PCD franchise or third-party manufacturing?
The real difference between a PCD pharma franchise and third-party manufacturing: who owns the brand, minimum orders, money needed, time to first stock, and which one suits you.
What is the difference in one line?
With a PCD franchise you market someone else's brand. With third-party manufacturing you own the brand and a manufacturer makes it for you. Everything else, from money to risk, follows from that one difference.
How do the two compare side by side?
| PCD pharma franchise | Third-party manufacturing | |
|---|---|---|
| Whose brand | The company's brand | Your own brand |
| Who makes it | The company | A contract manufacturer you choose |
| Minimum order | Often none. At Acrowell Labs there is no minimum order on in-stock products | Always a minimum order quantity, set by the manufacturer for each product |
| Money to start | Only the stock you order, plus your licence and running costs | Higher: minimum batches, packaging, artwork and stock for each product |
| Time to first stock | Days. Acrowell dispatches within 24 hours of a confirmed order | Weeks, because artwork, printing, production and testing come first |
| Marketing material | Supplied by the company (visual aids, literature, samples) | You design and pay for it |
| Control over pack and price | Limited to the company's range | Full control |
| Your risk | Low: buy what sells, reorder as it sells | Higher: unsold stock of your own brand stays with you |
When does a PCD franchise make more sense?
- You are an MR or a new distributor and want to start with the doctors and chemists you already know.
- You want a wide range quickly (antibiotics, pediatrics, derma, gynae, cardiac-diabetic) without paying for each product's batch.
- You would rather spend your money on stock and field work than on packaging and artwork.
At Acrowell Labs you can start by ordering only the in-stock products you need. See what a PCD franchise actually costs.
When does third-party manufacturing make more sense?
- You already sell steady volumes of a few products and want your own brand on them.
- You have the capital for minimum batch quantities and can carry stock.
- You want full control over the name, pack design and price list.
Minimum order quantities are set by the manufacturer and change with the product and the plant. A tablet, a syrup and a cream will each have their own minimum. Ask for the minimum in writing for every product before you approve artwork.
Do I need a drug licence for both?
Yes. To buy and sell medicines in either model you need a wholesale drug licence (Forms 20B and 21B) and GST registration. Under third-party manufacturing the manufacturer holds the manufacturing licence; your company is named on the pack as the marketer. How the wholesale drug licence works.
Can I do both?
Many partners do. They start with a PCD franchise to build doctor and chemist relationships, then move their best-selling molecules into their own brand through third-party manufacturing. Acrowell Labs offers both, so you can grow from one into the other with the same supplier. See Acrowell's third-party manufacturing.
Frequently asked questions
Is third-party manufacturing more profitable than a PCD franchise?
What is the minimum order in third-party manufacturing?
Is there a minimum order for an Acrowell Labs PCD franchise?
Can I switch from PCD to my own brand later?
Want to know if your district is open? See how the Acrowell franchise works or send your details below.
Is your district still open?
Tell us where you work and what you want to stock. You get the products open in your territory, the rate list and the monopoly terms, usually within one working day.
Corporate office: Unit 505, 5th Floor, Motiaz Business Park, Zirakpur, Mohali, Punjab