Query related to online b2b pharma company Portal


It  was very enlightening to have read your article. I am a founder of
an online b2b pharma company that sells medicines in terms of credits to retailers from wholesalers instead of cash. After reading from your article I guess that the money spent on marketing and sales by wholesalers can be effectively reduced by using my website. Now being from a non pharma I have a very big issue in determining the profit margins of the 5 players in distribution hierarchy.
1. Can you please send the price list of all medicines currently
available and their margins to each player?
2. I find very difficult to settle on a ecommerce margin that can be
collected from wholesalers. Can you please suggest a margin?
3. Should I collect different margins for different medicines or a
uniform margin for all medicines?
4. How would I know the profit margins if I were to fix different
prices for different medicines?

Thanks in advance.


Congrats for your B2B Portal for retailer and wholesaler. Before proceeding further, please conduct complete research in pharma market, so it become easy to acquire market.

Wholesale to retail transaction is already in credit, No Pharmacy and Chemist give payment in cash to wholesaler in India. Payment term is 30 to 45 days. In many cases, it crosses 45 days mark. You need to keep in mind this aspect to associate retailers and wholesalers with you.

Second aspect, wholesaler, distributor and stockist doesn’t spend at marketing. It’s company responsibility to spend at marketing and sale.

Retailers and wholesalers are key costumer only in case of generic medicines. If you also want to sell branded and ethical medicines, Retailers and wholesalers are not key costumers to decide price and margin.

  1. Margins and prices vary according to company and its marketing type, so it’s not possible to send price list of all available medicines and their margins.
  2. A wholesale charge generally 10 percent margin. A wholesaler can give your margin from this 10 percent margin. You can decide 1%, 2% or maximum of 3% that can be afford by a wholesaler against your services.
  3. You can charge differently for different type of margins according to market demand and market competition.
  4. You margin will vary according to market demand and competition. You have to fix it accordingly.

Hope above information is helpful to you…

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

Related: Best Ayurvedic Herbal Products Online

License required to manufacture Diabetic Powder


Hi there

I have just seen your video on youtube on Ayurvedic manufacturing etc., which is very helpful

The reason I am writing to you is to enquire about a different kind of a licence and requirement. I will explain in detail so you can advice me.

Well, I have made a Ayurvedic churn for Diabetes, this churna is not manufactured by me, what i have done is taken different  powders/churans in exact ratios and made one churan which is found to be beneficial in curing Diabetes. These different powders are bought from local market and all i do is mix them in specific ratio and make my churan for diabetes.

I am doing this process for a long time for the family, domestic purpose and not for commercial purpose. But now I want to do it on commercial basis, as I have read this is completely a safe medicine

My purpose will be to outsource the raw products (Churans/powder) from the market, mixing, packing in good quality packing and sell them in the market on a very nominal rate.

I am from ahmedabad, gujarat, and I have been to the local Ayush office here, but it was useless visit as they could not explain anything, but only explain something about loan/third party licence.

I read on google about this Loan//Third party licence, i think i would need such licence but do not know how to get one and from where to proceed.

Please if you can help in advising about —

  1. This loan/third party licence and also
  2. if I need to have a unit/shed from where I should be operating? As I am not manufacturing only mixing and assembling powers/churans.
  3. ALso on how can I get such and licence and what all douments etc is required

I would be highly grateful if you answer my questions



After reading your mail, we have concluded two option for you…

  1. Either you can make your as Food Supplement


  1. you can make it as Ayurvedic Product

For in both case you need to take manufacturing license. For food supplement, you need FSSAI license and for ayurvedic product, you need ayurvedic manufacturing license.

Read requirements and how you can take licenses by clicking at below link:

How to start Food Supplement Company?

How to start Ayurvedic Company?

As you mention, you are only mixing. That come under manufacturing process. When you take different ingredients and mix these into a finished preparation, that fall under manufacturing process and you will need a manufacturing license for it.

As you asked by Loan licensing and Third party manufacturing, these both processes involve when you get manufactured your product from another manufacturer but brand name and company name belong to you…

In simple words, product will have your company name and your brand name but will be manufactured by an another manufacturing unit which have a valid manufacturing license number.

