How can a B. Pharm Student Start Small Scale Manufacturing Unit?

Query:I am a final year b.pharm student. I am willing to start a small scale manufacturing unit related to food or cosmetics but I don’t have a clear idea regarding it. Please help and suggest me in what areas i can startup my business in food or cosmetics and also how much time and money will all this process need.Waiting for your reply. Thank you.

Response:Starting own business without any prior experience is not a good idea. You should first take some experience in food or cosmetic industry before starting own manufacturing unit.There are lot of challenges and works that can’t be learn during education, you could only be acquired by industry exposer.

Money and time needed depend at your experience and knowledge. Few person start own business with negligible amount and few start with huge amount. So we will recommend to get some exposer of industry after your education and then go into business.
Read our related article: What should a pharma student do just after graduation? Job or Business!
Documents and procedure for Food Business read at our article: How to start Food supplement business?
For cosmetic industry requirement read our article: How to start Cosmetic Industry in India?
For Pharmaceutical Industry requirement read our article: How to start Pharmaceutical Company?

Hope above information is helpful to you….
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Related Articles:

What is IEC ( Import Export Code Number)?

What is IEC?
IEC is a short form of Import Export Code. Import Export Code is compulsory in India if a person want to import or export any goods or service. It is ten digit code issued by DGFT- Director General of Foreign Trade , Ministry of Commerce, Government of India

How to Apply:

Documents Required for Import Export Code (IEC) Number:
In case of fresh e-IEC:

  • Digital Photograph (3x3cms) of the Signatory Applicant 
  • Copy of PAN card 
  • Bank Certificate or cancelled bearing the applicant entities name 

In case of Modification of IEC:
Upload the requisite documents in digital format as detailed below:

For Proprietorship Firm

  • Digital Photograph (3x3cms) of the Proprietor. 
  • Copy of PAN card of the Proprietor. 
  • Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one of these).
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. 
  • Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No. 

For Partnership firm

  • Digital Photograph (3x3cms) of the Managing Partner. 
  • Copy of PAN card of the applicant entity. 
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one of these) of the Managing Partner signing the application. 
  • Copy of Partnership Deed. 
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. 
  • Bank Certificate as per ANF 2A (I)/Cancelled Cheque bearing preprinted name of the applicant entity and A/C No. 

For LLP firm/Government Undertaking/Public Limited Company/Private Limited/Company Section 25 Company

  • Digital Photograph (3x3cms) of the Designated Partner/Director of the Company signing the application. 
  • Copy of PAN card of the applicant entity.
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Managing Partner/Director signing the application. 
  • Certificate of incorporation as issued by the RoC 
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill
  • Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing preprinted name of the company and A/C No . 

For Registered Society

  • Digital Photograph (3x3cms) of the signatory applicant/Secretary or Chief Executive. 
  • Copy of PAN card of the applicant entity. 
  • Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Secretary or Chief Executive/ Managing Trustee signing the application. 
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. 
  • Registration Certificate of the Society / Copy of the Trust Deed 
  • Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing preprinted name of the Registered Society or Trust and A/C No. Trust 

For HUF

  • Digital Photograph (3x3cms) of the Karta. 
  • Copy of PAN card of the Karta. 
  • Copy of Passport (first & last page)/Voter’s I-Card/ UID (Aadhar card)/ Driving Licence (any one of these) of the Karta. 
  • Sale deed in case business premise is self-owned or Rental/Lease Agreement, in case office is rented/ leased or latest electricity /telephone bill. 
  • Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No.

Any other document considered relevant for the application .

Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com
Related Articles:

Queries Related to Ayurvedic Export

Related Query:
I want to deal in ayurvedic products like shilajit, salam, panja garlic.I want to export. Can i get registration to export these products

Response:
For exporting Ayurvedic products, you need free trade export license. read documents and procedure for export of Ayurvedic 
You can read general requirements for exporting Ayurvedic medicine in this article. You can export your mentioned ayurvedic products after fulfilling all requirements that are required by export department of India and Import department of country to which you want to export.

