Davaindia franchise in India: Cost, Profit and Application Process

Are you planning to enter the pharmaceutical industry with a well-known brand? Let us tell you that when it comes to a renowned company, the idea is not bad at all because India's pharmaceutical sector is offering a promising opportunity to aspiring entrepreneurs. If you want to enter a renowned company we would highly recommend Davaindia. With its affordable healthcare solutions and high-quality medications, it has become the top generic pharmacy companies in India. Investing in Davaindia might be a profitable option given the growing need for affordable healthcare solutions. Don’t worry about the procedure, we have made this guide for you to understand the process.

What is the DavaIndia Franchise About?

The primary goal of the Davaindia Franchise is to supply Indian consumers with reasonably priced, superior generic medications. DavaIndia was founded in 2017 to provide customers with affordable and quality medication. It is a division of Zota Healthcare Ltd., one of India's leading pharmaceutical companies. The quarterly total revenue of Davaindia climbed from ₹23.24 crore in the third quarter of 2022–2023 to ₹36.74 crore in the third quarter of 2023–2024, as per statistics from the NSE. Here’s what its core aspect looks like:

The Key Objective:

• The primary goal of Davaindia is to make more reasonably priced medications available.
• The idea is to increase the number of pharmacies in its Indian network.
• They also aim to establish a reliable brand that is renowned for its affordability and excellence.

Franchise Model:

Davaindia provides a franchise concept that enables business owners to open and run retail pharmacies under the Davaindia brand.
This offers a well-organized business opportunity in the expanding pharmaceutical industry.

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Why Choose a DavaIndia Franchise?

You must be thinking about why Davaindia is an ideal franchise. Let’s explore some of these reasons why you should go for the Davaindia franchise.

• Affordable Generic Medicines: Davaindia aims to serve a wide range of customers. They offer premium generic medications at much reduced costs when compared to branded ones.
• Growing Brand Recognition: Davaindia’s robust presence and expansion goals are contributing to its success, making it a well-known brand across India.
• Complete Support: The brand provides franchisees with complete support. This includes supply chain management, marketing help, and training.
• Social Impact: The Davaindia franchise helps to make medications more accessible by offering reasonably priced healthcare solutions.
• Large Product Offering: You can sell more than 2,000 generic medications as well as wellness and medical supplies.

The Market Factor:

• With the constant increase in healthcare expenses and awareness of generic medicines, the Indian pharmaceutical market is expected to reach $130 billion by 2030.
• A substantial amount of the Indian pharmaceutical market is made up of generic medications. This offers companies like Davaindia enormous growth potential.
• The need for long-term medication is being driven by the rise in chronic diseases and longer life expectancies. This eventually raises the demand for reasonably priced generics.

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Cost and Investment for Davaindia Franchise

The total investment cost may depend on the size of the store and location. Stores with large spaces may require more inventory and setup expenses. Locations with high traffic and busy roads may have higher rental rates. We have a rough breakdown of the investment but you can directly contact Davaindia for detailed financial information.

• Total Investment: ₹8 - ₹10 lakhs (this includes the franchise fee, setup costs, and initial stock)
• Franchise Fee: ₹1.5 lakh (one-time payment)
• Royalty Fees: No royalty fee
• Area Requirement: 200-250 sq. ft.
• Agreement Duration: 5 years (renewable)

Requirements to Open a DavaIndia Franchise

There are certain requirements that you must meet before you proceed with the application process. If you are a Davaindia franchise prospect, make sure that you have the following:

• Location: Ideally, your store should be in a residential or commercial location with lots of people passing by.
• Experience: Although it is advantageous, previous pharmaceutical experience is not required. But you need to employ a pharmacist with a license.
• Drug License: You must have a current drug license and be registered for GST.
• Staffing: You must hire people with experience and qualifications. A minimum of one certified pharmacist and sales personnel are required.

What is the Profit Potential of the Davaindia franchise?

