Starting or restarting an Ayurvedic manufacturing company requires more than ownership of an old business, traditional formula or brand name.

A person does not necessarily need to hold a BAMS degree to own or manage an Ayurvedic manufacturing company. However, the company must meet current licensing, premises, technical-staff, manufacturing, quality-control and GMP requirements.

A common query is:

“My grandfather started an Ayurvedic company around 40 years ago using his own formulations. I am now taking responsibility for the company, but I do not have an Ayurvedic educational qualification. The manufacturing licence has also expired, and the business has reduced to a very small scale. Can I lead the company and continue manufacturing the same formulations?”

The practical answer is:

You may own, manage and lead the business, but you cannot restart manufacturing only on the strength of the old company or expired licence. You must obtain valid manufacturing permission, appoint approved technical staff and get the products accepted by the concerned State AYUSH Licensing Authority.

Can a Person Without a BAMS Degree Own an Ayurvedic Company?

Yes. A person without a BAMS degree may generally become:

• Proprietor
• Partner
• Director
• Shareholder
• Managing director
• Business head
• Marketing head
• Authorized signatory

Ownership and technical supervision are separate matters.

The owner may handle:

• Investment
• Administration
• Accounts
• Marketing
• Distribution
• Branding
• Sales
• Human resources
• Business development

However, manufacturing and technical operations must be supervised by appropriately qualified and approved personnel.

Is BAMS Compulsory for the Owner?

No. BAMS is not necessarily compulsory for the proprietor, partner or director of the company.

However, the manufacturing unit must have approved technical staff according to:

• Product category
• Manufacturing sections
• Applicable Drugs Rules
• State licensing requirements
• Qualification and experience of the proposed technical person

A BAMS-qualified person may be accepted for relevant responsibilities, but BAMS is not the only qualification that may be considered in every situation.

Depending on the applicable provisions and state authority’s assessment, other recognized qualifications and experience may also be relevant.

Do not appoint someone only on paper. The technical person must genuinely supervise the work for which they are approved.

Who Is the Qualified Technical Person?

The qualified technical person is responsible for supervising manufacturing activities.

Responsibilities may include:

• Verification of raw materials
• Manufacturing supervision
• Batch documentation
• Formula compliance
• In-process controls
• Cleaning and hygiene
• Packing supervision
• Finished-product release coordination
• Complaint investigation
• Recall support
• Compliance with approved procedures

The State AYUSH Licensing Authority will determine whether the proposed person’s qualifications and experience are acceptable.

Can You Continue with an Expired Manufacturing Licence?

You should not manufacture Ayurvedic medicines under an expired licence.

First determine:

• When the licence expired
• Whether any retention or renewal fee was paid
• Whether the premises still exist
• Whether the old constitution of the firm still exists
• Whether the technical staff have changed
• Whether the product permissions are still recognized
• Whether the plant still complies with current GMP requirements
• Whether ownership has legally transferred

Depending on the period of expiry and state procedure, the authority may require:

• Restoration or regularization, where legally available
• Payment of applicable fees or penalties
• Amendment of constitution
• Change of technical staff
• Inspection of premises
• Fresh manufacturing licence application
• Fresh product permissions

Where a licence has remained expired for many years and the unit is no longer compliant, a fresh application is often the practical route.

Obtain written guidance from the State AYUSH Licensing Authority before investing in machinery or restarting production.

Can the Grandson or Legal Heir Continue the Company?

Yes, subject to proper legal and licensing formalities.

You may need to establish:

• Legal ownership of the business
• Succession or inheritance
• Transfer of assets
• Transfer or reconstitution of the firm
• Rights over the company name
• Rights over trademarks
• Ownership of product formulations
• Rights over manufacturing records
• Consent of other legal heirs, where applicable

If the original business was a proprietorship, the old proprietorship may not automatically continue merely because a family member takes over.

Consult a CA, CS or legal professional for reconstitution of the business.

Can You Manufacture the Same Formulations Created by Your Grandfather?

Possibly, but the old formulations must first be examined and legally classified.

An old family formula does not automatically receive permanent manufacturing permission.

Each formula should be reviewed for:

• Complete ingredient list
• Botanical names
• Parts used
• Quantity of each ingredient
• Manufacturing process
• Dosage form
• Recommended dosage
• Intended indication
• Safety profile
• Classical textual reference
• Current ingredient restrictions
• Presence of Schedule E(1) substances, where applicable
• Heavy-metal or mineral ingredients
• Label claims
• Shelf life
• Testing specifications

Classification of Old Ayurvedic Formulations

An old formulation may fall into one of the following categories.

1. Classical Ayurvedic Medicine

A classical medicine is manufactured according to a formula described in an authoritative Ayurvedic text recognized under the applicable law.

For such a product, you will generally need to identify:

• Name of the authoritative book
• Chapter
• Verse or formulation reference
• Ingredients
• Manufacturing method
• Dosage form
• Permitted indication

The product should follow the recognized classical reference.

2. Patent or Proprietary Ayurvedic Medicine

A patent or proprietary Ayurvedic medicine is generally a formulation that is not a classical formula in its exact published form but is composed of ingredients recognized in authoritative Ayurvedic literature, subject to the applicable legal definition.

