

Collaboration with the local clinics/ hospitals, new medical shops or pharmacies in the area will ensure profits; this is largely based on the trust and professional ethics of the dealing parties.

6. Associating with Government Policies

Under the Pradhan Mantri Bharatiya Janaushadhi Pariyojana ( PMBJP ) scheme, the government aims to provide generic or cheaper medical drugs to the people. Generic drugs form the largest segment (70%) of the Indian pharmaceutical sector, with OTC medicines (21%) and patented drugs forming the remaining 9%. The National List of Essential Medicines (NLEM) states that the prices of drugs under the First Schedule of Drugs are fixed uniformly for all branded and generic medicines containing the same active molecule. In the case of non-scheduled mode, manufacturers are free to increase the Maximum Retail Price (MRP) by more than 10% of MRP. Selling generic drugs cannot improve the margin so much, but this can help avail the government’s benefits in association with the scheme training of the pharmacist or the other staff members, discounts in prices.

The organized computer-based program helps to reduce investment in resources like human labor and capital. Pharmaceuticals and healthcare companies employ medical sales representatives. They endorse the drugs manufactured by their employer companies by distributing free samples to various clinics and healthcare units. This saves the pharmacist the expenditure on advertising a new brand or equipment. Working with Carrying And Forwarding Agents, more popularly known as C&F dealers, is another feature of the pharmacy wholesale business. They purchase medicines from pharmaceutical companies and sell these to wholesalers. A company can have 2-3 CFAs in each Indian state and then pay them as per the turnover of products in a year. The pharmacy business is an excellent startup if it religiously follows the rules and regulations. With minimum investment, it turns over significant profits. After all, health for all matters!

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234 Comments

Want to open a generic medicine Distribution

So what’s stopping you?

I am interested.

I am interested

How much does it cost to open a generic medicine distribution?

My father has started a medicine wholesale business from 20,000 rs only.

I am from Myanmar, I want to import medicines from India

Hi Narnee Pokhrel, please contact us.

I can help you if you want to export the medicines.

Which type of medicine do you buy from India?

I want to start a generic wholesale medicine business, I’m from Mumbai suburban area Kurla, so what I have to do 1st and give me your contact number.

I want distributors to sell medicine, we are looking for a business partner. Kindly contact

I wanna start medicine distribution business.

Have you started?

I am interested in becoming a dealer and distributor.

Please contact me

JOIN BECOME A FRANCHISE PARTNER

I am ready for that. Kindly contact.

I am interested to start wholesale medicines distribution

Where you have your business bro (which location). If it is near to my location. I will try to join you.

I want to start the medicine distribution business in Nashik.

Hello, Myself Ayush, Please let me know which city you are looking for distributors.

Hello sir, I am interested in being your business partner.

We are wholesale distributor in Chennai. We need franchise for generic medicine.

What is stopping you?

I am interested in this opportunity and I have two places which I can use as my godown/storehouse, one is in Kolkata (120 Sq ft) and one is in Hooghly (300 Sq Ft), have good sources in local Medical Hall/medicine clinic/houses and I have also good manpower for distributing but I don’t have a license but I want to enter and start this partnership. Can you please send me any opportunities that I can work with you? I will be looking forward to hearing from you soon.

Hi, I am Md from Kolkata. If you’re not engaged with anyone else, I welcome you to have a discussion to make opportunities for each other.

Kindly provide information

I am ready to be a partner for the distribution of medicine. But I have very low capital. If interested to work as a partner and investor, contact me.

Where can I contact for generic distributorship of Alkem, Cipla, Abbot, Intas, Leford?

I want to be your distributor.

I am Warangal district, Telangana state. I would like to open a generic medical wholesale agency with low capital. May I know how much capital is required to start a generic wholesale agency?

I am interested. I am a B.pharma graduate and seriously want this opportunity in my home location.

I want to learn about it. I am interested if it works out.

Can you send me all the details?

Is the option still available for collaboration? Although, I am new to this field.

I want to distribute drugs in our area by opening a wholesale shop in Kaman, Bharatpur, Rajasthan.

I am interested in doing this business.

I’m a fresher, just competed my (pharm d/ doctor of pharmacy) I’m interested in starting the business.

What are the requirements?

Hi, even we want to take a medical distributorship. If you want we can talk about this.

Hello sir/mam, I am really interested in opening the wholesale of medicines, so please tell me how to startup.

I am also interested; please tell me.

I am looking business partner to sell medicines in our district Bijnor U.P. I have a valid license to sell the medicines.

I am interested in your plan; kindly brief me on your necessary information.

I am ready to distribute your medicine, how can I get in touch with you?

Hi, I am interested

Please get in touch with us. We are eagerly waiting to hear from you.

Sir, I am interested and I want to be a distributer.

I want to start a business as distributor of medicines, Please suggest !!!

If anyone does not have pharmacy certification; can he start this business?

Hi sir, I am Mr. Salman Abdul Rasheed Borkar, I want to open a generic medicine in our growing areas. Please guide me 😊

Yes, please tell me the easy procedure.

I Am interested.

I am interested for ethical holscell Medicine

How to be a wholesale generic medicine distributor? Please contact me.

Hi Susheel Paul, There is no difference in taking a generic medicine franchise. The procedure is completely the same as in the case of other branded company. 1. You need to take wholesale supply license and other drug licenses which are mentioned in the article. 2. Contact companies which manufacture drugs/ medicines and ask for their franchisee. 3. Start selling

Can I get a wholesale medicine store license by hiring another person?

I am also looking for either c & f or distributor in pharma in either Chandigarh or Dehradun

Hi, can you help me in starting the medicine wholesale franchisee?

What kind of help are you looking for?

I am looking to start a generic medicine production plant.

I am from Myanmar, I want to import medicines from India.

Email us for the same, will connect you with the right source.

Pls suggest me how to start

How to become a generic medicine distributor?

Hi, I want to become a wholesale distributor.

Hi I have 2200square feet basement available in New Delhi. I am planning to start the medicine distribution as I have also good knowledge of cold room. Please tell me the procedure for the same. Thanks

Contact medicine companies through their official website and tell them about your wholesale business. They will tell how to proceed for the same.

Can i strat generic medicine business within 5 Lacks Investment ? without any space ? (I mean beginning from Home).

You cannot start a wholesale business in that budget. If you are planning to start a medical shop then I don’t think you can get licenses to sell medicines from home. And please don’t try to sell medicines without proper licenses else you might face severe consequences.

Sir my self Nishikant Gupta from Sagar MP Sir please suggest me how can take franchise of pharmaceutical company.

Contact franchisee company and complete there all terms and conditions. You can also negotiate for a few things.

I wanna start medicine wholesaler how can start and which company medicine perfect? How their premises?

All companies are good as govt. has strict rules and regulations for medicine manufacturing. I didn’t get what you want to ask in your second question.

Hello, my age is 20. I want to start a wholesale medicine distributor and my budget is Rs20 lakhs. Can I go forward? Please tell me the eligibility for license and also tell me how to startup?

if you belong to a normal city like Gurgaon, Delhi, etc then 20 lakh is a low budget for wholesale distributorship. Also, age is not the restriction until you have required licenses and educational degrees which are mentioned in the article.

Hey, contact me for the same.

Good morning sir, I am interested to start medical agency at the municipality. How much budget do I need, and how to approach medical companies?

Go to the official website of the company. Get their phone number and email-id from there and contact them.

Hello sir, I wanna start both wholesale and retail shop of medicine, what should be the approx budget required for all requirements in medium scale?

I have 20 years of experience in API & formulation manufacturing in quality control as well quality assurance departments, I have completed my B.Sc degree in chemistry, zoology and botony, I can go budget upto 50 laksh, is any additional qualifications required, please suggest regarding qualifications and procedure mentioned in the Indian drug council guidelines.

Yes, you can start and the budget is enough.

Hi sir, can I get your number because I need guidelines to start pharma distributorship in Mumbai?

I HAVE 8 YEARS EXP IN PHARMA TEACHING FIELD AND HAVE GOOD KNOWLEDGE ABOUT PHARMACEUTICALS. I HAVE PLANNED TO ESTABLISH WHOLE SALE OF DRUGS WITH INVESTMENT 1CR AT CITY. I HAVE LESS INCOME SOURCE SO IS THERE ANY CHANCE TO GET LOAN FOR BUSINESS. ALSO I AM PHARMACY BACKGROUND PERSON.

You can apply for a loan in two ways. 1. Before starting the business- Tell the bank that you have your own 1cr and need some more money to start your business in an efficient way. Make a good business plan and projection report and approach the bank.

2. Start with your money and once you start generating money show the statements and ITR to the bank and on that behalf take the loan.

Both the ways are great but in 2nd you take a long time to come into full execution while in 1st you need to visit too many banks. You can decide as per your resources and efforts.

hello sir, I have a degree in MSc in pharmaceautical Chemistry. Can i get drug license for wholesale business. pl, reply .

Thanks & regards, Anurag.

I am a pharma graduate but do not have experience in same field. I am interested in starting my own medicine wholesale distribution business. Please guide me on how to establish lead with existing medicals where other distributors also exist. Also what are the payment terms that are follwed currently. Since the investment is huge what is the return time we can expect?

Would you advise to start a business without having self capital in hand?

If you are taking whole money on interest then I won’t suggest you as you are new and already many competitors are their so you might make many mistakes and loose. Well if you want to lead from your competitors then you need to take care of many things like consistent approach, relaxation is payments, deal with big hospitals, etc. For more, you can read my articles on “sales”. https://www.businessalligators.com/?s=sales

You can also do a job for 5-6 months under such person who own medical wholesale contract in starting to understand the complete flow.

Hello sir, I am working in marketing pharma products from 7 years and have worked with many doctors but I am only 10th pass. Can I start pharma wholesale business?

Please check it with CA

Hi sir, I have done my degree in B.Sc. Chemistry. Can I start wholesale pharmacy business? Any advise? Reply me and ur number also.

Yes, you can start. Contact me on [email protected]

Hello Lokesh Ji, could an MBBS degree holder apply for wholesale drug distributor license?

Yes, they can.

I am planning to start a medicine shop or for wholesale distributorship, I already have a drug license. Can I have a call with you?

Email us your query, will see to it.

Good day! I’m from the Philippines and we have drugstores, I want to buy medicine directly from Indian manufacturing company. How can I start?

Sir I want to start a medicine wholesale business in kolkata in a very small scale. Can I start with Rs 20lakh?

Not possible in this budget. With this budget, you can open a medical store.

I have 13 yrs experience in pharma industry with various segments. Now I have decided to start with my own pharma distributor and Liaison agents for supplying medicine to state government institution, army, ESIC and PSU sector. Could you please suggest me for starting the new distributors what are the documents are required from my end and also how much I need to invest to start?

There is very less probability that big corporations will buy from you especially govt sectors because the majority of time medicine manufacturing companies contact them directly, so there is no point to include a middle man in between.

Then minimum how much capital is required to start a wholesale medicine business ?

Dear Lokesh Tanwar,

I am from Bangalore, my spouse have completed her UG in BPharma and PG in MPharma. Due to personal reasons she didn’t started her career after PG, now we are planning to open a Retail Pharma in Bangalore (she don’t have any previous experience in pharma industry). I would like to take your consultation here. Please let me know how to approach.

Ask your wife to work in a hospital for a few months and apply for a license. After license and bit experience you can start.

I have done M.Sc in biochemistry. Is this qualification enough to start a wholesale business in medicine?

Yeah, you can start.

If u have all medicine drug knowledge u can start retail simply

I have a medicine manufacturing unit and want to enter in online market. what should I do and who should I contact? Please reply.

So do you want to start like “1mg” and “Netmeds”? Or want to do something else, please contact me personally for the same will help you.

I want to start an online pharmacy, what are the regulations to be followed? And can I have your contact number sir?

As of now the rules of online and offline pharmacy are same, but a draft regarding regulation had been proposed in August 2018, once it is passed then rules will change.

It is a bit harsh but I only give personal support to my course students (Business Crux 1.0) due to the restriction of time. This is best for beginners as I have covered everything from idea development to fundraising to market penetration step by step. Here is the link https://course.businessalligators.com/p/business-crux-1-0/

Yes 5 lakhs is enough for this type of business. Please contact me I will inform you how to start this.

How did you start your business with that budget? What all documents were submitted by you and you started from which city?

Hello, Want to be a pharma distributor in Rewa MP. Though I am BSC in chemistry and working in HR kindly suggest how can I start in 10 lac?

How to start sir?

My name is Ravi Doliya and I have just started my new business of injectable and all types of generic medicines in all cites. How can I expand my Business?

I didn’t understand your question. On one side you are saying have already started your business in all the cities and on the other side, you are asking how to expand. If you are already in all the cities then where you want to expand your business? Or am I missing something in understanding your question?

Good afternoon sir, with one wholesale drug license can we supply to all other states, please help.

Sir I have done BE mech. Also I do my job but I am not satisfy with this, so I have decided to join or open a medical agency but I don’t know how to start up? Also how much fund that I can arrange??

You need to partner with someone who is having an experience in pharma. The money will depend on location and vision towards your business.

Hi, I am seeking advice to start medecine export house. Can you guide what all licenses would be needed. We are into export of other products already and aware of general export related processes. So would need your advice on specific licenses need to export medecine.

As of now, I am not aware of the licenses needed in medicine export business, will update you over email once I got any relevant update. You can consult CA or lawyer for the same.

I am Pavan Kumar my age is 28 and I am going to start a loan license company near Tirupathi. Could you please suggest how the future will be for the contract manufacturers and I would like to start this business with an investment of 4.0 crores. Is it possible to start with in this budget. How the Profits will be for contract manufacturers. Because I am taking Loan amount of 3.0 crores from bank. I am planning to keep 2 semisolid manufacturing lines and 4 lines of packing and quality control lab. Please suggest that my idea can work out or any changes required.

