India’s healthcare landscape is swiftly changing on the back of a growing demand for quality and cheap healthcare. In the fast-evolving landscape, Tata 1mg has been a key operator that uses technology to fill gaps between patients and required healthcare. By 2025, the company had established itself as among India’s leading digital healthcare platforms offering anything from online medicine to laboratory tests and doctors’ consultations.
With the solid support of Tata Group’s humongous credibility, the company has posted its operational revenue growth of 21% to ₹1,968 crore for the financial year 2023-2024, and substantially cut down on its net losses by 75%. This financial security and perhaps strong market presence make a Tata 1mg franchise an extremely lucrative business opportunity for entrepreneurs who wish to utilize India’s increasing e-pharmacy and digital health market.
The brand’s extensive reach in over 1000 cities and millions of app installations demonstrate a vast, ready-to-use customer base available to be tapped by the franchisees right away. As individuals increasingly look towards online platforms for their healthcare needs, having a Tata 1mg franchise is turning out to be a highly sought-after venture for entrepreneurs who want to invest in a high-profit and socially responsible business. Keep reading to learn more about how to start the Tata 1mg franchise in India, with all details on investment and profit. So, let’s begin!
Overview of Tata 1mg
Tata 1mg started its journey in 2013 as HealthKartPlus, an online generic drug search firm, which subsequently got spun out from HealthKart. It was founded in 2015 as 1mg by co-founders Vikas Chauhan, Prashant Tandon, and Gaurav Agarwal with an objective to make healthcare services transparent, accessible, and affordable to all. The business then focused on providing an online pharmacy store with detailed information and home delivery.
In 2021, a milestone year in its history, Tata Digital acquired the controlling stake in the company, and after that, it changed its name to Tata 1mg. The acquisition received a strategic fillip to the brand from the enormous credibility and trust generated by the Tata Group, pushing it towards becoming a market leader. Currently, Tata 1mg is a full-fledged digital health platform, retailing not just medicines but also diagnostics, doctor visits, and an enormous variety of health and wellness products.
| Feature | Description |
| Full Name | Tata 1mg |
| Managed By | Tata Digital |
| Founded | 2015 |
| Founders (Key Figures) | Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan |
| Headquarters | Gurugram, Haryana, India |
| Ownership Model | Franchise |
| Product Categories | Online Pharmacy, Diagnostics (Lab Tests), Doctor Consultations, Healthcare Products (supplements, personal care, etc.) |
| Brand Recognition | High, backed by the trusted Tata Group |
| Market Position | One of India’s leading digital healthcare platforms |
| Turnover (2024) | ₹1,968 crore (operational revenue, FY 2023-24) |
| Distribution Network | Pan-India, serving over 1000 cities |
Why a Tata 1mg Franchise is Trending in 2025
The Tata 1mg franchise is a first-mind alternative in 2025 due to an optimal market storm. The rising demand for the Tata 1mg franchise is due to:
- Unwavering Brand Support: Being a member of the Tata Group, instant credibility and customer trust are guaranteed, and effortless client acquisition and retention.
- Growing Market: The Indian digital healthcare market is anticipated to continue its rapid growth, offering a gigantic and growing consumer base.
- Multiple Revenue Streams: The model is not just the sale of drugs but includes diagnostic services, doctor consultations, and health products.
- Tech-Enabled Platform: An advanced, user-friendly digital platform simplifies the operations, from order management to customer engagement.
- Positive Share in Revenue: The franchisees have a significant share in revenue (around 95%), and they give 5% as royalty to the franchisor. This ensures a profitable and sustainable business model.
Tata 1mg Franchise Business Models
Tata 1mg franchise provides scalable business models catering to various investment abilities and business objectives. The models grant franchises a clear success path by riding on the success of the brand’s established platform. The two main business models of a Tata 1mg franchise are as follows:
1. Pharmacy Franchise Retail: This is for individuals wanting to own a brick-and-mortar store pharmacy with the opportunity to take online orders as well. It requires 200–500 sq. ft. of space, an investment of ₹10–₹15 lakhs, and offers a profit margin of 20%–30%. This will be ideal for whoever wants a public physical presence in their community.
2. Wellness & Health Store: This model focuses more on wellness services, diagnostic sample collection, and healthcare products rather than just medicines. It requires a larger space of 300–500 sq. ft., more investment of ₹20–₹50 lakhs, but provides a larger potential profit margin of 25%–35%. This is best for those who want to specialize in a broader range of healthcare and wellness services.
Tata 1mg Franchise Cost in India
The investment needed to be the owner of a Tata 1mg franchise in India is typically ₹10 to ₹30 lakhs based on the business model and location. This includes various components that are required for starting and running the business. Detailed investment for a Tata 1mg franchise is as follows:
- Franchise Fee: ₹2 to ₹10 lakhs (one-time fee for brand license and support).
