Short market research Project on pharma sector @ Greater Noida ,Delhi-NCR

1. MARKET RESEARCH
SUBMITTED TO
MR. DINESH SINGH
SUBMITTED BY
AYUSH SHARMA
DURGA PRASAD
SHOYAB KHAN
SREENIVAS M
ON PHARMACY

2. Market Size of Pharmacy
#Way 1

3. 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%
= 16,500
Households  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)

4.  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

5. “
”
SURVEY RESULTS

6. Alpha 2
Life care pharmacy
Rent ---- 43,000
Source --- Distributors
(23%) margin
Sales ---- 20,000 -
30,000
Schemes --– Door
delivery
Life – 3 Years
Customers – ( 400 +)
Health care pharmacy
Rent -- 30,000
Source -- whole salers (22%)
Margin
Sales -- 20,000 – 30,000
Schemes -- No
Life --- 3 years
Customers -- 100
Sarla pharmcy
Rent -- Own
Source -- Distributors ( 20%
margin)
Sales -- 30,000 ( +)
Schemes -- Door delivery
Life --- 10 years

7. Jagath farm
Apollo pharmacy
Rent ----- 50,000
Source ----- C & F ( 5 –
10%)margin
Sales ------ 20,000
Schemes ----- Door delivery
(Card system)
Healing card
Advantage card
Life ----- 3 months
Customers ---- 100
New Universal
pharmacy
Rent ------ 45,000
Source ------ Distributor (20%)
margin
Sales ------ 30,000 ( + )
Schemes ---- Door delivery
Life --- 1 year
Sri amrit
Rent ------ 35,000
Source ------ Distributor (20%)
margin, 30% for
some medicine
Sales ------ 20,000 – 30,000
Schemes ---- No
Life ----- 3 years

8. Sector pi
Rent ---- 35,000
Source --- Distributors
(20%)
margin
Sales ----
5,000-10,000
Schemes --– Door
delivery
Life – 2 Years
Customers – ( 100 +)
Rent -- 30,000
Source -- whole salers
Margin (22%)
Sales -- 10,000 – 15,000
Schemes -- No
Life --- 3 years
Customers -- 150

9. 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

10. 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

11. 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

12. CATG 2
CATG 3
CATG 1

13. 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.

14. Data :

15. Licensing process
• State Governments Statutory Functions
• Central Governments Statutory Functions
• DCGI: Drugs Controller General of India

16. Costs & revenues
COSTS(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 : 10,000
Drugs/ FMCG : 4,00,000
total :4,65,000 total : 6,15,000/-

17. THANK YOU…