Regards, B.Pavan Kumar

I have never worked personally with any loan license company, also budget involved is really big. So I would recommend you to involve a data analytics company. They can help you in a much better way by giving you a detailed report full of data and stats. If you want then I can connect you with such persons.

I want to become a distributor of drugs across the continent of Africa . Any advice for me? Am Currently a pharmacy student.

Start meeting medical store owners and wholesalers owners to get real-world knowledge and to make a good network.

Sir, how to get OTC medicine ?? I want to supply to medical store

In India majority of medical store owners are not clear on which medicines come under OTC (Over the counter). So first read all the legalities related to OTC medicines in India and then proceed. You can even sell a few OTC medicines on the general store so it will expand your reach.

The process of getting OTC medicine is the same. If you want to be the wholesaler then reach the company and if you want to open a normal medical store then contact the wholesaler.

I want to start a wholesale medicine business in Kanpur. I am having a space near wholesale medical market here. Can I apply for loan and start this business, I can only invest 5 lakhs from my own and rest i will take loan. Can you please suggest whether its suitable or not?

You can take the loan, the banks will happily give it to you. But taking a loan is a good decision or a bad one will depend on the market stats. I am not living in that area so cannot say anything on this. Your success will depend on how good you are at market penetration and what are the current gaps between demand and supply. So calculate those factors first and then proceed.

Hello Sir, I want to open my own retail drug store. Could you please tell me what will be the overall cost and how to start it? I have my own Location and also I have 17 years experience as a Medical supplier. Could you Please Help me?

If you are into a city like Gurugram then you will need Rs 20-30lakh to start at a decent scale.

Sir, I am thinking to open a generic medicines wholesale dealership. I have 15 years of experience in Pharma companies. Where will I get the address of generic medicines manufacturing company?

Google the name of the company, then visit the official website of that company and you can see the address and other contact details from there.

Hello sir. My Name is Nishikant Gupta from Sagar (MP). I have completed B.pharma. How can I get a franchise of pharmaceutical company? Because in my city there is no pharmaceutical company. That’s why most of the pharma students go to another place for the job. And sir any other business like the contract of packaging or repackaging of their pharmaceutical products. So please sir guide me how to get the franchise of branded pharmaceutical company. Thank you

You need to pay the money to buy the franchise of any particular brand. Contact them and ask for the complete procedure. They will tell you about space required, availability of location, fees, the margin on profit, etc.

Sir, Can I start a wholesale business with 7lac investment?

In a developed/ developing region, No. In the underdeveloped region, Yes.

Hi sir, I have completed Ph.D. medical pharmacology. So am I eligible to get a license for the wholesale agency and what would be the budget to start? I have my own property.

Yes, you are eligible. Budget depends on the location so cannot say anything on that.

Hi sir I Am planning to be a stockist, my concern is which medicines brand will have better sales, which brands need to be ordered from the companies retailers, requirements etc.. How can I get information?

Contact nearby doctors and ask them to sell your brands or order those brands which they recommend.

Hi sir, my mother is a registered pharmacist. Can I start this wholesale business with her license?

Yes, you can start. Make her the main business owner to avoid any kind of future problems like rule change.

Sir, I have done bachelor of pharmacy in the year 2018. I committed to start a medical business at Vizag, Andhra Pradesh as it is my hometown. How much capital should I need to start the business?

I want to start medicine stockist point. I have 4 lakhs rupees. Can I start stockist point with this amount?

I want to start medicine wholesale business in Bareilly which is a two-tier city.

I am running medical stores from the last one year as a proprietor and recruited Pharmacist. Recently, I get my Bpharmacy Certificate and wants to apply PCI. Can I get the license as a Pharmacist cum proprietor with the existing license? What I need to do. And at the same time, Pharmacist wants to establish her own firm.

Hi Ferdose, I am not the right person to tell you these details. You should consult CA for the same.

I want a medicine wholesale license in Rifle Happy Valley, Assam or near it in Shillong

Consult CA who is working in that area.

Hello sir, I am a surgical distributor with a management masters degree. I am selling nondrug items for a year but I just came to know that my one item will be going under the drug category. I have a very small business, what can I do now?

Please consult your CA for this.

Please contact me. I want to start a new business in pharma.

Hello Sir, I’m planning to start a franchise distribution in Bangalore just needed to know how much budget will be required and what all licences should I have? I’m a pharma graduate.

Sir, This is Satya Seelam. from Hyderabad, I have B.Tech (computers) degree, I am planning to start a medical distribution company. Is it possible?

I want to start pharma distributorship in dist. of Sirohi Rajasthan. I have 10 years experience in the retail sector and I have also experience certificate of 10 years, so can I start this firm? And how much budget is required for this location? I have no budget so I have to apply for a loan. So tell me what can I do?

If you do not have required medical documents which have been mentioned in the article then you cannot start.

Hello sir, I have a pharmacy retail shop but I also want to start a wholesale with my retail work. Could I start that wholesale work with the same shop that I have or will I need another store/godown?

If current space is big enough then you can use same place else you need to take another space. You also need to do some paperwork for wholesale approval.

Hello Sir, I am already running a wholesale. Can I export my product(medicine) from India? What is the procedure?

India is the biggest exporter of medicine so there is no doubt that you too can export. To start with, first, find out who will buy from you and then take medicine export license and proceed.

Hello Sir, currently I’m preparing for MBBS and I want to open a medicine company in New Delhi. I’m 18 right now and doesn’t have any idea about business. Can you help? And can you suggest some websites or something to learn more about business?

I appreciate your passion but if you want to start a business in medicine then first focus on your studies as currently, you don’t have field knowledge. Either study chemicals or MMBS that is completely your choice. Don’t stick to any specific website or person, grasp diversified knowledge to be a great founder.

PS- Miracles never happen in 1 or 2 years, they took years of preparations, they just became visible in last 1 to 2 years which make a lot of confusion in normal people’s mind.

Hello sir, I want to start a wholesale pharmacy, I read your article and click on form 19 link but the site is down from 3 days. Please give me the form 19 format.

I don’t have it as of now, please talk to a local lawyer or CA, they will give it to you. As ultimately you have to ask so many things and going to need them in the later stage, why not to approach them initially. And if you will talk to them tactfully (behaving as a good prospect) then they won’t charge you for the form 🙂 Alternatively, you can wait for that website to load.

Sir, I have completed B.Tech and now I want to do my own business as medicine wholesaler can I do that? Can I get the license? Can you please help me?

Hey Sir, I have done masters in pharmacy, but rather than perusing teaching I am more interested in trading business. would like to know how to start the trading business of pharmaceutical products.

Hello sir, Is retail store good or wholesale as I have B.Pharm degree?

If you have a good budget and network then go for wholesale otherwise for a retail store.

Hello sir, I want to start a wholesale agency of surgical products, how much investment will I need to start it? Can I start it along with my government job?

You cannot register any business on your name while having a government job.

I am M.pharma and FDA technical approved person in injectables with 9 years experience in the pharma sector. I want to start pharma distribution-ship. Please guide me how much investment is required to start the same in Navi Mumbai.

I am not sure about real estate rentals of Navi Mumbai, if they are equal to Gurgaon then you can start with 40-70 lakhs depending on the size and exact location of the shop.

Hi Lokesh, Will you kindly provide information regarding agency and their address along with contact details. The agencies that sell medicines of popular brands like Alkem, Abbot, Cipla etc for resale. I own a wholesale business.

Such companies have monopoly business here and they refuse to entertain my orders.

Hi Sushil, I won’t be able to help you in this because being an outsider I don’t know your field in that detail. But I would say go to companies (Cipla, Abbot etc) directly. These days many companies are are entertaining wholesalers directly instead of involving agencies in between. They might ask for bigger targets which you can manage by stretching yourself a bit and rest negotiating as per your resources.

I have a godown space and want to utilize it for medicine. I don’t have any pharma related experience or degree. Please suggest me how to start up.

How to open surgical items bushiness in low investment?

I am a medicine wholesaler. From where can I purchase the ethical brand at a very low price?

In private sector quality and the very low price doesn’t come together, it’s a myth. The max you can do is ask for a target to get a low price.

Hello sir, I want to start a medical shop. My wife had medical shop license but how much investment required for the medical shop? I have 5 to 6 lakhs in my hand.

If you want to start in suburban areas or in a village then Rs 5-6lakhs is enough to start. But if you want to start in a city then you will need around Rs15-25lakhs. You can even apply for govt loans for some extra funds if you want.

Hello Sir, I am looking to start a wholesale distribution for hormonal injectables mainly used for the IVF procedures. what shall be the license required for the same. Do I have to take an additional license for this?

I want to be a distributor/ authorized dealer of only cold chain medicine like onco inj. high priced injections or vaccines. Please guide me accordingly, what are the fundamental requirements?

I wanted to be a distributor/ authorized dealer of only cold chain medicine like onco inj. high priced injections or vaccines. Please guide me accordingly, what are the fundamental requirements?

Hi Sir, I want to know few things about starting a medical wholesale business like 1. Whom should we approach or who will supply the medicines to the wholesale distributor? 2. What are the different levels of distribution in pharma? 3. What would be the budget you suggest to start the business? 4. What is the difference between a franchise and a wholesale distributor? Asking this question as I can see many questions regarding franchise in this blog

Hello sir, I’m a B-Pharma graduate and I’m thinking to start an export business for surgical items, can you please tell me what should I start with. I was thinking to take one month course of export & import to get required knowledge first and then approach manufacturers but I’m afraid will they help or not? Please give your views on this.

You are going in the right direction, buy that course and learn as much as possible. But make sure you are buying the right course, sometimes people buy those courses which look fancy but are extremely poor with the content. PS- Buy from those who instead of motivating you, help in clearing your vision. Here is the link https://course.businessalligators.com/p/business-crux-1-0/

hello sir, I wanted to start medicine distributorship. I have read all your comments, in one of the comment you have suggested to directly contact the companies, but what if they do not give any answer. I have tried to contact them, but they said we have already a distributor, so in that case what we have alternate option to start a distributorship business.

You have two options in this case 1. Ask the company, for which locations they can give distributorship, and if you are comfortable working in those locations then go ahead. 2. Search for companies which are still looking for distributors in your location.

I want Cipla & Sun Pharma distributorship, what is the process? I will definitely achieve their targets. Could anyone tell me?

I want to open up a C& F, can you explain the process involved and the idea of how much capital would be required?

I am from Jabalpur MP, I want to become wholesalers of Cipla, Alkem, Intas, Abbott. But don’t know how to start with these companies’ generics products. Company’s customers care is not supporting for this, Please help.

What is the % between MRP and wholesaler purchase rate (wholesaler trade price)?

It depends on medicine to medicine. No fixed percentage.

Hi, This is a nice post. Given me some insights. I am looking to start a medical/healthcare devices business in my hometown. Here is a list of things which I am thinking of: a. Drug License is compulsory for medical devices business also? b. Where to look about which devices work well in the industry and which not? c. What will be the initial set up the cost? Thanks. Would be nice if you can help me out with this.

I have the degree of m.sc chemistry can I start a medical company.

How many franchises of medicine company can one take at a time?

There is no such limit

I was planning a new business in coalification Bsc. chemistry I started medical agency but I don’t have any information for this business, guide me & presses of medical agency license process and legal document

Your comment is really confusing, please try to explain it again

Hello Sir. Thank you for your article. I am planning to start a distributorship of pharma products in my local town. But I am not aware of the stock I should secure from different pharma companies in order to take my business ahead. Can you please put forward your valuable suggestion on how to do it?

There are few ways by which you can do this 1. Medicine companies will tell you about the estimates 2. Medicine companies will give you a certain figure that you need to sell 3. You can decide yourself depending on the type of disease and incentive on the medicine. 4. Get the idea from your competitors

I cannot tell you any fixed number here, you need to make some estimation. To know more on this kind of estimation you can check my course. Here is the link https://course.businessalligators.com/p/business-crux-1-0/

We have a good setup for the franchise network, and we support with all sorts of medicines, devices franchise setup. Connect with us

I have completed my B.Pharma degree, my city is mid-developed, and I have an excellent network. My father is a doctor, and his network is also outstanding. So can I start a wholesale business in 15 lack rupees?

I am an electrical engineer. I am thinking to enter in a partnership with a friend for a medicine stockist agency in Nashik. Could you please tell me the profit margins, investment needed, and what share of profit should I demand being a sleeping partner?

There is no formula to decide such things; it’s about your mutual understanding.

Sir, I want to start a wholesale medical shop, I have completed MSc from industrial chemistry, and I have one year experience from Tewa API company as a chemist in the quality department and also have 18-month experience in the wholesale medical shop. So can I open a wholesale medical store and what is the process, like the area of the shop and other things? Please tell me the details.

Yeah, you can start this business, and details are already mentioned in the article.

We have a valid drug license, our premises in a premier market complex (Total 1200 sq feet of commercial space), we have all furniture and computer, etc. What is the minimum investment required to stock wholesale medicines to have a decent start in medicine wholesale business in Bhubaneswar? The question is what is the minimum amount of investment required to stock as well as distribute medicines (Including the credit cycles from both the retailer and stockist side).

I have never been to Bhubaneswar, so cannot tell you exact figures. But if you can relate it with Gurgaon/ Delhi then here in similar conditions, you will require approx Rs 40lakhs. So this is the amount which is going to remain either in the market or in the form of medicine stock.

I want to start medicine wholesale.

I want to start a wholesale medicine business in Dhanbad, Jharkhand. I have space near the wholesale medical market here. I have 8 years of experience in medicines, and I have 25 lakhs at present without loan so, kindly advice me and suggest company distributor where I can purchase required medicines.

