Why Pharma Distributors are switching business to Ayurvedic?


Pharmaceutical sector is one of the favorite sector when it come to start a business. Highly profitable, regular demand-supply, growing sector and lot of reason to start. But from last couple of months, there are uncertainty and unclarity about pharma policy. Camel sits what side (Oont kis karwat baitega) is just a prediction. This financial year is crucial for Indian Pharmaceutical Sector. New laws and regulations are going to be implemented in near future along with fear of GST (Goods and Service Tax). May be new regulations are for the betterment of pharmaceutical sector and patients but they are impacting short term and long term effects at pharmaceutical sector.

On the other side, Ayurvedic Sector is new hottest trend in Indian Market. Changing mindset and increasing awareness about side effects of chemicals present in products, making brighter future of Ayurvedic Products. Increasing demand and negligible law and regulation in respect to Ayurvedic products create lot of business opportunities in this sector.

Pharmaceutical sector is growing. We can’t doubt in this. Ayurvedic products are not creating much impact at pharmaceutical sector. Ayurvedic products are only indulging share of cosmetics, OTC and FMGC products. Pharmaceutical sector isn’t in any fear to loose market share to Ayurvedic medicines in near future. Even Ayurvedic Doctors (BAMS) also prefer to prescribe allopathic medicines in replace with Ayurvedic medicines. Then why switching Pharma to Ayurvedic trend is increasing. May be distributors are not replacing pharma with Ayurvedic but they are taking distribution ship of one or two ayurvedic companies also.

Here we will try to find out reasons behind it:

Increasing Demand of Ayurvedic Products: 
One of the main reason for switching is increasing demand of Ayurvedic Products. Every one goes with trend and want to sell which is going to sell easily with good margin. Customer now started to ask about products whether they has side effects or not. If any product bears a label of Ayurvedic, it enough for any customer to buy it. Ayurvedic preparations are considered as free from side effects by most of customers (Some Ayurvedic preparations in reality may cause side effects). As customer demand for Ayurvedic Preparations, its lucrative thing for any business start-up. Over the Counter products segment are also capturing by Ayurvedic products. Food and dietary supplements and related products are overtaking by Ayurvedic Preparations.

Availability of more Companies:
Before Patanjali rise, no one take seriously Ayurvedic and Herbal Products. Few well known companies like Dabur, Himalaya etc were only seriously involved in Ayurvedic medicines and products. After Patanjali, there is boom of new Ayurvedic Companies as we see in pharmaceutical sector. Market size of Ayurvedic and Herbal products has been increased, so opportunities also. This creates more option for distributors also to add companies in cart.

Strict Rules and Regulation in Pharma: 
As pharma industry is growing, rules and regulations are becoming strict to meet the international standards. In this changing phase of pharmaceutical sector, pharma professionals are feeling uneasiness. DPCO and generic movement decreasing profit margins whereas in other side, Ayurvedic sector are very nominal rules and regulations. Ayurvedic products are sold out either cosmetics, food supplements or medicines. For selling of Ayurvedic Products, we don’t require any license.

Similar Distribution Pattern:
Ayurvedic and Pharma products mostly sell out at pharmacies and chemists. Ayurvedic products follow the same distribution channel as pharmaceutical products except few cosmetics. This help to do both business simultaneously.

Easy to Start:
Ayurvedic Business is easy to start and require less formalities as compare to pharmaceutical business. Easiness create more scope for new comers and already established distributors to start Ayurvedic products.

Pharmaceutical Sector has huge market in India and growing with double digit figure. It will not show any impact of Ayurvedic market in near future but switching creates some aspects of future.

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

One Reply to “Why Pharma Distributors are switching business to Ayurvedic?”

Leave a Reply

Your email address will not be published. Required fields are marked *