Eligibility of starting Ayurvedic Manufacturing company?

Query:


My grand father had started an ayurvedic company 40 years ago with his formulae. Now I’m taking the responsibility of the company but I’m not of ayurvedic education qualifications and of course our company license has expired. Am I eligible for leading the company with same formulae he started ? and company turnover was completely collapsed it has become less than a cottage scale industry. Any suggestions?


Response:

You have to complete all documents, procedure and requirement for setting up an Ayurvedic company. Read all requirement here: How to start Ayurvedic Company?

You can lead this ayurvedic company but you have to fulfill all modern requirements. You are not have any ayurvedic qualification, you have to employ an authorized person who can conduct all manufacturing things.

We are not confirm whether you have Ayurvedic Manufacturing license or not and who were Authorized person in that. If your grand father was authorized then you will need any other qualifies authorized person in place of him.

Hope above information was useful to you…

Area and Machinery required for starting Ayurvedic Manufacturing unit …

Query:
My father is going to get a patent on a herbal drug its a paste formulation . We want to establish own manufacturing unit . I have few question regarding this:
  • How much Budget is required to establish own manufacturing unit?
  • Does the 3rd Party Manufacturer provide quality control, stability test and other test regarding manufacturing ?
We also want to do research on some herb regarding their active constituent

Response:

For Patenting a formulation, you require certain formalities. Read in detail about patent process here.

For starting own manufacturing unit, you required premises having adequate space for all manufacturing procedure. Budget depend at number of section and machinery required for it. We are providing about area and section. You can calculate investment as per cost of land, building, machinery, section etc. Read in detail about Investment required to start Pharma and Ayurvedic Business

Minimum of 1200 Square feet covered area with separate cabins or partitions for each activity. If Unani medicines and Ayurvedic Medicines both are manufactured in same premises an additional area of 400 sq. feet will be required.

For Ayurvedic Medicine Manufacturing:
Area Required Section Wise:
  • Anjana/Pisti: 100 sq. feet.
  • Churna / Nasya/Manjan/Lepa/Kwath Churn: 200 sq feet
  • Pills/Vati /Gutika Material and tablets: 100 sq. feet
  • Kupi pakava/Ksara/ Parpati/Lavana Bhasma Satva/Sindura Karpu/ Uppu / Param: 150 sq. feet
  • Kajal: 100 sq. feet
  • Capsules: 100 sq. feet
  • Ointment/Marham Pasai: 100sq. feet
  • Pak/Avaleh/Khand/ Modak/Lakayam: 100 sq. feet
  • Panak, Syrup / Pravahi Kwath Manapaku: 150 sq, feet
  • Asava / Arishta: 200 sq. ft
  • Sura: 100 sq. ft
  • Ark Tinir: 100 sq. ft
  • Tail/Ghrit Ney: 100 sq. ft
  • Aschyotan / Netra Malham Panir/Karn Bindu/Nasabindu: 100 sq. ft
  • Each manufacturing unit will have a separate area for Bhatti, furnace boilers, puta, etc. This will have proper ventilation, removal of smoke, prevention of flies, insets, dust etc. The furnace section could have tin roof: 200 sq. ft
Machinery required Section Wise:
One machine indicated for one category of medicine could be used for the manufacturing of other category of medicine also. Similarly some of the manufacturing areas like powdering, furnace, packing of liquids and Avaleha, Paks, could also be shared for these items.

Anjana/Pisti:

  • Karel mechanized/motorized
  • karel End runner
  • Ball-Mill
  • Sieves/Shifter.

Churna / Nasya/ Manjan/Lepa/ Kwath Churn:

  • Grinder
  • Disintegrator
  • Pulveriser
  • Powder mixer
  • Sieves/shifter.

Pills/Vati /Gutika Matirai and tablets

  • Ball Mill
  • Mass mixer/powder mixer
  • Granulator
  • Drier
  • Tablet compressing machine
  • Pill/vati cutting machine
  • Stainless steel trays
  • Container for storage and sugar coating
  • Coating pan
  • Mechanised chattoo (for mixing guggulu) where required.

Kupi pakava / ksara / Parpati / Lavana Bhasma Satva / Sindura / Karpu / Uppu / Param:

  • Bhatti
  • Karahi
  • Stainless steel Vessels
  • Patila Flask
  • Multani Matti/Plaster of Paris
  • Copper Rod
  • Earthern container
  • Gaj Put Bhatti
  • Mufflefurnace(Electrically operated)
  • End/EdgeRunner
  • Exhaust Fan
  • Wooden/S.S.Spatula

Kajal:

  • Earthern lamps for collection of Kajal
  • Triple Roller Mill
  • End Runner
  • Sieves
  • S.Patila
  • Filling/ packing and manufacturing room should be provided with exhaust fan and ultra violet lamps.

Capsules:

  • Air Conditioner
  • De-humidifier
  • Hygrometer
  • Thermometer
  • Capsule filling machine and chemical balance.

Ointment/Marham Pasai:

  • Tube filling machine
  • Crimping Machine/Ointment Mixer
  • End Runner/ Mill (Where required)
  • S. Storage Container
  • S.Patila.