Read About Third Party Manufacturing by clicking here

Hope above information is helpful to you…..

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

How to start Online Pharmacy in India?


What is the procedure to open a online pharmacy in India?



In India, There is no special provision or act present that can describe, regulate and specify online pharmacy. Online Pharmacies also follow drug and Cosmetic Act and Rules made there under. Along with Drug and Cosmetic Act, it should also follow the rule and regulation mentioned under Information Technology Act.

For setting-up online pharmacy, you will require to either set-up own online pharmacy website/mobile app or need to create seller account at existing online pharmacy portals.

Before setting-up own online pharmacy website/app or making seller account at existing online pharmacy portal, you need to set-up a physical pharmacy as in case of traditional pharmacy. Requirement and document will be same for online pharmacy as we have discussed in our article: How to start Pharmacy in India?

You will require a pharmacist at your online pharmacy for receiving and processing prescription uploaded by patient or his care taker. Offline Pharmacy set-up is mandatory for selling medicine online with complete documents and procedure.

Here we take a short look at documents and necessities for starting Offline Store First and then sell medicine online.

Licenses required:

  • Retail Drug License
  • GST number

Retail Drug License:

Retail drug license is issued by District Drug Control Officer who provide drug license as per guidelines issued by State Drug Control Officer. You need to visit district drug control office for applying retail drug license number. Procedure for applying retail drug license may be online or offline as per state policy, you are going to apply.

Requirement and documents for Setting UP Online Pharmacy:

  • Area required: Minimum of 100 square feet
  • Registered Pharmacist: All related documents photocopy will be attached along with Drug License application form
  • Rent agreement or ownership proof of premises
  • Blue print of premises (3 copies)
  • Address Proof of Premises
  • Refrigerator and Air conditional Purchase Bill

Goods and Service Tax Number (GST):

GST is mandatory for firm having annual turnover above 20 lac but in case of online sale GST may be compulsory for all firms/persons having any amount of annual turnover. Read complete detail about applying Goods and Service Tax Identification Number here

After taking retail drug license and GST number, you need to set-up online presence. Online presence could be set-up by either building own e-commerce pharmacy website/app or creating a seller account at already present online pharmacy websites/apps.

Completing above step, you can start selling medicines and drugs online.

What’s coming new:

Government is in process to regulate online sale of medicine by making amendment in Drug and Cosmetic Act and Rule. For knowing new regulations and amendments, we have to wait for new government policy.

Online Pharmacies could have to follow following provisions:

  • Requires a valid Prescription
  • Online Pharmacy should have Physical Address so drug authority can inspect quality and standards of online pharmacy store
  • Government is planning to launch a common portal where all online pharmacies must have registered their self.
  • Online Pharmacy License will be issued by State Drug Control Authority.
  • Presence of Pharmacist is must for collecting prescription and answering the questions of the consumers.
  • Pharmacy can’t dispense habit forming medicines and schedule X drugs.
  • Prescription Drugs (Schedule H and Schedule H1) can only be sell out against a valid doctor prescription.
  • Online Pharmacies have to comply with e-commerce standards covered under IT act, 2000.

Hope above information is helpful to you…

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

Steps involved to register the herbal medicine


This is with regards to the herbal products and registration. I would like to know to steps involved to register the herbal medicine.


Herbal Medicines and Ayurvedic Medicines are synonyms in Indian Market. Herbal Medicines are manufactured by same way and under same manufacturing license as of Ayurvedic Medicines. Herbal Medicines could be manufactured only with proper manufacturing license issued by AYUSH department.

Two type of registration could be for herbal medicines. One for Registration of herbal medicine for manufacturing and second for its Brand Name/Trade Name registration.

A herbal medicine combination for manufacturing can be registered only by Herbal Medicine Manufacturer having Ayurvedic/Unani/Sidha Medicine manufacturing licence but Brand Name/Trade Name can be registered by its owner i.e. any person/marketed company/manufacturing company

For registering Herbal Medicine for manufacturing, you first need to take Herbal medicine manufacturing license under AYUSH department. Read Procedure to take Herbal medicine license here

Along with applying manufacturing license, you can file herbal medicines or any time after receiving manufacturing license, you can apply for herbal medicine registration.

