After the Indian markets opened up, its billion plus population also meant a huge potential for the pharmaceutical industry. There was a high demand for generic as well as branded medicines. As the supply rarely keeps up with the demand, the market still attracts a number of international pharmaceutical companies as well as investors. A direct result of this rising interest is the growth of franchise pharma company in India. These franchisees make perfect sense for bigger pharmaceutical companies. These franchises combine the economic benefits of small Indian industries with their distribution network and local specialisa-tion. However, like any business decision, the choice of selecting a suitable franchise cannot be taken lightly. So, how does one select a suitable franchise in India? Here are our some of the essentials that you need to tick off: Check the company history
The franchise you pick not just means a financial investment, but also represents your name and brand. This means that you are investing in both your present and future. This cannot depend on a simple interview. It has to be backed up with solid research into the company. You must carry out a detailed research into the company credentials. Find out the partners in the firm, their stake, investment and share of profit. Ask for the structure of the company, the management and the people working under them. In short, do a detailed investi-gation of the company profile. You can check the company website, which will have all the usual details. Check the company vision/mission For most of pharmaceutical companies, it is plain and simple profit spreadsheet that is the whole basis of their decision. Yet, each company has its own philosophy. It could be the perusal of profit, a commitment to increasing health awareness or the encouragement to Ayurvedic medicines man-ufacturers. It is important that the franchise's vision is in line with your own vision. This will help you avoid any conflicts in the future. Check Specialisation The field of medicine is not a monolithic in its character. There are several players that cater to dif-ferent type of medicine and markets. As a result each field has its own specialisation. For instance, a generic medicine franchise holder will need the right contacts and distribution. This will be differ-ent from Ayurvedic medicine. It is important to determine your own position before you find a part-ner. Check the certification This is perhaps the most important criterion. The field of medicine has many rules and regulations and it is imperative that the franchise pharma companies in India comply with these particulars. The best way to confirm this is by checking the certification carried by the company. There are a number of such essential and voluntary certificates. These include compliance with ISO, GMP, DCGI, FSSAI standards and authorisation. Be sure to check the drug license and GST number. Check the quality control Checking the authorisation is just the first part of the process. It is also important to see how they stick to this authorisation. In other words, check the quality control of the franchise. You must ask the company about how they enforce the right standards in all their processes, what are the checks and balances, the testing methods etc. To be extra sure, take random samples from different vendors and get them checked at an independent laboratory. Check the distribution network One of the biggest advantage of investing in an Indian franchise is the access it provides to the Indian market and its distribution network is an important part of that. So, it is necessary that this is ascertained before the decision is taken - how is the distribution network spread, what is the share of the market, how much time is taken in taking machine to vendors and the quality control that is applied here. Check the finances Ultimately, your investment must make sense financially. You have to determine your investment outlay and how much the franchise will cost on your end. You must cheek their financial history for the last couple of years, their ROI and ascertain how much you can benefit from this investment. Conclusion While investment in franchise pharma company in India is at an all time high, the market is slowly reaching a saturation point. So, it is important that any decision to invest in a franchise is taken carefully. So, check these factors before you make your decision.
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10/14/2020 07:04:18 am
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