Which degree is required for starting a medicine wholesale business? Can a commerce graduate having 1-year experience can start this business?

HelloI am a registered pharmacist by the pharmacy council of India in Punjab, Amritsar and I want to start my wholesaler shop. What is the procedure for it and can I start this business with 10 lacs because I have my shop for this business?

I am a pharmaceutical wholesale dealer. Now I want to open my shop branches in other cities. Can I open my branches of the dealership in other cities?

Hello, I want to start an online pharmacy in India. Can you guide me?

Can you please suggest some good generic medicine manufacturers for a fresh wholesale distributor (just 18 months of experience), will the company provide representatives for their medicine?

Hello Sir, I already have a GENERIC MEDICINE DISTRIBUTION BUSINESS IN MUMBAI, & its been working fine from the past 2.5yrs, but m facing 2 issues which I think I should share it with u, maybe with your valuable knowledge & experience I would overcome these obstacles- 1) The issue regarding the PAYMENT RECEIVABLE from the Retailers, usually we provide 30days credit to the retailers against the GENERIC MEDICINES, but as the competition has increased the CREDIT Time also has increased & currently, we are finding it difficult to recover the payments even within 90 days which has become one of the worst parts of GENERIC MEDICINE DISTRIBUTION. 2) Scaling up the BUSINESS, We are searching for options in which we can scale up this business, would kindly request u to guide us on the various options available through which we can expand this type of business. Waiting for your response. Thanking you………

Sir, I would like to start a medical store in and around Kolkata, but I have no previous experience in the said business. As a newcomer in this industry, I would like to seek your solemn guidance regarding the key elements which should be considered at inception for the said startup.

Regards Arnab Das

Money is in the market gap, so do check it in your targeted area before entering into the business.

I want to start a generic medicine business in India. Please help me to start this business.

I have recently started the business. Need help with procurement. Please share contact details, I would like to discuss with you. I have shared my email id.

precious & helpful

Hi! I am a doctor, pursuing MD from Delhi. I read your article, you’re sharing good information and it’s really helpful. But there’s a question coming to my mind that after getting a license and after investing this handsome amount from where will we get the medicines or any drug and at what price? If we have to deal with different companies of drugs then please make an article with the list of all these companies with their contact information. Please let me know ASAP. Thank you

I am Prateek Kashyap from Paonta Sahib Himachal Pradesh distt. Sirmaur. I want to start a wholesale business in Ayurveda. Currently working in pharmaceuticals as an SAP Executive.

Please guide me on how can I start?

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• Introduction: How to Start a Pharmaceutical Company?

One of the fastest-growing industries in the country is pharmaceuticals. India is the world's third-largest producer of generic pharmaceuticals . Typically, generic pharmaceuticals account for 72 percent of total drug output worldwide. The global pandemic that struck in 2020 proved to be a wake-up call for the country's inbound manufacturing facilities. It is not a good idea to rely on foreign countries for pharmaceuticals and crucial medicines, especially during difficult times. The healthcare industry will evolve dramatically over the next decade. Preventive healthcare, as well as export-oriented enterprises, are important priorities in the country.

Table of Contents

Diligent Market Research

Understand the competition, develop a business plan, licensing & registration, set up the machinery & the plant, wholesale drug license, retail drug license, manufacturing drug license:, loan drug license in india, requirement for obtaining drug license, documents required for obtaining drug license, scope in pharmaceutical sciences.

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There are branded manufacturers, over-the-counter manufacturers, generic pharma, export-oriented, import-oriented, derma goods manufacturers, and pharma distribution and supply companies in this industry. People are becoming more health-conscious, especially since the epidemic, and are continually looking for methods to include preventive health care into their daily routines. Due to the reduction in exports, the Indian government began to promote the Make in India Movement more aggressively than before. The government provides numerous subsidies to business owners who want to develop manufacturing units in various areas.

Many queries and questions arise at the same time when we design the business of a pharmaceutical company. In this post, we will answer all of the above issues and provide a complete solution for establishing a pharmaceutical company. Everyone does not have a lot of money or funds for a pharmaceutical company because when people think of a pharmaceutical company, they think of a manufacturing unit, but the cost or costs for a manufacturing unit (company) are extremely high, measured in crores.

So, begin your business by establishing a pharmaceutical marketing firm. It is the finest option for individuals who do not have a lot of money but have a huge desire and want to advance in their lives. The first requirement for starting a business is 'TRUST' yourself and your ability. We will explain and answer any of your questions about pharmaceutical marketing companies here.

How to Start a Pharmaceutical Manufacturing Company?

It is not easy to establish a pharmaceutical manufacturing facility. It includes establishing manufacturing, processing, packaging, storage, and logistics facilities. To get started and stay in this field, you must have a solid understanding of the pharmaceutical industry.

Conducting thorough market research is critical whether beginning a third-party pharma manufacturing company or a small-scale business. Understand how India's healthcare and pharmaceutical industries work and how they've performed in recent years. Examine the many types of players that exist in this industry. Decide whether you want to be a branded pharmaceutical firm, an over-the-counter medicine company, a generic pharmaceutical company, or an export-oriented company. You can look into many different categories and sub-categories. You can also look into Ayurvedic medicine, allopathy, homeopathy, Siddha, and Unani to see which one works best for you and which one interests you. When you first start your business, conducting a benchmarking study and market research will point you on the appropriate route.

Understanding your rivals is as crucial as establishing your company. Investigate the market and learn about your competitors' product offers and business models. Make a list of industry best practices to help you manage your firm more efficiently. Examine how your competitors function at each stage of the value chain to see how you might enter the market and take a large share.

It is vital to write a full business plan covering all areas of starting a pharmaceutical manufacturing company after you have completed your research and competitor analysis. To begin, the most crucial consideration is the number of funds required to launch the business. Despite the fact that drug manufacturing is a capital-intensive industry, it is possible to start small. You will have fixed and running expenses, which are required in each and every firm.

You have the option of owning or outsourcing your production facility. Before establishing a manufacturing facility, several laws and regulations must be followed. Permission certificates and validation from the relevant state departments are required for this. Depending on the size and complexity of the business, starting and launching a small business can cost anywhere from Rs. 5 and 10 lacs. It's critical to have a financial plan in place for the next five years, as well as a business strategy. Engage consultants to assist in the development of a detailed company plan and five-year growth strategy.

Licensing is one of the most crucial factors to consider when beginning a pharmaceutical company. This is an extremely sensitive topic that affects people's lives significantly. As a result, the maker bears a large portion of the blame. The number and type of permissions and registrations required are dependent on the location of the facility as well as the type of business you wish to register.

Typical types of documents include drug production and distribution licenses, laboratory testing licenses, NOC paperwork from relevant departments, GST registration , and company registration. A NOC and clearances from the State Pollution Control Board are also required. If necessary, you may additionally need to request clearance from India's Drugs Controller General.

The benefits of registering your company as a Micro, Small, and Medium Enterprise are numerous (MSME). For aspiring firms, an interim certificate is recommended. There are several incentives, exemptions, and opportunities available to you as an MSME.

The entire supply chain, from medicine production through delivery to customers, necessitates a variety of tools and goods. High-speed mixing machines, capsule and powder filling machines, loading and capping units, air compressors and filtration machines, and other equipment are required to make these medications.

Another crucial part of establishing a factory is having qualified personnel with in-depth subject expertise and an understanding of the pharmaceutical production process. To provide quality control and assurance, you'll need to hire resources expressly for these activities. The technicians and other employees must adhere to GMP guidelines.

License Required to Start a Pharmaceutical Business in India

It is critical to secure a Drug License for a Pharma Company before starting one in India. All matters connected to drug licensing, from application to the final procedure, are handled by the Central Drugs Standard Control Organization and the State Drugs Standard Control Organization. Different sorts of drug licenses are mentioned further down.

Wholesale Drug License: Cosmetic Rules were announced by the Ministry of Health and Family Affairs in December 2020, stating that importing cosmetics into India requires a drug license. A wholesale drug license is required for any company or individual to be an authorized Consultant of pharmaceuticals and cosmetics in India. The applicant's wholesale drug license is given by a licensing body in the applicant's state; wholesale refers to distributing medications to individual merchants for resale.

Retail Drug License: A Retail Drug License is typically given to someone who runs a pharmacy or works in the retail industry. A retail drug license is only granted in some states to those who have earned a diploma, bachelor's degree, or master's degree in pharmacy from a recognized university.

Manufacturing Drug License: A manufacturing drug license in form-28 is required under the Drugs and Cosmetics Rules for manufacturing designated medical devices for sale in India under the Central License Approving Authority (CLAA). Drugs and Cosmetics Rule 76 outlines the information and data required for a manufacturing drug license. Disposable Hypodermic Syringes, Needles, and Disposable Perfusion Sets, as well as in-virto Diagnostic Devices, are regulated by the respective State Drug Licensing Authority. Under the Drugs and Cosmetics Act of 1945, a Manufacturing Drug License is required for the manufacture of Ayurveda, allopathic, cosmetics, and other pharmaceuticals. The applicant is granted this license by the state government of the relevant state.

To be an authorized Indian Consultant for dealing with local/foreign medications and cosmetics, the company/distributor/independent Consultant must have a manufacturing license from the Central Drugs Standard Control Organization (CDSCO). The State Drug Licensing Authority, CDSCO Zonal/Sub-zonal Office, and the Drugs Controller General in India receive applications for medical device manufacturing drug licenses (HQ).

Loan Drug License in India: A person can apply for a Loan Drug License if they desire to produce pharmaceutical products but do not have property on which to do so at the time.

The following are minimum requirements for obtaining a drug license or starting a pharmacy in India:

• Size: To open a medical shop, pharmacy, or wholesale outlet, you'll need at least 10 square meters. A minimum of 15 square meters is necessary if the pharmacy firm combines retail and wholesale.
• Storage Facility: The store must have a refrigerator and an air conditioner. Certain medications, such as vaccinations, serum, and insulin injections, must be maintained in the refrigerator according to labeling criteria.
• Technical Support: Wholesale - The sale of drugs by wholesale must be done in the presence of a registered pharmacist or a competent person who is a graduate with one year of experience in dealing with drugs or a person who has passed S.S.L.C with four years of experience in dealing with drugs, who has been specially approved by the department of drug control for the purpose.

Retail - The retail sale of a drug must be done in the presence of a registered pharmacist who has been approved by the department, and the registered pharmacist must be present at all times during working hours.

The documents required for starting a pharmacy business vary from state to state. However, the following is an indicative list of documents required for obtaining a drug license in India.

• Application form must be in the prescribed format
• Covering Letter with the intent of the application signed with the name and designation of the applicant.
• Applicants have to deposit the licensing fees in challan form for obtaining a drug license.
• Applicants have to submit a Declaration form in the prescribed format.
• Applicants have to submit all the Key plan (Blueprint) for the premises or business land.
• Applicants have to submit a Site Plan (Blueprint) for the office premises.
• Applicants have to mention the documents of possession of the premises.
• If applicant has rented the premises then he must show the proof of ownership of the premises.
• Applicant must have Proof of constitution of the business (Incorporation Certificate / MOA / AOA / Partnership Deed).
• Non-conviction affidavit of proprietors, partners, and directors under the 1940 Drugs and Cosmetics Act
• Affidavit of a full-time registered pharmacist or competent person
• If employed, a letter of appointment from a qualified pharmacist or competent person.

The pharmaceutical industry is expanding rapidly in India and overseas, providing excellent employment prospects for thousands of students. In the field of Pharmaceutical Sciences, students can pursue diploma programs, bachelor's degree programs, master's degree programs, and doctoral level programs.

Read Our Blog: Pharmaceutical Industry

The role of pharmaceutical experts is anticipated to grow in the post-COVID-19 scenario, as patients are likely to be in hospital for longer periods of time under quarantine. Pharmaceutical professionals will become more important as they have a better understanding of pharmacokinetics and pharmacodynamics, which refers to how a pharmaceutical drug affects the body and how the body responds to it.

The Pharmacy Council of India is the governing agency in India that offers approval to universities and colleges throughout the country to run various pharmacy programs. The Pharmacy Council of India has well-defined norms, regulations, and procedures that must be followed by companies seeking permission.

Drug License

To do business in pharma industry including Ayurvedic & Unani drugs, one must get a Drug license to operate legally. As per Drugs Act, 1940, License is mandatory throughout India. A particular license is required based on business requirement.

CDSCO Online Registration

Team Corpseed will help you to get CDSCO registration / DCGI approval for your products as per CDSCO guidelines. Under the Drugs and Cosmetics Act, CDSCO has many responsibilities which includes approval of Drugs.

FDA Wholesale License

Looking to obtain an FDA Wholesale License? Our experts can help you navigate the process efficiently. Contact us today for a consultation.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Surbhit Sharma

I have worked for many internet blog pages and news portals. currently, I am working as a content writer for Corpseed Pvt. Ltd. I like to write blogs and articles in the field of different services.

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Future prospect of private retail and wholesale pharmacy business in India

Perhaps retail and wholesale pharmacy looks like an ordinary business but it plays a vital role in the lives of common people. The pharmacy retail market has increased rapidly in the past few years, due to the growing population and patient pool, and affordability of medicines.

In 2020, the pharmacy retail market was valued at INR 1,783.83 Bn and is expected to reach INR 3,078.46 Bn by 2026, expanding at a CAGR of 12.02 percent. The organized retail pharmacy sector stood at INR 134.21 Bn in the same year and is anticipated to reach INR 370.39 Bn by 2026. The unorganized sector was valued at INR 1548.55 Bn in 2020 and is likely to reach INR 2390.20 Bn by 2026. The revenue of the online retail sector stood at INR 38.15 Bn in 2020 and is likely to reach 317.87 Bn in 2026. The online retail channels sector is the fastest growing, owing to the rise in the number of internet users and increase in technological advancements.