The licensing authority may require a proper product dossier containing:

• Formula
• Ingredient references
• Rationale
• Manufacturing process
• Specifications
• Safety information
• Label claims
• Shelf-life support
• Testing methods

3. Traditional Family Formula

A formula used by a family for many years is not automatically approved only because it has a long history.

The authority will examine whether:

• Its ingredients are legally permitted
• The ingredients appear in recognized authoritative sources
• Its proposed category is acceptable
• Safety requirements are met
• Its claims are permitted
• Its manufacturing process is documented

If the formula cannot be appropriately classified under the applicable rules, it may not be accepted for commercial manufacturing as an Ayurvedic medicine.

Does the Old Product Permission Remain Valid?

Do not assume that an old product permission remains valid indefinitely.

Check:

• Whether a formal product permission was issued
• Name under which it was issued
• Licence number
• Composition recorded with the authority
• Whether the firm constitution has changed
• Whether the product has been manufactured continuously
• Whether any ingredient or claim is now restricted
• Whether the label is compliant with current requirements

Ask the State AYUSH Licensing Authority to verify the historical product records.

Documents to Collect from the Old Company

Before applying, search for all available historical documents.

These may include:

• Old manufacturing licence
• Renewal or retention receipts
• Product-permission letters
• Approved product list
• Old inspection reports
• GMP certificate
• Company registration documents
• Partnership deed
• Proprietorship records
• Trademark certificates
• Product labels
• Master formula records
• Batch manufacturing records
• Raw-material records
• Testing reports
• Sales invoices
• Tax registrations
• Technical-person approval
• Premises documents
• Machinery list

Old documentation can help establish the history of the company, although it does not replace current licensing requirements.

Basic Requirements for Restarting Ayurvedic Manufacturing

1. Legal Business Entity

Choose or update the business structure:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

Complete ownership or succession documentation before submitting the licence application.

2. Approved Manufacturing Premises

The premises should be suitable for industrial and manufacturing activity.

Check:

• Land-use permission
• Building approval
• Adequate space
• Water supply
• Electricity
• Drainage
• Ventilation
• Storage
• Waste disposal
• Fire safety
• Pollution-control requirements

Do not restart manufacturing in an old building without checking its present suitability.

3. Schedule T GMP Compliance

Ayurvedic manufacturing units must meet applicable GMP requirements.

The facility should generally provide appropriate areas for:

• Raw-material storage
• Quarantine
• Manufacturing
• Packing
• Finished goods
• Rejected materials
• Quality control
• Washing
• Change rooms
• Documentation
• Utilities

The exact space and machinery depend on the dosage forms being manufactured.

4. Manufacturing Machinery

Machinery may be required for sections such as:

• Churna and powder
• Tablets and vati
• Capsules
• Syrups
• Asava and arishta
• Oils and taila
• Avaleha
• Ointments
• Kwath
• Proprietary liquid preparations

Do not purchase machinery until the proposed layout and product sections have been reviewed.

5. Approved Technical Staff

Appoint qualified technical staff according to the current requirements.

Verify:

• Educational qualification
• Institution recognition
• Experience
• Registration, where relevant
• Full-time availability
• Previous approvals
• Employment documents

The final approval rests with the concerned licensing authority.

6. Quality-Control Arrangement

You will need a suitable system for testing raw materials and finished products.

This may include:

• In-house quality-control laboratory
• Approved external testing laboratory, where permitted
• Raw-material specifications
• Finished-product specifications
• Microbial testing
• Heavy-metal testing
• Pesticide-residue testing, where applicable
• Aflatoxin testing, where applicable
• Physicochemical testing
• Batch-wise Certificate of Analysis

Testing requirements depend on the product and ingredients.

7. Manufacturing and Quality Documents

Prepare documents such as:

• Site Master File
• Standard operating procedures
• Master formula records
• Batch manufacturing records
• Batch packing records
• Raw-material specifications
• Finished-product specifications
• Cleaning records
• Equipment logbooks
• Calibration records
• Vendor-approval records
• Training records
• Complaint procedure
• Recall procedure
• Product-return procedure
• Stability and shelf-life documentation, where required

8. Product Dossiers

Prepare a separate dossier for each product containing:

• Product name
• Dosage form
• Complete composition
• Quantity of each ingredient
• Ayurvedic reference
• Manufacturing procedure
• Testing specification
• Dosage
• Indication
• Precautions
• Shelf life
• Proposed label
• Packaging details

9. Manufacturing-Licence Application

Apply to the State AYUSH Licensing Authority in the prescribed form with:

• Government fee
• Firm documents
• Premises documents
• Layout
• Machinery list
• Technical-staff documents
• Product list
• GMP documents
• Quality-control arrangement
• Formula details

The authority may inspect the premises before granting the licence.

Can the Company Use the Old Brand Name?

The old company or product name may still have commercial value, but first check:

• Trademark registration
• Trademark renewal status
• Ownership of the trademark
• Similar trademarks filed by others
• Company-name status
• Domain-name availability
• Existing market use

An old brand does not remain legally protected forever unless its rights have been maintained.

