Though it is difficult to tell the exact investment required to set up a pharma franchise company in India, an indicative estimation can be given. The actual costs may vary depending on the circumstances which you should get confirmed. For example, there is a gestation period of 6 months to one year when the business gets established. The more this period extends, the higher is the establishment cost.
Also, there are several expense heads involved in the process. Cost of licensing, application charges, documentation, property acquisition, compliance and so on.
- Property acquisition cost: It depends on the place where the franchise setup is being established. It could be a purchased property or a leased one.
- Drug license expenditure: It is roughly five to ten thousand rupees. It is the fees charged for allotting the drug license.
- Power bills: It is one of the recurring expenses. However, you will need provision for the connection establishment costs which is a one-time expense. It is around ten thousand to twenty thousand.
- Salary and wages for the staff: Again, it is a recurring cost. Typically, you need five to ten people in the franchise setup, and with an average salary of twenty thousand, you need one to two lakh rupees.
- Expenses for expert physicians and doctors: You may need the services of expert physicians or doctors. Estimated expenses are fifty thousand rupees per month.
- Medical representatives: You will require a fleet of medical representatives who will convince doctors. The salary structure of medical representatives ranges between 20 thousand rupees to 50 thousand rupees.
- FSSAI Registration: The pharma franchise must be mandatorily registered with Food Safety and Standardization Authority of India. The cost is minimal; 100 rupees annually.
- Keep some sizable chunk of money for marketing and promotional activities. You need to promote the business initially extensively, and later moderately.
- If you are registering the company as Private Limited, then registration charges are required. Estimated amount is 10000 to 15000.
- In case you need a warehouse, then rent as per locality.
- TIN Number and GST registration which are critically important when you start franchise business. Though it is not a costly affair, you should keep it in mind.
- For Trademark, estimated amount is 5000 rupees per product which includes charges for registration, and fees of the attorney.
As mentioned earlier, these are indicative and approximate prices. You should consult appropriate authorities to get the exact amount.
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