In the last month a managing director of the leading American pharmaceutical company which is doing business in India, had said that they can offer around or at least a 30% discount to the Government if they allow their medicine in Janaushadhi stores.

What does it mean for private retail and wholesale pharmacy business? Jan Aushadhi Scheme was launched by the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government of India in November 2008. Till May 2014, only 80 ‘Jan Aushadhi Stores’ were in operation in selected States. The Government revamped the ‘Jan Aushadhi Scheme’ in September 2015 as ‘Pradhan Mantri Jan Aushadhi Yojana’ (PMJAY). To give further impetus to the scheme, it was again renamed as Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). Till 31st January 2022, 8675 PMBJP Kendras are functional across the country. Government has kept the target to open 10500 PMBJP in the country by 2025 but there are chances that the number will be more than the target. In the financial year 2020-21, sale of Rs. 665.83 Crore was made, which led to savings of about Rs. 4000 Crore to the citizens as compared to the branded medicines. In the current financial year 2021-22 (till 31.01.2022), PMBI has made sales of Rs. 751.42 Crore which led to savings of approximately Rs. 4500 Crore to the citizens. As per a survey, Average sales per store per month has grown to Rs 1.50 lacs (including OTC & other products). As we are aware, India has two kinds of generics -- branded and unbranded. Branded generics means generic medicines which are sold by different pharmaceutical industries in different brand names. If so-called branded medicines will be available in Jan Aushadhi Stores, then? - The footprints of people will increase in Jan Aushadhi Stores. - People can get branded medicines at a discounted price of at least 10-20%. - New supply chain will exist, where pharmaceutical companies do not have to deal with different stakeholders (like C&F, wholesalers etc.), instead they need to revamp the already existing government's supply chain. - Popularity of Jan Aushadhi Stores will boost.

Online Pharmacy hindering business There are many legislative issues with online pharmacy but they are hindering private retail pharmacy business to a very large extent. As we discussed earlier, the revenue of the online retail sector stood at INR 38.15 Bn in 2020 and is likely to reach 317.87 Bn in 2026.

Online Pharmacy offers 10-20 % discount than offline medicines or retail pharmacy. Online players cut out so many of the costs — real estate, inventory, salaries to employees, utilities, intermediaries etc. And we are aware that the online shift of people is playing an important role for the growth of online pharmacy. Net-meds.com, PharmEasy, Apollo, Marg, Reliance amazon, Flipkart, KEIMED LIMITED, Ankamed, Esquare, EasySol, Uddan are the big giants becoming bulk buyers to pharma companies which again giving big competition to retail and wholesale pharmacy business. Emergence of organised pharmacy chains in India Business of small or private retail pharmacy stores is also affected by organised retail pharmacy chains like Apollo Pharmacy, Fortis, Medplus, Dava India and many emerging companies.

The emergence of pharmacy retail pharmacy chains is expected to organise the currently unorganised Indian retail pharmacy sector. Modern retail pharmacy chains have the advantage of being digitised, organised and tech enabled. This helps them to track medicine inventories, sell and patient records. They have neat and appealing displays that attract customers to browse at ease and inquire about a range of healthcare and wellness products.

Currently, such organised retail pharmacy chains only occupy 8 to 10 percent of the market and most of them are concentrated in urban areas.

Post COVID era, people are more concerned about their intrinsic health, immunity and the chain pharmacy offers wellness products, guidance to consume such products along with medicine which make them more accessible by people.

Counter competition New pharmacy stores are opening at a much faster rate in every area of the country. It is natural that the customers of any one area are divided and due to which the adverse effects can be seen across the businesses.

The future consumer experience If we need to understand the vision of the future of pharmacy, we need to start thinking about consumers or patients and perceive how their health care journey changes. As technology becomes omnipresent and integrated, the role of the pharmacy and pharmacist evolves into one that may not even be recognized by today’s standards. We see a convergence of health and wellness, along with an expanded role of telehealth and virtual health care. And while the traditional retail pharmacy or unorganised pharmacy experience may no longer exist, there still is likely to be a role for coordinated and high-touch care delivered locally.

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India pharma today

Then vs. now: the provider engagement model is changing, key trends and opportunities, proactive investments in start-ups, emerging areas of interest for pharma tech in india.

India pharma tech's next big opportunity: the sales and marketing stack

Increasing technology adoption by doctors and policy shifts are changing the business of medicine in india, and digital health companies stand to benefit..

India’s pharmaceutical market is in transition. Known primarily for producing and exporting generic drugs to other countries, India’s pharma market is on the cusp of multiple policy changes and increasing adoption of technology by healthcare professionals, particularly doctors, and domestic pharmaceutical brands and new digital health apps are poised to benefit.

A $50 billion industry in 2023, India’s pharma market is expected to grow at roughly ~8% compounded annually over the next five years.

Innovation in pharma tech typically falls into three categories: research and development (R&D), clinical trials , and sales and marketing. Today, we see sales and marketing tech as the most significant current opportunity in India’s pharma tech market, given the scale of its addressable profit pool and industry shift to leveraging digital channels for pharmaceutical sales and marketing.

A domestic policy environment that once favored generics over new patents is now switching course––soon it’ll be easier than ever in modern Indian history for pharma companies to obtain patents for branded drugs. At the same rate, increased regulation on drug makers’ incentives to doctors are encouraging Chief Marketing Officers (CMOs) to refocus their marketing efforts toward omni-channel campaigns and digital apps.

As policy shifts stimulate growth for India’s pharmaceutical brands, digital health startups in India face opportunities to innovate across the pharma value chain, touching every aspect of drug sales and marketing, and making it easier and more efficient for doctors, patients, and distributors to engage with each other. Here’s our perspective on what’s next for pharma tech in India.

Historically, India has been known as the epicenter of generic drugs , catering to an impressive 20% of global generics demand. Exports constitute the majority (~55%) of India’s pharmaceutical production, with North America importing over one-third of the market’s total exports.

In India, pharma is one of the few industries whose companies are forbidden from marketing to their consumers (patients) directly. The Indian pharmaceutical industry is diligently aligning with global standards, notably those set by the U.S. FDA, through regulatory enhancements, international collaborations, and investments in quality control. Simultaneously, there is also a focus on increasing insurance penetration. While the U.S. boasts a well-established system, India is actively working to expand coverage, reflecting shared efforts to enhance healthcare inclusivity and financial protection for individuals.

Instead, pharma companies engage with healthcare professionals, particularly doctors. Within India pharma company budgets, sales, promotion, and distribution (SPD) are a significant cost, constituting as much as 8% of revenue, depending on the company. Indian pharmaceutical giants like Sun Pharma and Mankind have strategically deployed around 12,000 medical representatives (MRs, or sales reps) each, spanning both urban and rural areas in India.

There are three main components to the pharma sales and marketing landscape: doctors, patients, and distributors. Effective pharma S&M requires engagement with all three stakeholder groups:

• Doctors : To establish meaningful connections with healthcare providers, pharmaceutical companies’ marketing tactics include conference sponsorships, medical journal subscriptions, EMR platforms, digital knowledge sharing platforms, and distributing medication samples. 
• Patients : Direct marketing to patients is primarily reserved for over-the-counter (OTC) treatments. Prescription drug manufacturers in India instead look to engage patients via patient education platforms, diagnostic camps, digital apps designed to promote treatment adherence, and brand initiatives that foster trust and loyalty. 
• Distributors: The pharma companies that excel in distribution tend to focus their efforts on data analytics, competitive intelligence, supply chain management, and working capital management. 

Digital adoption has changed the way drug company representatives in India engage with healthcare providers. It used to be the case two decades ago that MRs––pharmaceutical companies’ “field force” of sales reps––would visit doctors’ offices in person for sales pitches. Armed with samples and written materials, MRs heavily relied on face-to-face interactions, engaging with doctors over the course of multiple appointments. 

Doctors were initially hesitant to integrate technology into these workflows, although customer relationship management (CRM) software like Salesforce, and digital calendars, attempted to modernize doctor-MR relationships. More recently, however, the ubiquity of the internet has facilitated a gradual shift toward digital adoption in medicine in India. Digitization of healthcare became the new imperative as a result of the COVID-19 pandemic.

Today’s healthcare marketing environment requires that companies avoid over-marketing, cite scientific research, emphasize safety, and make information clear and accessible. To do this, providers and pharma companies are doing more of their work online and on software apps, and patients are engaging with healthcare content online via pharma companies’ omni-channel campaigns. Regulatory tailwinds in India are changing the landscape and accelerating technology adoption in pharma sales and marketing. Companies are looking for innovative omni-channel marketing solutions to engage with doctors. Simultaneously, there has been a notable shift in doctors' attitudes, especially in the post-COVID landscape. They are increasingly open to digital interactions with pharmaceutical companies, marking a significant transformation in the way these crucial stakeholders engage in the industry.

In the post-COVID era, doctors are adopting technology faster than before

Digital health companies today are leveraging product-led growth strategies by selling directly to clinicians in the U.S.—the same is true for pharma tech in India. Platforms supporting healthcare professionals, in particular, are growing in popularity: as doctors shifted to end-to-end virtual treatment where possible during COVID-19, their practices required software to facilitate virtual appointments, digital assistants to maintain health records, and compliant forms of online communication, like WhatsApp-based chats and appointment booking portals. Digital health in India also extends to electronic medical records (EMRs), decision support workflows, remote patient monitoring, workforce productivity management software, and more.

Social media, too, plays an important role in India pharma sales and marketing. Doctors in India today respond better to subtler engagement from drug companies, like digital ads, as opposed to overt sales tactics from MRs.

Regulatory tailwinds

Similar to the US Sunshine Act ––which curtailed and brought transparency to exchanges of value between drug companies and providers, colloquially known as kickbacks––recent policy developments in India, including Section 194R of Income Tax regulations and updated guidelines from the National Medical Commission (NMC), have intensified scrutiny on pharma companies’ incentives to doctors. Pharma CFOs and CMOs we spoke with told us that approximately 50-60% of the marketing expenditure aimed at doctors has been deemed non-compliant under these guidelines. This change is poised to create significant waves throughout the industry, given that doctors indirectly derive 10-12% of their income from pharma company incentive schemes.

As a result, a considerable portion of the pharma marketing budget is expected to transition towards more compliant methods of incentivizing doctors to prescribe their branded medications––for example, digital marketing, organizing diagnostic camps, involving doctors in advisory panels. As Indian pharma companies find new and more compliant ways to market their medications, digital adoption at each part of the pharma value chain will only grow, paving the way for innovation and competition in the pharma sales and marketing tech stack.

Based on conversations we’ve had with pharmaceutical company CEOs and CMOs, we’ve identified several key sales and marketing objectives: enhancing sales force efficiency, implementing personalized omni-channel marketing, evaluating the efficacy of digital investments, gaining access to competitive intelligence, and facilitating direct marketing to doctors through Electronic Medical Records (EMR) platforms. 

For instance, Cipla, an Indian pharmaceutical company which primarily develops medicines to treat respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and many other medical conditions, has set a goal to transition its field force onto an e-detailing platform. Instead of carrying physical pamphlets to doctors, MRs now carry iPads with content explaining how the drugs work. With e-detailing, MRs and doctors are exchanging digital content, and this new sales technique not only requires new types of digital training, but it also digitizes sales enablement, making it more cost-effective to scale over time. This is just one example of how sales techniques are being digitized. Companies like Cipla are investing in other promising startups and solutions to modernize sales and marketing practices in our increasing hybrid world within the pharmaceutical industry. 

While MRs connect with physicians in new digital methods one-on-one, the industry is seeing ways to leverage content as a way to scale marketing in inventive new ways with their core audience. For example, our portfolio company MediSage is a platform focused on doctor knowledge and engagement. This online community of resources and shared industry wisdom enables pharma companies to connect with over 320,00 doctors through conferences and medical content through direct omni-channel marketing. As online portals, solutions, and digital tools persist for physicians and care providers, pharma companies will have more vertical and industry specific platforms and ecosystems to reach their target audiences.

Prominent pharmaceutical giants like Sun Pharma and Mankind have been taking proactive steps by investing in research and development, diagnostics, competitive analysis, distribution, and therapy engagement startups.

The Indian pharmaceutical landscape is poised for transformation. As regulatory updates change how pharma companies market their drugs to healthcare providers, we expect the India pharma market to more heavily rely on omni-channel digital marketing campaigns and apps to promote medications. To carry this out, entrepreneurs face an opportunity to innovate across the pharma value chain, building startups that enable the next generation of pharma go-to-market in India––be it a pharma-focused, end-to-end SaaS platform for sales and marketing, pharmacovigilance, and R&D, a HCP networking sight that monetizes access to data insights from pharma companies and providers, or another multi-product strategy that effectively meets emerging business needs in this area.

If you are an entrepreneur building the next groundbreaking PharmaTech software business in India, we want to hear from you. Reach out to our team at [email protected] .

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Pharmaceuticals

Indian pharmaceutical industry, the indian pharmaceutical industry is projected to grow at a cagr of over 10% to reach a size of us$ 130 billion by 2030., advantage india, cost efficiency.

* India has emrged as the medial tourism hub of the world providing cost-effective treatments with the latest technology enabled by several pathbreaking reforms and provisions.

* Access to affordable HIV treatment from India is one of the greatest success stories in medicine. India is one of the biggest suppliers of low-cost vaccines in the world.

* Because of the low price and high quality, Indian medicines are preferred worldwide, thereby rightly making the country the ‘Pharmacy of the World’.

