Are you planning to enter the fast-growing healthcare industry? Then Tata 1mg franchise is waiting to give you the stability and the name you have been waiting for. With the backing of the Tata Group, it is offering opportunities not only for experienced people but also for first-time business starters.
In this article, I will cover all the details about the Tata 1mg franchise that you need to know. At the end of the article, you will come to know whether this franchise is suitable for you or not.
What is Tata 1mg?
Tata 1mg, formerly known as 1mg, is recognized as one of the most popular digital healthcare brands in India. It offers an online franchise, diagnostics, online consultants, and health products and wellness services.
If I talk about the franchise models, the company is expanding its business through two models:
- The Tata 1mg Health Partner( Affiliate Model)
- The Tata 1mg Retail Pharmacy Franchise
Franchise Models and Cost Breakdown
1. The Tata 1mg Health Partner( Affiliate Model)
- Initial Investment- Rs 10,000-15000+ GST you have to pay
- You don’t require a space; you can work from home
- Stock is not needed for this model
- You need to promote Tata 1mg services, then generate leads. From the converted leads, you receive a commission per order.
- You can earn Rs 20k-50k, depending on how many you convert from the leads( Order volume)
2. Retail Pharmacy Franchise
(i) You need to pay a franchise fee of Rs 2-3 lakhs, which is a one-time payment.
(ii) For the total setup cost, it will cost you Rs 10-20 lakhs. The breakdown costs are:
- Interior and equipment: Rs 4- 7 Lakhs
- Inventory starts at: Rs 5- 7 Lakhs
- For miscellaneous or Marketing: Rs 1- 2 Lakh
(iii) For royalty, you need to pay 5% of your monthly revenue
(iv) You can earn between Rs 5- 10 Lakhs monthly revenue
(v) Estimated that nearly 40% of the gross margin is there
(vi) If I talk about that net profit, it will be around 15-20% after all the expenses
(vii) In this franchise model, it typically takes around 12-18 months to recoup your investment.
Why should you join the Tata 1mg franchise?
1. Brand Power
Tata 1mg is part of the Tata Group, which is regarded as a company with a reputation for trust, ethics, quality, and legality in India. The brand, which is a part of the Tata group, is a win-win situation for you because people come to your business instead of going into random general shops.
Because customers trust the Tata brand, and they feel safe when they buy any product of theirs.
2. Multi-Services:
Tata 1mg is not just another online pharmacy. It provides a great variety of services such as:
- Prescription medicines
- Over-the-counter (OTC) health and wellness products( retail business)
- Sample collection-based ( blood samples, urine samples, or complete body tests)
- Offers Telephone doctor consultations
- Fitness packages, treatment ideas, and health blogs
- This variety enables franchisees to serve a range of health needs on the same platform.
In short, you can earn money not only from a traditional retail business but also from the above services.
3. Market demand:
The Beauty of the healthcare industry is that it is less affected by recessions. Whether in rural villages or urban metros, people require access to medicine and health facilities.
Especially after the COVID-19 pandemic, people have increasingly preferred to buy online. As health awareness and internet connectivity increase, digital health facilities like Tata 1mg are becoming essential.
4. Low-Risk Options:
Tata 1mg offers a Health Partner model, where the investment is between 10,000 and 15,000 Rs. You can’t start your business at that minimal price.
It is one of the best ways to test your potential to see whether you’re capable of handling retail business on your own or not. It requires space and is a good investment.
However, this is a model that offers a good monthly income, and there are minimal risks since the investment is low, and there are no fixed expenses to pay.
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5. Good Support System
As a franchise owner, you require support from the company to handle things smoothly. So here, the Tata 1mg team is very supportive of their franchisee, which includes:
- How to set up an onboarding process
- POS (point-of-sale) software and dashboard
- Provides marketing materials online and offline
- Gives training programs for staff
- Assists in Inventory and delivery management utilities
All this assistance makes it easier for the first-time businessman to gain confidence and run their business smoothly.
6. Quick Implementation
Regardless of what program you choose, whether the Health Partner model or the Retail Pharmacy model, Tata 1mg can help you go live soon. As documentation and onboarding have been simplified, the majority of partners begin their operations in 7-15 days.
7. High Profit Margins
A retail pharmacy franchise has a gross margin of up to 41%, which is higher than most conventional businesses.
After paying all the expenses and the 5 percent royalty, franchises are left with a 15-20 percent net profit. It is a type of investment that is often repaid within 12-18 months of the operation. And a name backed by the Tata group, you are not at risk if you manage it well.
8. Social Impact
The Tata 1mg franchise provides you with an opportunity to do something worthwhile other than profits.
You are transforming lives by providing your community with high-quality, affordable, and timely healthcare services.
You can also access low-cost diagnostic services, tele-consultations, and health programs that benefit families in your area.
The healthcare industry itself cures people, and when individuals receive good results from your services, they will also offer you their good wishes..
9. Nationwide Presence
Tata 1mg already has millions of customers in India. As a franchisee, you have a ready customer base and an existing chain of supply, which helps you grow quickly.
You are all aware that Tata is involved in various sectors, and each industry, customers frequently use their products due to the trust they have gained over the years.
So, having a franchise which is backed up by Tata is more than sufficient, you can wish for as a franchise owner.
10. Training and upskilling
While opening any franchise, you are bound to face challenges, so keeping this in mind, Tata 1mg offers regular training, webinars, and e-learning to keep the franchisee informed about the latest trends in healthcare and corrective measures to improve customer engagement.
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Documents required for the Tata 1mg franchise
Required Documents:
In both models, the following documents will be required:
- PAN card
- Aadhaar or address-proof
- Bank account or cancelled cheque
- GST certificate (if applicable)
- Pharmacy and drug license (for retail outlets)
- Rent agreement or property papers (for retail)
- Lease agreement or property details
FAQs
Do I need a license for the health partner model?
No, for the health partner model, you don’t need a drug license as you just have to promote a product, and based on this, you can earn commission when you sell a product.
Can I convert my existing medical store into a Tata 1mg store?
Yes, you can do so, provided your store meets the eligibility criteria. After that, you can convert to the Tata 1mg Store.
Do I need to hire a pharmacist for the retail model?
Yes, for the Tata 1mg franchise, you need to hire a certified pharmacist. Failure to do so, the drug inspector will impose a heavy fine or suspend your franchise.
Can I apply if I live in a Tier 2 or Tier 3 city?
Yes, you can apply even if you live in a small city, because Tata 1mg is looking to expand its brand name, wherever the health industry is growing.
What happens if I want to exit the Tata 1mg franchise?
The process is pretty simple; whatever is written in the clause, you have to follow that with a notice period.
Can I open multiple outlets?
Yes, you can open multiple outlets, provided that your sales performance, financial capability, territory, and, most importantly, approval from Tata 1mg.
Conclusion
In conclusion, except for the healthcare industry, all industries have faced a slowdown. Keeping this in mind, the Tata 1mg franchise is backed by the Tata Group, which ensures trust, loyalty, stability, and most importantly, you will get a good amount of profit margin.
So, if you are looking for a stable business that will not be affected by any factors, then Tata 1mg is what you should consider.
I hope you get the information you want.