- Infrastructure Investment: ₹10 to ₹15 lakhs (for a retail pharmacy business model) or ₹20 to ₹50 lakhs (for a wellness store business model). This is for interior fixation, inventory, computer hardware, and other machinery that is needed.
- Working Capital: ₹2 to ₹5 lakhs (for operational running costs, advertising, and employee wages).
Cost Comparison with Other Healthcare Franchises
While other chains like Apollo Pharmacy can also have similar or slightly greater initial costs, the Tata 1mg chain benefits from the added advantage of an established presence online and the immense credibility that comes with the Tata brand. This can also mean a quicker return on investment and a more robust market presence.
Tata 1mg Franchise Eligibility
In order to become a Tata 1mg franchisee, you need to meet specific requirements that will ensure a successful partnership. This includes:
- Minimum Shop Space: You must have a commercial space ranging from 200–500 sq. ft. in a busy area. This will be needed for the installation of a well-designed retail setup, e.g., product display, billing counter, and storage for medicines requiring exceptional temperature control.
- Financial Capability: You will need to have the financial ability to invest ₹10 to ₹30 lakhs, which will be utilized to pay the franchise fee and working capital. This investment covers the initial setup, stock, and operational expenses, giving you the financial capabilities of sustaining the business until it becomes profitable.
- Licenses & Documents Required: You must maintain all essential legal documents, including a Drug License (in the event of a pharmacy), GST registration, a copy of the business PAN, and the proprietor’s Aadhaar and photograph. All these documents are essential so that the business remains authentic and adheres to all the rules of the government in the highly regulated healthcare sector.
- Ideal Background: No specific academic qualification is required, but a business, retail, or pharmacy background would be suitable. Any experience in these fields will provide you with a basic understanding of how industries operate, inventory management, and customer service, all of which are fundamental to making your franchise work.
Tata 1mg Franchise Profit Margin & Monthly Income
A Tata 1mg franchise’s profitability is one of the many reasons why it is so desirable. While actual profits may keep changing, the business model is highly profitable.
- Gross Profit Margin: The gross profit margin is around 41% before including the cost of conducting business. It is arrived at by comparing the selling price of the commodities to the cost of acquisition and is a good starting point for assessing overall profitability.
- Net Profit Margin: The net profit margin is approximately 16% after deducting all expenses, including rent, salaries, and the 5% royalty payment. This is the real amount of profit that you will receive once all the costs have been removed, which provides you with a realistic idea of the business’s viability.
- Average Monthly Revenue: Depending on location and efficiency of operations, the average monthly revenue could be in the range of ₹5 to ₹10 lakhs. The revenue comes from a combination of online and offline sales, test bookings for diagnosis, and other medical services, reflecting the multi-aspect business model.
- Monthly Income: Having a net monthly income of around ₹97,500 as a practical expectation for a well-managed franchise, the break-even time will be 18 to 24 months. That is, you can recoup your initial investment within two years. This is evidence of a healthy return on investment and a clear path towards financial stability for franchise owners.
How to Apply for a Tata 1mg Franchise Online
Tata 1mg franchise registration is a simple process that begins with expressing your interest online. Here is how you can apply for a Tata 1mg franchise online:
- Research and Understand: You should do research on the business model and the local market demand of your area prior to applying. It is an initial step necessary in making an informed decision and verifying your business proposal aligns with Tata 1mg’s strategic goals and the needs of your local community.
- Visit the Official Website: Go to the official Tata 1mg website and look for the franchise or partnership page. The official site is the finest source of information and the correct application forms.
- Apply Online: Fill out the online application form, giving your personal and financial details, as well as information on your proposed business location. This is the first basis for the company to consider your opportunities as a potential franchise partner.
- Wait for Approval: If your documents are approved, your interview and application will be screened by the Tata 1mg team. If selected, they will get in touch with you for the next steps. This stage will allow the company to assess your entrepreneurial spirit and check compatibility between you and the brand.
- Legal Formalities: Subsequently, you will need to complete all legal and regulatory formalities and sign the franchise agreement. This final step makes the partnership legal and provides you with the legal guidelines required to open your franchise.
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Tata 1mg Franchise Contact Number & Support
For the direct contact information to inquire about the Tata 1mg franchise opportunity, it is recommended that you contact their dedicated franchise support team. While a publicly announced contact number may change, it is generally possible to find the current contact details on the main Tata 1mg website or through their business partnership inquiry forms.
You may also reach them via email and post.
Official Link: https://www.1mg.com/healthpartner AND https://partners.1mg.com/
Contact them at: care@1mg.com
CIN: U24290DL2016PTC302634
Registered Address: 2nd Floor, Plot No. B-225, Okhla Industrial Area, Phase-I, South Delhi, New Delhi- 110020
Postal Address: Corporate Address: 5th Floor Tower – B of The Presidency Building, 46/4 Mehrauli Gurgaon Road, Sector 14, Gurugram, Haryana-122001, India
Support Offered by Tata 1mg is as Follows:
To ensure its franchise partners are successful, Tata 1mg provides a holistic support system that covers various facets of business operations. The support allows the franchisees to establish businesses, operate day-to-day operations, and grow customer bases confidently. This includes:
- Inventory Planning: Tata 1mg gives you the help in managing product inventory. This is very crucial in avoiding stockouts and overstocking, enabling you to fulfill customers’ demands effectively without unnecessary expense.
