MARKET RESEARCH

SUBMITTED TO MR. DINESH SINGH

SUBMITTED BY AYUSH SHARMADURGA PRASADSHOYAB KHANSREENIVAS M

ON PHARMACY

Market Size of Pharmacy

#Way 1

Total Population of Greater Noida = 1.50 Lakh

30,000 Households

Monthly Household Income > 80,000

Household Income = 40,000 to 80,000

Household Income < 40,000

• Money Spent on Healthcare :- 9%

• Money Spent on Pharmacy :- 5%

Households = 30,000*15% = 4500

(15%) (55%)

(30%)Households

30,000*55% = 16,500Households 30,000*30% =9,000

Money Spent 5%*80,000 = Rs. 4,000

Money Spent 5%* 60,000 = Rs.3,000 Money Spent 5% *

25,000 = Rs.1250

Total Money Spent Rs.4,000 * 4500 = Rs.1.80 Crore

Total Money Spent Rs 3,000 * 16,500 = Rs 4.95 Crore

Total Money Spent Rs.1250 * 9,000 = Rs.1.12 Crore

Total Market Share is Rs.7.80 Crore = 8 Crore (approx)

Population of India : 125 Cr. Population of Delhi : 1.6 Cr Population of Greater Noida = 1.6 Lakh

i.e. Population of Delhi = 1% of India’s Population (approx.) Population of Greater Noida = 1% of Delhi Population. Total Market of Pharmacy of India = $18 Billion = 1800 Cr *60 = Rs 108,000

Now, we can easily calculate :Market Size of Pharmacy of Delhi : Rs. 1080 Cr Market Size of Pharmacy of Greater Noida : Rs. 10 Crore.

Source : www.brandindiapharma.in

Market Size of Pharmacy #Way 2

“

”SURVEY RESULTS

Alpha 2

Life care pharmacyRent ---- 43,000Source --- Distributors

(23%) marginSales ---- 20,000 - 30,000Schemes --– Door deliveryLife – 3 YearsCustomers –

( 400 +)

Health care pharmacyRent -- 30,000Source -- whole salers (22%) MarginSales -- 20,000 – 30,000Schemes -- NoLife --- 3 yearsCustomers -- 100

Sarla pharmcyRent --Own Source -- Distributors ( 20%

margin)Sales -- 30,000 ( +)Schemes --Door deliveryLife ---10 years

Jagath farm

Apollo pharmacyRent ----- 50,000Source ----- C & F ( 5 – 10%)marginSales ------ 20,000Schemes ----- Door delivery

(Card system) Healing card Advantage card

Life ----- 3 months Customers ---- 100

New Universal pharmacyRent ------ 45,000Source ------ Distributor (20%) marginSales ------ 30,000 ( + )Schemes ---- Door deliveryLife --- 1 year

Sri amritRent ------ 35,000Source ------ Distributor (20%) margin, 30% for

some medicineSales ------ 20,000 – 30,000Schemes ---- NoLife ----- 3 years

Sector pi

Rent ---- 35,000

Source --- Distributors

(20%) marginSales ----

5,000-10,000 Schemes --–

Door

deliveryLife –

2 YearsCustomers –( 100 +)

Rent -- 30,000Source -- whole salers Margin (22%) Sales -- 10,000 – 15,000Schemes -- NoLife --- 3 yearsCustomers -- 150

Hospitals

Navin hospitals pharmacy Rent -- 50% of profit Source -- whole salers

(20%) Margin Sales -- 50,000 – 1,00,000 Schemes -- No Life --- 4(+)Years Customers -- Income tax (

2,00,000 lakh )

Khailash hospital pharmacy Rent - No Source - C and

F (5%) Sales -

1,00,000 lakh Schemes – No Life - ~10

years

Commercial

Rent -- 50,000 Source -- whole

salers (25%)

Margin Sales -- 60,000 – 65,000 Schemes -- door delviery Life --- 3(+)Year

Rent - 45,0000

Source - Distributors (22%)

Sales - 50,000 – 60,000

Schemes – No Life - 4

years

CATEGORIES

Drugs

o under price control ( Government of India established rules to control drug prices.(DPCO) )

o Drugs in essential list of medicines but not nut under price control

o Drugs not in the essential list of medicines

SURGICAL SUPPLIES

FMCG

CATG 2

CATG 3

CATG 1

INCENTIVES TO RETAILERS

Pharmaceutical companies offer “Bonus Schemes” to retailers periodically. In these schemes, on purchase of a specified quantity of drugs retailers get some extra quantity of the same drug for free. For example, Pharmaceuticals offered “Buy one Get one free scheme” on Thrombiflo which mainly used to reduce cholesterol levels in patients.

Some surgical companies directly offer very high profit margins to retailers on their products. For example, a box containing 100 examination gloves by MRK healthcare was found to be Rs. 400/- whereas the retailers obtained the same box for Rs. 155/- i.e 158.06% margin.

Data :

Licensing process

• State Governments Statutory Functions• Central Governments Statutory Functions• DCGI: Drugs Controller General of India

Costs & revenuesCOSTS(avg) REVENUES (avg)RENT : 30,000 SALES :

6,00,000

MAINTENANCE :10,000 COMMISION FROM COMPANIES : 10,000

SALARIES :15,000 ADDITIONAL BENEFITS : 5,000

TAXES : 10,000Drugs/ FMCG : 4,00,000 total :4,65,000

total : 6,15,000/-

THANK YOU…