Related Query 2:
I wants to start Papaya leaf extract and capsules manufacturing and export. Please advise me that what are license to be obtained and where shall I get technical know-how for manufacturing process.

Response:
For manufacturing of papaya leaf extract and capsule manufacturing, you will need Ayurvedic manufacturing license. Read whole process for taking Ayurvedic License by clicking here
For export, you have to apply for IEC (import/export code) and free trade license. Read complete process of exporting ayurvedic medicines by clicking here
Technical guidance you can take from manufacturers already manufacturing papaya leaf extract.

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

How to Create an Effective Facebook Advertisement Campaign Pharmaceutical and Healthcare Sector?

We all know Social Networks. We all know Facebook. We all know Facebook sells ads. We all see sponsored posts in our news feeds. We have become used to these posts. Facebook is a business who sell ads to its member. Facebook emerged as a powerful tool for marketing and branding in online era. But unfortunately researches show that only 10% of Big Pharma and Healthcare Brands are successful in creating good social presence and followers engagement. Facebook and other social networks are marketing monsters tools that can’t be ignored by Healthcare Sector. But most of companies are suffering to get followers engagement. That means either people are not interested to get healthcare information at social networks or Companies have been failed to create such information and social presence that are unavailable to satisfy users requirement.

Social Networks could be helpful in brand building along with getting some business but for this we have to learn how to use face for business promotion. Here we are going to discuss about Facebook Business Promotion and effective Facebook Ad campaign. In this article we will discuss things to understand for effective Facebook Page building, How to create a Facebook business page, how to run effective facebook ad campaign. First discuss about important things about Facebook Page.

Before starting with facebook ad. We first learn to need about Facebook way of working. We have a option of creating Page. Facebook considers a Page as Business. If we are going to create a page at facebook. Facebook will thing its our business. For example we created our Facebook Page Pharma Franchise Help to promote our blog at social network. This page prime purpose to create presence at social network. That doesn’t become effective and number of likes, shares wasn’t as effective as it should be. Reason of not getting popularity was not poor content or not having good information but prime reason is that Facebook has changed its policy and number of Page feeds in Users Post was declined by facebook at major extent. It has removed 90 percent of page feeds and only show 10% page feed when an user log in his account.

That’s the major set back for new facebook pages who recently become aware about Facebook as advertisement tool and we consider it free marketing tool. That was our elusion, it was not more free. Either we have to create more viral content or we have to pay to facebook for showing in users feed. With page having 25000 page likes, a page post will hardly reach to 1500 users organically. Percent of organic reach is much lesser then we expect. From 1500 users hardly 80 to 90 person will engaged with post. Engage word is used at Facebook for any action taken by user for particular post like Likes, Share, Comment etc. These numbers are very less.

Reason behind these lesser organic reach is to boast advertisement and encourage business pages to pay more to facebook for more engagements. So facebook is no more free for business. Its free for its users because they help it to get money from businesses. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant business in healthcare sector or not is matter of more research.

Things to be considered For effective Facebook Ad Campaign:

  • Start with Low Budget and Increase it gradually according to response from previous advertisements.
  • Don’t Directly Sell any thing at Facebook. Facebook is not for selling purpose. Facebook is one of the best tool to get brand building and brand awareness. Selling too much or offering too much can’t cause negative branding.
  • Use Best image related to company/organisation/service or providing valuable information is good way to start Ad campaign. Image and videos get more engagement as compare to simple text post. Facebook also advice to get started with image (with minimum written portion) and video to get better results.
  • Provide valuable information at Business Page. Don’t promote unnecessary own self. People use Facebook to contact with other people, acquire knowledge and spend free time interestingly and with entertainment. They don’t use it to buy or sell any thing. If we provide valuable information, own brand will automatically highlight.
  • Small Post, Interesting Images and Short Videos are best way to contact with our followers. Original post, images and videos get more engagement as compare to copied.
  • Don’t follow or copy techniques and ideas of other pages. Create own style and ideas to promote own brand. If others are using any idea and we use same then why people will like or follow us to get information or entertainment.
  • Post regularly. Pages with regular posts get more engagement compare to pages with rare posting.
  • Create a Blog. Blog is one of the most crucial way followed by big brands to engaged with its customers and followers. Having blog and posting regular posts at page give it more ethical look to a Business Page.