Some herbal products (not medicines) also manufactured under Food and Dietary supplements under FSSAI license. Herbal Cosmetic Products are manufactured under both type of manufacturing license i.e. ayurvedic manufacturing license and Cosmetic Manufacturing License.

Only BAMS/BUMS doctors are allowed to manufacture herbal medicines for only their own patients without manufacturing license and medicine registration.

Read our detailed article about How to register Ayurvedic and Pharma Product before launching in Market?

Hope above information is helpful to you….

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

How to start Pharma Marketing Company?


I am a doctor by profession and I have been working in pharma sector for the past 5 years. I am interested in starting up a new marketing company with a 3rd party GMP certified manufacturer. I am looking forward to your help in resolving few queries of mine. I have around 2000 sq ft of space available at my residence which can operate as my office location and warehouse at least initially. I hope you could possibly help with my queries.


Are there any benefits (financial or non-financial) under any schemes of Govt of India? (eg START UP INDIA)

Query: 2

What are the mandatory documents/clearances required to initiate a company

Query: 3

What is the minimum capital required in INR?


Query 1: Most of scheme in Start-UP India is associated with Manufacturing and Service Sector. In marketing company, this is not going to help you more…

Query 2: For Pharma marketing Company following licenses is mainly required:

Wholesale Drug License

GST number

Company Registration (Voluntary for Proprietorship Firms)

Query3: As we have discussed in our article: How much investment is required to start Pharma Company?, there is no fixed capital investment required. It varies according to factors like number of products, cost of products, marketing type, your experience in pharma sector etc.

Hope above information is helpful to you…

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


What does it mean by Manufacturing Date, Expiry Date, Batch Number, Finished Product?

Lot or Batch:

Batch or lot means a quantity of any product in dosage form, a raw material or a packaging material, homogeneous within specified limits, constituting all or part of a single batch and identified by a distinctive lot number which appears on the label of the finished product;

Read: Batch/Lot Manufacturing Record

Lot Number or Batch Number:

Lot number or batch number means a distinctive number provided to a lot or batch.

Expiry Date:

Expiry Date is a date mentioned at label in form of a year and month after that it is not recommended to consume a medicine or health product. It is the date till a medicine or a health product will maintain its purity and physical characteristicks and its medicinal ingredient maintain its efficacy and potency as indicated or prescribed.

Manufacturing Date:

Manufacturing Date is date mentioned at label in a form of a year and month at which a medicine or health products is packed in its finished product form.

Finished Product:

Finished Product means a medicine or health product packed in final forma and ready for use and dispatch after completing all quality measures and specification.

Hope above information is helpful to you…

Pharmaceutical and Ayurvedic Franchise/Pcd Profit Margin, PTR, PTS


I want to start PCD Pharma business, I have completed all legal formalities like drug licence, Goods ang Service Tax, and all. But I am unable to understand how it works means what is price to retailers, price to wholesaler’s, how margin is calculated etc. can you please help me for the same?


PCD/Franchise model works as prescription marketing. Only difference is that company doesn’t involve in direct marketing but appoint a pcd distributor or franchise to market its product and provide goods at net price basis and provides a handsome margin to fulfill all basic need of marketing and sales promotion. Read in Detail about franchise/Pcd Model and how it works here

You need to fix price to retailer and price to stockist/wholesaler as practicing in your area like 20%, 18%, 10% 8% etc. How much margin is big pharma companies providing to retailers and wholesalers. You can calculate accordingly. You can learn calculating Price to retailer, price to stockist and Maximum retail price by clicking here
Margin in pcd business is calculated by including all expenses i.e. retailer margin, stockist margin, marketing and promotional expenses, tour expenses etc.
Suppose Net Rate: N
Retailer Margin: R
Stockist Margin: S
Expenses and Commissions: E
Profit Margin will be calculated by: M-R-S-E-N
 Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Whether to take drug licence in all states for Starting Pharma Marketing Company?