The rising demand for generic medications and reasonably priced healthcare makes a DavaIndia franchise extremely profitable. This is a summary of the possible profits, but it may depend on the location and size of the store:

1. Revenue Estimates

• Monthly Sales: ₹3 - ₹6 lakhs
• Annual Sales: ₹36 - ₹72 lakhs

2. Profit Margins

• Generic Medicines: 20-30%
• Healthcare Products: 25-40%
• Overall Gross Profit: Around 25-35% of total sales

3. Estimated Monthly Profit Calculation

With a 30% gross profit margin and ₹5 lakh in monthly sales, your gross profit would be ₹5,00,000 x 30% = ₹1,50,000 monthly.

Net profit can range from ₹80,000 to ₹1,00,000 per month after operating costs such as rent, payroll, and utilities (₹50,000 to ₹70,000) are subtracted.

4. The Break-Even Time

The majority of franchisees can recoup their investment within 12 to 18 months, contingent on sales and location.

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How to Apply for a Davaindia Franchise?

To apply for a Davaindia franchise, follow this step-by-step guide:

• Initial Enquiry: Reach out to Davaindia via their official website, show your interest, and ask for comprehensive details about the franchise opportunity.
• Apply: You will need to submit an application, which involves filling out a franchise form. You can find this form on Davaindia’s official website.
• Due Diligence: After reviewing your application, Davaindia will carry out due diligence. They might arrange meetings to go over the franchise in greater depth. You can take this opportunity to clear your doubts regarding the terms and conditions.
• Location Approval: It's critical to identify an appropriate site. Davaindia will give instructions and guidelines for a location that you have to follow. Additionally, they will also give their approval for the chosen site.
• Franchise Agreement: You will sign a franchise agreement detailing the terms and conditions after being approved. The terms and conditions of the franchise, such as franchise fees, royalties, and operating rules, shall be specified in this agreement. Depending on the store's location and size, the investment will change. It will cover working capital, inventory, franchise fees, and shop setup expenses.
• Setup and Licensing: Operating a pharmacy in India requires obtaining the required licenses and permits. You may require a drug license, GST registration, and other pertinent approvals are included in this. Regarding the regulatory obligations, Davaindia will offer advise. You must get the required permits and licenses. Davaindia will help with training and store setup.
• Continuous Assistance: Davaindia usually provides continuous assistance with marketing, operations, and inventory management. They will actively help you with the advertising aspects and frequent updates.

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The key recommendation:

• Direct contact: It is recommended to always get in touch with Davaindia directly. This will help you get the most up-to-date and precise information about prices, prospective profits, and the application procedure.
• Extensive Research: To determine the demand for generic medications, carry out extensive market research in the area of your choice.
• Financial Planning: Make sure you have enough money to pay for all of your startup and ongoing expenses by creating a thorough financial plan.

Frequently Asked Questions About Davaindia Franchise

Q. Who is the owner of Davaindia?

Sujit Paul is the group CEO at Zota Healthcare Limited and Davaindia, leading the brand. Zota Healthcare Limited is the owner of the Davaindia chain of retail generic pharmacy stores in India. The parent firm of the Davaindia chain of generic pharmacies is Zota Healthcare Limited.

Q. What is the revenue of Davaindia?

DavaIndia recorded revenues of ₹2,353.9 lakhs in the third quarter of the fiscal year 2024 (Q3FY24). This represents a 23% quarter-over-quarter growth and a 59% year-over-year increase. As of October 2024, DavaIndia had over 1,165 operating locations in 25 states, demonstrating its growing influence in the pharmaceutical retail industry.

Q. How much is the franchise fee of Davaindia?

A DavaIndia Generic Pharmacy requires a one-time franchise fee of ₹1.5 lakh. However, you may need to invest more to make a functional business. Davaindia doesn’t charge any royalty fee to the prospective franchise investor. Apart from the franchise fee, you will need to spend on other costs as well, like:

• Setup & Interiors: ₹3-4 lakh
• Initial Stock & Inventory: ₹3-4 lakh
• Total Investment: ₹8-10 lakh

Q. How many stores does Davaindia have?

Davaindia has more than 650 retail locations nationwide, serving over 75 lakh clients since its founding in 2017. Zota Healthcare Ltd. is renowned for being the forerunner of novel goods, concepts, services, and models. It produces a variety of pharmaceutical, nutraceutical, and ayurvedic medications.