Difference between Third Party Manufacturing And Contract Manufacturing.

Query:
This is ———– from Gorakhpur, Uttar Pradesh, I read your pages, Its very helpful for every one who want to start.
Dear Sir actually I also want to start a my own pharma marketing company with four brands. I have contacted to some manufacturer for product. But I am not aware with the required things which is mandatory to start a pharma marketing company.
Their is lots of question in my mind which not only disturbing me also it creating a big confusion in my mind.
1- A big question is that what is main difference between Third Party Manufacturing & Contract Manufacturing.
2- If I have to start a marketing company so to whom should I choose (Third Party Manufacturing Or Contract Manufacturing)
3- Is it necessary to register a company before starting a marketing base company
if yes so what should i do first.
4- If i am starting with four product should i register my brand name (patient copy).
5- Which types of license is required to start a marketing company.

It is extremely request to you Please help me for these question.

Response:
1. Difference Between Third Party manufacturer and Contract Manufacture : Practically there is no major difference in both terms. These could be used for in place of each other. There is theoretical difference in both terminology.

Third Party Manufacturing term is used when a company get manufactured product with own brand name at a particular quantity timely from a manufacturing company e.g. 1000 box order as one time requirement.
Whereas
Contract Manufacturing term is used when a company get manufactured product its own brands and make a contract with manufacturing company for supplying a particular quantity of its brand at regular basis e.g. 10000 boxes per month basis or 100000 boxes in a year or 1000 boxes per week like this.

In third party manufacturing, there is no time compulsion to deliver the goods whereas contract manufacturing has delivery time compulsion.
Mostly small companies work at the basis of third party manufacturing whereas medium size and big companies work at contract manufacturing basis.

Related: Difference between Third Party manufacturing and Loan License manufacturing

2. Third Party Manufacturing will be better option for you. Read in detail about Third Party manufacturing here

3. You need to register your company. Read how to register company by clicking here

4. If you have enough budget then you go for trade mark registration in starting. otherwise you can register your brand name later.

5. For starting Pharma marketing company, you will require:

Hope above information is helpful to you…

For any correction, error, comment, query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to start Medicines Distribution Business in South Africa?

Query:
We have registered a Company in Pretoria and we are planning to distribute the Pharmaceutical products, but we do not have a license and qualification to to that business, How can we ensure that we grow in that field with no overseas based investors and grow our economy.

Response:

In every country there is different things required to start a pharmaceutical company but nearly every country require a drug license to start any type of Pharma Business. In South Africa, you will also need a drug license to distribute medicines under your company name. You need to visit your local drug authorities to collect all details about starting drug distribution. They will help you and will provide you all basic knowledge and details of licenses, qualification and registration, you will require to start you drug distribution business in South Africa.

Here we are explaining brief information about starting Pharmaceutical Distribution company in South Africa.

For import, export, distribution and manufacturing any medicine in South Africa, registration of that particular medicine is must. You have to register medicine you want to market and distribute in South Africa at Registrar of Medicines Control Council. After registration of medicine, you have to apply for distribution License to Council.

Steps before Starting Medicine Business:

  • Apply to the Council for a licence to act as wholesaler or distribute medicines, Scheduled substances or medical devices.
  • Appointment of a pharmacist who will control distribution of medicines and related substances
  • Appointment of an authorized person who resides in the Republic and responsible for all activity related to licensing procedure and interaction with council

Procedure for applying for Medicines Distribution License:

  1. Applicant has to submit application to registrar on a prescribed form provided by council
  2. Registrar will issue a written notice to applicant regarding documents to be submitted to council for granting license to distribute medicine and related substances in reasonable time.
  3. Council will inspect the business premises specified in application
  4. If the council is satisfied with all requirements and arrangement, council will issue license to applicant for distribution of medicines and related substances.

