What is the Minimum Order Quantity (MOQ) for third party manufacturing?

Query:

I want to start pharma marketing company with third party manufacturing basis. Few details I want to discuss my doubts before going further.

  • Registered office in Mumbai
  • Sales office/corporate office would be in Kolkata

At present we have a family run pharma wholesale business (proprietorship business) in different location in west Bengal and have valid drug license.

Marketed by would be Mumbai based registered office address. Am I eligible for marketing pan India and using my family run business’s wholesale drug license for manufacturing from third party or separately I have to apply for drug license in kolkatta . if I operate through C&F agent only , in that case also I require drug license.
Or advice me how I could market my own brand name product without new license and only using my family run wholesale business license.

Response:
You can use your family drug license number to start your pharma company. Drug license should be of whole sale not retail. Drug licence need to receive, stock, dispatch and billing purpose in pharmaceutical sector. You can do pan India marketing from this wholesale license.

But we will recommend you to take an different license with similar name of as of your company in kolkatta from where you are going to form sales office. You can register your company in mumbai and operate it from kolkatta.

In case you start by appointing c&f, you will need of drug license for selling and billing pharma products to them…


Query:

I have another doubt regarding order quantity. After Searching couple of third party manufacturing site for MOQ , I came to know that the MOQ for tablet is 1000000 tablets. I think it is huge quantity for pharma startup marketing company. But some of my acquaintances told me that one need to sign contract for 1000000 tablets with third party manufacturer but could have ordered as fewer as 10000 tablets for each order.
Please clarify this

Response:
As per our knowledge, you had talked to multi national companies about minimum order quantity. General MOQ is one lakh tablet and if product is costlier then quantity could be 30000 to 50000 tablet per batch.

Hope above information is useful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Published by

Ajay Kamboj

Full Time Blogger, Part Time Entrepreneur and Partial Time Helper for New Start-UP's in Pharmaceutical, Ayurvedic and Nutraceutical Sector. Contact him at pharmafranchiseehelp@gmail.com

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