Pak/Avaleh/Khand/Modak/Lakayam:

  • Bhatti section fitted with exhaust fan and should be fly proof
  • Iron Kadahi/S.S. Patila
  • S. Storage container

Panak, Syrup / Pravahi Kwath Manapaku:

  • Tincture press
  • Exhaust fan fitted and fly proof
  • Bhatti section
  • Bottle washing machine
  • Filter press / Gravity filter
  • Liquid filling machine
  • P. Capping Machine

Asava / Arishta:

  • Same as mentioned above
  • Fermentation tanks
  • Containers and distillation plant where necessary
  • Filter Press

Sura:

  • Same as mentioned above plus
  • Distillation plant
  • Transfer pump

Ark Tinir:

  • Maceration tank
  • Distillation plant
  • Liquid filling tank with tap
  • Gravity filter/Filter press
  • Visual inspection box

Tail/Ghrit Ney

  • Bhatti, Kadahi/S.S. Patila
  • S.Storage Containers
  • Filtration equipment
  • Filling tank with tap
  • Liquid filling machine

Aschyotan / Netra Malham Panir/Karn Bindu/Nasa- bindu:

  • Hot air oven electrically heated with thermostatic control
  • kettle gas or electrically heated with suitable mixing arrangements
  • Collation mill
  • Ointment mill
  • Tube filling equipment
  • Mixing and Storage tanks of stainless steel
  • Other suitable material sintered glass funnel
  • Seitz filter or filter candle
  • Liquid filling equipment
  • Autoclave
For Unani Medicine Manufacturing:
Area Required Section Wise:
  • Itrifal Tirya/majoon/ Laooq/Jawarish Khamiras: 100 Square Feet
  • Arq.: 100 Sq. ft.
  • Habb (Pills) and tablets: 100 Sq. ft.
  • Sufoof (Powder): 200 Sq. ft.
  • Raughan (oils) (Crushing and boiling): 100 Sq. ft.
  • Shiyaf, Surma, Kajal : 100 Sq. ft.
  • Marham, Zimad (Ointment): 100 Sq. ft.
  • Qurs (Tab.): 100 Sq. ft.
  • Kushta: 100 Sq. ft.
  • Murabba: 100 Sq. ft.
  • Capsule: 100 Sq. ft.
  • Sharbat and Joshanda: 100 Sq. ft.
  • Qutoor-e- Chashm and Marham(Eye drops, eye ointment): 100 Sq. ft.
  • Each manufacturing unit will have a separate area for Bhatti, furnaces, boilers, putta,etc. This will have proper ventilation,removal of smoke, prevention of flies, insects, dust, etc: 200 Sq ft.
Machinery required Section Wise:

Itrifal Tirya/majoon/ Laooq/Jawarish Khamiras:

  • Grinder/ Pulveriser
  • Sieves, powder mixer (if required)
  • S.S. Patilas, Bhatti and other accessories
  • Plant mixer for Khamiras.

Arq.:

  • Distillation Plant (garembic)
  • S.S. storage tank
  • Boiling Vessel
  • Gravity filter
  • Bottle filling machine
  • Bottle washing machine
  • Bottle drier

Habb (Pills) and tablets:

  • Ball Mill
  • Mass Mixer/Powder mixer
  • Granulator drier
  • Tablet compressing machine
  • Pill/vati cutting machine
  • Stainless steal trays/ container for storage and sugar coating
  • Coating pan
  • Mechanized chattoo, (for mixing guggul) where required

Sufoof (Powder):

  • Grinder / pulveriser
  • Sieves, Trays
  • Scoops
  • Powder mixer

Raughan (oils) (Crushing and boiling):

  • Oil Expeller
  • S.S. Patilas
  • Oil filter bottle
  • Filling machine
  • Bottle drier
  • Bhatti

Shiyaf, Surma, Kajal :

  • End runner
  • Mixing
  • S.S. Vessel

Marham, Zimad (Ointment):

  • Kharal
  • Bhatti
  • End runner
  • Grinder
  • Pulveriser
  • Triple Roller Mill (if required)

Qurs (Tab.):

  • Grinder/Pulveriser, Sieves
  • Powder mixer (where needed)
  • Granulator
  • Drier
  • Tablet Compressing Machine
  • Die punches Trays
  • O.T. Apparatus
  • Balance with weights
  • Scoops
  • Sugar Coating Pan
  • Polishing pan
  • Heater

Kushta:

  • Bhatti
  • Kharal
  • Sil Batta
  • Earthen pots

Murabba:

  • Aluminium Vessels 50-100 kgs. Capacity
  • Gendna
  • Bhatti

Capsule:

  • Pulveriser
  • Powder mixer
  • Capsule filling machine
  • Air conditioner
  • De-humidifier
  • Balance with weights
  • Storage containers
  • Glass

Sharbat and Joshanda:

  • Tinctum Press
  • Exhaust fan fitted
  • Bhatti section
  • Bottle washing machine
  • Filter Press Gravity filter
  • Liquid filling tank with tap/liquid filling machine
  • Hot air oven electrically heated with thermostatic control
  • Kettle

Qutoor-e- Chashm and Marham(Eye drops, eye ointment):

  • Hot air oven electrically heated with thermostatic control
  • kettle

You can start with single section like liquid or capsule or tablet or ointment etc. this will cost you less and you will require less machinery for single section. We are attaching pdf file for study in detail about ayurvedic products manufacturing.

