In franchisee business a manufacturer sells his products to other companies who will sell his products in a particular territory. This is not a generic sale.
In this business territory the owner has to obtain the wholesale drug license. A GST no. is also required.
One has to contact a drug manufacturing co. & get its product manufactured by them. An agreement or contract has to be done that binds the manufacturer not to sell the products to anybody else except the franchise in that particular territory. Franchise companies will also give undertaking that it will not sell its products outside the territory.
Once these terms are settled the co. starts receiving the orders along with the DD or can send the goods via the DOD.
Manufacturing companies provide on a no profit no loss basis various promotional materials like visiting cards, gift items, samples, catch covers, leave behinds, etc. Nothing is given free of cost to any one. This way the business begins. Every other day new (un allotted) territories are allotted to new customers. Those who are not performing are automatically removed as per the contract signed with them.
The Franchise companies hire their own Medical Representatives & do their business.
The Franchisee company is not responsible for the quality of the products & the legal responsibility lies with the manufacturer.
Generally companies launch such products which do not come under the DPCO as under DPCO the prices of the products are fixed.
Franchise owner gives an undertaking that he will give business of minimum fixed amount agreed mutually. If a franchise continuously performs below that target then manufacturers can cancel territory rights and give to some other companies.
TO START EXPORT BUSINESS
To start export business we shall have WHO GMP certification. Export without disclosing the name of the manufacturer is done using neutral code. Neutral code is used to hide the identity of the manufacturer. Neutral code is issued by the state drugs office. No fee is required for it.
TO FIND EXPORT CUSTOMERS:-
There are several customers looking out for good manufacturers like you but they are unable to communicate with you since they do not know that your company exists. You start communicating with them. Send them mail. Send your company profile, your product list, certifications you are holding like WHO-GMP, ISO etc. There are a lot of big Indian exporters who get export orders for such items for which they do not have manufacturing facilities. So, they search for a company like yours where they can get their products manufactured. You can send them your details. Send details again after 2 weeks & keep repeating. Soon your co. will be fed in their vendor list & you may get an inquiry. You may contact pharma exporters registered in PHARMEXCIL. You can send email to all of them.
FINDING CUSTOMERS OVERSEES
India has an embassy in each country. That embassy has a data bank of that country including a list of pharma importers of that country. You write an email to all the embassies & request to provide a list of importers of medicine in that country. Upon getting the list you can start communication with those parties.
Same way all foreign countries have these embassies in India. You write an email/letter to them & request them to send contact details of pharma importers in those countries.
It is better to have your own website for example www.pharmadocx.com & it is also better to have your own email Id like exports@pharmadocx.com instead of pharmadocx@abc.com. It gives a good impression.
B2B FOR EXPORT
There are a lot of B2B companies like India mart, Alibaba.com, Search India, tradeindia etc. You can register on it free of cost. You will get export enquiry via these B2B sites. Like above there are B2B of foreign countries like Vietnam, Myanmar, You also become a free member of those countries. So that you get an order from them too.
Pharmexcil:- Visit their site and you will get a lot of information about export business. https://pharmexcil.com/
