PCD franchise vs third party manufacturing: which business model suits you?

Both models let you run a pharma business without building a plant. They are very different in how much you control and how much you must do yourself. Here is how to choose.

The two models in one minute

• PCD franchise: you distribute a manufacturer's own branded products in your area. The brand, the products and the prices belong to the manufacturer.
• Third-party manufacturing: you have a manufacturer make products under your own brand. The brand belongs to you, and you decide the products and packs.

Whose brand is it?

In a PCD franchise you build the manufacturer's brand in your territory. In third-party manufacturing you build your own, which you can keep and grow for years. If owning a brand matters to you, third-party manufacturing is the natural fit.

How much control do you have?

With a PCD franchise you choose from the company's range. With third-party manufacturing you choose the formulation, packing, label design and pack sizes, within what the manufacturer can make.

How much work is involved?

A PCD franchise is the faster start: the products exist, the labels are approved and you begin promoting. Third-party manufacturing needs more preparation, such as brand name, artwork, product selection and samples. Read the documents you will need.

Where is the risk?

• PCD franchise: your risk is mainly in building the market and in the stock you buy.
• Third-party manufacturing: you carry more of the product and brand risk, because you decide what is made and in what quantity.

Who each model suits

Choose a PCD franchise if you are a distributor, chemist or medical representative who wants to start soon with a ready range.

Choose third-party manufacturing if you already have a distribution network, want your own brand or have your own formulations.

Can you do both?

Yes. Many businesses begin with a franchise to learn the market, then launch their own brand through a contract manufacturer. A manufacturer that offers both can supply both from one plant.

Ask these questions before you decide

1. Do I want to build my own brand or someone else's?
2. How much preparation can I do before my first sale?
3. Can I handle stock and quantity risk?
4. Do I have licences and documents ready?

Talk to a manufacturer that offers both

Pulse Pharma, in Himatnagar (Himmatnagar), Gujarat, offers third-party manufacturing for your brand and a PCD franchise for its own range of 150+ products. Tell us your situation and we will say honestly which fits you.