Ayurvedic Third party manufacturers provide quality control, stability report and other test reports on demand.

You can start researching at herbs and their active ingredients separately or simultaneously with manufacturing. Hope above information is helpful for you…

Mail us at pharmafranchiseehelp@gmail.com for any query and suggestion

How to get manufactured new herbal product combinations?

Query:
We are the unit of people from medical and pharmaceutical background. We had developed few Herbal products based on research and scientific basis. However, we don’t have facility to manufacture these products. We have following queries.
  1. From where we can manufacture these products from Maharashtra or Telangana?.
  2. If we manufacture these products from some party, how we assure that our formula for the product will not be used by other people?.
Response:
Herbal products could be manufactured in two way:

In dietary and food supplements, you can’t claim any medicinal claim. You have to sell it as food supplement and there will be clear indication at packing that “Dietary and Food supplement, not for medicinal use”. You can get manufactured your product from any food supplement manufacturing company. Company will take approval as dietary supplements.

In Ayurvedic product,

For manufacturing any Ayurvedic product in India, manufacturer’s require product’s approval from Ayush department. Product’s approval is sent in prescribed format having following requirements:

S. No. Category Ingredient(s) Indication (s) Safety Study Experience/Evidence of Effectiveness
1 2 3 4 5 6
Published Literature Proof of Effectiveness
1 Patent or Proprietary Medicine As per Text Textual Rationale Not Required of ingredients Pilot study as per relevent protocol for Ayurveda , Sidha and Unani drugs
2 Ayurveda, siddha and Unani drugswith any of the ingredients of Schedule E(1) of the Drugs and Cosmetics Act, 1940 As per text Existing Required Required Required

Note: Photo-copy of the textual reference of ingredients used in the formulation as mentioned in the book will be attached with file.

In case of Classical Ayurvedic Products e.g. Single herbs, Chawanprash, Ristha, Ashava etc, Manufacturer need to take approval from AYUSH department just by mentioning name and prescribed book name (Along with photo copy of textual reference). Ayurvedic manufacturer can manufacturer classical products without any alteration in label and indications as described in Ayurvedic Books.

You can get manufactured your product from Ayurvedic third party Manufacturers present in Maharashtra or Telangana.

For protection of your formula, you have to apply for patent with complete details and scientific research documents. Once your product is patented, no one can use same formula without your permission. You will authorized any Ayurvedic manufacturing Company to manufacture this formulation for you. Patent is only alternative otherwise if you get formulation approval at manufacturer basis, he will be free to manufacture this formulation for any other party without your prior permission.

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

How to set-up a Ayurvedic Company for online selling?

Abstract:
For online selling of any material, you must have GST registration number. Nearly all online sale portal will ask for you GSTIN, Pan card, company account number etc. I know this because I have registered at Amazon and Snapdeal for selling. That’s way I know their documentation. They must need GSTIN. You should apply for GSTIN if you want to sale online. For more detail, you can verify at their customer care first before going in third party manufacturing.


Query:

My company will be a Ayurvedic Start up. I have passion for Ayurveda and personally tried some of products as well. Currently looking for product- Brahmi.
Below are the details which I require to know from manufacturer:

1. What is the price for 55% bacosides (500 mg capsules 320 mg extract + 180 mg whole bacopa powder (We are not looking at addition of any fillers or gluten substances(point 3)
Also would be interested to know price for following strengths:
*500 mg(15%)
* 500 mg(20%)
2. What are the capsules (for example veggie capsules or animal), We prefer it to be veggie
3. Does it contains any of this (flow agents, fillers, binders, artificial ingredients, preservatives, Sterates, Laurates, Sulphates, or Dioxides)
4. What are the various certification you have for your products, We are preferring USDA organic to start with (Very similar to what ——- is doing it in US, See here Currently they are in a problem as their Brahmi has been found traces of Lead). This will differentiate it from other competitors playing in the market. As people is getting more aware of what they are putting in the body, The certification will be a big boost.
5. Do manufacturer have a independent lab certificate of analysis of purity (like heavy metals(lead) tests etc) done on this extract.
6. Will manufacturer be providing any Quality certificate for the batch.
7. Do mention Minimum order that manufacturer can supply.
8. Advance payment – How much %
9.Documents required to place the order
10. PackagingDo I require GST registration at this point of starting the business. I am planning only for online marketing. Please suggest.