This could also be helpful to generate franchise/pcd queries for Pharma Companies. As we mentioned in our Article how to generate sale and parties for Pharmaceutical franchise Company, Facebook may be an important tool for getting Pcd and Pharma Franchise Queries and generating sale. Now many pharma franchise companies have started to experiment facebook ad. Before this Google Adwords was only way to get franchise queries by means of using online advertisement other then promoting own website or certain portals whose most of queries are always fake. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant franchise query or not has not surety. As we analyse it, its not an instant way to get franchise distributor or persons. Its way to promote company to create interest and awareness about products and services.

How to Create Facebook Business Page?
Steps For Desktop:
Step 1: Log in at Facebook profile (Individual/Company etc)

Step 2: Click at Right corner button as shown in below image

Step 3: Click at Create Page as shown in above image.
Step 4: A create page option will open. Showing option for which type of business we want to start or page will represent which type of option from below options. Options will be generally as like:

  • Local business or Place
  • Company, Organisation or Institution
  • Brand or Product
  • Artist, Band or Public Figure
  • Entertainment
  • Cause or community

As shown in below image

Step 5: Click at Company, Organisation or Institution Option if we want to promote Company. Click at Brand or Product option if we want to promote any one or certain products.

Step 6: Choose from the category and Enter Name of Organisation or Company.

Step 7: Click at Get Started at shown in Image above. A Page Showing Company Name will be open as shown in Below image:
Step 8: Add Cover photo, Set user name and add logo or company profile picture at places shown in picture above. We can also invite our friends to like this page.
Step 9: Now Facebook Business page has been created. This will be like as below image after adding all things:
Now we have a Facebook Business page for advertising, promotion and brand awareness at this giant social network.
Steps for Mobile:
For mobile Facebook app either login in Facebook app or Facebook Page Manager App. In Facebook app click at profile section. Scroll then below to find Create Page option. In page manager app click at left side menu, scroll down to find new page option. Enter Name of Page as per Company Name or Brand Name and Follow the steps.
Step 1: Click at Create page option as shown in Image below:

 Step 2: Click at Get started option for proceeding to building page as shown in below image:

Step 3: Enter Page Name from which you want to start. Name may be Company Name, Brand Name or Any other related name.
Step 4: Choose Category for your page. Click at choose category option. 

 Step 5: Choose Category. Select as per need. Whether we are company, organisation, a brand or product or blog or website. What ever we are, we have to choose.

 Step 6: Choose Sub category as shown below:

 Step 7: Click at next to proceed

 Step 8: Add Company/Organisation or blog or any other related website if we have. If don’t have skip it.

 Step 9: Add profile picture. Generally logo. If don’t want, skip it

  Step 10: Add cover picture. Generally best from the images. If don’t want, skip it

Step 11: We will have Final Facebook Business Page
How to Run an Effective Ad Campaign at Facebook?

Facebook allow to advertise Page, Post and company website in Business Page. These can be handled by our Business Page. Business Page is boosted to get more likes and create brand awareness among facebook users. Page Post is boosted to get more visitors at particular article, product web page or service section etc. If our motive to get more visitors to our website then we can boost website to users to get more visitors to our website.