Documents Required:

  • Documents related to Business Ownership
  • Registration of the responsible Pharmacist
  • Qualification certificates of staff responsible to distribute and sell medicines and related substances
  • Copy of Local Area Plan of location of the Business
  • Floor plan of building in which business is situated
  • Blue print of Building and Premises
  • Site Master File indicating procedures and practices to be implemented to ensure the safety, efficacy and quality of medicines and related substances
  • List of medicines and related substances to be distributed
  • Application and Inspection Fee Receipt

Growing in any field depend on many circumstances like experience in field, knowledge of field, dedicated, learning skills, approach toward work and many more. Not all time, businesses require overseas investors, you should have capability, you will not need any outsider investor to grow your business..

Hope above information is helpful to you….

Related Article: List of pharmaceutical companies in South Africa

Which type of marketing is best in Pharma Sector?

Query:
I have started the marketing firm as I got whole sale licence and GST , I have launched 8 products with our brand name .I am bit confused what type of marketing we have to do for that.and what are the margins to be fixed,

Response:

As we all know most commonly used marketing types in pharmaceutical sector is:

You can choose either one of above. Below check the drawbacks and advantages of each marketing types in our article:
What are the pro and cons of ethical/generic/pcd-franchise marketing?

Margin should be fixed according to your expenses, loans, costing and investment etc.
Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Do Ayurvedic Products require any license to sell at own Clinic?

Query:
I am a BDS doctor, I want to sell ayurvedic drugs from my clinic do I need any licence or any Pan card etc.. How much investment required for PCD marketing company.

Response:

For selling Ayurvedic Products at your clinic, you will not require any drug license…
Investment to start pcd marketing company depend at number of products you launch

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

Related Articles:

Impact of GST: Ayurveda could Overtake Cosmetic Industry

Tax rates under GST has been disclosed and every where there is discussion about Goods and Service Tax(GST). Everyone is calculating pro and cons of GST at its sector. We have discussed about GST Rates at pharmaceutical sector in our previous article: GST Rates for Pharmaceutical Products and What will be the impact of GST (Goods and Service Tax ) at pharmaceutical and Ayurvedic sector.
In this article, we are going to discuss about Ayurvedic Cosmetics products Vs Cosmetic Products Vs Derma Cosmetic Products.At present there are three type of Cosmetic Products available in Market:

If you are confused why we are talking about Medicated cosmetic preparation, Ayurvedic Cosmetic and Other cosmetic products. Then there is a big reason behind it. We are discussing it because of Goods and Service Tax rates on these products. Dermatological products will come under 12% tax rate, same for cosmetic products under Ayurvedic proprietary but for cosmetic products (including cosmetics come under herbal tag) GST will be 28%. That makes the difference.
There is 16% tax difference if a products is manufactured under cosmetic category rather than derma category and Ayurvedic Category. High tax rates means, simple cosmetic products will be costlier as compare to Ayurvedic Cosmetics. 

 

Related Post: How to File Goods and Service Tax (GST) Return?

Now question arise, how can we differentiate between above three types of Cosmetic Preparations. There are three types of cosmetic products present in market as mentioned above. 

 

Natural Spa Treatment

 

Derma Cosmetic products are the cosmetic preparations that are manufactured under pharmaceutical manufacturing license. These are medicated preparation and used for any of prescribed indications. Some derma products are promoted as OTC and sell out without prescription of registered medical Practitioner. Derma Preparation will have 12% tax under GST structure.


Ayurvedic Cosmetic Products are the cosmetic preparations that are manufactured under Ayurvedic manufacturing License. These products bears tag of Ayurvedic Medicines. Ayurvedic Preparation will have 12% tax under GST structure. 


Cosmetic Products are the preparations that are manufactured under purely Cosmetic manufacturing license. Cosmetic Products will have 28% tax under GST structure.