Response:

Ayurveda has bright future in coming years. Its best option to start with Ayurvedic products but as specification, you are searching for is not available to small and medium size Ayurvedic Manufacturing Companies. In Ayurvedic Field most manufacturers are of small and medium size. Most of manufacturers will not have USDA certification. Based on your queries, I trying to provide you some clearances… Yellow color area is of your query:

  1. Same formulation you can get from any manufacturer but quantity will be high for this. You have to search for Ayurvedic manufacturer who has regular supply of this product. Manufacturer having regular consumption can only give you less quantity. Other wise you have to invest in whole batch. i.e. not less than 50000 cap.
  2. Both type of capsules you can get. only some rate difference will occur. That is not big problem. In Ayurvedic Products has good demand of Vegetarian capsules.
  3. Same formulation, you could get. No other additives will be mixed with bacopa powder. At present I don’t have rates of this. I give you after some time. In capsules, there is no need to add any additional additives as you mentioned. Bacopa powder can be filled directly in capsule shell. In case of tablet, manufacturer need to add binders, fillers, gum etc to provide it strength and shape
  4. Small and macro manufacturers will have only GMP, ISO certification. Very Few companies will have USDA certification. Only MNC’s and big companies will comply with USDA certification compliance.
  5. Every companies have its testing lab. But in Ayurvedic section, most of small companies don’t do heavy metals testing for their preparations. Heavy metal testing can be done from independent laboratory.
  6. Quality certificate will be provided by manufacturer for ingredients and strength added in product. COA ( Certificate of Analysis) and Test reports will be attached with sale invoice.
  7. In third party manufacturing, you will not get less than 25000-30000 cap in single batch. You have to get manufactured 25000 cap batch size at once. Manufacturer having regular batch for this product can give minimum quantity. You can ask to manufacturer about minimum quantity. May anyone could arrange to fill minimum quantity.
  8. Most of manufacturer takes 25-30% advance and remaining against proforma invoice before dispatch.
  9. Only you GST identification number, company registration documents, registered office may require. But you can also get manufactured your ayurvedic products from any one of above documents. Don’t required much documents.
  10. Packing as per your choice will be available. Packing Material is marketing company‘s choice. Even You can make available packing material from your side if you want. In that case, you will send packing design to manufacturer for any technical correction only. Manufacturer also can available packing material, he will charge as packing material security for remaining packing material after consumption at your product. You need product in pet bottle as you describe about products. it will require only label or additionally it can have outer box. Packing material cost will not be much higher for it.

If you want to know third party manufacturing procedure, you can read here: What is Third Party Manufacturing, Procedure and Documentation etc

For online selling of any material, you must have GST registration number. Nearly all online sale portal will ask for you GSTIN, Pan card, company account number etc. I know this because I have registered at Amazon and Snapdeal for selling. That’s way I know their documentation. They must need GSTIN. You should apply for GSTIN if you want to sale online. For more detail, you can verify at their customer care first before going in third party manufacturing.

Mainly required certification from manufacturer are Quality certificate, GMP, ISO certicate etc.

Hope above information is useful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Related Articles:

How to register brand name for Ayurvedic Company?

Query:
I want to manufacture own Ayurvedic products from third party manufacturing, we want to register brand name of so that we will market that product. Our brand should not be used by other. Please guide me in this matter

 

Response:
Brand name you have to be registered under trade mark registration. Choose unique name and apply for trade mark registration. Read complete process of Trade Mark registration here: How to register Trade Mark?

Brand Name registration is long procedure. It may take more than one and half year. Once you have applied for it, you can mention TM above brand name and after registration you can mention (R) above it.

After your brand name registration, no one can use your Brand Name for any product. It will provide your brand name security under trade mark act 1999 and rules. You can search for Brand Name by visiting: http://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx

Applying for trade mark registration is not meaning, your brand name has been registered. It has been follow complete process to be registered. At any stage if department found it is similar or resembling to any existing brand, it may be show you objected after some time. If some one feel after seeing your brand name in Gazette, he/she can file opposition and your brand name will show opposed. Show search or choose your brand name very carefully.

Trade mark is applied through advocates who specially deals with trade mark and patents.

Hope above information was useful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Start Ayurvedic/Herbal/Unani/Siddha Business, Marketing and Manufacturing Company ?

This Article will Cover following Topics related to Ayurvedic Business:

  • How to Start Ayurvedic Marketing Company
  • Ayurvedic Distribution and Wholesale Business
  • Ayurvedic Retail Business
  • Ayurvedic Manufacturing Company
  • Area Required and Machinery used for Ayurvedic manufacturing unit
  • Qualification of Manufacturing Chemist and Analytical Chemist for Manufacturing Unit
  • How to Sell? : Online and Offline
  • Marketing Types
If you are interested in Ayurvedic/Herbal Medicine Manufacturing company then you have to take manufacturing license for manufacturing of ayurvedic medicine from your state Ayush (The Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) department.
Requirement and specification of Ayurvedic Manufacturing Unit we will discuss in end.If you don’t want to read whole article, you can read below video with Hindi Audio….
If you don’t want to watch above video, you can continue reading this article:
If you only want to start marketed by company of Ayurvedic products or you want to sell Ayurvedic/herbal/unani/siddha products then you don’t require any drug related license.
For sale and purchase of Ayurvedic/Unani/Siddha/Herbal Medicine doesn’t require any drug related license. You will need only GST number and company registration. You can start by setting up Ayurvedic Marketing Company by Name you prefer. You can get manufactured your product at third party basis.

