How much does a pharmacy franchise cost?

How much does a pharmacy franchise cost?

A potential business opportunity in India is to establish a pharmacy franchise, considering the increasing need for medical goods and services.

It’s critical to figure out the expenditure structure and how these charges contribute to the establishment of a profitable pharmacy for those wishing to invest.

This blog will offer an analysis of the expenses related to opening a pharmacy franchise between 2 lakh and 5 lakh INR, as seen from Dr Best point of view.

1. Franchise Cost

A major part of the money invested goes into the starting franchise cost. You can use the franchisor’s business concept, operating methods, and brand name with this charge.

  • Expense estimate: 1.5 lakh to 2 lakh INR

2. Store Property Rent and Deposits

It’s critical to find your pharmacy an appropriate location. The site and scope of the business will determine rental rates and security deposit amounts.

  • Rent per month: INR 20,000 to INR 50,000
  • Security Deposit: 1 lakh to 1.5 lakh INR (usually 3-6 months’ rent)

3. Furnishing and Setting Up Interiors

Organizing your pharmacy’s interior includes setting up counters, cabinets, storing drawers, and client seats. An organized setup guarantees effective use of available space and a polished appearance.

  • Interior Installation: INR 50,000-1 Lakh

4. Supply and Commodities

First, you’ll require additional stock on a variety of over-the-counter drugs, pharmaceuticals, and basic medical supplies. Managing a healthy inventory is essential to satisfying client demands.

  • First Inventory: INR 50,000 to INR 1 lakh

5. Certification and Licencing

It is essential to have the licenses and permits needed in order to run a pharmacy. This covers the GST registration, the drug license, and any additional local approvals.

  • Licensing and Registration: 10,000 to 20,000 INR

6. Employee Salaries:

For your pharmacy to run well, you must hire certified pharmacists alongside assistance staff. The abilities and qualifications of the staff will determine their pay.

  • Salary Range: 20,000 to 40,000 INR per month (for 1-2 staff at first)

7. Costs of Marketing and Promotion

Investing in marketing initiatives like banners, flyers, online advertising, and local ads is necessary to get people to your new pharmacy.

  • Advertising and Promotion: 20,000 to 30,000 INR

8. Additional Expenses

Service fees (for internet, water, and power), inventory management and billing software, and unexpected setup-related expenditures are possible additional costs.

  • Additional Expenses: between 20,000 and 30,000 INR

Overall Approximated Cost Distribution

The expected expenses of launching a pharmacy franchise within the budget range of 2 lakh to 5 lakh INR are broken down as follows:

  • Franchise Cost: 1.5 lakh to 2 lakh INR
  • Store Property Rent and Deposits: 1.2 lakh to 2 lakh INR (includes 3 months’ rent as deposit)
  • Furnishing and Setting Up Interiors: 50,000 to 1 lakh INR
  • Supply and Commodities: 50,000 to 1 lakh INR
  • Certification and Licencing: 10,000 to 20,000 INR
  • Employee Salaries: 20,000 to 40,000 INR
  • Costs of Marketing and Promotion: 20,000 to 30,000 INR
  • Additional Expenses: 20,000 to 30,000 INR

In summary

It is possible to launch a pharmacy franchise in India anywhere between 2 and 5 lakh INR with appropriate planning and administration.

Through knowledge of the expense breakdown and careful use of funds, you can create an effective pharmacy that responds to the medical requirements of your neighbourhood.

To achieve a profitable and uncomplicated business venture, Dr Best advises potential franchisees to undertake detailed research and consult with experts.

See Dr Best and take use of our resources specifically designed for the Indian market for additional detailed direction and professional help on opening a pharmacy franchise.

Frequently Asked Questions

Q1 Is a pharmacy franchise profitable?
Given the country’s expanding population, rising rates of chronic illness, and growing need for healthcare items, a pharmacy franchise can really be profitable in India. Profitability is due to a well-managed company strategy, assistance from the franchisor, and proven brand recognition. Success, however, is dependent on a number of variables, including location, efficient management, and maintenance of an adequate inventory.

Q2 How much money is needed to open a pharmacy?
In India, the average investment required to start a pharmacy is between 3 and 5 lakh INR. The franchise agreement cost, the cost of rent, interior setup, first supplies, licencing, employee pay, marketing, and other additional expenses are all included in this budget.

Q3 How profitable is a pharmacy business?
India’s pharmacy industry is highly profitable because of the country’s growing healthcare awareness, continuous customer base, and strong demand for pharmaceuticals and medical supplies. Profit margins normally vary from 20% to 30% based on factors including management, place of residence, and operational effectiveness.

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