How to start wholesale business of medicine in India ?
How to start a wholesale business of medicine in India?
Startup guide –1 !!!!
As one of the highly emerging and fastest growing industrial sector in India, Pharmaceutical Industry provides ample business opportunities to choose from. After manufacturing, medicines should be reached to the needy patients in possible short duration and to do so distribution/supply chain plays a very potent role.
Pharmacy, Chemist shop, Stockist, Distributor, caring & forwarding (C&F) agent and etc. are related to the distribution chain. To get engaged in Pharmaceutical distribution, sale, purchase, and retail, one should have drug license number. Without drug license number any type of sale, purchase, and distribution is prohibited under Drug and Cosmetic act and can be considered a punishable crime.
Wholesale/stockist/ Distributor/ Caring & Forwarding (C&F) license
Here, we have tried to provide a simple explanation of the procedure to get the wholesale license. First of all, have a basic understanding of wholesale business. It covers Caring and forwarding (C&F) agent, stockiest and Distributors.
C&F (Carrying and Forwarding Agents): C&F agents require wholesale drug license number before starting the business. They purchase medicine, drugs, and related products directly from the company and sell these to wholesalers or stockists. They work at a large level.
Pharmaceutical Stockiest and Distributors: Pharma stockists and distributors purchase goods from C&F or companies, and sell it to pharmacies and chemists. They do business to business type of work. They charge particular margin in medicines. They require wholesale drug license number to carry out their work. Most stockist and distributors also have GST number because they may also do inter-state business also.
The wholesale business start-up is abbreviated below:
- Search for a premises/shop/plant.
- Make a rent agreement (In case you don’t have own arrangement).
- Contact pharmaceutical companies or C&F for Stockist ship or Distributorship
- Complete deal with Pharmaceutical Company or C&F.
- Purchase office accessories like Furniture, computer, Freeze etc.
- Apply for wholesale drug license to district drug control office and Sale Tax number
- Drug Inspector or Concern person will personally visit premises. If he/she finds your premise meets the regulatory requirements, he/she will approve your application for isa suing license.
- After some time you will receive your drug license copy and number
- Start purchasing, stocking and invoicing drug and medicines to retailers and pharmacies
Detailed procedure to apply for wholesale drug license for selling and distribution of allopathic drugs is as follows:
The application should be submitted to district drug inspector/drug selling authority office in prescribed form 19 with other information forms.
- Area of premises should be minimum of 10 sq. meter (15 sq. meter for wholesale plus retail), with minimum 8’2″ height.
- Premises should be brick built, plastered floor cemented.
- An application has to be submitted in Form no.19 with addition information form
- Experienced person’s (EP) certificate or pharmacist’s registration certificate or appointment letter of the competent person
- Fees of Rs. 3000/- ( For biological & Non-Biological)
- Address proof
- Ownership proof or Rent agreement in case of rented premises
- Photocopy of refrigerator purchase bill with complete address
- Academic qualification certificate photocopy
- Date of birth certificate photocopy
- Affidavit of EP/competent person
- Partnership deed, in case of partnership firm
- In case of private registration firm, registration firm receipt copy and list of directors with address proof, Memorandum of an article of association etc.
- Affidavit of proprietor/partners/directors
- Blueprint/layout plan of premises with signature in 3 copies
- Adequate storage facilities required including cupboards with glass doors, racks, pallets, refrigerator etc.
Requirement/qualification for experience person certificate/competent person for wholesale drug license
- Registered pharmacist under state pharmacy council
- Minimum one-year experience as a salesman in registered drug licensed Firm after graduation or
- Minimum four-year experience as a salesman in registered drug licensed Firm after senior secondary examination
If all documents and requirements are complete & accurate, drug department will issue wholesale drug license number in Form 20B and 21B, otherwise, it will reject your application or send it correction/amendments in documents or premises. After receiving drug license number, you can start sale, purchase, and distribution of medicines, drugs and related products & services. You may require additional registration for Food and Dietary supplements under FSSAI.
The scope of Wholesale Drug License includes following:
- Generic Medicine Distribution
- Ethical/Branded Medicine Distribution
- Over the Counter Medicine Distribution
- PCD Pharma Franchise Distribution
- Institutional sale and Supply
- Hospital Supply
- Pharma Distribution Company
- Medical/surgical/health supplement distributors
- Ayurvedic/Homopathic/Unani medicine distribution
- Supply to Pharmacy Chains
- Documentation and License: approximately 20,000 to 25,000 INR.
- Furniture: Approximately 20,000 INR
- Rent of premises
- Medicine and Drugs: Depends on your purchase