Conduct a fresh trademark search before relaunch.

What Should Be Done If the Old Factory Is Too Small?

If the unit has reduced below a commercially viable scale, you have three practical options.

Option 1: Restart Your Own Manufacturing Unit

Choose this option if:

• The premises can be upgraded
• Machinery is usable
• Product demand exists
• You have enough capital
• Qualified staff are available
• You want long-term manufacturing control

This option requires the highest investment and compliance responsibility.

Option 2: Use Third-Party Manufacturing

This may be the most practical option for a small or collapsed business.

Under this model:

• Preserve the old company identity
• Retain or register the brand names
• Review the old formulations
• Get products manufactured by a licensed Ayurvedic manufacturer
• Focus on marketing and rebuilding sales

Benefits include:

• Lower investment
• No immediate factory renovation
• No machinery purchase
• Faster relaunch
• Lower compliance burden
• Opportunity to test demand

Ensure that the selected manufacturer has the appropriate manufacturing licence, GMP compliance and permission for the products.

Option 3: Loan-Licence Arrangement

A loan-licence or similar approved manufacturing arrangement may be considered where legally available and accepted by the State AYUSH Licensing Authority.

It generally involves using another licensed unit’s manufacturing facilities under a separate licensing arrangement.

This model involves more documentation and responsibility than normal third-party manufacturing.

Best Strategy for Reviving a Heritage Ayurvedic Business

A practical revival plan may be:

Phase 1: Legal and Regulatory Audit

• Collect old documents
• Verify ownership
• Check licence status
• Check trademark status
• Review each formula
• Meet the State AYUSH Licensing Authority

Phase 2: Product Shortlisting

Select 5 to 10 products that have:

• Historical recognition
• Clear formula records
• Good market demand
• Simple compliance
• Suitable manufacturing cost
• Strong brand potential

Do not relaunch every old product immediately.

Phase 3: Manufacturing Decision

Compare:

• Cost of factory renovation
• Cost of machinery
• Cost of technical staff
• Cost of quality control
• Third-party manufacturing rates
• Expected annual sales

For a business with very low turnover, third-party manufacturing may initially be more economical.

Phase 4: Brand Relaunch

Improve:

• Packaging
• Labels
• Website
• Product photography
• Distributor network
• Digital marketing
• Trademark protection
• Customer service

Keep the heritage story, but do not make unsupported medical claims.

Phase 5: Own Manufacturing Later

After sales become stable, you may consider restarting your own manufacturing facility.

Important Compliance Warning

Do not:

• Manufacture under the expired licence
• Print the old licence number
• Sell newly manufactured products as old stock
• Use an unapproved formula
• Employ a technical person only on paper
• Make disease-cure claims without legal support
• Use old labels without reviewing current requirements
• Assume family ownership automatically transfers regulatory permission

These actions can lead to seizure, cancellation, prosecution or other regulatory action.

Practical Answer to the Query

You can lead and manage your grandfather’s Ayurvedic company even without holding a BAMS qualification.

However:

1. The company must have valid legal ownership and constitution.
2. The expired manufacturing licence must be reviewed by the State AYUSH Licensing Authority.
3. You must appoint approved qualified technical personnel.
4. The premises must meet current GMP requirements.
5. Each old formula must be reviewed and properly classified.
6. Product permissions and labels must be updated.
7. You should not manufacture until valid approval is obtained.

If the old factory is no longer financially viable, restart the brand through a reliable third-party Ayurvedic manufacturer and consider reopening your own unit after sales improve.

Frequently Asked Questions

1. Can a non-BAMS person own an Ayurvedic manufacturing company?

Yes. A non-BAMS person may own or manage the business, but approved qualified technical staff must supervise manufacturing.

2. Is BAMS compulsory for obtaining an Ayurvedic manufacturing licence?

The owner does not necessarily need BAMS. The unit must appoint technical staff whose qualifications and experience are accepted by the State AYUSH Licensing Authority.

3. Can manufacturing continue under an expired licence?

No. Manufacturing should not continue until the licence has been legally restored, regularized or freshly granted.

4. Can a legal heir use the grandfather’s Ayurvedic formulas?

Possibly, but ownership, formula classification, ingredient legality and product permission must be verified.

5. Is a traditional family formula automatically approved?

No. Long use by a family does not automatically provide commercial manufacturing approval.

6. Can old product permissions be transferred?

It depends on the licence, firm constitution, ownership change and state procedure. Obtain written confirmation from the licensing authority.

7. Can the company restart with only five products?

Yes. Relaunching a small number of well-documented and marketable products is often better than restarting a large range.

8. Is third-party manufacturing suitable for reviving an old company?

Yes. It can preserve the company and brand while reducing the immediate cost of premises, machinery and staff.

9. Can the same old labels be used?

Not without review. Labels must comply with current licensing, ingredient, warning, shelf-life and advertising requirements.

10. Which department grants an Ayurvedic manufacturing licence?

The concerned State AYUSH Drug Licensing Authority generally grants and administers Ayurvedic manufacturing licences.

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