Medical Store (Pharmacy) Business
मेडिकल स्टोर व्यवसाय · मेडिकल स्टोअर व्यवसाय
Open a licensed retail chemist shop selling prescription and over-the-counter medicines, with a registered pharmacist on the premises.
Investment
₹7 lakh
Profit a month*
₹26,000
- Space
- 150 sq ft
- Staff
- 1 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A medical store buys medicines, surgical items and health products from licensed distributors and sells them to patients, mostly against prescriptions. It is a regulated business: you need a retail drug licence, premises of at least 10 square metres, a refrigerator and a registered pharmacist present whenever medicines are sold. It suits a pharmacist, or an owner who employs one. Demand does not depend on seasons or fashion, and customers return every month for long-term medicines. Margins are set largely by MRP and distributor terms. The hard parts are the money locked in a wide stock, expiry losses, discount chains and online pharmacies, and strict record-keeping for scheduled drugs.
Skills needed: A registered pharmacist (D.Pharm or B.Pharm with State Pharmacy Council registration) is legally required for retail sale. Stock management and careful dispensing matter most.
Profit calculator
Change the numbers to match your town108 ₹100 of sales/day: Shop sales (per ₹100 sold)
Total investment
₹7 lakh
Your own money
₹70,048
Subsidy
—
Bank loan
₹6.3 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹3,24,000 |
| Raw material & packing | −₹2,64,060 |
| Electricity | −₹3,600 |
| Salaries | −₹10,500 |
| Rent | −₹12,600 |
| Other running costs | −₹6,825 |
| Operating profit | ₹26,415 |
| Loan instalment (EMI) | −₹14,699 |
| You keep each month | ₹11,716 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Racks, drawers, glass counter and storage | ₹1,50,000 |
| Refrigerator for cold-chain medicines | ₹25,000₹15,000–₹25,000 |
| Computer, printer, scanner and pharmacy billing software | ₹50,000 |
| Air conditioner | ₹40,000 |
| Signboard and lighting | ₹25,000 |
| Inverter and battery | ₹25,000 |
| Machinery & equipment (without add-ons) | ₹3,15,000 |
| Rent deposit | ₹45,000 |
| Drug licence, Shop Act and other registrations | ₹10,000 |
| Electrical work and opening expenses | ₹15,000 |
| Working capital 35 days of raw material, 3 days of credit to buyers, 1 month of expenses | ₹3,15,475 |
| Total project cost | ₹7,00,475 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Shop sales (per ₹100 sold) (per ₹100 of sales) | ₹ |
|---|---|
| Purchase cost of medicines and other goods (assumed blended margin about 20%) | 80.00 |
| Expiry, breakage and carry bags | 1.50 |
| Material cost | 81.50 |
| Selling price | 100.00 |
| Margin before running costs | 18.50 (19%) |
Capacity is ₹18,000 of sales a day when established. The 20% margin is an assumption: ask two local distributors for their actual retailer margins on branded, generic and OTC products.
Space, power and staff
150 sq ft
Rented shop · rent ≈ ₹12,000/month
Small-town rent. The law requires at least 10 sq m (about 108 sq ft) for a retail licence. Shops beside hospitals and clinics cost more.
3 kW, single-phase
Bill ≈ ₹5,000/month at full capacity
1 staff + you
- 1 × Counter assistant: ₹10,000
Licences and registrations
Retail drug licence (Forms 20 and 21)
mandatoryWhen: Before you stock or sell any medicine · Cost: Set by each state; published guides quote roughly ₹250–6,000
Issued by the State Drugs Control authority after inspection of the premises. Licences now stay valid subject to a retention fee every five years. Confirm forms and fees with your state authority.
Registered pharmacist
mandatoryWhen: From day one, present during business hours · Cost: Salary if you are not a pharmacist yourself
This profile assumes the owner is the registered pharmacist. If not, add a pharmacist's salary (often ₹15,000–25,000 a month in small towns) in the calculator.
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
GST registration
if applicableWhen: When turnover crosses the registration limit; distributors usually expect it · Cost: Free
GST on many medicines was changed in the 2025 rate revision. Confirm rates and the limit with a CA.
FSSAI registration
if applicableWhen: If you sell food supplements, baby food or health drinks · Cost: ₹100/yr for basic registration
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
How it works
- Buy only from licensed distributors against proper invoices.
- Check batch, expiry and MRP; store by rack system and keep cold items refrigerated.
- Dispense against prescriptions under the pharmacist's supervision; bill with batch numbers.
- Maintain registers for scheduled drugs as the rules require.
- Return near-expiry stock to distributors within their return window.
Loan route
Mudra loan (Tarun)
Own money ₹70,048 · Loan ₹6.3 lakh · EMI ≈ ₹14,699
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.05 lakh (general, urban) to ₹2.45 lakh (special category, rural). EMI ≈ ₹12,249–₹9,799.
Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Patients from nearby clinics and hospitals
- Families buying monthly medicines for chronic illness
- Walk-in buyers of OTC and personal-care products
- Small clinics and nursing homes
Ways to sell
- A shop close to doctors' clinics
- Phone and WhatsApp orders with home delivery
- Monthly refill reminders for regular patients
- Generic-medicine counters and Jan Aushadhi Kendra (a separate scheme with its own application)
Season: Steady, with more sales in the monsoon and winter illness seasons.
Competition: Established chemists, discount chains and online pharmacies. A small shop holds on with availability, trust, quick delivery and credit to known families.
Risks and how to handle them
Licence action for selling scheduled drugs without prescription or without a pharmacist present
Follow the rules strictly, keep registers up to date and never lend the licence or the pharmacist's name.
Expired and slow-moving stock
Stock what local doctors prescribe, use software expiry alerts and return stock on time.
Discounts from chains and online sellers
Offer fair discounts on regular purchases, keep generics and compete on service and immediate availability.
Dispensing errors
Double-check name, strength and batch, and ask the doctor when a prescription is unclear.
Tips from the trade
- Visit nearby doctors and note what they prescribe before buying opening stock.
- Distributor credit and return terms matter as much as the margin.
- Surgical items, baby care and personal-care products usually carry better margins than branded medicines.
Questions people ask
Can I open a medical store without being a pharmacist?+
You can own one, but a registered pharmacist must be employed and present for retail sale of medicines, and the licence is issued with that pharmacist's details.
How much space is needed for a drug licence?+
At least 10 square metres for retail, and 15 square metres for combined retail and wholesale, with proper storage and a refrigerator.
How much investment is needed to start a medical store (pharmacy) business?+
About ₹7 lakh for a small unit: ₹3.15 lakh for machinery and equipment, ₹70,000 for set-up costs and ₹3.15 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a medical store (pharmacy) business make per month?+
At 60% of capacity, sales are about ₹3.24 lakh a month and operating profit about ₹26,415 before the loan instalment. After an EMI of about ₹14,699, the owner keeps about ₹11,716 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for medical store (pharmacy)?+
With a project cost of about ₹7 lakh, the bank loan of about ₹6.3 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.45 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for medical store (pharmacy)?+
Mandatory: Retail drug licence (Forms 20 and 21), Registered pharmacist, Shop and Establishment registration. Depending on your set-up you may also need: GST registration, FSSAI registration, Udyam registration.
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Sources
- OkCredit: medical store rules in India, 2026 guide for owners
- Agile Regulatory: licence for a medical store
- RegisterKaro: pharmacy licence
- Udyam Registration
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.