Facebook campaign could be fruitful if managed properly and could have been totally waste of money and time if not managed properly. Facebook has huge user base. These users belong to different interests, professions, regions, languages, society and cultures etc. All are not useful to us. One of the main reason of failure of Facebook ad Campaign is not targeting accurate audience. Visitors at our website that don’t have pharma interest or those don’t need any type of distribution or those don’t have qualities to become future customer are not of our interest. Like wise Page likes from persons who are not interested in our products or service or not related to our profession are not useful to us. We need only pharma professionals or who have interest in our products or service and has possibility to become our future customers.

Before promoting or starting advertising campaign at facebook, first we need to choose our audience type and who could be our future potential customers. If we are looking for pharma franchise distributors, we need to promote our page, website or post at targeting persons who could be our future franchise associates. Our target audience could be Medical Representatives and Other Pharma Sales Persons, Distributors/Stockists, Chemists/Pharmacies, Doctors, Doctor’s staff members, Hospitals, and other pharma professionals etc.

If we want to get most of from our facebook campaign then we need to target these communities only. Along with interest type promotion, we also need to set geography of campaign. Suppose we need parties or distributors from South India then we have to set location and geography of our campaign to get most of from lowest budget as possible. Until we set-up target audience base campaign, we can’t find benefits from Facebook advertisement. Without homework it will be waste of money.

For starting Facebook Advertisement Campaign, following step will be involved. Other then this Facebook also give boosting option frequently while we post, add website or scroll down to our feeds as showing in above two images.

Step 1: Visit at own Facebook Page. For example: www.facebook.com/pharmafranchisehelp
Step 2: Click at Promote. Promote option is available at Facebook Page as shown in above two image and below image:

Step 3: A pop-up showing How would you like to grow your business will open. Choose best option we want to start promotion. Click at promote your page to get more likes and engagements. Click at Get more people to contact to get click at call to action button which could be set-up according to individual need. Click at Get more website visitors to promote company/organisational website so people reach directly to company website by clicking at ad link.

Step 4: Change Ad Creative like Wording, Images, re positioning image etc.

Step 5: Audience Setting. Most crucial Step. Right audience selection can build a brand whereas wrong audience type can result in waste of time and money. Choose carefully audience section.

Step 6: Set-up budget and duration of your Ad. First we should start with lesser amount of money. Gradually we can increase money and duration also.

Step 7: Click at Promote Button. It will ask to add money, credit card and other options for paying for advertisement at Facebook. Add money or use credit card to pay to Facebook and Ad will be submitted for review. If Ad get approval then it will start to show in users news Feed.

Hope above information is helpful to you…

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

Mail Social Media Powerful Marketing Tools are:

How to Start Ayurvedic Business?

Complete detail about starting Ayurvedic Business. Click at article about Ayurvedic business you want to read
If your query is not present in above linked articles, then mail your query at pharmafranchiseehelp@gmail.com

Most Highest Profitable Business Opportunities in Pharmaceutical, Ayurvedic and Food Sector!

Most-Highest-Profitable-Business-Opportunities-in-Pharmaceutical-Ayurvedic-and-Food-Sector

Pharmaceutical Business is one of most profitable business throughout world. Main problem that is faced by most of person are from where to start, what are the legal and documentation formalities whether they are from pharma background or from any other background. Here we are going to prepare a list of businesses that are highest margin business in pharmaceutical business opportunities along with Ayurvedic and Food Sector:


1. Pharmaceutical Marketing/Distribution Company

Licenses and Legal Formalities:

How to Sell?

2. Pharmaceutical Manufacturing Company

Licenses and Legal Formalities:

How to Sell?

3. Carrying and Forwarding Agent (C&F)

Licenses and Legal Formalities:

How to Sell?

4. Wholesaler/Distributor/Stockist
Licenses and Legal Formalities:

How to Sell?

5. Pharmacy/Chemist/Druggist

Licenses and Legal Formalities:

How to Sell?

6. PCD Pharma and Pharma Franchise Marketing and Distribution

Licenses and Legal Formalities:

  • Wholesale Distribution Agency; or/and
  • Appoint a Wholesaler or Distributor

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export

7. Pharmaceutical Raw Material Supplier

Licenses and Legal Formalities:

  • Wholesale Bulk Drug License Number
  • Goods and Service Tax Identification Number
  • Shop Registration (if Applicable)

How to Sell?

