Risks
Inventory Risk: Price fluctuations of pharmaceutical products, obsolescence, damage, or expiry leading to inventory write-offs.
Credit Risk: Defaults or delays in payments from customers, impacting working capital and profitability.
Intense Competition & Margin Pressure: The fragmented nature of the trading industry can lead to aggressive pricing and squeezed profit margins.
Supply Chain Disruptions: Geopolitical events, natural disasters, or issues with key suppliers affecting product availability and delivery.
Regulatory Changes: Changes in import/export policies, drug pricing controls, or quality standards in India or international markets.
Forex Fluctuations: If involved in international trade, currency volatility can impact costs and revenues.
Working Capital Management: The business model requires significant working capital, and inefficient management can lead to liquidity issues.