* India has been traditionally quite strong in the pharma sector, with a low cost of manufacturing (30%–35% lower than in the US and Europe), cost-efficient R&D (about 87% less than in developed markets), and cheap skilled labour

Economic Drivers

* On December 21, 2020, MoU was signed between Tata Memorial Centre of India and Vietnam National Cancer Hospital to promote exchanges in the areas of training and scientific research, health care services, collaboration in diagnosis and treatment for cancer patients.

* The total market size of the Indian Pharma Industry is expected to reach US$ 130 billion by 2030 and US$ 450 billion market by 2047.

* The domestic pharmaceutical industry would likely reach US$ 57 billion by FY25 and see an increase in operating margins of 100-150 basis points (bps).

* India has the largest number of USFDA-compliant pharmaceutical plants outside the US and over 2,000 WHO-GMP approved facilities, serving demand from 150+ countries worldwide, with 10,500+ manufacturing facilities.

policy Support

* The Ministry's scheme “Strengthening of Pharmaceutical Industry (SPI)" with a total financial outlay of Rs. 500 crore (US$ 60.9 million) extends support required to existing pharma clusters and MSMEs across the country to improve their productivity, quality and sustainability.

* The Government has set a target to increase the number of Pradhan Mantri Bhartiya Jan Aushadhi Kendras to 10,500 by March 2025. The product basket of PMBJP comprises 1,451 drugs and 240 surgical instruments.

* The Union Cabinet, on April 26, 2023, approved the National Medical Devices Policy, 2023, which is expected to facilitate the growth of the medical device sector to meet the public health objectives of access, affordability, quality, and innovation.

* The PLI scheme for pharmaceuticals is being implemented with a total outlay of the Rs. 15,000 crore (US$ 2.04 billion) spanning from 2020-21 to 2028-29, to boost India's manufacturing capacity, elevate investment, and diversify product offerings in the sector.

Increasing Investment

* Up to 100%, FDI has been allowed through automatic route for Greenfield pharmaceuticals projects. For Brownfield pharmaceuticals projects, FDI allowed is up to 74% through automatic route and beyond that through government approval.

* The cumulative FDI equity inflow in the Drugs and Pharmaceuticals industry is US$ 22.38 billion during the period April 2000-December 2023. This constitutes almost 3.4% of the total FDI inflow received across sectors.

* Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of FDA-approved plants outside the US is in India.

* In the Interim Budget 2024-25, the government earmarked Rs. 1,000 crore (US$ 120 million) for the promotion of bulk drug parks for FY25, a significant increase from the previous year.

Pharmaceuticals Industry Report

Introduction.

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. India has highest number of pharmaceutical manufacturing facilities that comply with the US Food and Drug Administration (USFDA) and has 500 API producers that make for around 8% of the worldwide API market.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. India is rightfully known as the "pharmacy of the world" due to the low cost and high quality of its medicines.

Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian Pharma ranks third in pharmaceutical production by volume. The Pharmaceutical industry in India is the third largest in the world in terms of volume and 14th largest in terms of value. The Pharma sector currently contributes to around 1.72% of the country’s GDP.

According to a recent EY FICCI report, there has been a growing consensus over providing new innovative therapies to patients. Indian pharmaceutical market is estimated to touch US$ 130 billion in value by the end of 2030. Meanwhile, the global market size of pharmaceutical products was estimated to cross over the US$ 1 trillion mark in 2023.

Market size

Market size of India pharmaceuticals industry is expected to reach US$ 65 billion by 2024, ~US$ 130 billion by 2030 and US$ 450 billion market by 2047. According to the government data, the Indian pharmaceutical industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India.

India is among the top 12 destinations for biotechnology worldwide and 3rd largest destination for biotechnology in Asia Pacific. The country holds 3-5% of the global biotechnology industry pie. In 2022, India’s bioeconomy was valued at US$ 137 billion, and aims to achieve US$ 300 billion mark by 2030.

During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.

The Indian pharmaceutical industry has seen a massive expansion over the last few years and is expected to reach about 13% of the size of the global pharma market while enhancing its quality, affordability, and innovation.

The biosimilars market in India is estimated to grow at a compounded annual growth rate (CAGR) of 22% to become US$ 12 billion by 2025. This would represent almost 20% of the total pharmaceutical market in India.

India is the 3rd largest producer of API accounting for an 8% share of the Global API Industry. About 500+ different APIs are manufactured in India, and it contributes 57% of APIs to prequalified list of the WHO.

The current market size of the medical devices sector in India is estimated to be US$ 11 billion and its share in the global medical device market is estimated to be 1.5%. The government has set ambitious target to boost the medical devices industry in India, aiming to elevate it from its current US$ 11 billion valuation to US$ 50 billion by 2030.

The domestic pharmaceutical sector expects sales to grow 8-10% in the financial year 2023-24, indicated an analysis done by CRISIL, a global analytical research and rating agency.

Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of FDA-approved plants outside the US is in India.

According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade. India’s domestic pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030. India's biotechnology industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics. The Indian biotechnology industry was valued at US$ 70.2 billion in 2020 and is expected to reach US$ 150 billion by 2025. India’s medical devices market stood at US$ 10.36 billion in FY20. The market is expected to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion. The Indian pharmaceuticals industry is expected to grow 9-11% in the financial year 2024, as per ICRA.

In the global pharmaceuticals sector, India is a significant and rising player. India is the world's largest supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion worldwide. In FY23, the Indian pharma market saw a year-on-year growth of nearly 5%, reaching US$ 49.78 billion. During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.

Pharmaceutical is one of the top ten attractive sectors for foreign investment in India. The pharmaceutical exports from India reach more than 200 nations around the world, including highly regulated markets of the USA, West Europe, Japan, and Australia. India supplied around 45 tonnes and 400 million tablets of hydroxychloroquine to around 114 countries globally.

India’s drugs and pharmaceuticals exports stood at US$ 22.51 billion in FY24 (April-January) recording a strong year-on-year growth of 8.12% during the period.

Exports of Drugs & Pharmaceuticals were estimated to be at US$ 2.13 billion in January 2024, accounting for 5.8% of the total exports in the month.

India is the 12th largest exporter of medical goods in the world. Indian drugs are exported to more than 200 countries in the world, with US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally. Indian drug & pharmaceutical exports stood at US$ 25.36 billion in FY23, US$ 24.60 billion in FY22 and US$ 24.44 billion in FY21.

Investments and Recent Developments

The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India ranks third worldwide for production by volume and 14th by value.

In this regard the sector has seen a lot of investments and developments in the recent past.

• Up to 100%, FDI has been allowed through automatic route for Greenfield pharmaceuticals projects. For Brownfield pharmaceuticals projects, FDI allowed is up to 74% through automatic route and beyond that through government approval.
• The cumulative FDI equity inflow in the Drugs and Pharmaceuticals industry is US$ 22.38 billion during the period April 2000-December 2023, constituting almost 3.4% of the total inflow received across sectors.
• In November 2023, Lupin Ltd. unveiled the world’s first fixed-dose triple combination drug for managing chronic obstructive pulmonary disease (COPD).
• In October 2023, Glenmark Pharmaceuticals introduced Zita, a cost-effective triple combination drug for Type 2 diabetes treatment, enhancing glycaemic control in diabetic patients.
• In August 2023, Union Minister for Labour & Employment and Environment, Forest and Climate Change Mr. Bhupender Yadav launched Chemotherapy Services in 30 ESIC Hospitals across the country.
• An MoU was signed on June 4, 2023, between the Indian Pharmacopoeia Commission (IPC), Ministry of Health & Family Welfare, Government of India and Ministry of Health, Government of Suriname for Recognition of Indian Pharmacopoeia (IP) in Suriname.
• In May 2023, the Ministry of Minority Affairs and the Ministry of Ayush joined hands to advance the Unani System of Medicine in India.
• Prime Minister Mr. Narendra Modi during his Independence Day 2023 speech said that the government has plans to increase the number of 'Jan Aushadhi Kendras' from 10,000 to 25,000.
• The Department of Pharmaceuticals will soon launch the Scheme for the Promotion of Research and Innovation in Pharma (PRIP) MedTech Sector. The scheme has been approved by the Union Cabinet for a period of five years starting from 2023-24 to 2027-28 with a total outlay of Rs. 5,000 crore (US$ 604.5 million).
• Emcure Pharmaceuticals Limited (EPL) becomes the first ever company to launch Orofer FCM 750, a new extension of its parenteral iron brand containing Ferric carboxymaltose (FCM). The dose is suitable for the majority of Indian patients with iron deficiency and iron deficiency anaemia.
• Japanese companies have been invited to invest in the Indian Pharmaceutical and Medical Device Industry. The cooperation between Pharmaceutical Traders Association and Japan Federation of Medical Devices Associations of the two countries can contribute to stabilize the global supply-chain especially of APIs and Medical Devices.
• Sun Pharmaceutical Industries Limited announced the successful completion of its acquisition of Concert Pharmaceuticals, Inc. on March 6, 2023, a late-stage clinical biopharmaceutical company that is developing deuruxolitinib, a novel, deuterated, oral JAK1/2 inhibitor, for the potential treatment of adult patients with moderate to severe alopecia areata.
• Glenmark Pharmaceuticals Ltd. (Glenmark), an innovation-driven, global pharmaceutical company, is the first to launch a unique I.V. injection formulation, Akynzeo I.V., in India for the prevention of chemotherapy-induced nausea and vomiting (CINV), under an exclusive licensing agreement with Helsinn, a Swiss biopharma group company.
• Entod Pharmaceuticals launched its new ocular aesthetic range focused on improving eye comfort and enhancing the aesthetics of the eyes.
• BDR Pharmaceutical launched the first generic apalutamide (brand name Apatide) in India to treat both metastatic castration sensitive prostate cancer as well as non-metastatic castration resistant prostate cancer. The product will be available across India.
• Anglo French Drugs & Industries Limited (AFDIL), a 99-year-old organization in the pharmaceutical sector, announced that it has entered into the fertility space with the launch of the LYBER range.
• Eli Lilly introduces Ramiven in India, for certain high-risk early breast cancer patients in November 2022.
• ICPA Health Products Ltd (ICPA), a leading pharma company in the oral healthcare segment, launched its latest product – Heximetro at the annual conference of the Indian Society of Periodontology (ISP) in November 2022.
• The FDI inflows in the Indian drugs and pharmaceuticals sector reached US$ 19.90 billion between April 2000-June 2022.
• The Indian drugs and pharmaceuticals sector received cumulative FDIs worth US$ 19.41 billion between April 2000-March 2022.
• The foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached US$ 1,414 million between in FY 2021-22.
• The Indian pharmaceutical industry generated a trade surplus of US$ 15.81 billion in FY22.
• Medical Device industry is expected to reach US$ 50 billion by 2030 growing at a CAGR of 15%.
• In November 2022, Sun Pharma and SPARC entered into a license agreement for commercialization of phenobarbital for injection in the US.
• Glenmark becomes the First Company in India to launch Teneligliptin + Dapagliflozin Fixed Dose Combination in October 2022.
• In October 2022, Lupin signed an agreement to acquire two inhalation brands from Sunovion Pharmaceuticals Inc.
• Dr. Reddy's Laboratories announced the launch of Lenalidomide Capsules in the U.S. with two of six strengths eligible for first-to-market, 180-day exclusivity in September 2022.
• In June 2022, Cipla partnered with Drugs for Neglected Diseases initiative (DNDi) to announce the launch of a 4-in-1 antiretroviral treatment for children living with HIV in South Africa.
• Glenmark becomes the first pharmaceutical company to launch Indacaterol + Mometasone fixed-dose combination drug for Asthma in India.
• In May 2022, Sun Pharmaceutical Industries Limited through one of its wholly owned subsidiaries plans to launch Bempedoic Acid under the brand name Brillo, in India for reducing low-density lipoprotein (LDL) cholesterol.
• In May 2022, Dr. Reddy’s Laboratories enters into exclusive partnership with HK inno.N Corporation to commercialise novel molecule Tegoprazan in India & select emerging markets.
• In April 2022, Dr Reddy's Laboratories Ltd. inked a pact with MediCane Health to announce the launch of medical cannabis products in Germany.
• The Union Cabinet have its nod for the amendment of existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.
• In March 2022, Themis Medicare Ltd. (Themis), announced the approval of its antiviral drug VIRALEX by the Drug Controller General of India (DCGI).
• The National Digital Health Blueprint has the potential to generate nearly US$ 200 billion in added economic value for India's healthcare industry over the next 10 years.
• In October 2021, AstraZeneca India launched a Clinical Data and Insights (CDI) division to further strengthen its global presence and manage data-related aspects of its clinical trials.
• In September 2021, the Indian government contributed US$ 4 billion to the pharmaceutical and medical industries.
• In August 2021, Uniza Group, an Ahmedabad-based pharmaceutical firm, signed an agreement with Lysulin Inc. (an US-based firm) to introduce Lysulin, a nutritional product for Indian consumers.
• In May 2021, Indian Immunologicals Ltd. (IIL) and Bharat Immunologicals and Biologicals Corporation (BIBCOL) inked technology transfer pacts with Bharat Biotech to develop the vaccine locally to boost India's vaccination drive. The two PSUs plan to start production of vaccines by September 2021.

