What is PCD Pharma Franchise and What are its Scope?

With changing lifestyle and increasing awareness among customers, the pharmaceutical industry is bound to see tremendous growth in upcoming years.


life genix

10 months ago | 3 min read

With umpteen startups ruling the Indian market, everybody wants to embark upon their own business ventures. Pharma companies have witnessed tremendous growth over the last few years and has become an epicenter of endless business opportunities. One such fast growing ventures is PCD Pharma Franchise, wherein a separate organization buys marketing and distribution rights of a pharma company and sell their medicines at high margins. Although, at first glance PCD looks like a silver bullet, the reality is a far cry from the public perception. Let’s dig deeper into the PCD Pharma Franchise and explore its scope in upcoming time.


PCD (Propaganda – Cum – Distribution) franchise business is a deal between medicine manufacturers and an organization willing to market and distribute manufacturer’s product in the market. The PCD franchise owner buys the medicine in bulk at lower margins and further sell them in the market for comparatively higher margins, generating profits over time. In exchange of medicines, pharma franchise offers a monopoly of the product to its manufacturer and also look after the marketing of the product;

Now, let’s have a look at the benefits PCD Pharma brings to the owner;

Low capital investment

less risk

Not Target Bound

Promising Growth rate

Freedom to take decisions

Low Capital Investment – Contrary, to the business norms PCD Pharma franchise give high returns in low investment. This potential makes it a lucrative business venture. Beginning with a limited amount, the business can grow exponentially in no time. With time the franchise can avail wide product range and maintain business compatibility for long term profits.

Less risk – Owing to the less amount invested, PCD is less susceptible to the downfall. The risk involved reduces substantially in the return of higher profits.

Not Target Bound – Most of the business set ups aim to achieve a target and toil day and night. In PCD Pharma however, the owner is not liable to complete any target from the parent manufacturer company. Their targets totally depend on the demand in the market.

Promising Growth Rate – The Pharma scenario in country is witnessing a mass shift in production as well as demand. Due to which the success of a PCD pharma franchise is guaranteed if the business is run with mindful practices and strategies.

Freedom to take decisions – Owning a business gives one freedom to scrutinize each activity with utmost care. Being an owner you get exempted from any obligation towards anyone. You hold all the power needed to make any amendments required in the business.

Let’s address the elephant in the room and look at the risk factors involved in establishing PCD Pharma Franchise:

Risk Factors – Despite having innumerable benefits, PCD pharma comes with its own risks. If not taken care of these can lead to the downfall of an entire franchise.

Be meticuluous about the Manufacturer – The parent company of any pcd pharma franchise is the backbone of their business. Therefore, owner needs to be yhourough with the company with the owner is partnering. Few key factors that should be taken care of are:

Company’s Annual turnover

Analysing Company’s physical sample of medicines

Do not deal with the companies, refraining from sharing physical sample

Having fixed rate for a particular period of time (avoid margin fluctuation)

Lousy transportation and delievery – Have an extensive discussion with the manufacturer about transportation of the medicines. Keeping things for the last minute should be avoided. Poor transportation facility can be a huge roadblock for the smooth functioning of any PCD Pharma Company.

Scope – With changing lifestyle and increasing awareness among customers, the pharmaceutical industry is bound to see tremendous growth in upcoming years.


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