Marketing Company
 

Ayurvedic/Unani/Siddha Business Plan for Marketing Company:

 

Distribution Business/Retail Business
 

Ayurvedic/Unani/Siddha Business Plan for Shops/Distribution:

  • Search Shop at prime location (Rented or Owned). For Distribution wholesale prime location doesn’t matter. For retail its necessary.
  • Choose good name for your shop
  • Shop Registration as per local authority norms
  • GST registration Number if you have more than 20 lac annual turnover
  • Conduct survey for running products in your locality
  • Purchase Ayurvedic/Unani/Siddha products from distributors/Company
  • Start Selling Products

 

Manufacturing Company
 

Ayurvedic/Unani/Siddha Business Plan for Manufacturing Unit:

  • Search Premises for Manufacturing Unit (Rented or Owned)
  • Choose Company Name
  • Apply for Manufacturing License Number
  • Apply for GST Number
  • Apply for products approval along with Manufacturing License Number File
  • After approval start manufacturing of Ayurvedic/Sidha/Unani Medicines
  • Start Selling Products

Requirement for manufacturing Licence for Ayurvedic Products:

Documentation and Procedure of Ayurvedic Manufacturing Unit ( Requirement may vary state to state or area to area )

  • Application on prescribed Form 24-D
  • Prescribed Fees as mentioned
  • Subject to the conditions of Rule 157 being fulfilled the license will be issued Form 25-D which will be valid for a period of —– years from date of issue
  • Requirement of schedule ‘T’ are to be fulfilled for which Departmental Inspection Team will conduct the inspection and submit its report on the prescribed Proforma
  • Documents in respect of competent technical staff consisting of at least one person, who is a whole-time employee and who possesses the qualifications as mentioned below as competent person staff section
  • Site Plan of the premises
  • Attested copy of No Objection Certificate from Pollution Control Board
  • Power Availability Certificate from Electricity Department
  • List of Machinery/Lab. Equipment
  • List of medicine to be manufacture
  • Project Report
  • Ownership proof or rent agreement

Inspection team will inspect the premises with regard to:- Location and surroundings, buildings, water supply, disposal of container’s cleaning, Stores, raw material, packing material, finished goods store, working space, Health(clothing sanitation and hygiene of workers, medical services, and equipment’s, quality control section etc.


Area required for starting Ayurvedic Manufacturing unit:

Area Requirement is depend at number of sections you want to start. Minimum area required under drug and cosmetic act is 1200 square feet. if unani medicines are manufactured in same premises additional 400 square feet area is required. Section wise partition is required as per dosage form. For example, for tablet/capsule section, you require minimum of 100 square feet are, for liquid section, you require minimum of 150 square feet of area. You can read in detail at our article: How much Area required to start ayurvedic manufacturing plant.

Machinery and Equipment:

All the machines are in SS-304 and contact part in SS-316. To know in detail about machinery read our article: List of machinery used in Pharmaceutical and Ayurvedic Sector.

Liquid & oil section:

  • High speed mixer for tank
  • S. S. tank- 200 liter/500 liter/1000 liter capacity with wheel and cover lid
  • Liquid filling machine double head
  • P.P. cap sealing machine
  • Liquid filtration unit
  • Tables

Capsule/Tablet section

  • Air compressor
  • Air conditioner
  • Blister packing machine
  • Capsule filling machine zero number
  • Capsule Loader zero number
  • Tablet Punching Machine
  • Dehumidifier
  • Sifter
  • Mass mixer
  • Multi mill
  • FBD
  • Double cone blender

Miscellaneous Equipment:

  • Batch printing machine
  • RO plant
  • Lab equipments
  • Balances- 200gm, 30kg, 100kg

 

Laboratory Equipment:

An Ayurvedic manufacturing unit either establish own testing laboratory or unit can get testing done at government approved laboratories. Complete detail of laboratory equipment know here


Competent Person Staff Qualification For Manufacturing:

The manufacture of Ayurvedic (including Siddha) or Unani drugs shall be conducted under the direction and supervision of competent technical staff consisting at least of one person, who is a whole-time employee and who possesses minimum of any of the following qualifications, namely:-

  • A degree in Ayurveda or Ayurvedic Pharmacy, Siddha or Unani system of medicine, as the case may be, conferred by a University, a State Government or Statutory Faculties, Councils and Boards of Indian Systems of Medicine recognised by the Central Government or a State Government for this purpose, or
  • A diploma in Ayurveda, Siddha or Unani System of medicine granted by a State Government or an Institution recognised by the Central Government for this purpose, or
  • A graduate in Pharmacy or Pharmaceutical Chemistry or Chemistry or Botany of a University recognized by the Central Government with experience of at least two years in the manufacture of drugs pertaining to the Ayurvedic or Siddha or Unani system of medicine, or
  • A Vaid or Hakim registered in a State Register of Practitioners of indigenous systems of medicines having experience of at least four years in the manufacture of Siddha or Unani drugs, or
  • A qualification as Pharmacist in Ayurvedic (including Siddha) or Unani systems of medicine, possessing experience of not less than eight years in the manufacture of Ayurvedic or Siddha or Unani Drugs as may be recognised by the Central Government.
Competent Person Staff For Laboratory:
Minimum of following qualification is required for Laboratory competent person:
  • A graduate in Pharmacy or Pharmaceutical Chemistry or Chemistry or Botany of a University recognised by the Central Government
How to Sell?
 
