Pharmaceuticals Distribution Business is an Endless Opportunity in India

Nikita Arya
Nikita Arya Jul 31 2019 - 3 min read
Pharmaceuticals Distribution Business is an Endless Opportunity in India
A small enterprise in the pharmaceutical industry offers distributorship in a range of Rs 5-10 lakhs for an area of 750-1000 sq ft on which you can earn 40% RoI in a small period of 12-18 months. Read on to know more such facts about pharmaceuticals distribution.

Healthcare is a sector of economy that is continuing to witness a massive growth in India. Specifically, the Indian pharmaceutical industry is one of the biggest contributors in the extravagant growth of the sector, which is expected to rise at a CAGR of 22.4 percent over 2015-2020 to reach a remarkable US$ 55 billion.

Distribution of medicines and drugs is an important aspect in the growth of the pharmaceutical industry, which also provides ample opportunities for entrepreneurs in the field of distributorship. In a rapidly growing industry like pharmaceuticals, distributorship opportunities are endless, thereby making it an investment-worthy.

Distributorship and Pharmaceutical Industry

The ultimate goal of any manufacturer is to market their products and services to the end-customer whatsoever. So, they need some channels through which they can carry out the distribution of their products to the industry. This is where the role of distributors comes into the play.

Like any other industry, distributors play a significant role in the pharmaceutical industry as well. They are the link between manufacturers and pharmacists. They ensure the safe and efficient delivery of the medicines and drugs to the end-consumers (who could be pharmacies and hospitals both) so that the demand for the medicines and drugs are fulfilled.

Current State of Pharmaceuticals Distribution in India

Diving deeper into the overall distribution scenario of India, it is important to consider the geographical diversity of India when it comes to the distribution of pharmaceuticals. Due to the geographical diversity and extreme climatic conditions, it becomes important for manufacturers to make their stock-keeping units (SKUs) available at all levels at all times. To make goods available to all their consumers in India, companies seek distributors for specific regions such as Northern, Southern, Eastern, Western and Central India. This makes the industry much more profitable for those who wish to buy distributorship of big brands.

In 1978, there were roughly 10,000 distributors and 125,000 retail pharmacies in India. As per recent reports, the numbers have seen a multi fold increase with more than 65,000 distributors and 550,000 retail pharmacies. Despite the growing numbers, three-fifths of Indians do not have access to modern medicines, which is the most parts of the rural market and it clearly shows how that is largely unattended and untapped. This further suggests that there is a heavy requirement of distributors in India to fulfil the demands.

Pharmaceuticals Distribution Emerging as an Endless Business Opportunity

While it is about the biggest players of the industry or the small enterprises, distribution of medicines and drugs will always take place.It doesn’t even matter if it is a franchise outlet, a retail outlet or an online medical store; distribution is the key in any pharmaceutical supply chain. So, pharmaceuticals distribution business can be a lucrative opportunity anyhow. With Indians spending more on healthcare and healthcare supplies, Indian pharmaceutical industry is witnessing a steady demand, as is the pharmaceuticals distribution sector.

Another interesting fact about the distributorship in pharmaceutical industry is that it is a business model that requires minimum investment butgives greater returns. For example, a small enterprise in the pharmaceutical industry offers distributorship in a range of Rs 5-10 lakhs for an area of 750-1000 sq ft on which you can earn 40 per centRoI ina small period of 12-18 months. With such a lucrative business model, distributorship serves as a lucrative business opportunity for businesspeople across India.


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