First two preparations has 12% tax whereas third one has 28% tax. This makes huge difference in this category. First one is medicated and can’t give much competition in wellness segment but Ayurvedic cosmetic products have been started capturing share in health, wellness and beauty section. It will make further expansion by providing cheaper products as compare to simple cosmetic products. As demand of Ayurvedic Cosmetic products is increasing, lower tax structure as compare to simple cosmetic cosmetic preparation will provide more benefits to Ayurvedic cosmetics.

Products containing herbal label will also attract 28% tax if it is not an Ayurvedic Preparation. Ayurvedic Cosmetic products are going to be more cheaper as compare to simple cosmetic products (including herbal cosmetic products).

We will highly appreciate your views and comments on this matter…

List of Transports, Couriers, Logistic and Cargo Services

Receiving and Dispatching are two most important aspect of any business. In initial stage of any business, person face a major problem and that’s related to transportation of goods. Here we are providing detail of couriers and transports based upon our knowledge and experience. We are not categorizing best or worst in list. We are not comparing any transport or courier service.  Our purpose is only to provide information, so you get right knowledge in initial period of your business. Other than courier, transport, logistic and cargo listed below may be available nearby. May they be better than listed below. You always should be careful while selecting transportation service.

 

types of transport of transporting are loads.

Courier Services:

DTDC : DTDC is one of the preferred courier service for small/medium scale companies in pharmaceutical/Ayurvedic sector. Having good presence in pan India level and reasonable rates make it a head from other courier services in Pharmaceutical and Ayurvedic Sector. Tracking Facility is available at company website. With tracking facility courier could be tracked at every level. We have used DTDC courier to send courier in South Indian regions, Western Indian regions and other Regions.

First Flight Courier: When we have urgency to send any courier at fastest service as possible. We try First flight in that case. Vast network through out India and Tracking facility available at courier website. We have used First flight to send courier to Karnataka and Andhra Pradesh Regions.
Blue Dart

Professional Courier : Professional courier is mostly used to send material to south India Regions. In north, Network of professional courier is also good but not of such level as it in south India.

Overnite Express Limited: Overnite express limited also has vast network through India. For north east states, Overnite courier provide best services. We have used Overnite to send material to North East States Regions. Tracking facility is available at courier website.

Trackon Courier: Trackon courier is also well known courier in Ayurvedic and Pharma sector. Tracking facility is available at courier website. We have used Trackon courier to send material to Bihar, Madhya Pradesh, Punjab, Himachal Pradesh, Haryana, Uttar Pradesh, Maharashtra etc.

Madhur Courier: We have used Madhur courier to send courier to Uttar Pradesh, Bihar and Jarkhand regions.

FedEx DHL, TNT Express are few more couriers that have great reputation in market but we didn’t work with them with no reasons. These also can help you to deliver courier to destinations.

Other than these there may be many local, nation and international courier service provider available nearby.

Transport/Logistic/Cargo Services:

VRL Logistics Ltd: VRL was founded in 1976 by DR. Vijay Sankeshwar in Gadag, a small town in North Karnataka having its corporate office in Hubli (Karnataka). VRL logistic is one of the favorite logistic and transport used by pharmaceutical/Ayurvedic companies to deliver goods to the destinations specially in Southern Parts of India. Tracking Facility and reasonable rates makes it main choice among pharmaceutical/ayurvedic companies. We have used VRL logistic to send material to Maharashtra, Tamilnadu, Kerala, Andhra Pradesh, Himachal Pradesh and Gujarat regions.

Safexpress: Safexpress is one of the best cargo service for pharmaceutical and Ayurvedic Products. Door delivery is main strength of Safexpress. Prices could be somewhat higher as compare to other transport but timely delivery may overcome this reason. Consignment tracking facility is available at safexpress website. We have used Safexpress to send material to Karnataka, Andhra Pradesh, UP, Kerala, Gujarat, Manipur regions.

TCI Freight: TCI freight is a division of Transport Corporation of India group. It is cost effective way to all over India.  Consignment tracking is available at transport website. Time consuming delivery may cause some problem but it is one of the most trusted brand in transportation. We have used TCI Freight for Karnataka region.