  • Supply to Pharmaceutical Manufacturers
  • Institutional Sales

8. Pharmaceutical Raw Material Manufacturing

Licenses and Legal Formalities:

  • Company Registration
  • Bulk Drug Manufacturing License Number
  • Bulk Drug Wholesale License Number
  • Goods and Service Tax Identification Number

How to Sell?

  • Supply to Pharmaceutical Manufacturers
  • Raw Material Suppliers
  • Institutional Sales

 

9. Ayurvedic Marketing /Distribution Company
Licenses and Legal Formalities:

  • Company Registration
  • Goods and Service Tax Identification Number

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export
10. Ayurvedic Manufacturing CompanyLicenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

11. Food and Dietary Supplements (Nutraceutical) marketing Company

Licenses and Legal Formalities:

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export
12. Food and Dietary Supplements (Nutraceutical) manufacturing CompanyLicenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

13. Cosmetic Marketing/Distribution Company

Licenses and Legal Formalities:

  • Company Registration
  • Goods and Service Tax Identification Number

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export

14. Cosmetic Manufacturing Company

Licenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

15. Printing and Packaging Material Manufacturer and Supplier

Licenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up printing industry
  • Goods and Service Tax Identification Number

How to Sell?

16. Machinery/Equipment Manufacturer and Supplier
Licenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up machinery or lab equipment industry
  • Goods and Service Tax Identification Number

How to Sell?

17. Consultancy and Legal Service FirmLicenses and Legal Formalities:

  • Firm Registration
  • Goods and Service Tax Identification Number
  • Legal Qualification (If required)

How to Sell?

  • Plant or/and New Company Set-up
  • Legal matter Consultancy
  • Placement and Man Power Provider
  • Marketing, advertisement and administration Support etc

18. Blogging and/or Industry Informational Website

Licenses and Legal Formalities:

How to Sell?

  • Write information articles, Videos, designs and/or News
  • Share through Social media, Website, Blog
  • Earn through Adsense or other online advertising tools
 
19. Pet/Glass Bottle, Cap Manufacturer and SupplierLicenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up these industry
  • Goods and Service Tax Identification Number

How to Sell?

  • Supply bottle and caps to Manufacturing Companies
Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Start TV Shopping Channel Business Model Ayurvedic Company?

Query:

First of all, I would like to thank you for the information provided in your article on http://www.pharmafranchisehelp.com/2015/12/how-can-i-start-ayurvedic-herbal-drug-cosmetic-marketing-company.html

We are very interested in starting an Ayurveda medicine marketing company. For this we have few queries:
1. Our business model is based on TV Shopping channels. We have extensive experience in this business with mostly electronic products. Is there any legal issue, if we want to get into Ayurveda medicine selling on TV shopping channels?
2. We do not want to get into manufacturing so we are looking at third party manufacturers. Will these third party manufacturers have any issues if we sell their product on TV channels?
3. Can you help us connect and meet with third party Ayurveda medicine manufacturers in Delhi or other parts of the country?
Your response is awaited!

Response:

1. Most of Ayurvedic Products are sell as a Over the Counter Products. you can sell these through TV Shopping channel but you can’t claim any treatment or cure from these products in advertisement. You can use Useful or Helpful words while claim any indication There are certain laws and regulations for Ayurvedic Products advertisement, you have to follow them only. Few Ayurvedic Products are required use under medical supervision, only these products can’t be sell through TV Shopping Channel. If you can arrange any BAMS doctor to solve the problems of patients through TV as many channels and advertisers do, then it will be much better.
2. Through Third Party manufacturing, manufacturer will manufacture products with your brand name. In your brand names and company name, manufacturer will not have any objection where you sell your products.
3. We are based in Karnal (Haryana) near Delhi. We have very strong links with Ayurvedic Manufacturers. Call us at ——– for arranging meeting with manufacturers.

