How Much Investment is Required to Start Pharmaceutical Company?

Most of person has issue of investment. 98 Out of 100 person who think to start own business face investment problem. Investment and money is most important prospect for starting any type of business. We receive number of queries related to investment problem, so we decided to update this article to provide more accurate information about money you need to start own marketing company. We are not economist but will try to provide best possible as per our experience. Same could be applicable at wholesale and distribution of pharmaceutical products.

We can Divide investment in three parts.

  • Initial Investment 
  • Second investment in second batch to prevent shortage of products 
  • Emergency money 

You could need double of your initial investment as reserve money for smooth running of your company in initial stage. You have to invest in market, doctors and products. You have to get manufactured your products at advance payment and have to provide credit to chemist and stockist. You will also have to invest at promotion and marketing. Calculate all your budget accordingly. Once you have invested, you have to invest at regularly basis until your company has started to earn enough to pay all its expenses and your salary.

Documentation/licensing fee expenses is one time investment. We are not including it in above mentioned three parts. This could require investment as below.
For Marketing Company:

You can prevent trade name registration and private limited company registration fee in starting for deducting your investment. Consider approximately minimum of thirty thousand rupees (Most probably more), you will have to invest at documentation and licenses.

Now come to monthly expenses. Rent of Premises, Electricity bill, office expenses and other miscellaneous expenses depend at location and area. Some expenses like accountant/CA fee, quarterly sale tax return etc also will be added in your expenses. As average you can consider it five to six thousand per month or may be more. Prepare your budget after writing all these in your diary.

Above expenses you have to bear without involving in single product launching. More than fifty thousand rupees will be invested in only preparation of your pharma business.

Now come to main work. Design of logo, company profile, product card, reminder card, catch cover, writing pads etc. Designing charges may vary printer to printer but most of printers do designing free of cost if you are printing all material from them. Above 20 page visual will cost approximate 750/- per piece. Product card cost will depend at size and pages. You can consider it at 5/- per piece and suppose quantity is 1000 pieces. Digital printers can provide less quantity as compare to offset printers but rate may be high. For visual aids, product cards and reminder cards, you can choose digital printing in starting because digital printer can give one or two piece of detailing visual aids and hundred pieces of products cards & reminder cards. It will reduce your over all investment.

After art work, lets talk about third party manufacturing procedure. We have build a separate website with complete information about third party manufacturing and investment. Read complete about third party manufacturing here. You can also read here about- how much you have to invest in third party manufacturing of your products?

You must read : Investment at Packing material of Each Dosage form also to prepare your complete budget.

We are also mentioning few queries related to Investment here for more elaboration. Hope you will get some help for these queries:

Query 1: Myself is Doctor working in a reputed medical college. My wife is a gynaecologist and she is in private sector. We want to start a pharma business of our own. What we want is that want to have product packaging from raputed company and sell in our name.Please guide us in following points. .
Starting budget 12 to 15 lakhs. Is it adequate?
Do we have to form a company to do that
Where do we get quality manufacturer because we don’t want to comprise quality.
Please advice.

