Are you looking to set up your Ayurvedic business?
It can be quite a lucrative business segment as more and more customers prefer herbal and natural products for their health and wellness.
Now, let’s have a reality check:
Setting up a small-scale Ayurvedic manufacturing plant in India can cost anywhere between INR 15 lakh and INR 30 lakh. This cost will only go up with operational expenses and compliance.
If you cannot afford to invest such a large sum, opting for Ayurvedic third party manufacturing in India can help. A third party manufacturing company or a contract manufacturer produces products for you. It helps you focus on the sales and marketing, not to be bothered about the manufacturing complications.
In this blog, we will understand Ayurvedic third party manufacturing in India as well as how it works.
What is Ayurvedic Third Party Manufacturing Business?
In Ayurvedic third party manufacturing, the company outsources the manufacturing of its Ayurvedic products to a contract manufacturer.
In this model:
- The product requirements are provided by the ordering company.
- The manufacturer makes the products with approved formulations and quality standards.
- Packaging and labelling for the ordering company.
For example, you want to launch your herbal hair oil. Your third party manufacturer will start making it with prescribed formulations and processes. They will label it with your brand name, and supply to you.
This model is ideal for businesses such as…
- Ayurvedic startups
- Healthcare companies
- Wellness brands
- Pharma marketers
- Online sellers
- Export businesses
It helps companies to enter the market without investing a lot of crores into manufacturing infrastructure. There are several companies specialising in Ayurvedic third party manufacturing in India.
Benefits of Ayurvedic Contract Manufacturing in India
Here are some top benefits to expect from Ayurvedic third party manufacturing in India:
Lower Investment Requirement
The investment for setting up an Ayurvedic manufacturing unit is huge in terms of land, machinery, production units, quality testing laboratory and licenses. Third party manufacturing eliminates these expenses and only charges for product manufacturing.
Helps with Market Entry
It may take months or even years to establish a production unit. Third party manufacturers already have the required infrastructure and approvals. You just need to order them to get your products manufactured. This helps companies introduce their products much quicker.
Access to Expert Manufacturing
Generally, contract herbal manufacturers are equipped with
- Ayurvedic experts
- Production specialists
- Quality control professionals
- Regulatory experts
They ensure quality products and efficient production processes.
Wide Product Range
You can explore the extensive Ayurvedic product portfolio of your contract manufacturer which generally includes.
- Tablets
- Capsules
- Syrups
- Powders
- Churnas
- Oils
- Herbal teas
- Skin care products
- Hair care products
Quality Assurance
Reputed manufacturers follow rigorous quality control procedures as they use good materials, standardised formulations, and product testing.
Scalability
As your business grows, production requirements increase. Third party manufacturing can help to scale up production without purchasing more equipment and facilities.
Difference between Private Label and Third Party Ayurvedic Manufacturing
Generally, there are two types of contract manufacturing models available—private label and third party manufacturing.
Private Label Manufacturing
- The manufacturer already has some products ready to make.
- The customer chooses the products from the portfolio.
- Products will be sold under the client’s brand.
This is perfect for businesses that need to get their products into the market in a timely manner.
Third Party Manufacturing
- Customisation is available.
- It ensures better control to the clients.
If your goal is product differentiation, opting for Ayurvedic third party manufacturing in India can be more beneficial. It offers total flexibility and brand control.
Understanding the Ayurvedic Third Party Manufacturing Process
Step 1: Know Your Product Goals
Are you looking to make a herbal cream or an immunity booster?
Such considerations help you assess the following metrics…
- Product category
- Target audience
- Market demand
- Pricing strategy
- Packaging requirements
With these insights, you can choose the manufacturer who can meet your goals.
Step 2: Work with a Reputed Manufacturer
This is a crucial step. The manufacturer you choose is sure to impact the quality of your products.
Therefore, make sure they have WHO-GMP, ISO, and AYUSH certificates. Apart from that, a good manufacturer has sound experience and enjoys a good market reputation. Also, check if they make delivery on time.
Step 3: Discuss Product Formulation
After choosing the contract manufacturer, this is the step where you ask them about product compositions, strengths, dosage form, packaging specifications, and ingredients. Some may provide you with ready formulations, while other can create one tailored to your requirements.
Step 4: Finalise Packaging Design
The packaging, logo, and labels are decided at this stage.
Step 5: Product Manufacturing and Quality Testing
The manufacturing of your products takes place at this stage.
This stage also involves the quality testing of the products to make sure they comply with industry standards.
Step 6: Delivery of Finished Products
This is the final step in which products are dispatched to the clients.
The Conclusion
Ayurvedic third party manufacturing in India helps businesses enter the health and wellness market without making huge investments in manufacturing. This model offers a number of advantages such as reduced costs, speed to market, access to quality control, access to expertise in manufacturing and scalability.
Salasar Herbotech has everything to be your reliable third party manufacturing partner. We are a WHO-GMP, ISO, and AYUSH company to create high quality Ayurvedic products meeting safety requirements and regulatory standards.
FAQs
Q1.What is the Ayurvedic third party manufacturing in India?
Ans. It’s a business model that involves a manufacturer making an Ayurvedic product for another company under its own branding.
Q2. How can a third party manufacturing be beneficial?
Ans. It saves manufacturing investments and enables businesses to concentrate on sales, branding and market expansion.
Q3. What products are manufactured by a third party manufacturing firm in India?
Ans. They manufacture a wide range of products, including syrups, powders, oils, herbal supplements, skin care products and hair care products.
Q3. What should be the minimum investment to start the Ayurvedic third party manufacturing?
Ans. The price of investment is based on the product type, order quantity, packaging needs and manufacturer policies. But it is just a fraction of the cost of setting up a manufacturing plant.
Q4. What certifications should an Ayurvedic manufacturer have?
Ans. They should have WHO-GMP, ISO, and AYUSH certificates as well as good manufacturing experience.
Q5. How to assess the reputation of an Ayurvedic third party manufacturing company?
Ans. To assess what kind of image your Ayurvedic contract manufacturer has, check their online reviews that can be found on their websites and social media accounts. You can also ask for feedback from their existing franchise partners.