Government Initiatives

• The government earmarked Rs. 1,000 crore (US$ 120 million) for the promotion of bulk drug parks for FY25, a significant increase from the previous year.
• The total outlay for the development of the pharmaceutical industry for FY25 was increased to Rs. 1,300 crore (US$ 156.5 million) while the budget for the promotion of medical device parks was raised to Rs. 150 crore (US$ 18 million) for FY25.
• The allocation for assistance to medical device clusters for common facilities (AMD-CF) was pegged at Rs. 40 crore (US$ 4.1 million) for FY25.
• The outlay for the Jan Aushadhi scheme, the initiative to provide affordable generic medicines in the country, was hiked to Rs. 284.5 crore (US$ 34 million) for FY25, up from Rs. 110 crore (US$ 13 million) in the revised estimate for FY24.
• A mission to eliminate sickle cell anaemia by 2047 will be launched. It would involve raising awareness, conducting a comprehensive screening of seven crore individuals in the impacted tribal regions between the ages of 0 and 40, and providing counselling through coordinated efforts.
• For innovation in the pharmaceutical sector, through centres of excellence, a new initiative to encourage pharmaceutical research and innovation will be implemented. The government persuades business to spend money on R&D in a few chosen priority fields. At the grassroots level, government has also announced on building 157 nursing colleges in co-location with government medical colleges.
• The Union Cabinet, on April 26, 2023, approved the National Medical Devices Policy, 2023. The National Medical Devices Policy, 2023 is expected to facilitate an orderly growth of the medical device sector to meet the public health objectives of access, affordability, quality, and innovation.
• Under the ABDM, citizens will be able to create their ABHA (Ayushman Bharat Health Account) numbers, to which their digital health records can be linked. This will enable creation of longitudinal health records for individuals across various healthcare providers and improve clinical decision making by healthcare providers.
• The pilot of ABDM is completed in the six Union Territories of Ladakh, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, Puducherry, Andaman and Nicobar Islands, and Lakshadweep with successful demonstration of technology platform developed by the NHA.
• During the pilot, digital sandbox was created in which more than 774 partner solutions are undergoing integration. As of September 4, 2023, 450,164,619 Ayushman Bharat Health Accounts have been created and 224,967 doctors and 218,602 health facilities have been registered in ABDM.
• Assistance to Bulk Drug Industry for Common Facilitation Centres
• Assistance to Medical Device Industry for Common Facilitation Centres
• Assistance to Pharmaceutical Industry (CDP-PS)
• Pharmaceutical Promotion and Development Scheme (PPDS)
• Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS)
• Rs. 3,201 crore (US$ 419.2 million) has been set aside for research and Rs. 83,000 crore (US$ 10.86 billion) has been allocated for the Ministry of Health and Family Welfare.
• Rs. 37,000 crore (US$ 4.83 billion) has been allocated to the 'National Health Mission’.
• Rs. 10,000 crore (US$ 1.28 billion) has been allocated to Pradhan Mantri Swasthya Suraksha Yojana.
• The Ministry of AYUSH has been allocated Rs. 3,050 crore (US$ 399.4 million), up from Rs. 2,970 crore (US$ 389 million).
• In March 2022, under the Strengthening of Pharmaceutical Industry (SPI) Scheme, a total financial outlay of Rs. 500 crore (US$ 665.5 million) for the period FY22 to FY26 were announced.
• India could restart deliveries of COVID-19 shots to global vaccine-sharing platform COVAX in November-December 2021 for the first time since April 2021. The World Health Organization (WHO), which co-leads COVAX, has been pushing India to resume supplies for the programme, particularly after it sent ~4 million doses to neighbours and allies in October 2021.
• In November 2021, PM Mr. Narendra Modi inaugurated the first Global Innovation Summit of the pharmaceuticals sector. The summit will have 12 sessions and over 40 national and international speakers deliberating on a range of subjects including regulatory environment, funding for innovation, industry-academia collaboration, and innovation infrastructure.
• In August 2021, Union Health Minister, Mr. Mansukh Mandaviya announced that an additional number of pharmaceutical companies in India are expected to commence manufacturing of anti-coronavirus vaccines by October-November 2021. This move is expected to further boost the vaccination drive across the country.
• In June 2021, Finance Minister Ms. Nirmala Sitharaman announced an additional outlay of Rs. 1,97,000 crore (US$ 26,578.3 million) that will be utilised over five years for the pharmaceutical PLI scheme in 13 key sectors such as active pharmaceutical ingredients, drug intermediaries and key starting materials.
• To achieve self-reliance and minimise import dependency in the country's essential bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four separate ‘Target Segments’ with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million) from FY21 to FY30.
• In May 2021, under Atmanirbhar Bharat 3.0, the Government of India announced Mission COVID Suraksha to accelerate development and production of indigenous COVID vaccines. To augment the capacity of indigenous production of Covaxin under the mission, the Department of Biotechnology, Government of India, provided financial support in the form of a grant to vaccine manufacturing facilities for enhanced production capacities, which is expected to reach >10 crore doses per month by September 2021.

The pharmaceutical industry in India is a significant part of the nation's foreign trade and offers lucrative potential for investors. Millions of people around the world receive affordable and inexpensive generic medications from India, which also runs a sizable number of plants that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration (USFDA). Among nations that produce pharmaceuticals, India has long held the top spot. Medicine spending in India is projected to grow 9-12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise. The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. The National Health Protection Scheme, which aims to offer universal healthcare, the ageing population, the rise in chronic diseases, and other government programmes, including the opening of pharmacies that offer inexpensive generic medications, should all contribute to boost the Indian pharmaceutical industry. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

References: Consolidated FDI Policy, Press Information Bureau (PIB), Media Reports, Pharmaceuticals Export Promotion Council, AIOCD-AWACS, IQVIA, Union Budget 2023-24, Interim Budget 2024-25

Related News

In 2023, Indian drug manufacturing sites exporting to the US showed strong regulatory compliance, with only 13% classified as Official Action Indication by the USFDA.

Avendus Capital predicts India's pharmaceutical market will hit US$ 65.49 billion (Rs. 5.5 trillion) by 2034, driven by diversified marketing and stringent quality standards.

An analysis by FAST indicates that Indian enterprises have outpaced global companies in research and development (R&D) growth, achieving 1.2 times the growth of their international counterparts between FY16 and FY23.

Indian drugmakers, dependent on the U.S. market, foresee revenue growth in FY25 amid persistent drug shortages, notes India Ratings and Research.

Serum Institute of India has shipped its R21/Matrix-M malaria vaccine to Africa, marking a significant milestone in the fight against malaria, with 163,800 doses allocated for the Central African Region.

Major states for Pharmaceuticals

• Maharashtra
• Uttar Pradesh

Industry Contacts

• The Indian Pharmaceutical Association
• Organisation of Pharmaceutical Producers of India
• Indian Drug Manufacturers' Association
• Bulk Drug Manufacturers Association

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• Pharma Knowledge

How to Start a Pharma Company in India

Published on:

How to Start a Pharma company in India – Healthcare and pharmaceutical sectors are showing good growth, and it seems that the future is pretty bright. Therefore, the early you start the business, the better it is. The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value, as per a report by Equity Master. India is the largest provider of generic drugs globally, with the Indian generics accounting for 20 percent of global exports in terms of volume.

There is no business without investment. Be it small or large and own or franchise, there is always a need for some amount of money to be invested, to begin with. This investment will be done for different requisites including purchasing the goods, paying the employees, marketing and promotional activities. Although you are ready to invest, taking your business in a profitable way is important. To start a PCD Pharma Company, there is a need for a huge investment. You should also obtain legal certification, drug regulator policies, WHO and many others.

Basic Types of Pharmaceutical Companies

The pharmaceutical industry researches develop and manufacture thousands of medications for a variety of diseases and health conditions. The main types of pharmaceutical franchise companies are:

• Brand Developers: Large and established pharmaceutical companies, such as Pfizer and Novartis, have a large number of drugs on the market. These mainline pharmaceutical firms have internationally acclaimed research and development laboratories and a large number of manufacturing plants. These companies handle both research and development (R&D) and production of pharmaceuticals. Once a promising candidate is discovered, they seek a patent to protect the investment while research continues toward developing a safe and marketable drug. Of course, leading the way in the mainline pharmaceuticals sector is risky business.
• Research and Development: Smaller research and development pharmaceutical companies may not have any approved drugs on the market, but continue to focus on research, such as clinical trial observation. Research and development firms may also be subcontractors for mainline companies requiring additional research support.
• Generic: A number of drugs on the market no longer have patent protection. Generic pharmaceutical companies bring these drugs back to the market after patent expiration as less expensive versions.
• Drug marketing: Marketing companies in the pharma industry help increase the market reach of drugs. At times, a manufacturing company cannot sell its product in a specific region because the company lacks a license or marketing network to do so. This is where drug marketing companies come in to facilitate sales.
• Other Types: Additional pharmaceutical companies also exist within the pharmaceutical industry. This includes those companies that manufacturer bulk compounds and chemicals for use in the production of prescription and over-the-counter pharmaceuticals. Biological products companies represent another type of company found in the world of pharmaceuticals. They produce vaccines, serums, and blood products.

Based upon their marketing, sale and work basis irrespective of marketing and/or manufacturing type the company can fall under any categories of

• Branded/Ethical
• Speciality company e.g. Derma, ophthalmic, cardiac, etc
• Export or Import
• Distribution

Following Steps are needed to start a Pharma manufacturing firm in India

For every pharmacy professional setting up a Pharma company is a dream project to them. Most of them haven’t started own pharmaceutical venture due to lack of knowledge and courage to start their pharmaceutical firm. If you have experience in the niche there is nothing better than this. In the backdrop of encouragement given by the Government of India to start-up businesses, it becomes relatively easy. Here we will try to help you to start your own pharmaceutical company.

According to Experts, primarily there are five steps to start any pharmaceutical company. Out of the five steps, the first three are mandatory to start.

• Company Registration is the first step (in case of proprietorship you can skip this process)
• Wholesale Drug License Get Drug License Number
• Generate Goods and Service Tax Number which is important
• Get the trademark registered
• FSSAI Registration (In case of selling Food and Dietary Supplements also)

Main Procedure and Sequence to proceed in starting Pharma Company

• First and the important step is to  Write a Business Plan and find a Company Name
• You should also know the Brand Names and Choice of molecules
• Design of Company Logo and Printing/Promotional Material
• Fix the infrastructure (place, premises, and building) for setup
• Fund generation (own, loan, investment, etc)
• Company Registration
• Trade Mark Registration (Optional)
• Wholesale Drug License (For both Marketing and Manufacturing Company)
• Manufacturing License (For Manufacturing Company)
• Goods and Service Tax Identification Number (GSTIN)
• FSSAI License (If required)
• Search for Vendors (For marketing Companies, Third Party/Contract Manufacturers or Loan license manufacturers. For Manufacturing Companies, Packing material suppliers, raw material & bulk drug suppliers and other requirements fulfillers)
• Finalize Packaging and Packing, Design Material for medicines boxes, label, foils, etc
• Start manufacturing in the case of a manufacturing company
• Place order to a manufacturer on the basis of third-party manufacturing/ contract manufacturing/ Loan Licensing in case of a marketing company. When the products are ready to sell, initiate marketing and promoting products.

HOW DO YOU REGISTER?

After deciding the type of unit, you have to register the company under the Companies Act 1965 or Companies Act 2013.

For partnership firms, you need to register under the Limited Liability Partnerships (LLP) under Partnership Act, 1932.

To get several benefits and opportunities like loans under priority, you should do MSME registration. It can be a provisional registration or permanent.

List of Important Document needed

• Bank challan copy or fee receipt
• Details of the staff and consent of full-time employment
• Layout plan
• Purchase document or rent agreement to prove the ownership of the premises
• Equipment and machinery purchase bills
• Partnership deed, MOA, and AOA
• Details of authorized partners
• Permission and NOC from State Pollution Control Board
• Letter of Loan License
• NOC of Municipal Corporation/Panchayat
• Clearance from Drug Controller General of India if applicable

Requirements for Starting Pharmaceutical Manufacturing Unit:

Fixed assets:

• Building (B)
• HVAC (Heating, Ventilation and Air Conditioning) System (H)
• Air Lock System (A)
• Fitting, Finishing, and Furnishing (F)
• Types of machinery and Lab Equipments (M)
• Electricity Supply (E)
• Water Supply (W)
• Compressed Air Supply (C)
• Investment for completing Licenses and formalities (I)
• Other Requirements (R)

Liquid Assets:

• Skilled and Technical Staff Wages (S)
• Non-Skilled Worker Wages (N)
• Repair and maintenance (H)
• Rent if applicable (T)
• Bank Loan installments and related expenses (I)
• Promotional and Marketing (P)
• Other expenses (J)

Inventory Investment:

• Raw Material and Packaging Material Stock (R)

Investment Required for Pharmaceutical Manufacturing Company:

• Pharmaceutical Manufacturing is a high investment project. The major portion of the investment will invest in purchasing land, Building, and infrastructure, etc. This can be prevented if you start at rented premises and building. But location, area, plant, and building infrastructure should meet with the requirement of GMP certification (WHO: GMP and/or Schedule M).
• Area required and machinery detail for starting manufacturing unit, you can read at our article: Area and types of machinery required for each section in the Pharmaceutical Manufacturing Unit.
• If you have own land and building that Good, but that is also an investment. We will consider it an investment. If you don’t have, you have two options: Either you purchase or you take a building at rent. In the case of rented premises, rent and/or deposited money will be calculated as an investment.

Qualification and Eligibility for EP ( experienced person) and pharmacist

• The pharmacist may be Registered pharmacist under state pharmacy council (diploma in pharmacy, bachelor of pharmacy EP (experienced person)
• Minimum one and half year experience at registered wholesale drug licensed firm after graduation and name is registered as EP at Drug Office and he gets his salary by cheque or account transfer because at the time of apply license bank statement is required
• Minimum four-year experience as a salesman in registered drug licensed firm after graduation and name is registered as an EP at Drug Office.

Conclusion:

Healthcare and pharmaceutical sectors are showing good growth, and starting the pharmaceutical company could be a good choice as it seems that the future is bright. The process involves various steps. You need to gather resources and data from recognized and valid sources. The Internet makes the task much easier. Therefore, the early you start the business, the better it is.

