Pharma Franchise For Ayurvedic Medicines

Pharma Franchise For Ayurvedic Medicines – Ayurveda, with its roots embedded deep within Indian culture, has experienced a revival, becoming a significant player in the global wellness industry. India, home to Ayurveda, has witnessed its market share grow steadily, with an expected market valuation of approximately $8 billion by 2022. This resurgence has been fueled by an increasing consumer shift towards natural and organic treatments, positioning Ayurveda as a promising area for entrepreneurial ventures, particularly through franchises.

For you, this means an opportunity to engage with a business model that not only promises commercial viability but also contributes to promoting health and wellness across communities, enhancing your potential for substantial financial returns.

Global Market Demand for Ayurvedic Medicine and Indian Companies’ Performance

Globally, the Ayurvedic product market is set to expand at a compound annual growth rate (CAGR) of 16.14% between 2021 and 2026. Key players like Dabur and Himalaya have capitalized on this surge, extending their reach into international markets. For instance, Dabur reported a robust growth in the Middle East and North African region, with a 20% increase in sales for Ayurvedic products.

These statistics indicate a burgeoning market ripe for expansion, where you can leverage the international appeal of Indian Ayurvedic brands to establish a successful franchise.

Ayurvedic Franchise Model Explained with Example

Step 1: Research and Select a Franchise

Scenario: You are interested in opening a franchise for “HerbalRoots”, a popular Ayurvedic brand known for its high-quality herbal supplements and skincare products.

Action: You start by researching various Ayurvedic franchises, attending franchise expos, and speaking to existing franchisees of “HerbalRoots” to understand their business model, profitability, and market reputation. After initial research, you decide that “HerbalRoots” aligns with your business goals and market needs in your area.

Step 2: Initial Contact and Application

Scenario: You contact the “HerbalRoots” franchise development team through their website, expressing your interest in opening a franchise.

Action: The franchise team responds by providing you with their Franchise Disclosure Document (FDD) which outlines the investment details, fees, training and support, obligations, and earnings potential. You review this document carefully, perhaps with the help of a franchise attorney, to ensure you understand all terms and conditions.

Step 3: Due Diligence and Agreement

Scenario: After reviewing the FDD, you arrange a meeting with the franchise team to discuss specific details and visit existing “HerbalRoots” outlets.

Action: During the visit, you assess the operation and customer interactions, gaining insights into the daily running of the franchise. Satisfied with the findings, you move forward and sign the franchise agreement, thereby agreeing to their terms of business operations and the support provided.

Step 4: Securing Financing

Scenario: The initial investment required to open a “HerbalRoots” franchise is INR 15 lakhs, which includes the franchise fee, initial stock, equipment, and store fit-out.

Action: You approach a bank with a comprehensive business plan, detailing market analysis, projected cash flows, and the operational model of the “HerbalRoots” franchise. The bank approves a loan for part of the investment, and you contribute the rest from your savings.

Step 5: Location and Setup

Scenario: “HerbalRoots” has specific criteria for store locations to maximize customer footfall and visibility.

Action: With the help of the “HerbalRoots” real estate team, you identify a suitable location at a bustling community shopping center. Once the lease is signed, the franchisor assists with the store design and setup, ensuring it meets their branding requirements.

Step 6: Training and Launch

Scenario: To ensure you and your staff are well-prepared, “HerbalRoots” provides comprehensive training on their products, sales techniques, and operational procedures.

Action: You and your team undergo a two-week training program, both online and at their corporate training center. Following this, the franchisor assists with the marketing campaign for the grand opening. The store launches with promotional events planned by “HerbalRoots” to attract a large customer base.

Step 7: Ongoing Operations and Support

Scenario: Now that your franchise is operational, maintaining quality and customer service is crucial.

Action: “HerbalRoots” provides continuous support through regular audits, training updates, marketing strategies, and a dedicated manager to assist with any operational issues. You engage with the customer community, utilizing the franchisor’s marketing tools and campaigns to boost sales and customer loyalty.

Requirements to Take an Ayurvedic Franchise

To embark on this journey, several prerequisites need to be fulfilled, ensuring you’re well-prepared to enter the market:

  • Investment and Financial Planning: An initial investment ranging from INR 5 lakhs to 20 lakhs is typically necessary, depending on the franchise model and scale.
  • Location and Space: Securing a prime location that can attract the target demographic, coupled with a space ranging from 250 to 1000 square feet, will be essential.
  • Understanding Consumer Needs: Familiarity with consumer preferences and regional market trends in Ayurvedic products will help tailor your product offerings effectively.

Documentation & Complete Process in India for an Ayurvedic Business Opportunity

Starting an Ayurvedic franchise requires navigating through a series of bureaucratic steps and obtaining necessary documentation:

  • Business Registration: Registering your business entity (LLP, Pvt. Ltd., etc.) under the Companies Act is the first step.
  • AYUSH License: Acquiring a license from the Ministry of AYUSH, ensuring compliance with the standards prescribed for Ayurvedic businesses.
  • GST Registration: Mandatory registration for GST if the annual turnover exceeds the threshold limit prescribed for small businesses in India.

Top 10 Ayurvedic Franchise Companies in India

Below is a detailed table of the top 10 Ayurvedic companies offering franchise opportunities in India:

Company Name Year of Establishment Revenue (INR) Team Size Certifications
Dabur India Ltd. 1884 8,500 Crore 7,800 GMP, ISO
Patanjali Ayurved 2006 6,300 Crore 5,000 ISO, WHO-GMP
Himalaya Wellness 1930 2,500 Crore 4,000 ISO, GMP
Baidyanath 1917 900 Crore 1,500 GMP, ISO
Charak Pharma 1947 700 Crore 1,000 ISO, WHO-GMP
Zandu Realty 1910 500 Crore 500 GMP, ISO
Sandu Pharmaceuticals 1899 350 Crore 300 GMP, ISO
Kerala Ayurveda Ltd 1945 250 Crore 350 GMP, ISO, AYUSH Premium
Surya Herbal Ltd. 1999 180 Crore 250 ISO, GMP
Vicco Laboratories 1952 300 Crore 450 GMP, ISO

FAQs Related to the Ayurvedic Franchise Business

Q 1.) What initial investment is required to start an Ayurvedic franchise?

Ans 1.) Typically, you need to invest between INR 5 to 20 lakhs, which covers franchise fees, initial stock, marketing, and setup costs.

Q 2.) Can I operate an Ayurvedic franchise from home?

Ans 2.) Yes, some companies offer home-based franchise options, focusing on smaller setups and online sales.

Q 3.) What are the key factors to consider when choosing an Ayurvedic franchise?

Ans 3.) Brand reputation, product range, support offered by the franchisor, and market presence are critical factors to consider.

Q 4.) What is the expected profit margin in an Ayurvedic franchise?

Ans 4.)Profit margins can vary from 20% to 40%, based on factors like location, brand, and operational efficiency.


Entering the Ayurvedic medicine franchise realm is not merely a business endeavor but a gateway to contributing towards a healthier society. With the industry showing robust growth in India and globally, now is an opportune time to consider this lucrative and fulfilling business model. Aligning with a reputable Ayurvedic brand as a franchise partner will offer you a significant edge in the competitive market, ensuring your venture is both profitable and impactful.