Response:You want to start pharma business and sell products from your name then you should prefer to start your own Pharma marketing company. If you want to start only pharma business then you have many options to start. We discuss about point to point in this matter:
Your first point is
1. Starting budget 12 to 15 lac. Is it adequate? Starting budget depend upon number and type of products you want to get manufactured. Few products are costlier and few are cheaper in rates. The molecules or salt you want in your product list will effect your budget. For example, You are starting with 26 products and products are A, B, C etc. Your budget are depend upon rates of A to Z products. If your products are costlier like Cefixime, Cefpodoxime, Cefuroxime , levofloxacin, Azithromycin etc then chances are you have to invest good amount. If you start with vitamins, ferrous combinations, nimusulide, paracetamol, ofloxacin etc then budget will be less. Above molecules are example purpose only, costing of products can depend upon circumstances. 12 to 15 lakhs is sufficient amount if you invest it wisely. We have seen person to start their own marketing company with amount as less as 1 Lakh. You can start your company from 1 products or you can start with above 100 products or as number you want. We advise to start with less number of products and add new products gradually. Starting with 5 to 10 products will not require above 3 lakh investment. But investment depend upon your products selection. Mail us your product selection then we can send you estimated budget you will required to start.
2. Do we have to form a company to do that?To work with your company name, you have to start your own marketing company. Read Procedure by clicking following link: How to start your own pharma marketing company
Other ways, you can start pharma business or pharma marketing by ways like…
Taking franchise and marketing right for particular area of any pharma company, Distribution of pharma company etc. But with investment of 12 to 15 lakhs, you can start with your own pharma marketing company.
3. Where do we get quality manufacturer because we don’t want to comprise quality?Searching for Quality manufacturer is difficult task but you can find good quality manufacturer easily. You are doctor and prescribe medicines. You better know which product is good in quality and efficacy. Products which you are prescribing will have manufacturer address. Even multinational companies like pfizer, lupin, cadila, sun pharma, unichem, cipla are also get manufactured their products at third party or loan license basis. See the address of manufacturer on strip or box, you trust the most. You will easily find quality manufacturer address. Search for that manufacturer at internet and will get contact number easily.Contact them and ask them to manufacture your products.

Query 2:Estimate Budget for Pharmaceutical Marketing Company!!!

Query 3:How much cost required to set-up pharma marketing company office?

Query 4:I want to start my own pharma company with multivitamin, iron and calcium. Please send me the budget.

Query 5:How much cost required to set-up pharma marketing company office?

Query 6:What will be budget for pharma company, please guide us !!!

You will also need to find out price to retailer/price to stockist read here…

Hope you have found it useful…..

For any query and suggestion mail us at pharmafranchiseehelp@gmail.com

24 Replies to “How Much Investment is Required to Start Pharmaceutical Company?”

  1. HI WE ARE —— LABS LTD.,A PHARMA MANUFACTURING COMPANY THAT IS SITUATED IN KALA-AMB IN HIMACHAL PRADESH.WE ARE GIVING FRANCHISES IN ALL OVER INDIA FOR GENERIC RANGE OF PRODUCTS .OUR COMPANY IS A GMP AND ISO CERTIFIED COMPANY PROVIDING OVER 150 PRODUCTS .WE WELCOME ALL THE PERSON WHO ARE INTERESTED TO START PHARMA FRANCHISE IN ALL INDIA .WE PROVIDE YOU HELP AT EVERY STEP TO START A PHARMA FRANCHISEE .SO IF YOU ARE INTERESTED TO JOIN THEN PLEASE CONTACT ON BELOW MENTION CONTACT:

  2. Dear sir, i want to start pharma marketing company at delhi. please guide me all necessary document, process and capital required. please also help me regarding scope in pharma industry. please help. Thank you

  3. Business is started by two ways:
    1. You have enough money to invest in it
    or
    2. You have good idea to start and you could find investor for investing in your business.

    As you discussed, you don't have money as well as space for starting pharma industry but you will need both of things to start. You can choose second option to proceed further. For proceeding further, you should have capacity to convince investors to invest in your industry…

  4. First Apply for drug license number and Sale Tax Number.
    6 to 7 lac amount is good for pharma marketing having 10 to 15 products.
    Choose some cheap products and some costlier products.
    Send quotation to pharma manufacturing companies for rates of your selected products and calculate your investment as per these rates.

  5. Sir I want to start a pharmaceutical marketing company. We r two people. Sir i want to start a pharmaceutical marketing company based in West Bengal. What documents require for star a LLP pharmaceutical company.

  6. I am very Glad to about your blogs regarding PHARMA. All query are answer and feedback given by your side spontaneously. I am — working in india's top 2 pharmaceutical company as production officer but I really feel to start our own business in pharma marketing or pharma manufacturing due to low budget I want to your opinion for start up. Please provide me your contact no. For your valuable guidance.

  7. Sir I'm kalai from Chennai ,I'm working as business executive in pvt company . I have very good relationship with my area doctor.so I'm willing to start a pharma company With very very low amount of investment . I need one brand with that brand I want to start a company. So can u guide me that what I want to do and how to do . Sir this is my maid I'd —— eagerly waiting for ur response thank you

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