Hi, I am Aditi. I have a Degree in M.SC. Biotech. I love to write content related to the Pharmaceutical industry. I have been writing content related to the pharmaceutical industry for the past 5 years. I also have a work experience of more than 3 years as a research scientist. Linkedin Profile

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20 Top Pharma Companies in India to Know

By volume, ‘the pharmacy of the world’ supplies more than half of the world’s medications.

Globally, India is the largest provider of generic medications. Often referred to as ‘the pharmacy of the world,” the country provides more than half of the world’s vaccines and one-fifth of production volume for medications. And, with the help of the following India-based companies, the country sets out to grow its pharmaceutical sector to $130 billion by 2030.

Top Pharma Companies in India:

Sun pharmaceutical.

• Dr. Reddy's Laboratories

Zydus Lifesciences

Mankind pharma, ajanta pharma, torrent pharmaceuticals, 20 top pharma companies in india.

Pfizer is a global biotech and pharma company that develops drugs, vaccines and therapies for disease treatment, prevention and overall wellness. Its product portfolio includes household brands like Advil, Viagra, Robitussin and Zoloft, as well as the world’s first FDA-approved Covid-19 vaccine. While Pfizer is headquartered in New York, the company expanded its operations to India in 1950, where it now operates three manufacturing plants and a number of offices throughout the country.

Abbott India , a subsidiary of Abbott Laboratories, offers over 400 branded generic pharmaceuticals across 80 percent of therapeutic categories, from women’s health and gastroenterology to metabolic disorders and primary care. The Illinois-based company expanded its operations to India in 1910, where it fulfills the majority of its product requirements from two local plants, located in Himachal Pradesh and Goa.

Related Reading Pharma Companies in Hyderabad to Know

Sun Pharmaceutical is India’s largest drug maker by revenue, ranking fourth in generics worldwide. The Mumbai-based company sells specialty prescription medicines, covering areas like psychiatry, dermatology and oncology, as well as over-the-counter products like vitamins and topical creams to more than 100 countries. Of its 43 manufacturing facilities, 14 are dedicated to active pharmaceutical ingredients used in anti-cancers, steroids, sex hormones and controlled substances therapies.

Cipla is the third-largest drug producer in India, with more than 1,500 products across 65 therapeutic categories. Founded in 1935, the company develops treatments for respiratory and cardiovascular diseases, diabetes and depression while providing low-cost drugs for AIDS and the avian flu . Cipla’s corporate headquarters is in Mumbai, with more than 47 manufacturing sites around the world. And, for six years in a row , Cipla was named a ‘Great Place to Work’ in India.

Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories is a global manufacturer of pharmaceuticals — and was one of the first India-based companies to do so. Today, it distributes active pharmaceutical ingredients, generics, branded generics, biosimilars and over-the-counter drugs to more than half a billion patients worldwide. Headquartered in Hyderabad, the company specializes in gastro-enterology, cardiovascular, diabetology, oncology, pain management as well as dermatology. Dr. Reddy’s is a founding member of the Indian Pharmaceutical Alliance , and plans to triple its customer reach by 2030.

Divi’s Laboratories

Divi’s Laboratories is one of the largest active pharmaceutical ingredient manufacturers in the world. Founded in 1990, the Hyderabad-based company exports thousands of tons of medications to more than 100 countries every year. It also develops intermediate and nutraceutical ingredients, and offers custom synthesis services to 12 of the top 20 Big Pharma companies.

Related Reading Top Biopharma Companies to Know

Zydus Lifesciences distributes formulations, biologics, generics and vaccines to over 25 global markets. With 1,400 researchers spread across 19 sites, the Ahmedabad-based company also contributes to the development of novel therapeutics, such as the world’s first needle-free, plasmid DNA vaccine for Covid-19, ZyCoV-D, through a research-driven innovation program.

Mankind Pharma is the nation’s fourth largest pharmaceutical company in terms of sales , known for providing access to cost-effective prescription medications and over-the-counter products. The Delhi-based company particularly thrives in the sexual health sector, featuring best-selling sexual wellness items Manforce condoms, Prega News pregnancy-test kits and Unwanted-72 emergency contraception pills. Founded in 1991, Mankind Pharma operates 25 factories and six research and development facilities throughout the country.

Ajanta Pharma has more than 1,400 branded and generic formulations that are distributed in over 30 countries. Founded in 1973, the company has a focus on ophthalmology, dermatology, cardiology and pain management. Of its seven manufacturing facilities throughout India, six produce finished formulations — available in a variety of forms, from tablets and capsules to eye drops and injectables — while the other exclusively turns out active pharmaceutical ingredients.

Headquartered in Ahmedabad, Torrent Pharmaceuticals is a multinational pharma company with more than 2,000 products. Founded in 1959, the company is known for its therapies for cardiovascular, central nervous and gastro-intestinal systems as well as women’s healthcare . It hosts seven manufacturing plants and 23 distribution centers throughout India, while upholding international operations in more than 40 different countries. 

​​Piramal Pharma provides end-to-end drug manufacturing services across 15 global facilities and a worldwide distribution network, delivering medications to more than 100 different countries. Its product portfolio includes inhalation anesthetics, pain management therapies and injectable anti-infectives as well as ophthalmological formulations thanks to its partnership with Allergan . Although its corporate headquarters is located in Kentucky, more than half of ​​Piramal Pharma’s facilities are located in Indian cities, including a drug discovery plant in Ahmedabad and a vaccine and biologics process development and manufacturing center in Hyderabad.

Related Reading Pharma Companies in Delhi to Know

Lupin Pharmaceuticals

Mumbai-based, multinational pharma company Lupin is one of the world’s largest providers of generic medications by revenue. Specializing in areas like pediatrics, anti-infectives and asthma treatments, the company supplies both branded and generic drugs, biosimilars and active pharmaceutical ingredients to more than 100 countries. Its research and development program is located near Pune, where more than 1,400 scientists work on novel drug discovery and biotech solutions.

Aurobindo Pharma distributes generic medicines and active pharmaceutical ingredients to more than 125 countries. Founded in 1988, the company specializes in semi-synthetic penicillins, and has a research portfolio that spans neurosciences, cardiovascular, antiretroviral, anti-diabetic, gastroenterology and antibiotic therapies. Partnered with major players in the space, like AstraZeneca and Pfizer, the company claims over 500 patents.

Alkem Laboratories

Headquartered in Mumbai, Alkem Laboratories is a worldwide manufacturer of pharmaceutical generics, formulations and nutraceuticals. With a portfolio of over 800 products — which includes best selling drugs Clavam and Taxim-O — the company has become a top provider of anti-infective medications.

In its mission to treat diabetes, cancer and autoimmune diseases, Biocon manufactures generic active pharmaceutical ingredients to over 120 countries. The Bangalore-based company also develops novel biologics, biosimilar insulins and antibodies for the Indian market that focus on metabolics, oncology, immunotherapy and nephrology.

Glenmark Pharmaceuticals

Glenmark Pharmaceuticals produces generic, branded and over-the-counter medicines to treat respiratory, dermatologic and oncologic conditions. The Mumbai-based company operates in over 80 countries, and is known for its nasal spray Ryaltris and COVID-19 treatment FabiFlu. It has four research and development centers spread across India.

Emcure Pharmaceuticals

Multinational pharma company Emcure Pharmaceuticals distributes more than 350 brands of formulations, biologics and active pharmaceutical ingredients worldwide. The Pune-based company focuses on HIV antivirals, as well as other major therapeutic segments, including gynecology, oncology and blood-related conditions. In total , it has 13 manufacturing facilities and five research and development centers throughout India.

GSK is a London-based pharma and biotech company that specializes in treating infectious diseases, HIV, oncology as well as respiratory and immunology. The company is credited with discovering and developing the world’s first malaria vaccine, as well as “ essential medicines ” such as amoxicillin, mercaptopurine, pyrimethamine and zidovudine, according to the World Health Organization. It has since expanded its India-based operations with a state-of-the-art Global Capability Center in Bangalore, with accompanying satellite sites in Mumbai and Hyderabad.

Arbro Pharmaceuticals

Arbro Pharmaceuticals provides more than 700 branded and generic formulations, from antibiotics to psychotropics, for both human and veterinary use. The company also serves as a contract manufacturer, producing cosmetics, nutraceuticals, herbal supplements and even hand sanitizers for other companies. Deploying over 15,000 testing methods, Arbro has become a market leader in safety testing , where the company assists prominent brands, like Sun Pharma, Unilever and Nestlé, via its lab in Delhi.

Systopic Laboratories

Systopic Laboratories is a pharmaceutical company that primarily focuses on dermatology. Founded in 1984, the company now creates therapeutics across a variety of segments, from orthopedics and gynecology to diabetology and cardiology. Its main corporate office is located in New Delhi, with several other locations throughout India, including Chennai, Bangalore and Pune.

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Pharma industry in India - statistics & facts

Growth in the pharmaceutical sector, pharmaceutical exports and investments, key insights.

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Market value of insulin and biosimilars market India 2020

Value of neutraceutical market in India 2020, by product

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Global overview.

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• Premium Statistic Total global pharmaceutical R&D spending 2014-2028
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Pharmaceutical market: worldwide revenue 2001-2023

Revenue of the worldwide pharmaceutical market from 2001 to 2023 (in billion U.S. dollars)

World pharmaceutical sales by region forecast 2027

Projected global pharmaceutical sales for 2027, by region (in billion U.S. dollars)

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Global spending on medicines in 2010, 2022, and a forecast for 2027 (in billion U.S. dollars)

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Total global spending on pharmaceutical research and development from 2014 to 2028 (in billion U.S. dollars)

Top global pharmaceutical companies based on pharma revenue 2022

Leading global pharmaceutical companies based on pharma revenue in 2022 (in billion U.S. dollars)

General overview

• Premium Statistic Indian government healthcare expenditure as a share of GDP FY 2014-2025
• Premium Statistic Size of the healthcare sector in India 2008-2022
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• Premium Statistic Market value of biotechnology industry in India 2020-2030
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Indian government healthcare expenditure as a share of GDP FY 2014-2025

Government healthcare expenditure as a share of GDP in India from financial year 2014 to 2023, with forecast for 2025

Size of the healthcare market in India from 2008 to 2020, with an estimate for 2022 (in billion U.S. dollars)

Share of current health expenditure in India FY 2020, by healthcare providers

Distribution of current health expenditure (CHE) in India in financial year 2020, by healthcare providers

Market value of biotechnology industry in India 2020-2030

Market value of biotechnology industry in India in 2023, with estimates for 2025 and 2030 (in billion U.S. dollars)

Market value of biotechnology industry in India 2023, by segment

Market value of biotechnology industry in India in 2023, by segment (in billion U.S. dollars)

Market value of biopharmaceutical industry in India 2015-2022

Market value of biopharmaceutical industry in India from 2015 to 2022 (in billion U.S. dollars)

• Premium Statistic Indian pharmaceutical export value FY 2012-2024
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Value of Indian pharmaceutical exports from financial year 2012 to 2024 (in billion U.S. dollars)

Drugs and pharmaceutical export value India FY 2023, by leading destination

Value of drugs and pharmaceutical exported from India in financial year 2023, by leading destination (in billion Indian rupees)

Share of pharmaceutical export India 2023, by segment

Distribution of pharmaceutical exports from India as of April 2023, by segment

Medicine and pharmaceutical product import value India FY 1961-2023

Value of India's medicine and pharmaceutical product imports from financial year 1961 to 2022, with an estimate for 2023 (in billion Indian rupees)

Key players

• Premium Statistic Leading pharmaceutical and drug companies India 2023, by market capitalization
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• Premium Statistic Aurobindo Pharma's revenue FY 2013-2023
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• Premium Statistic Cipla's income from operations FY 2014-2023

Leading pharmaceutical and drug companies India 2023, by market capitalization

Leading pharmaceutical and drug companies in India in 2023, by market capitalization (in billion Indian rupees)

Sun Pharma's income FY 2010-2023

Income of Sun Pharmaceutical Industries Limited from financial year 2010 to 2023 (in billion Indian rupees)

Aurobindo Pharma's revenue FY 2013-2023

Revenue of Aurobindo Pharma Limited from financial year 2013 to 2023 (in billion Indian rupees)

Dr. Reddy's Laboratories' revenue FY 2014-2023

Revenue of Dr. Reddy's Laboratories Limited from financial year 2014 to 2023 (in billion Indian rupees)

Cipla's income from operations FY 2014-2023

Income from operations of Cipla Limited from financial year 2014 to 2023 (in billion Indian rupees)

Consumer behavior

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• Premium Statistic Opinion on unused medicines in India 2023
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Hike in medicine prices in India 2023

Rise in medicine price across India as of April 2023

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Reasons for excess unused medicines across India as of June 2023

Opinion on unused medicines in India 2023

Opinion on unused medicines across India as of June 2023

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Consumer opinion on undisclosed side effects from medicines in India as of September 2023

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Top 10 Pharmaceutical Companies in India

Top 10 Pharmaceutical Companies in India: Leaders of Healing

Pharmaceutical companies are integral to advancing public health and enhancing the quality of life through their relentless commitment to research, innovation, and the production of essential medications. 

Lets’s have a look at the top pharmaceutical companies in India, based on their performance on the National Stock Exchange (NSE). These companies are leaders in the Indian pharmaceutical sector , contributing significantly to healthcare advancements both domestically and globally.

1. Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited , under the leadership of Managing Director Dilip Shanghvi, is India's largest pharmaceutical company and ranks as the sixth-largest generic pharmaceutical manufacturer globally. Based in Mumbai, Sun Pharma manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in over 100 countries worldwide.

