Jan Aushadhi scheme was launched by Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India in 2013 in order to provide tested medicines at cheap prices to the economically weak sector of society.
Opening Jan Aushadhi Store Franchise or Dealership
Jan Aushadhi Training and Support
Since this is a government franchise you get a lot of support from the government body that regulates the Jan Aushadhi scheme. One-time financial support of Rs. 2 lakhs as establishment cost and up to Rs. 50,000 as one time startup cost is also provided to JAS owners.The owner is required to submit bills to get the reimbursement.
Requirements of Jan Aushadhi Store
1. All owners are required to load the web based software and acquire a computer with internet connection and printer. It is essential that the computer has the minimum configuration as per the following regulations:
• Minimum configuration:- a. Pentium IV/Dual Core Processor, b. 1 GB RAM (2 GB Recommended), c. 80GB HDD, d. TVSE MSP 240/250 series 80 column Dot matrix printer (Recommended), e. 500 VA UPS
• Software requirements:- a. Windows XP/ Vista /Windows 7 (32 bit)/Windows 8 Operating System – Windows 7 (32 bit) is recommended, b. Anti-virus software, c. Internet connection – 512kbps
2. Having a refrigerator in the shop is also mandatory so that certain medicines that require a cool climate to sustain can be kept in the refrigerator within required temperature as specified by the Drugs and Cosmetic Act.
3. Sufficient furniture such as racks for storing the merchandise, counters for issuing bills and medicines to customers, office and computer tables, chairs and stools must also be bought in order to comply with the requirements and terms to start the Jan Aushadhi Store.
Cost and Investment
Investment required to start a Jan Aushadhi Store is approximately 3 to 6 lakhs. This cost does not include the property expenses or the rent of the premises on which the store will be build. However this investment will include furniture, gadgets for bill maintenance including computer, printer, internet connection, one refrigerator, advance payment of medicines as well as the demand draft fees. Hence making it an affordable franchise.
To start a Jan Aushadhi store you must have minimum area of 120 square feet. Owners can also rent the area. This is one of the best business which you can start in such a small area.
The Jan Aushadhi Store has a great ROI and the owner gets the margin of 16% of the sale price. A sale incentive of 10% is also given to the owner that amounts maximum of Rs. 10,000 per month for first year. Stores in areas such as North-East, Tribal Areas, and Naxal affected areas, the incentive is 15% that amounts to maximum of Rs. 15,000.
Documentation and Procedure
Among the documents required is a sale license from competent authority with the owner’s name. Apart from that a retail drug license and / or TIN number is also required. Proof of having an adequate pharmacist knowledge and computer knowledge must also be given. Name of the pharmacist and registration number must be mentioned in the documents.
To prove that you are financially equipped for the franchise you might also have to submit your bank statement of last three years, or sanction letter from bank for extension of loans. Institutions are supposed to submit statements of audited accounts for past three years. It is also suggested that the owner thoroughly goes through the terms and conditions required to fulfill in order to start a Jan Aushadhi store.
Once you have qualified the above mentioned criteria then you are eligible to start your own government medical shop. All you have to do is download the application form available on the official website of Jan Aushadhi Scheme (available as an annexure in PDF document) or available on the link: janaushadhi.gov.in/data/GuidelinesIndividuals.pdf.
Send this document in the format mentioned on the website along with the necessary documents mentioned. An application fee of Rs. 2000 as Demand Draft (non-refundable) must also be submitted in favor of BPPI payable at Gurgaon, to the General Manager (A&F).
Bureau of Pharma Public Sector Undertakings of India (BPPI),
IDPL Corporate Office, IDPL Complex,
Old Delhi Gurgaon Road,
Dundahera, Gurgaon – 122016 (Haryana).