This document discusses pharmaceutical distribution structures and perspectives in India. It provides details on different distribution models used by companies, including working with wholesalers, distributors, and retailers. It also compares various distributors and retailers based on metrics like employees, turnover, market coverage, credit terms, and incentives. Medical representative roles are described for government and private hospitals. The distribution network of Mankind Pharma is outlined. Insights are provided on blackmail of distributors and differences in retailer and wholesaler mindsets. Margin structures are shown for OTC and prescription drugs.

1. Sales And
Distribution
Management
PHARMACEUTICALS
INDUSTRIES
-Group 2
Krishna Bhawsar (007)
Mayur Verma (008)
Piyush Kapoor (011)
Suraj Roziwala (016)

2. Perspectives of Distribution
Structure
Wholesalers
(Dayal Singh)
Company
Distributor/
Super
stockist
Wholesaler
Retailer
Distributor
(MediSales-
Solan)
Company
C&F/
Distributor
Wholesaler
Retailer
Shivam
Pharma-
Nahan
Company
C&F
Wholesaler
Retailer
Anil Medicos-
Nahan
Company
C&F
Distributor
Retailer
Retailers
Perspective
Company
Stockist
(company-wise)
Distributor
(Generally 1
company’s
product)
Wholesaler
(more than 1
company)
Retailer
Retailer
(Ahmedabad)
Company
Stockist
Dealer/Distributor
Wholesaler
Semi- Wholesaler
Retailer

3. List of wholesalers/Distributors in Paonta Sahib
Wholesalers
▪ Satish Pharmaceuticals
▪ Bala Sendarai
▪ National Traders
▪ Yamuna traders (OTC)
▪ Dayal Singh Gurmeet Singh (
9736100004,9736111110)
▪ Global Traders (9805896403
Distributors
▪ Medisales Solan (01792-
264471,01792-265471)
▪ Shivam Pharma Nahan (01702-
225769,9418087696,9318894696)
▪ P.R. Medical Agency nahan
(9418862878)

4. Comparison of Distributors
MediSales - Solan
(Est. in 1975)
Shivam Pharma -
Nahan
Anil Medicos -
Nahan
Dayal Singh Gurmeet Singh (
Wholesaler)
No. of employees 11 employees 4 employees 2-3 employee 5 employee
Turnover 5-7 crores 1 crore NA 50 lakhs
Market coverage 300 retailers 100-150 retailers All retailers in
paonta sahib(22-
25)
14-15 retailers
Monthly targets None None Area wise None
Incentives None None None 0.25% of sales ,Jam, Jucier, Mixer,
Grinder
Credit terms 10-12 days 14-30 days Advance payment 15 days by 2 companies , 7days
Margin Structure OTC- 5-6%,
Prescription – 8-
10%
OTC- NONE,
Prescription – 9%
Prescription -8-9% OTC- 6%, Schemes
Logistics Personal vehicle,
Bus
Personal vehicle Car or Rickshaw
Competition 25-30 10-12 10-12 5-6

5. Comparison of Retailers
Apollo
pharmaceuticals
–paonta sahib
Negi Medicos-
paonta sahib
Guru Kripa –
paonta sahib
Khurana-
paonta sahib
Jay Khodiyar –
Ahmedabad
Margin OTC- 10-12%
Prescription –
up to 25%
OTC - 5-10%
Prescription –
15-20%
OTC – 5-8%
Prescription –
13%
OTC - <10%
Prescription
– 10-20%
OTC – 12-13%
Prescription –
22%
Credit terms 7-10 days 10-15 days 7-10 days 10 days 1 sales cycle
Sales cycle weekly weekly weekly Weekly Weekly
Incentives NO NO NO NO NO
• Shelf space
• Advertising compensate for incentives for OTC.

6. Medical Representatives
Government hospitals
▪ Advertisement is done inside hospitals
by company – a banner.
▪ Since 2-3 years in UP, MR’s are not
permitted inside Govt. Hospitals.
▪ They are not allowed to give any kind of
margins or incentives to doctors, earlier
it was around 20% minimum margin for
doctors.
▪ Doctors are instructed to prescribed
only hospitals medicine.
▪ Company used this incentives in
depreciation section in balance sheet –
court case.
Private hospitals/ private practitioners
▪ Margins – 18-50% discount on bulk
purchases. Free samples, 30-40%
for doctors on MRP.
▪ Gifts, dinner lunch payment, movie
tickets payment, conference flight or
train ticket reimbursement, foreign
tours, even BMW.
▪ MR comes with free gifts (pens,
juice bottles, prescription pads etc.)
▪ MR presentation – templates,
posters – paste it in cabins

7. Distribution Network of Mankind
5 warehouses – one
in Hapur (UP)
50 CFAs
7500+ stockists
1850000+chemists
and medical services
450000+ doctors’
Around 470000000
end consumers.
Geographically
4 regions
29 states and 7 union territories
11 metro cities, 44 tier-1 cities,
45 tier-2 cities, 109 tier- 3 cities,
300+ tier-4 to tier-5 cities
650000 Villages

8. Insights
▪ Blackmail by company to distributors
▪ Very few specialists distributors and wholesalers , here in such
geographic terrain one wholesaler or distributors will stock both
Pharmaceuticals and FMCG products.
▪ Reason behind placing posters inside cabin of Private
Practitioners.
▪ Long term strategy – to gain trust (azithral instead of azithromycin)
▪ Difference of structure in minds of Retailers and wholesalers.

9. Sales

10. Pharmaceuticals Companies approached
▪ Mankind – 0174645941,9218579309 – Ashutosh – Plant Head
▪ Sun pharmaceuticals – 9625314872 – Mr. Manoj Sharma
▪ Acorn - 9805014081 – Mr. Satish Chaudhary (Marketing Manager)
▪ PDC Healthcare – 9816018215,9816700057 – Mr. Ankit Gupta
▪ Tirupati Medicare – 9816098295 – Shyamlal

11. Sales Force Organization Structure

12. Evolving Sales Force Organization Structure

13. OTC Drug
Manufacturer
C&F
1%
Distributor
5-6%
Wholesaler
6-7%
Retailer
5-10%

14. Prescription Drug
Manufacturer
C&F
NA
Distributor
9-10%
Wholesaler
10-12%
Retailer
15-20%

15. THANK YOU