Sun Pharma leads the Indian pharmaceutical industry and stands as the fourth-largest speciality generic pharmaceutical company globally. The company's product portfolio spans a wide range of therapeutic areas, including psychiatry, anti-infectives, neurology, cardiology, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental, and nutrition.

In a recent development, Sun Pharmaceutical acquired 100% of Libra Merger Ltd, an Israeli company, further expanding its global presence and capabilities.

2. Cipla Limited

Cipla Limited

Cipla Limited, with MD & CEO Umang Vohra at the helm, is an Indian multinational pharmaceutical company based in Mumbai. Established in 1935 by Khwaja Abdul Ahmeid, Cipla operates in two key segments: Pharmaceuticals and New Ventures. The company focuses on developing medications for respiratory diseases, cardiovascular ailments, arthritis, diabetes, depression, and various other medical conditions.

With 47 manufacturing locations worldwide, Cipla markets its products in 86 countries, ranking as the third-largest drug producer in India. Cipla supplies active pharmaceutical ingredients to other manufacturers and offers a range of pharmaceutical and personal care products, including medications like escitalopram oxalate, lamivudine, and fluticasone propionate. Notably, Cipla is the world's largest manufacturer of antiretroviral drugs.

In response to the COVID-19 pandemic, Cipla introduced Gilead Sciences' Remdesivir as CIPREMI in India under a voluntary licensing agreement, following DCGI approval for emergency use in critically ill COVID-19 patients.

3. Divi’s Labs

Divi’s Labs

Divi's Laboratories Limited, led by CEO Dr Kiran Divi and headquartered in Hyderabad, is an Indian multinational pharmaceutical company specialising in the production of active pharmaceutical ingredients (APIs) and intermediates. The company manufactures and custom synthesises generic APIs and intermediates, and also supplies nutraceutical ingredients through its subsidiary, Divi's Nutraceuticals.

Ranked as India's third-largest publicly listed pharmaceutical company by market capitalisation, Divi's Laboratories is renowned for its expertise in API manufacturing and custom synthesis.

4. Dr Reddy's Laboratories

Dr Reddy's Laboratories

Dr Reddy's Laboratories is an Indian multinational pharmaceutical company headquartered in Hyderabad, founded by Kallam Anji Reddy, a former member of Indian Drugs and Pharmaceuticals Limited. The company manufactures and markets a diverse range of pharmaceuticals globally, producing over 190 medications and 60 active pharmaceutical ingredients (APIs) for drug manufacturing, along with diagnostic kits, critical care products, and biotechnology solutions.

Initially serving as a supplier to Indian drug manufacturers, Dr Reddy's soon expanded into exporting to less-regulated markets, which facilitated quicker market entry without extensive regulatory hurdles. By the early 1990s, the company leveraged its success in these markets to focus on gaining approval from stringent drug regulators like the US FDA and European authorities, enabling its entry into regulated markets.

By 2007, Dr Reddy’s had established seven FDA-approved plants for API production in India and seven facilities certified for manufacturing patient-ready medications, including five in India and two in the UK.

In a recent development, Dr Reddy’s Labs acquired MenoLabs from Amyris Inc., enhancing its women’s health and dietary supplements portfolio.

5. Zydus Lifesciences Limited

Zydus Lifesciences Limited

Founded in 1952 by Ramanbhai B. Patel and A. Modi, Zydus Lifesciences Limited, formerly Cadila Healthcare Limited, is an Indian multinational pharmaceutical company headquartered in Ahmedabad. Specialising in generic drug manufacturing, Zydus Life ranks 100th on the Fortune India 500 list as of 2020.

With twenty-five pharmaceutical production facilities across India, Zydus Cadila develops and manufactures a wide range of pharmaceuticals, diagnostics, herbal products, skincare items, and other over-the-counter products. Since late 2015, the company has been producing generic versions of hepatitis C treatment drugs like sofosbuvir (marketed as SoviHep) under a voluntary license agreement with Gilead.

Zydus Life also manufactures active pharmaceutical ingredients at four sites in India, including the Ankleshwar, Vadodara, and Ahmedabad plants.

6. Mankind Pharma

Mankind Pharma

Founded in 1995, Mankind Pharma specialises in various therapeutic areas, offering a range of products, including antibiotics, gastrointestinal, cardiovascular, dermal, and treatments for erectile dysfunction. In a commitment to advancing medical solutions, Mankind recently invested £1 million in Actimed Therapeutics, focusing on cancer cachexia, amyotrophic lateral sclerosis, and other muscle-wasting conditions.

In 2022, Mankind expanded its portfolio through strategic acquisitions, including the purchase of Panacea Biotec Pharma's domestic formulations brands in India and Nepal for ₹1,872 crore (US$230 million). The company also acquired respiratory and infant skincare products from Dr. Reddy's Laboratories and acquired a majority stake in Upakarma Ayurveda, specialising in Ayurvedic and herbal products.

Further diversifying its interests, Mankind ventured into agritech and pet care segments in 2022. In April 2023, the company launched its initial public offering (IPO), with existing investors selling shares worth ₹4,326 crore (US$540 million).

7. Torrent Pharmaceuticals Ltd

Torrent Pharmaceuticals Ltd

Torrent Pharmaceuticals Ltd, chaired by Samir Mehta and headquartered in Ahmedabad, is an Indian multinational pharmaceutical company within the Torrent Group. Originally known as Trinity Laboratories Ltd. and later rebranded as Torrent Pharmaceuticals Ltd., the company has achieved significant growth through strategic acquisitions and expansions.

Operating in over 40 countries with more than 2,000 product registrations worldwide, Torrent Pharmaceuticals focuses on therapeutic areas, including cardiovascular health , central nervous system disorders, gastrointestinal ailments, diabetology, anti-infectives, and pain management. The company also serves specialised segments such as nephrology, oncology, gynaecology, and paediatrics, demonstrating a comprehensive approach to healthcare solutions.

8. Lupin Limited

Lupin Limited

Lupin Limited, led by CEO Vinita D Gupta, is renowned globally as one of the largest generic pharmaceutical companies and ranks as India’s fifth-largest pharmaceutical company by revenue. Lupin's core focus areas include paediatrics, cardiovascular health, anti-infectives, diabetology, asthma, and anti-tuberculosis medications.

Founded in 1968 by Desh Bandhu Gupta, The company established its first manufacturing facility, producing folic acid and iron tablets for the Indian government's mother and child health program. Lupin later became a significant player in anti-tuberculosis (TB) drugs, at one point accounting for 36% of global TB drug sales.

In 1988, Gupta founded the Lupin Human Welfare & Research Foundation (LHWRF) as the group's CSR initiative, focusing on sustainable rural development to uplift families below the poverty line. Lupin also played a pivotal role in industry collaborations, joining the Indian Pharmaceutical Alliance in 1999 as a founding member.

In 2015, Lupin announced a significant acquisition of Gavis Pharmaceuticals and Novel Laboratories for $880 million, expanding its global footprint. The passing of founder Desh Bandhu Gupta in 2017 led to his wife, Manju Deshbandhu Gupta, taking over as chairman.

9. Aurobindo Pharma Limited

Aurobindo Pharma Limited

Aurobindo Pharma Limited, led by CEO Dr. Sanjay Chaturvedi, is a prominent Indian multinational pharmaceutical manufacturing company headquartered in HITEC City, Hyderabad, India. The company specialises in the production of generic pharmaceuticals and active pharmaceutical ingredients (APIs), with a focus on six major therapeutic areas: antibiotics, antiretrovirals, cardiovascular products, central nervous system products, gastroenterological, and anti-allergics. Aurobindo Pharma markets its products in over 125 countries, collaborating with renowned partners such as AstraZeneca and Pfizer.

Founded in 1986 by Penaka Venkata Ramprasad Reddy and Kambam Nithyananda Reddy, Aurobindo Pharma has emerged as one of India's leading pharmaceutical companies. Noteworthy achievements include a recent USFDA approval for its subsidiary's Posaconazole Injection, a significant milestone in preventing severe fungal infections.

10. Alkem Laboratories Limited

Alkem Laboratories Limited

Alkem Laboratories Limited, headed by CEO Dr. Vikas Gupta, is a leading Indian multinational pharmaceutical company headquartered in Mumbai. Specialising in pharmaceutical generics, formulations, and nutraceuticals, Alkem operates globally while maintaining a strong presence in the Indian market.

Established in 2003, Alkem's research and development facility at Taloja focuses on developing Abbreviated New Drug Applications (ANDAs). Notably, in 2006, Alkem's anti-infective drug Taxim achieved a significant milestone by surpassing 1,000 million in domestic sales, a first in the Indian pharmaceutical industry. Additionally, Clavam, another Alkem product, exceeded the 2,000 million mark in domestic sales in 2014.

In 2007, Alkem filed its first ANDA for Amlodipine, receiving approval in 2009. The company boasts a portfolio of 705 branded generic drugs, with 13 brands among India's top 300 for fiscal year 2015. Alkem operates 21 manufacturing facilities—19 in India and 2 in the US—five of which are approved by the US FDA, TGA, and UK MHRA, reflecting the company's commitment to quality and global standards.

In conclusion, the top 10 pharmaceutical companies in India highlighted in this article represent the pinnacle of innovation and excellence in the healthcare industry. Their contributions range from manufacturing essential generic drugs to developing cutting-edge treatments for a wide spectrum of medical conditions. These companies continue to drive progress in pharmaceutical research, ensuring access to quality medications and promoting better health outcomes for individuals around the world. As leaders in the field, they set benchmarks for the industry and reinforce India's position as a key player in the global pharmaceutical landscape.

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Reporting by Rishika Sadam; Additional reporting by Kashish Tandon; Editing by Dhanya Skariachan and Savio D'Souza

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Binance must face bulk of US SEC crypto lawsuit, judge rules

A federal judge ruled late Friday that the majority of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance, the world's largest cryptocurrency exchange, can proceed.

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Wockhardt’s investigational antibiotic shows significant effectiveness in global Phase 3 trials

The antibiotic zaynich, a combination of zidebactam and cefepime designed to combat superbugs, the toughest resistant pathogens, is currently undergoing global phase 3 clinical trials.

• Updated Jun 28, 2024, 6:06 PM IST

Wockhardt announced significant advancements with its new antibiotic ZAYNICH (WCK 5222) on Friday, highlighting its unique status as the first new chemical entity (NCE) in the antibiotic domain in five decades. 

An NCE is a new drug compound that includes a novel active ingredient not previously approved by any regulatory agency worldwide. It undergoes extensive testing to assess its safety, efficacy, and unique therapeutic potential.

The antibiotic ZAYNICH, a combination of Zidebactam and Cefepime designed to combat superbugs, which are the toughest resistant pathogens, is currently undergoing global Phase 3 clinical trials. Administered under compassionate use provisions, ZAYNICH has shown significant success, the company said.  “ZAYNICH is an entirely new chemical entity (NCE), a proprietary antibiotic discovered in the last 50 years. We recorded 100% success, saving the lives of all the recipients,” said Dr. Habil Khorakiwala, Founder Chairman of Wockhardt.  

One significant case involved a young cancer patient at the University of California Irvine School of Medicinem, USA. This patient, resistant to other antibiotics, responded positively to ZAYNICH within four weeks, the company said in a statement. “In four weeks after the administration of ZAYNICH, the patient responded and was infection-free, with complete healing of wounds,” said Dr Khorakiwala adding that this success allowed the patient to resume chemotherapy.

Wockhardt anticipates the completion of ZAYNICH’s global Phase 3 clinical trials by FY25, with regulatory approvals and a worldwide launch expected by FY26. “We have decided to market ZAYNICH in India and emerging markets and licence it for the US, Europe, and developed countries to one of the global pharmaceutical companies,” explained Dr Khorakiwala.

Regarding the research and development process, ZAYNICH has received a susceptibility breakpoint of 64 mg/L from the Clinical & Laboratory Standards Institute (CLSI) in the USA, the highest ever granted. This indicates its effectiveness against a wide range of resistant Gram-negative pathogens. “Over the last 100 years, no drug has received such a high breakpoint,” Dr Khorakiwala highlighted.

In terms of market strategy, Wockhardt is conducting a short clinical trial in India and expects to be in the market within a year. These antibiotics are priced around £50,000 for a 10-day treatment in western markets. In India, the company plans to offer it at an 80-85% discount. “In India, there are about 750,000 patients with extreme drug resistance annually. We expect to capture 5-10% of this market in the first year,” Dr Khorakiwala noted.

Globally, Wockhardt plans to market ZAYNICH in emerging markets and out-licence it for developed markets. “We have invested around £500 million over 25 years in this project. In the US, the market potential includes about 500,000 patients, with Europe adding another 700,000. Treatment costs around £15,000 for a 7-10 day course, indicating significant market potential,” Dr Khorakiwala elaborated.

The company will handle business and marketing internally for emerging markets. “We will develop our own business organisation for emerging markets,” Dr Khorakiwala stated.

The impact on antibiotic resistance is promising, with ZAYNICH showing a 100% success rate in 30 patients under compassionate use, all of whom were resistant to other antibiotics, the company said in a statement. “ZAYNICH had a 100% success rate, indicating its potential to save many lives once widely available,” Dr Khorakiwala stated.

The first clinical study will conclude by the end of this year. Wockhardt aims to file for US FDA approval and hopes to launch in the Indian market within a year, Dr Khorakiwala said. Wockhardt is also focusing on developing new antibiotics and diabetic products for emerging markets. Their portfolio includes EMROK and EMROK O, the first India-patented antibiotics in over 30 years, and MIQNAF (WCK 4873), a treatment for community-acquired bacterial pneumonia with a 97% success rate. “Our new product pipeline will ensure significant penetration in the emerging markets, which have very limited players,” Dr Khorakiwala said.

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