Efficient pharmacy management involves ensuring that the right drug is purchased at the right time and in the right amount. ABC-VED analysis is an effective method for drug inventory control. It helps to identify drugs requiring stringent control and also in identifying drugs whose purchase can be avoided. The list of drugs, their annual consumption and the unit cost of the drugs were obtained from the pharmacist of the tertiary care hospital to which the UHC was attached. VED analysis was done in consultation with the clinicians and the centre in charge. A total of 145 drugs were analysed. The Annual Drug Expenditure ^[ADE^] was Rs.10, 58,046. The percentage of drugs in Category A, B and C were 15.2%, 23.4% and 61.4% respectively. 32.4% of drugs were ‘Vital’, 46.9% were ‘Essential’ and 20.7% were ‘Desirable’. On further analysis it was observed that 35.16% of drugs ^[Category I^] consumed 80.6% of the total ADE, requiring stringent management, 47.58% of drugs (Category II) consumed 17.2% ADE and 17.24% of drugs (Category III) consumed nearly 2.2% of the total ADE. Any organization would need a well-managed inventory control to reduce extra costs due to wastages. ABC-VED analysis is one such effective method for drug inventory control.