Related Articles:
Ayurvedic classical products manufacturing at own brand name
List of Ayurvedic/Herbal Manufacturer/Franchise/Pcd companies in India
How to Start Ayurvedic/Herbal/Unani/Siddha Business, Marketing and Manufacturing Company?
Where to register your Pharmaceutical/Ayurvedic Products before launching in Indian market
How to register brand name for Ayurvedic Company?
How to set-up a Ayurvedic Company for online selling?

How to Calculate Net Rates?

Query:

 
I am Anoop Rawat calculating as per your formula. PTR and PTS example given below:
Product MRP 60/- Rs GST 18% Slab, 
GST 60*100/100+18=6000/118=50.84
PTR 50.84*100/100+20=5084/120=42.36 GST 18%=7.63
PTS 42.36*100/100+10=4236/110=38.50
This is PTS. Our Question is How to Calculate Net Rate because GST include Net Rate. I Know the net rate. Some body provide me. So help me How to calculate Net rates?

Response:

Calculating MRP, PTR and PTS you can check at our article: How to calculate MRP, PTS and PTR?

Net rates are calculated based upon the cost and profit margin at the product. Net rates calculation doesn’t depend at MRP of product but MRP calculation depend at Net rates.

Net Rates are calculated as per formula: Cost x %margin + %GST (If net rates are inclusive of GST).
If you are marketing company, Cost is calculated on the basis of Formula:
Cost= Third Party Rate + Transportation + Other Expenses + % Profit Margin

If you are manufacturer the Cost is calculated on the basis of Formula:
Cost = Manufacturing cost + Packing Material Cost + Taxes + Transportation + Promotion Material + Expenses.

After fixing the Net rates, you can fix MRP accordingly but after Fixing MRP, it’s very difficult to fix Net rates.

Read in Detail about: How to Calculate Maximum Retail Price?

Read in detail about How to calculate Net Rates, Profit margin?

What is Recall in Pharmaceutical Industry? Procedure involved in Product Recall

Product Recall means any action/procedure taken by the manufacturer, importer, marketer, supplier or registrant or enlistment holder of a product to remove it from the market or to retrieve from any person to whom it has been supplied because of the reason that the product;-

  • may be hazardous to health; or/and
  • may fail to conform to any claim made by its manufacturer, importer, registrant or enlistment holder relating to the quality, safety, efficacy or its usefulness; or/and
  • may not meet to the Quality Requirements;
Factors affecting Product Recall:
A pharmaceutical product may be recall from many reason as discussed above and other than discussed above. Due to complex distribution system and time taken process, 100% product recall from market is not possible. How much product will be received back depend at many factors like:
  • Time duration between manufacturing of batch and recall of product
  • Batch Size of Product recall
  • Nature of Product i.e. OTC, Prescription etc
  • Number of persons involves in Distribution Channel
  • Demand and Supply Ratio of Product (Consumption of Product)
  • Coverage Area of Product
  • Transportation Facilities, Time and Expanses during Recall
  • Expiry Date of Product
Types of Product Recall:
  • Voluntary
  • Requested by Authorities
Voluntary Product Recall:
If Product’s Manufacturer, importer, marketer, supplier or any other person involved in product distribution channel recall the product by itself  by finding product of inferior quality in re-checking, re-testing or any other way then it is Known as Voluntary Product Recall.