How to sell Ayurvedic/Herbal product online?
You can also build your website for sale and purchase of Ayurvedic products but it is time consuming and expensive process. You can use other common portals (Snap Deal, Flipkart, Amazon etc) to sell your products online. Online sale and purchase of Ayurvedic medicines/Food Supplements/Herbal Preparations could also be done through online portals those are specially deals in Ayurvedic products. You have to register your company and products at their website. There customer care executives will contact to you and will help you in further process. Most of Online portals will ask for Goods and Service Tax Identification Number and PAN card as primary documentation.
Your products will be displayed at their website. When some one order it, you have to send to it. Online portals charges some fees per transaction or as per their term and conditions.
How to sell Ayurvedic Products directly in Market?
You can also promote your ayurvedic products directly to Ayurvedic practitioners or customers. You can also search for distributors all over India/World for your Ayurvedic/Herbal preparations. If you don’t want to do direct marketing, you can also sell your Ayurvedic products by appointing distributors all over India at pcd/franchise basis or appointing authorized distributors or importer at any country worldwide. You also have to comply with import export in case of you are exporting to other countries.

Packing, quality and efficacy is most important thing in Ayurvedic products. You should get manufactured your products from good manufacturer otherwise your all marketing effort will be result into zero.

Few marketing solution for Ayurvedic/Herbal Products are:

Marketing types are same as types of pharma marketing. Read here types of marketing

Manufacturing Process of Ayurvedic Medicines:

Ayurvedic Medicines has same manufacturing process as of pharma medicines. Same precautions and quality standards required for manufacturing of Ayurvedic Medicines.

Hope this was helpful to you.
For any suggestion and query, mail us at pharmafranchiseehelp@gmail.com

Check List of Ayurvedic Manufacturers in India Here

Query related to Ayurvedic Business:

I am a manufacturer of herbal products and now I find marketing by another company so I need a agreement for me and marketing company so please will you send me that agreement

Response:

Downloads third party agreement format

for more downloads you can visit our page:

Quick Link to download:

Hope above information is helpful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Related Query:

I want to start my ayurvedic/unani/siddha medicines business at my own name online on international level. Kindly send me some suggestions for documents required and marketing solutions. What type of licenses is required to sell Ayurvedic/unani/siddha Medicines and what are the documents are required for manufacturing of same.

Related Articles:

Can UPVAID or Ayurvedic Pharmacist do manufacture ayurvedic cosmetic products?

Person 1‬: I am ——- Kumar and Work as an ayurvedic upvaid in Patiala, Punjab. I am working at face skin problems from last 3-4 years and make skin face pack. These face pack has very good results. I want to sale it to any company name . Can you provide me some help.Person 2: Sir you can register a company name and can sale out your product in market. If you have Ayurvedic manufacturing license then only you can sell out after manufacturing otherwise you can’t sell out it in market.
Person 1‬: I have only pharmacy registration in Ayurvedic. I can’t manufactured products.

Person 2: You have to get it manufactured from ayurvedic manufacturer and then you can sell it. They can give you same composition.

Person 1: There is possibility of loss of secrecy in formula and formula can be pirated.

Person 2: Then you can go through patent. Apply for patent registration of your formula. Then no one can copy your formula.

Person 1: What are the formalities for patent.

Person 2: I tell you after confirming.

Person 1‬: Can upvaid apply for patent or there will be requirement for B.A.M.S. doctor.

Person 2: Sir I check it for.

Person 1: You are pharmacist or manufacturing unit.

Person 2: I am a Pharmacist and work for a manufacturing company.

Person 1‬: Can you help me

Person 2: Please tell…

Person 1‬: Is there any possibility, I don’t have to investment any money, company do all work and even company adjust more percentage in this work. They can check product first.

Person 2: Sir, before launching new ayurvedic combination, company has to get approval from AYUSH department. Then after one can launch product in market. There is many requirements and procedure for manufacturing of any combination in Ayurvedic medicine.

How Much Investment is Required to Start Pharmaceutical Company?

Most of person has issue of investment. 98 out of 100 person who think to start own business faces investment problem. Investment and money is most important prospect for starting any type of business. Here we are providing some basic calculations to calculate investment required to start pharmaceutical company.

Pharmaceutical Sector is one of the fastest growing sectors in world. As we have discussed in our Article: How to start Pharmaceutical Company? Pharmaceutical companies are of two types:

  • Pharmaceutical Marketing Company
  • Pharmaceutical Manufacturing Company

Investment required for both types of companies are also different. While preparing a Business Plan, investment is an important part of it. Pharmaceutical Marketing Company require less investment as compare to manufacturing company because manufacturing unit requires lot of machinery, a world class infrastructure, building and much more.

In this article we will try to calculate total investment required for starting marketing company and manufacturing company. Investment is of three types generally:

  • Fixed Capital Investment (One Time investment)
  • Working Capital Investment (Investment to run a company)
  • Inventory Investment (Stock, Raw Material, packaging material etc.)