Want to start pharma marketing company, kindly let me know whether I need to take drug licence in all states or some other way to do this? Please confirm whether I need to take wholesale license or distributor license? Please confirm how to get pharma Company auditor ? Please confirm whether I need to take drug license or wholesale/ distributor license or both at once? Thank you in advance Please contact me and reply to my queries on my email.

For starting Pharmaceutical Marketing Company, you can read our article: How to Start Pharmaceutical Company?
You will need to take drug license at premises where you are stocking, receiving, billing and dispatching medicines and drugs. In other states and districts, you can appoint distributors who have wholesale drug license. Wholesaler and distributor license are same. You will need to take wholesale drug license for starting pharma marketing company. You will not need of pharma company auditor in start. As your sale will increase, you can take service of auditor.
Hope above information is helpful to you…
Related Articles:

Meaning of IP/BP/USP | Licenses Required For Selling Over the Counter Products


We are into Processed Food product business and operating under private our private brand. Now we are looking to foray into OTC-Healthcare segment specifically with Antacids, Pain Relievers Gel/Spray & Vitamin tablet. So going through internet for a query whether Above mentioned products requires any type of wholesale allopathy drug license because we want to develop brand with allopathy formulations. This was the blog we came across and it has mentioned something about IP/BP/USP meaning.

Q1) Now we want to exactly understand what type of Medicines would not require Allopathy Drug License?
Q2) Most of the Pain Relieving Gel/Spray has IP & BP after ingredients,so will we be able to market that with a DL?
If you can please revert us with proper guidance or where can we get proper information regarding the products to be classified as OTC or Pharmaceutical preparation we would be grateful.
Hoping to get revert ASAP.
  • IP stand For Indian Pharmacopoeia
  • BP stand for British Pharmacopoeia
  • USP stand for United State Pharmacopoeia
These are the reference books that contains standard of particular salt/ingredient used for making a medicine. A medicine label must show ingredient’s reference book standard which is complied by ingredient.  This is also used for differentiating few products that are manufactured in Medicine as well as Food Supplements. Now come to your questions
Q1)Now we want to exactly understand what type of Medicines would not require Allopathy Drug License?

Answer: All type of medicines (whether it is prescription or Over the Counter OTC) require allopathic drug license. No medicine can’t be sell out without drug license.

Q2) Most of the Pain Relieving Gel/Spray has IP & BP after ingredients,so will we be able to market that with a DL?
Ans: All pain relieving gel/spray which has IP/BP after ingredient can’t be sell without drug license. You have to take drug license before proceeding in this matter. Read requirement for wholesale drug license here
Hope above information is useful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to start Cosmetic Marketing Company and Sell Products Online?

You can start Cosmetic products Company in Two ways:

  • Cosmetic Products Marketing Company
  • Cosmetic Products Manufacturing Company

About cosmetic products manufacturing company, we have discussed in our article: How to start cosmetic product manufacturing unit?

In this article, we will discuss about how to start cosmetic marketing company. For selling and purchasing of cosmetic product, No Need of Drug License. You can register your company and get manufactured your product at third party manufacturing, contract manufacturing or loan license basis and start marketing of cosmetic products.

 Step wise Procedure to Start Cosmetic Marketing Company:

For Cosmetic Products marketing Company, company has to deal in sales and purchase of cosmetics only. For selling and purchasing of cosmetics, no drug license is required. One can get manufactured his brand name cosmetic products from cosmetic manufactured company.


How to sell Online?

For selling online, first requirement is Goods and Service tax Number. You can sell in local market without GSTN if your turnover is less than 20 lakh rupees but for online selling you will need of GSTIN to register your firm with any online websites ( like amazon, flipcart, snapdeal etc) for selling your cosmetic products.

First you need to make a seller account at any online selling website. Add your product and inventory to list your product in specific class at which your product fall under. You need to provide your GSTIN, PAN and account number for creating a seller account.

After making seller account and listing your product at online selling portals, you can start selling your products online.

Hope above information is useful to you…

You can mail us at pharmafranchiseehelp@gmail.com for any query and suggestion…