Since Covid19, India has become the hub for pharmaceutical investment. But the planning for setting up healthcare manufacturing units has been long going. The reason behind this is the huge market potential and the climate of the Indian subcontinent. India is a market for huge demand and supply transactions. Just by looking at the population matrix, you can understand the vastness of potential customers.
This is what all the pharma product manufacturers have understood. A high-volume market enhances the visibility of the brand and more prospects come in to try out the products. The government policies for pharma product manufacturer in India is also favorable. Many companies in medicine and healthcare have established their units in India. Earlier, medicines and vaccines were the only product produced in India. But now, other niche products are coming out like derma and skin care, haircare, etc.
New in the arena – what is baking?
As mentioned, new lines of business in the pharmaceutical sector are coming up. India’s ministry of Health is also encouraging foreign investors to set up their units in India. So, you may ask what’s in it for the companies and why foreign investors are keen on investing in India.
- India is a huge market of users of pharmaceutical goods and services.
- With the flow of using natural and herbal products, the new generation is keen on using new brands.
- Indian policies on investment in pharmaceutical goods and services are favorable for the world.
- India has availability of cheaper labor than most countries which enables low production costs and better availability.
- Effective export policies enable the companies to sell outside the country at a low price than foreign established units.
- Franchisee business is taking a turn in India where investors see a huge potential in expanding their business across the geography.
Being said that consumables market is already on the roll. India is now saturated with capsules, injectables, pills, syrup, and other forms of medicine. Mostly these are now run by a distributor-based model. However, the trend is shifting to the PCD franchise model. So, the distributor is also liable for marketing and promotion activities. This reduces the burden on the parent company to find out local go-to-market strategies.
If you look at any pharma product manufacturer in India now, you will find a new arena opening. The pharma companies like Hanisan Healthcare have launched their PCD franchise for derma and haircare.
PCD franchise booming the economy
We all know that the economy of any country booms when the macro and micro components put together their efforts and help in circulating the money. Here, the macro components are the establishment, government, and other institutions. Micro components are the people involved in the process. With the help of the PCD franchise, pharma product manufacturer in India is limiting its expenses on marketing, sales, and other propaganda. The franchisee team also invests some amount in taking the license for a particular healthcare brand and recruits people for operation and sales.
This creates a demand for different skill sets. The PCD franchise also connects with advertising agencies to create marketing strategies. This involvement of so many people on different projects enables money movement within the market. Unlike previous institutions where the whole company or the manufacturer takes a stake in manufacturing, distribution, advertising, marketing, and sales. So, money circulation has increased due to the involvement of different establishments leading to higher recruitment and a lower unemployment rate. More money means more purchasing power and thus, more money circulation in the economy leading to growth.