5 Benefits of purchasing a running Pharma plant over installing a new!

After the 3rd wave of COVID-19,  in India business community is aggressively tilted toward the pharma manufacturing business due to the evergreen behavior of this business in all the worst situations. In this article, we will discuss the 5 benefits of purchasing a running Pharma plant over installing a new one.

Many people are willing to buy running pharma formulations plants but some people prefer to install a new plant of their own choice at their preferred location. It sounds good in the context of easiness to run a business in the local residential city.  However, all business commitments are not fulfilled in that decision. Both choices of buying a running plant and installing a new one have their Pros and cons.

Let’s discuss in detail all the possibilities of the pharma manufacturing business. We will discuss all possible ways of entering this business. We will keep factor in mind that you are entering this business from another one or changing your existing business 

READ MORE: Pharmaceutical formulation plants for sale in North India

5 Benefits of purchasing a running Pharma plant

If you choose buying a running plant over installing a new one then you are in the earning stage first day of acquiring the business, another side you have to wait for about 2 years to create the first bill of sale when you go for installing a new pharma plant.

You will get the goodwill of customers who are already associated with the plant. If the plant was doing third-party manufacturing for some parties they always prefer to leave the plant whether the owner of the plant changes because they have pending packing material remains in the plant. It is not easy to leave a plant for a third-party service-seeking party. 

Time is very important factor in every business. It is very time-consuming to set up a new pharma plant these days because there are lots of regulatory functions in the plant setup process. These all things take time and a minimum 2 years is very nominal for installing a pharma plant. It is a huge time for a business owner. 

The cost of a new plant installation has been reached a new level in the decade of 2020s, now it is very hard to set up a plant under Rs. 5 crore in India. The cost of building and machinery has rocketed high in the last few years so buying a running plant can be proved more cost-efficient in comparison of new plant installation. 

When you buy a running plant you get thousands of product permission on the manufacturing licenses of plant,  rather the cost of permission is very significant but age of product permission is very crucial when you are planning to take part in a Government tender. Product permission is a very big assest for any pharma manufacturing plant. 

Disadvantages of purchasing a running pharma plant over installing a new one

When you buy a running a pharma plant, there is first and very possible drawback is the life of machinery is consumed by the earlier owner of the plant. However it is not always happened when you buy a running pharma plant.

The building of the plant remains old in comparison to the new one, it requires regular maintenance. In the modern-day pharma plants are installed on puff-panel structures old plants usually are built by brick walls. It can hurt you when you are going to take some advanced certifications like WHO-GMP, PIC/S etc. 

History of a plant sometimes chases for a long mile, some pharma plants have bad history in drug department and market. If a plant is known for samples failed in the drug department that history can dent the business of new owner.

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Challenges in starting a pharma manufacturing business?

The Pharma manufacturing business is not as simple as other manufacturing businesses are, pharma manufacturing is a highly regulated business. Each step taken in this business needs approval or permission from Drug regulatory authorities. 

Pharma manufacturing is associated with the health of people. Therefore, the quality of medicines is crucial. It is very necessary to maintain the quality of products by every manufacturer. This business is very rewarding but also tests the patience of business owners because it requires a very high level of alertness to rule out any possibility of mistakes during the manufacturing of a drug.

Another challenge in this business is to get permission for every product from the State drug controller or CDSCO. Before manufacturing a new product it takes so much time and effort to fulfill all legalities. 

You can’t take purchase orders for a new product without getting permission to manufacture a particular product. 

However, there are a lot of liabilities in the manufacturing of pharmaceutical products but it is a very satisfying and rewarding business. When you do this business you feel satisfied that you are serving humanity in a way of manufacturing medicine for them.

Conclusion

The decision to buy running or install a new pharma plant depends on many factors that can play a vital role in decision-making. A true business-minded person always goes for a settled business that gives him the edge over the new business setup. The choice may vary from person to person but the bigger picture shows clearly that buying a running pharma plant is always a proven smart decision. Ultimately time is a very crucial factor for any business. The time of two years that is required to set up a new business is a big stake for every businessman. In my opinion to buy.  In this article, we discussed the 5 Benefits of purchasing a running Pharma plant over installing a new one, hopefully, you find an insight to make a decision.

To buy running plant WhatsApp; 9812446733