- Staff Training: The company gives your employees complete training on product know-how and customer service. This training enables your staff to be best equipped to handle questions from customers, provide the appropriate information, and deliver an exceptional service experience that is up to brand standards.
- Support for Marketing: You will be advised on local branding and advertising to bring in customers. This entails exposure to marketing material and techniques that help you build a strong regional presence and invite customers to visit your physical store.
- Business Management Software: You shall be given your own software to efficiently run orders and inventory. The technology is a core part of the franchise model, which helps integrate your offline shop with the online shop and make every activity of your business efficient.
Advantages of owning a Tata 1mg Franchise
Franchising a Tata 1mg has several noteworthy advantages behind it that set it apart from other business undertakings. This includes:
- Trusted Brand Name: Backed by the Tata Group, there is an immediate feeling of assurance among the customers, and your business becomes credible and trustworthy. The brand name removes the initial task of gaining customer trust and provides a solid foundation for business growth.
- Diversified Services: The business of the franchise has several sources of income from drugs, diagnostics, and health products, which provide business stability. It is the diversified service that keeps the company strong against market fluctuations and offers numerous sources of generating income.
- Emerging Market: You are entering a rapidly expanding market with robust demand for convenient healthcare. The increased digitalization of healthcare in India, coupled with a rising health-conscious population, is a fertile ground for long-term business expansion.
- Solid Support System: Tata 1mg offers you immense support in the form of training, marketing, and technology to help you succeed. Such a comprehensive support system minimizes the risks of entering a new business and inspires you to focus on delivering superior customer service.
- High Profit Potential: The model is designed to provide a high return on investment with a decent profit margin and a reasonable break-even point. The combination of great brand credibility and a high-demanding market provides for a smooth way into profitability and long-term financial prosperity.
Challenges & Risks to Consider
While a Tata 1mg franchise is a profitable business opportunity, it’s worth being conscious of the likely challenges and risks.
- Competition: Competition in the e-pharmacy market is high, with other firms vying for market share. You will need to effectively employ the use of the Tata brand and improve customer service in order to differentiate and be competitive.
- Regulatory Compliance: The health care profession is strictly regulated, and keeping track of all the licenses and laws could be complicated. You must be on your guard about maintaining all national and local legislation, so that you do not land in trouble with the law and your enterprise stays upright.
- Operational Expenses: The high initial investment and regular operating expenses, such as rent and employees’ salaries, need to be managed keenly. You require a good business plan and disciplined spending to make the business continue to be profitable.
- Technology Dependence: The business depends mainly on the Tata 1mg online platform, and hence any technical glitch can influence the industry. You will have to plan for technical issues and have a contingency plan in order to minimize disruptions to the company.
Another More Pharma Franchise You Can Explore: MedPlus Franchise
Conclusion – Is a Tata 1mg Franchise Worth It in 2025?
With India’s digital healthcare market for strong growth, the unparalleled brand reputation of the Tata Group, and the sturdy support infrastructure for it, a Tata 1mg franchise is well worth considering in 2025. It is a lucrative business that provides a combination of the old model of retail pharmacy and convenience of the new technology-based platform.
The wide variety of services that it provides, high price margins, and widespread brand name awareness make the business a compelling proposition for entrepreneurs who desire to leave a giant dent in the healthcare market and build a long-term business. Strategically managing the initial investment and leveraging the power of the brand, a Tata 1mg franchise has the potential to yield a good return on investment and a sustainable source of income.
FAQs
1. What is the investment required for a Tata 1mg franchise in total?
The initial investment for a Tata 1mg franchise varies from ₹10 to ₹30 lakhs, comprising a franchise fee, infrastructure investments, and working capital.
2. What is the profit margin of a Tata 1mg franchise?
The gross profit margin is approximately 41%, and the net profit margin after deducting all the expenses is approximately 16%.
3. How much space does a Tata 1mg franchise need?
One would need a minimum of 200–500 sq. ft. commercial space to open a Tata 1mg franchise shop.
4. What licenses are needed to open a Tata 1mg franchise?
You will need a Drug License, GST registration, business PAN copy, and other normal business registrations to operate a Tata 1mg franchise.
5. Is a licensed pharmacist required to run a Tata 1mg franchise?
Yes, since operating a Tata 1mg franchise that deals in dispensing prescription medications requires having a registered pharmacist either as an employee or owner. It is legally compulsory under Indian law to dispense medicine in a proper and safe way.