TCI Express (Formerly TCI XPS) : TCI express is also a division of Transport Corporation of India group. TCI express is fast and costly service of TCI but timely door delivery may be one reason to send through TCI Express. Consignment tracking is available at transport website. We have used TCI XPS for Tamil Nadu regions.

Gati Limited : Gati, founded in 1989 having corporate office in Hyderabad. Gati has an extensive network across India providing timely deliveries to 19000 pincodes, covering 672 out of 676 districts in India.Consignment tracking is available at transport website. We have used Gati for Karnataka and Manipur regions.

Nitco Logistics : Nitco Logistics Pvt. Ltd. was founded in 1964. Nitco has wide network thorugh out India and have good reputation too. Consignment tracking is available at transport website. We have used Nitco for UP, Jammu and Kasmir regions.

Spoton : It is Door Pickup and delivery transport service having corporate office in Bengaluru. One has to send online request for pick-up of consignment. Consignment tracking is available at transport website. We have used spoton to receive material from Madhya Pradesh.

Om Logistics: Om logistic has broad network through out India. Consignment tracking is available at transport website. We have used Om logistics for Andhra Pradesh and Himachal regions.

North-Eastern Carrying Corporation Limited (NECC): Having wide distribution network all over India and specialization in delivery to north eastern states of India. Consignment tracking is available at transport website. We have used NECC for delivering material to Tripura regions.

V-Trans: V-Trans founded in 1951 having corporate office in Mumbai. V-Trans has over 600 GPS-enabled vehicles. V-Trans provides fully integrated logistics services. Tracking facility available at transport’s website. We have used V-Trans for West Bangal Regions.

Air Transport Corporation (ATC): Air Transport Corporation Assam Pvt. Ltd. or ATC is a family owned business incorporated in 1952. We have used ATC to send material to Assam, Manipur, Odisha regions.

Delhi Rajasthan Transport Corporation (DRTC): Delhi Rajasthan Transport Co. Ltd. Began business in 1971 as Associated forwarder in Rajasthan. Now DRTC is operating in Rajasthan, Gujarat, Haryana, Maharashtra, Tamil Nadu, Punjab, Karnataka, Andhra Pradesh and Kerala We have used DRTC to send material to Rajasthan regions.

Maa Annapurna Transport Agency Pvt. ltd : Maa Annapurna Transport Agency Pvt Ltd in Short MATA has good delivery network in eastern parts of India. Tracking facility available at transport’s website. We have used MATA to send products to Bihar and West Bangal regions.

Nagpur Golden Transport: We have used Nagpur Golden to deliver material to Chhattishgarh and Maharashtra regions.

Jaipur Golden Transport : We have used Jaipur Golden to send material to Telangana and Rajasthan regions.

Sri Azad Transport :  We have used Sri Azad Transport to deliver goods to Bihar Regions.Great India Roadways: We have used Great India Roadways to send material to Odisha Regions.

 

Along with above mentioned transports, there are number of local, national and international transports that could help small business for delivery their goods from origin to destination.Hope above information are helpful to you…

If you don’t find information satisfactory, mail us at pharmafranchiseehelp@gmail.com for more information…

Keywords: Top Transport, Logistic, Cargo and Courier Services for Pharmaceutical and Ayurvedic Products/Medicines

How many Chemist Shops could be opened with a Pharmacist License?

Query:

I am a B pharma student after my graduation can I start multiple medical store on basis of my licence

Response:

One Pharmacist can open only one Chemist Shop. You can’t open multiple medical store on the basis of your license. At one license, one shop could be opened….

Related Articles:

Secrets behind selling by Appointing Franchise Distributors

Query:

I am a regular reader of blog and I am highly thankful for the valuable information you put over there. We have started a small franchise/PCD company. Now we are having 15 products. We are already working in 5 districts. We now plan to expand in other areas also. We will be adding more products accordingly as per demand. Can your team help us in getting more customers/franchise?
We will be happy to work with you and will also pay for your services on share/fees basis as per your comfort level.
Looking for a positive response.

