Starting an ayurvedic company is a profitable business. Ayurvedic medicines are in demand now a day because of their less side effects and use of natural ingredients. You can start your own ayurvedic manufacturing company with the investment of 10-15 lakhs.
If you are thinking to start ayurvedic manufacturing company. You can start ayurvedic manufacturing company with small investment. Here we are going to describe you how you can start ayurvedic manufacturing company and what type of documents and licenses you required to start ayurvedic manufacturing company.
You can start ayurvedic manufacturing company. Here we are going to describe you how you can start ayurvedic manufacturing company and what type of documents and licenses you required to start ayurvedic manufacturing company.
Requirements:
- Aadhar Card/PAN Card of proprietor (if proprietorship) or partners (if partnership firm) or Directors (if private limited or public limited)
- Address proof of premises (Rent agreement/sale agreement/electricity bill/water bill etc.)
- Manufacturing Premises should be as per requirements
- Quality Control Apparatus as per norms
- Two technical persons (one for manufacturing and second for analytical)
- Machinery and equipment’s
Types of licenses required for starting ayurvedic manufacturing business:
- Manufacturer License under Drugs & Cosmetics Act 1940
- GMP Certificate from Ayush Department (State Government)
- Goods and Service Tax Registration
- Pollution Control Board Consent (If any)
- Income Tax PAN Card
- Import Export Code Number (If want to export)
- Micro, Small and Medium Enterprise (MSME) Registration
Steps for setting up an Ayurvedic manufacturing unit:
Steps to Start an Ayurvedic Company
The following are the steps for setting up an Ayurvedic manufacturing unit:
Find a location for your company
Buy or lease commercial space for your ayurvedic manufacturing company. Make sure that the space meets all building codes and requirements as per drug and cosmetic act & rules, and is large enough to accommodate all of your equipment, as well as any employees you hire later on.
Assess the market for ayurvedic products:
Strong market research is essential for entrepreneurs who want to start ayurvedic medicine manufacturing companies.
You need to know how can you run your ayurvedic manufacturing unit. You can manufacture ayurvedic medicine to sell by own marketing or by manufacturing for other marketing companies at contract or third-party manufacturing basis.
Create a business plan for your company
Preparing a business plan is important before starting any new business. The plan should contain all the details regarding how much money you need to start up and to run the business in future, what type of machinery you will require, how do you plan to sell your products etc. A good business plan also gives direction to your business growth.
Secure funding for your company:
Obtain financing for your company. You can either finance the company using your personal funds or use external funding through investors and loans.
Select a name for your firm:
It must be unique. You should choose a name that shouldn’t resemble to any existing firm.
Registration and Licenses:
After setting up the location, find out what are the legal requirement for registering your firm and start manufacturing of ayurvedic medicines. Then apply for the registration of your business. You can register your business as Proprietorship Firm, Partnership Firm, LLP or OPC.
Purchase equipment and supplies needed to open an ayurvedic manufacturing business:
You have to install the machinery as per AYUSH standards, because only then you can get approval of the products and license.
Obtain any licenses you need to manufacture and sell ayurvedic products:
After that, you can apply for ayurvedic manufacturing license, gst number and other licenses. For this, you should have minimum land of 1,200 square feet and also a capital of Rs. 15 to 20 lakhs. You must have at least one technical person who has studied Ayurveda course from any recognized university or institution.
You have to do is to apply for GMP (Good Manufacturing Practice) certificate from Department of Ayush. This certificate is required to start ayurvedic manufacturing company. The drug controller will inspect your factory, labs, and QC department to ensure that you follow GMP before issuing a license.
Select Brand Name:
Now you have to select a brand name for products you want to market. The brand name should be easy to pronounce and remember for everyone. If you choose a brand name that is difficult and not easy to remember then people may not able to find you easily and this could be the reason for a smaller number of customers. Choose a brand name that reflects your work and services provided by your company.
Registration of Formula:
You have to submit your product formula with all ingredient details for approval by AYUSH Dept. Manufacturing any formula without approval is criminal offence.
Hire employees that have knowledge of ayurvedic medicine:
If you or your partner don’t have knowledge related to either manufacturing or sales of ayurvedic medicine then you can recruit employee for it. You will require qualified, technical and non-technical employee for running your business.
Market Your Products
Without sale, every effort and steps you followed is waste. So, you need to market and sell products that you are going to manufacture.
If you want to start any kind of ayurvedic company in India, then you must have knowledge about which type of company you want to set up. You want to manufacture and market both or you just want to manufacture for other marketing companies.
How Ayurvedic Marketing Company Can Be Started?
Before going to start ayurvedic manufacturing company you must have to know about the ayurvedic medicines and market. If you have sufficient knowledge of ayurvedic medicines then you can go ahead to start your own ayurvedic manufacturing company.
To start an ayurvedic manufacturing company you need to register your business first. You can register your business as Proprietorship Firm, Partnership Firm, LLP or OPC. After that you need to apply for GST registration under central gst department and Trade License from your local municipality office.
Once you get GST registration certificate, Trade License and Company Registration Certificate, you can open a current account in the name of the company in any nationalized bank.
After that you need to prepare Manufacturing Plan and apply for Manufacturing License from AYUSH Ministry by submitting some documents with application form and fees for grant of license for manufacture of Ayurvedic/Siddha/Unani or Homeopathic drugs or medicines.
Documents required to start ayurvedic manufacturing unit:
- Application for grant of a licence to manufacture ayurvedic, siddha or unani drugs (Form 24D for New License and Form 24E for Loan License)
- Fee Challan
- Aadhar Card/PAN Card of proprietor (if proprietorship) or partners (if partnership firm) or Directors (if private limited or public limited)
- Address proof of premises (Rent agreement/sale agreement/electricity bill/water bill etc.)
- List of technical persons i.e., manufacturing chemist and analytical chemist along with educational and technical supporting documents, and identification proof
- Premises Site Master File or Blue print of premises
- List of machinery and lab equipment
- List of medicines to be manufactured along with Product details includes brand name, herbs and their parts used, reference book page number of each herb, form used (like powder or extract etc), preservatives used, prescribed indications of product etc
- Electricity supply details e.g., electricity bill
- NOC if any
- Other documents that would be asked by concern officer at time of inspection and application filing
Conclusion:
There are a greater number of people following ayurveda throughout the world. By starting an ayurvedic manufacturing company you can capitalize on this interest and make money off of it. If you are still in confusion and have questions, ask us at pharmafranchiseehelp@gmail.com
If you don’t have budget for own ayurvedic manufacturing unit, you can start own marketing company by third party manufacturing here
You can also take franchise of an ayurvedic company and start ayurvedic marketing and distribution business