Requested by Concern Drug Authority:
If any Government Authority at concerned country responsible for pharmaceutical products standards and quality measures, finds product is not of standard quality (Failing of samples taken time by time) may request to concern person, institute or organisation to recall that product from market in Public interest.
In case concern person, institute or organisation don’t recall product at concern authority then concern authority may use its power to recall or force manufacturer or any other concern person to recall that product from market  
Procedure of Product Recall:
When a product is identified as of inferior quality or not of required standards, a product is recalled by its manufacturer, importer, marketer, supplier or any person involved into distribution channel. A product recall procedure involve following steps:
Step 1: In case of product recalled on request by Authority, Authority issue a letter confirming that product found of inferior quality or may not comply with standards as prescribed to the manufacturer, importer, marketer, supplier or any person involved into distribution channel. Involved person has to reply this letter at specific period of time. This letter may contains other required documents or details by drug authorities. Generally this letter asking the details as follow:
  • Confirmation of supply to whom sample taken
  • Source from where you obtained product (If you are not manufacturer)
  • Detailed Distribution report of that product along with invoice number, date and quantity
  • Issuing Recall letter to concern persons to whom you supply that product
  • Stock present at you
  • Attached list of test report issued by Authority Laboratory confirming found specification during testing
  • Any other detail if required 
In case of Voluntary Recall this step doesn’t involve. Internal test laboratory or any other laboratory confirms about product inferiority or lack of specific standards and starts recall procedure itself.

Step 2: Receiver has to reply the letter issued by concern drug authorities and Issue Recall Letter to all concern persons, firms, institutions or organisations to whom product has been supplied.
If you are a Pharmacy, then mention source of product as distributor or Stockist. Your customers to whom you supplied will be patients. If you are a Distributor or stockist then mention source of product as C&F or Manufacturer or Marketer or Importer. Distribution report will include all pharmacies chemist/retailers. If you are Carrying and Forwarding Agent (CNF) then mention source of product as Manufacturer or Marketer or Importer. Distribution list will include Distributors and Stockist detail. Marketing Companies or Importers will have to mention manufacturers from which to get manufactured or imported that product. Its Distribution report will include CNF or Stockist or Distributors. Manufacturer has to submit his own Certificate of Analysis reports and other testing quality procedure details carries during manufacturing of that product. And distribution report.

Step 3: A Recall letter has been issued by Manufacturer, importer, marketer or any other concern person. A manufacturer will issue Recall letter to CNF or Marketer or Importer. A CNF or Marketer or Importer will issue recall letter to Distributors or Stockists or CNF. A Distributor or Stockist will issue Recall Letter to Pharmacies/Retailers/Chemist. Further Pharmacy/Chemist may ask for return of product to patients but it’s practically not possible. Either patient may have consume it or it is difficult to locate patient easily. 

Step 4: Receiving of Recalled Stock and Destroyed by Manufacturer in presence of Concern Authorities.

hope above information is helpful to you…

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

Related Articles:

Difference Between Wholesaler and Distributor

Query:

Please provide actual difference between Distributor & wholesaler in Pharma Sector.

Response:

Distributor and Wholesaler are two corresponded words. we use both word for each other. There is very difficult to differentiate between these two. Distributors and wholesalers are an important part of Distribution Channel. Both are not in direct contact with consumers. There is same procedure for set-up wholesale and distribution in India But still we can differentiate between these two.

Distributors are upper part of distribution Channel. Where as Wholesalers are Lower parts of Distribution Channel. A distributor deals directly with company or CnF and purchased goods directly from them. Distributors stock the goods in its Godown. Whereas wholesaler deals with Distributors. They purchase goods from Distributors and sell to the retailers.

Distributors don’t supply directly to retailers i.e. Chemist/Druggist/Pharmacies. Distributors will supply medicines to wholesaler or stockists. Wholesaler will supply products to retailers. Both deals in distributing, stocking and supplying of goods, only customer type is changed. We can say if a wholesaler is supplying to wholesalers then he is a distributor but if a wholesaler is supplying to retailers then he is a simple wholesaler. but there is no restriction of work they can do. They can do opposite work at many circumstances.

Distributors deals in large quantity whereas wholesaler deals in small quantity. Area covered by distributors are large whereas area covered by wholesalers are small. For small cities we can’t differentiate much in both distributor and wholesaler. Distributor do the wholesaler work and wholesaler do the distributor work.

Hope Above information is helpful to you…