Response:

We can help you to provide you best possible ways to get more franchise customers for your company. We are explaining in brief in this mail. Complete details you can read at our article: How to get Franchise/Pcd Distributors for your Pharma Company?

Read also similar article to your query: How to find Pharma Franchise Distributors?

Above linked articles will provide you basis things to search for Franchise queries.

For adding more franchise customers in your company, you need to generate franchise queries. For generating franchise queries either you can take promotional package of any online promotion agency or promote your company through building your own website…
Other than website promotion, you can use common marketing tools like as below:

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

GST rates in Pharma and Ayurvedic Sector. Impact of GSt at pharma and Ayurvedic

Most of pharmaceutical preparations come under slab of 12% tax. Now matter of discussion whether it will be beneficial for pharmaceutical sector or not. Now tax rates has been issued after meeting held on GST and our prediction was almost accurate in this regard.
Check for GST rates at our Article: Gst rates on Pharmaceutical products. 
Ayurvedic, Sidha, Unani and Homoeopathic products are also come under slab of 12% whereas cosmetic products fall under slab of 28% including herbal cosmetics.Related Post: How to File Goods and Service Tax (GST) Return?
How to apply for GST registration?

Have round-up of Tax slab in Pharmaceutical Sector:

  • Human Blood and its component: Nil / Zero Percent (0%)
  • Contraceptives: Nil / Zero Percent (0%)
  • Animal or Human Blood Vaccines: Five Percent (5%)
  • Diagnostic kits for detection of all types of hepatitis : Five Percent (5%)
  • Desferrioxamine injection or Deferiprone: Five Percent (5%)
  • Cyclosporins : Five Percent (5%)
  • Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name: Five Percent (5%)
  • Oral re-hydration salts: Five Percent (5%)
  • Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 3 or List 4: Five Percent (5%)
  •  Formulations manufactured from the bulk drugs specified in List 1: Five Percent (5%)
  • Classical and Unbranded Ayurvedic, Unani and Sidha Medicines : Five Percent (5%)
  • All other goods not specified elsewhere including fixed dose combinations: Twelve Percent (12%)
  • Ayurvedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments : Twelve Percent (12%).
  • Wadding, gauze, bandages and similar articles: Twelve Percent (12%)
  • Forms or packings for retail sale for medical, surgical, dental or veterinary purposes: Twelve Percent (12%)
  • Waste pharmaceuticals : Twelve Percent (12%)
  • Nicotine Polacrilex Gum: Eighteen Percent (18%)
  • Cosmetics and Skin preparations ( Other than medicaments) : Twenty Eight Percent (28%)

In this article, we will try to find out what will be impact of GST at pharmaceutical sector of 12% tax slab.

Impact 1: End of Excise Free Pharma/Ayurvedic manufacturing zones.
Impact 2: Re-opening of Pharmaceutical/Ayurvedic units in excise zones that have been closed due to Excise Free Zones.
Impact 3: Boom in Condoms and contraceptives manufacturing sector.
Impact 4: Increase in demand of Ayurvedic cosmetics as tax is lower as compare to purely cosmetic preparations. Ayurvedic Cosmetics preparation may boom in market and capture more share of beauty and wellness sector.
Impact 5: Distribution Channel will become simple and involvement of persons in distribution channel could be decreased.
Impact 6: Decrease in medicines without Invoice will happen. Every one will try to take invoice as he have to pay tax in all conditions.
Impact 7: Business will become more transparent.
Impact 8: Maximum retail price may increase at little bit but dpco will keep rates in check.
Impact 9: End of excise duty will lower burden and involvement of excise officers in manufacturing sector that could be big factor for relief at small scale industry.
Impact 10: Transportation cost may increase at small extent.