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How e-pharmacies would able to give 18-20% discount to customers?

Query: First of all, a big thanks for your work. Pharmaceutical industry looks like complex web for a common people but due to your blog it is easy for us to understand this whole industry. Now coming to my question, I want to know if total margin for retailers in this industry is 18-20% then how netmeds, pharmeasy and other online players are giving 25% discount? And what steps we have to take if we want to open pharmacy shop and want to give 15-20% discount. Can a retailer buy medicines directly from company or c&f and cutting margin of distributor/Wholesaler? Response: Online players give discounts upto 18-20% or something like that. Not at all products they give exact margins. In the pharmaceutical industry , Only few brands give less margin, most brands give good margin plus schemes etc, even to offline retailers. If we talk about generic and other products there are huge discounts like product cost is 30 rs and mrp is 100 rs. So, an 25% discount in the pharma market is not
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What all documents needed to start generic own pharma?

First we will discuss about licenses and after that documents required for different types of generic own pharma businesses. In generic pharma, you have different types of pharma business like
  • Generic pharma manufacturing company
  • Generic Pharma marketing Company
  • Generic Pharma Distribution and Wholesale
  • Generic Pharma Pharmacy store and Chemist Shop

Licenses required for Different generic pharma businesses:

For Manufacturing:


For Marketing:

  • Wholesale Drug License
  • GST Number

For Distribution and Wholesale:

  • Wholesale Drug License
  • GST number (above 40 lakh annual turnover)

For Pharmacy Store and Chemist Shop:


Documents Required for Generic Own Pharma:

Documents for drug manufacturing license:

Application for grant or renewal of licence to manufacture for sale or for distribution of drugs shall be made to the licensing authority appointed by the State Government.

List of Documents:
  • Application form in Form 24B
  • Fee Deposit Slip
  • Proof of possession of manufacturing premises
  • Manufacturing Unit Site Plan
  • Blue print of premises
  • Firm or Company Details
  • List of machinery and documents in manufacturing unit
  • List of equipment in testing laboratory
  • List of drugs to be manufactured
  • Affidavit
  • List of technical staff i.e. Approved manufacturing chemist and analytical chemists along with their certificates and approval copies
  • NOC if required
  • Other documents asked by drug licensing authority

Documents for Wholesale drug license:

The State Government appoint Licensing Authorities for granting wholesale drug license which is generally District Drug Control Officer.

List of Documents:
  • Application form in Form 19
  • Fee Deposit Slip
  • Proof of possession of premises
  • Firm or company detail
  • Competent person detail (Experience Certificate or Pharmacist Registration copy) along with educational and professional certificates
  • Affidavits
  • Blue print of premises
  • Refrigerator purchase bill
  • Other documents asked by department if any

Documents for Retail Drug License:

The State Government appoint Licensing Authorities for granting retail drug license which is generally District Drug Control Officer.

List of Documents:
  • Application form in Form 19
  • Fee Deposit Slip
  • Proof of possession of premises
  • Firm or company detail
  • Registered Pharmacist detail (Registration copy, academic certificates documents etc)
  • Affidavits
  • Blue print of premises
  • Refrigerator purchase bill
  • Other documents asked by department if any

Documents for GST Number:

A person can apply for gst number online through gst portal i.e. www.gst.gov.in.

List of Documents:
  • Address Proof of Business Entity
  • Proprietor/Partners/Directors Address Proof
  • Aadhaar Card, PAN and Image etc
  • Ownership Proof or Rent agreement
  • Firm or company detail
  • Back Statement and Bank Detail
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