Fixed Capital Investment:

We can say it also as One Time Investment. Fixed Capital Investment is the investment in fixed assets (like land, building, office, vehicle, machinery and equipment etc.). Fixed Capital Investment will be different for marketing company and manufacturing company.

Working(Operating) Capital Investment:

Working investment is liquid assets needed to run a company. Operative capital includes salary, wages, raw material cost, and marketing & promotional expenses etc. These are planned and unplanned investments (timely arise) require in daily basis to smoothly run an organization. Operating capital investment require till company start to earn adequate profit to handle its regular expense and wages.

Inventory Management:

Third type of Investment required for Stock and Product Availability (Inventory). Inventory investment depend at number of products you want to launch and manufacture in starting.

Investment Required for Pharmaceutical Manufacturing Company:

Pharmaceutical Manufacturing is a highly investment project. Major portion of investment will invest in purchasing a land, Building and infrastructure etc. This can be prevented if you start at rented premises and building. But location, area, plant and building infrastructure should meet with requirement of GMP certification (WHO: GMP and/or Schedule M).

Area required and machinery detail for starting manufacturing unit, you can read at our article:  Area and machineries required for each section in Pharmaceutical Manufacturing Unit.

If you have own land and building that Good, but that is also an investment. We will consider it as investment. If you don’t have, you have two options: Either you purchase or you take a building at rent. In case of rented premises, rent and/or deposited money will be calculated as investment.

It’s not easy to calculate actual investment as cost of land, plant, cost to build a building, rent, machinery and equipment, staff salary, worker wages are not same at all locations, area’s, states and countries. Cost of any particular thing, we will replace with any alphabets. By replacing that alphabet with cost of that thing in you locality, you can calculate actual investment required to start pharmaceutical manufacturing company.

Requirements for Starting Pharmaceutical Manufacturing Unit:

Fixed assets:

  • Land (L)
  • Building (B)
  • HVAC (Heating, Ventilation and Air Conditioning) System (H)
  • Air Lock System (A)
  • Fitting, Finishing and Furnishing (F)
  • Machineries and Lab Equipments (M)
  • Electricity Supply (E)
  • Water Supply (W)
  • Compressed Air Supply (C)
  • Investment for completing Licenses and formalities (I)
  • Other Requirements (R)

Liquid Assets:

  • Skilled and Technical Staff Wages (S)
  • Non Skilled Worker Wages (N)
  • Repair and maintenance (H)
  • Rent if applicable (T)
  • Bank Loan installments and related expenses (I)
  • Promotional and Marketing (P)
  • Other expenses (J)

Inventory Investment:

  • Raw Material and Packaging Material Stock (R)

You need to calculate fixed capital investment and operating capital investment separately. This will help to establish and run manufacturing company smoothly. Fixed capital investment can be calculated by adding fixed assets cost where as operating capital investment can be calculated by adding liquid assets.

Fixed Capital Investment = L+ B + H + A + F + M + E + W + C + I + R

Operative Capital Investment = S + N + H + T + I + P + J

Other than these, a manufacturing company also needs to market its own product in market. So it also requires investment needed for marketing and promotion as needed by marketing company. We can also include investment that will require for starting pharmaceutical marketing company in below portion.

Investment Required for Pharmaceutical Marketing Company:

Investment for Pharmaceutical Marketing Company is relatively low as compare to manufacturing company. In marketing company there is less infrastructure and capital required. For marketing company, less space, small office and fewer requirements are needed but marketing and promotional budget could be higher side.

A pharmaceutical manufacturing company has few addition marketing tools other than conventional marketing tools and advantage in marketing like third party manufacturing, contract manufacturing, loan licensing, greater reputation and institutional supply etc. That is not available for pharmaceutical marketing companies. Marketing has to reliable at conventional marketing solutions like ethical, generic, pcd, franchise etc only.

In marketing company, office and premises can be at rented basis if not owned. If owned premises, we will add it in fixed capital investment. Otherwise rent will be considered as operating capital investment.

Fixed Assets:

  • Office Building (B)
  • Office Furniture and Accessories (A)
  • Computer and Electronic Equipments (C)
  • Fitting and Furnishing (F)
  • Investment at licenses and documents (L)
  • Other Requirements (X)

Liquid Assets:

  • Office Staff Wages (O)
  • Rent if applicable (R)
  • Bank Loan installments and related expenses (I)
  • Promotional and Marketing (P)
  • Other expenses (J)

Inventory Investment:

  • Stock Investment (S)

Fixed Capital Investment= B + A + C + F + L + X

Operation Capital Investment+ O + R + I + P +  J

Marketing Strategy and promotional methods are almost same for marketing and manufacturing companies. So there marketing and promotional expenses are almost same.

Above we have discussed about investment required to start pharmaceutical company. In short discuss about factors that affect investment for starting pharmaceutical company.

Factors:

Land Cost:

Cost of land is different at different localities. Possibilities is there if some where you can find land at cheap cost and some where cost of land is high.

Building and Premises Furnishings:

Building construction as per GMP certification is very essential for setting up manufacturing unit. A good architect is needed for it. Also building material cost varies place to place. That makes different in investment to construct a building at different places.

HVAC, Air Lock System and other machineries & equipments:

Some countries and localities are dependent at import for high quality systems and machineries for setting-up a plant. Also prices vary according to the manufacturers and quality of machineries and equipments.

Licenses and Documentation process and Fees:

Some regions and countries have relaxed policies in respect for licenses and documents to start pharmaceutical company. In some regions, it’s a difficult task to get any type of license even after completing all formalities. Bribe and unethical money distribution also affect the investment required.

Rent:

In case, you are in rented premises and/or building, rent at that particular locality affect the investment. In prime location rent may be high, in non prime locality rent would be relaxed.

Staff and Workers wages:

Easy availability of skilled and technical staff, Non availability of skilled staff directly or indirectly affects operation investment. If available then investment will be lesser otherwise skilled staff recruitment from outside locality may increase operation investment.

Investment required for Stock and Product Availability (Inventory Investment):

Stock may be in both assets fixed and liquid depend at situations. Stock is moving thing and will be in rotation as per demand and supply. Stock investment will be covered under Inventory management but here we will also cover important aspects regarding stock because it is an important part of Operative Capital Investment.

We can divide stock investment in three parts.

  • Initial Investment
  • Second investment in second batch to prevent shortage of products
  • Emergency money

You could need double of your initial investment as reserve money for smooth flow of stock at initial stage. You have to invest in market, doctors and products. You have to invest at stock irrespective of marketing and/or manufacturing type. You also have to invest at market by providing credit to chemist and stockiest.

Monthly Expenses:

Monthly expenses like Rent of Premises, Electricity bill, office expenses and other miscellaneous expenses depend at location and area. Some expenses like accountant/CA fee, quarterly sale tax return etc also will be added in your expenses.

Promotional Inputs:

Design of logo, company profile, product card, reminder card, catch cover, writing pads, visuals etc. Designing charges may vary printer to printer but most of printers do designing free of cost if you are printing all material from them.

Hope this article is helpful for you to calculate investment required for starting pharmaceutical company.

You can also read here about- how much you have to invest in third party manufacturing of your products?

You must read : Investment at Packing material of Each Dosage form also to prepare your complete budget.

We are also mentioning few queries related to Investment here for more elaboration. Hope you will get some help for these queries:

Query 1: I am a Doctor working in a reputed medical college. My wife is a gynecologist and she is in private sector. We want to start a pharma business of our own. What we want is that to have product packaging from reputed company and sell at our company name. Please guide us in following points. .
1. Starting budget is 12 to 15 lacs. Is it adequate?
2. Do we have to form a company to do that?
3. Where do we get quality manufacturer because we don’t want to comprise quality.
Please advice.

Response 1: You want to start pharma business and sell products from your name and thinking about starting your own Pharma marketing company.

  1. Starting budget is 12 to 15 lac. Is it adequate?

Starting budget depend upon number and type of products you want to get manufactured. Few products are costlier and few are cheaper in rates. The molecules and/or salts you want in your product list will affect your budget. For example, you are starting with 26 products and products are A, B, C etc. Your budget is depend upon rates of A to Z products.

If your products are costlier like Cefixime, Cefpodoxime, Cefuroxime , levofloxacin, Azithromycin etc then chances are you have to invest big amount. If you start with vitamins, ferrous combinations, nimusulide, paracetamol, ofloxacin etc then budget will be less. Above molecules are example purpose only, costing of products can depend upon circumstances.

12 to 15 lakhs is sufficient amount if you invest it wisely. We have seen person to start their own marketing company with amount as less as 1 Lakh.

You can start your company from 1 product or you can start with above 100 products or as number you want. We will recommend to start with lesser number of products and add new products gradually.

  1. Do we have to form a company to do that?

To work with your company name, you have to start your own marketing company. Read Procedure by clicking following link: How to start your own pharma marketing company

  1. Where do we get quality manufacturer because we don’t want to comprise quality?

Searching for Quality manufacturer is difficult task but you can find good quality manufacturer easily. You are doctor and prescribe medicines. You better know which product is good in quality and efficacy. Products which you are prescribing will have manufacturer address. Even multinational companies like pfizer, lupin, cadila, sun pharma, unichem, cipla are also get manufactured their products at third party or loan license basis. See the address of manufacturer on strip or box, you trust the most. You can easily find quality manufacturer address. Search for that manufacturer at internet and will get contact number easily. Contact them and ask them to manufacture your products.

Query 2:Estimate Budget for Pharmaceutical Marketing Company!!!

Query 3:How much cost required to set-up pharma marketing company office?

Query 4:I want to start my own pharma company with multivitamin, iron and calcium. Please send me the budget.

Query 5:How much cost required to set-up pharma marketing company office?

Query 6:What will be budget for pharma company, please guide us !!!

Query 7:I want to start a pharma company with two products

Query 8:I want to start pharma marketing company. I want to know of budget of starting business

If you want to know about estimated budget for your new marketing pharma company read here…

You will also need to find out price to retailer/price to stockist read here…

Hope you have found it useful…..

For any query and suggestion mail us at pharmafranchiseehelp@gmail.com