Siddha is one of India’s traditional systems of medicine and has a well-established system of formulations, raw materials, preparation methods and therapeutic use.

An entrepreneur interested in starting a Siddha business generally has three options:

1. Start an independent Siddha manufacturing unit.
2. Obtain a loan licence and manufacture using another licensed factory.
3. Launch a Siddha marketing company and get products manufactured through an existing licensed Siddha manufacturer.

For most new entrepreneurs, the third-party manufacturing model is the easiest and least capital-intensive way to enter the market.

Quick Answer

To start a Siddha medicine business:

If You Want Your Own Factory

You generally need:

• Suitable manufacturing premises
• Schedule T GMP-compliant facilities
• Qualified technical staff
• Quality-control arrangements
• Manufacturing machinery
• Raw-material storage
• Documentation system
• Form 24-D application
• Manufacturing licence in Form 25-D
• Product permissions for the proposed Siddha medicines

If You Do Not Want Your Own Factory

You may:

• Work through a licensed Siddha manufacturer on a third-party basis, or
• Obtain a loan licence using another approved manufacturing facility.

If You Only Want Your Own Brand

You can select an eligible licensed Siddha manufacturer and manufacture products under your brand, subject to:

• Product approval
• Correct formulation
• Proper manufacturing agreement
• Compliant packaging
• Business and GST requirements
• Trademark due diligence

What Does “Siddha Pharmacy” Mean?

The term “Siddha pharmacy” can refer to two different businesses.

Siddha Manufacturing Pharmacy

This is a factory where Siddha medicines are:

• Processed
• Prepared
• Manufactured
• Packed
• Tested
• Released for sale

A manufacturing licence is required.

Siddha Retail or Marketing Business

This may involve:

• Purchasing finished medicines
• Marketing products
• Selling products
• Distributing products
• Selling through a Siddha clinic
• Selling through an online store

The registrations required depend on the exact activity and the state.

Do not confuse a Siddha manufacturing licence with a normal business, GST or retail registration.

Who Regulates Siddha Medicines?

Siddha medicines are regulated under the Drugs and Cosmetics Act, 1940 and Drugs Rules, 1945.

The rules dealing with Ayurvedic, Siddha and Unani drugs include provisions for:

• Manufacturing
• Licensing
• GMP
• Product approval
• Labelling
• Packing
• Quality testing
• Inspectors
• Government analysts

Manufacturing licences are generally issued by the appropriate State Licensing Authority.

Types of Siddha Medicines

Before starting the business, determine which category of medicines you want to manufacture.

1. Classical Siddha Medicines

Classical Siddha medicines are formulations prepared according to formulae described in authoritative Siddha books recognised under the Drugs and Cosmetics Act.

These products must follow the relevant authoritative formulation.

The manufacturer should identify:

• Classical name
• Ingredients
• Part used
• Preparation method
• Authoritative reference
• Dosage form

A classical product should not be arbitrarily changed while continuing to be marketed as the same classical medicine.

2. Patent or Proprietary Siddha Medicines

A patent or proprietary Siddha medicine is a proprietary formulation prepared using ingredients permitted under the applicable Siddha regulatory framework.

The licensing authority may review:

• Complete formula
• Ingredient quantities
• Botanical/mineral identity
• Parts used
• Authoritative references
• Dosage form
• Intended indications
• Safety requirements
• Evidence requirements

The manufacturer should obtain the required product permission before commercial manufacturing.

Question 1: How Can I Start Manufacturing Siddha Medicines?

If you want your own manufacturing unit, follow these steps.

Step 1: Prepare a Product List

First decide which products you want to manufacture.

Examples of Siddha dosage forms may include:

• Chooranam
• Kudineer
• Mathirai
• Parpam
• Chendooram
• Mezhugu
• Thailam
• Legiyam
• Ennai
• Manapagu
• Other permitted Siddha dosage forms

Do not start by selecting every available dosage form.

A focused product range makes factory planning easier.

Step 2: Decide Classical vs Proprietary Products

Prepare separate lists of:

Classical Medicines

Products reproduced from recognised Siddha authoritative books.

Patent/Proprietary Medicines

Company-developed formulations permitted under the Siddha regulatory framework.

This distinction affects product documentation and approval requirements.

Step 3: Register the Business

Possible structures include:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

You may also require:

• PAN
• Business bank account
• GST registration, where applicable
• Udyam registration
• Local establishment permissions
• Trademark applications

Step 4: Select Suitable Industrial Premises

Do not take a long-term factory lease before confirming that the premises can satisfy Siddha GMP requirements.

Consider:

• Manufacturing area
• Raw-material store
• Packaging store
• Finished-goods store
• Quarantine areas
• Quality-control area
• Washing area
• Drying area
• Utilities
• Personnel movement
• Waste disposal

The final area depends on the dosage forms you intend to manufacture.

Step 5: Prepare a Schedule T-Compliant Layout

Schedule T specifies Good Manufacturing Practices for Ayurvedic, Siddha and Unani medicines.

The facility should be designed to prevent:

• Contamination
• Mix-ups
• Cross-contamination
• Raw-material deterioration
• Pest infestation
• Improper storage

The layout should provide suitable arrangements for:

• Receiving raw materials
• Identification
• Quarantine
• Approved storage
• Processing
• Packing
• Finished-goods storage
• Rejected materials
• Quality control

Step 6: Arrange Required Machinery

Machinery depends on the dosage forms.

Possible equipment may include:

• Pulverizer
• Grinder
• Sifter
• Blender
• Tablet or Mathirai equipment
• Heating vessel
• Oil-processing vessel
• Storage vessels
• Dryer
• Filling machine
• Packing equipment
• Weighing balances

Products involving minerals or specialised traditional processes may require separate equipment and dedicated procedures.

Do not purchase machinery before finalising:

• Product list
• Batch size
• Layout
• Regulatory requirements

Step 7: Appoint Qualified Technical Staff

A Siddha manufacturing unit requires appropriate qualified technical personnel.

Staff may include qualified persons for:

• Siddha manufacturing
• Quality control
• Chemistry
• Pharmacognosy/botany
• Production supervision

The qualifications and experience should satisfy the applicable Drugs Rules and State Licensing Authority.

Step 8: Establish Quality-Control Arrangements

Quality control is particularly important in Siddha medicines because raw materials may include:

• Herbs
• Minerals
• Metals
• Salts
• Natural ingredients

Testing should confirm:

• Identity
• Purity
• Strength
• Contamination limits
• Product specifications

The unit may maintain its own eligible quality-control laboratory or use recognised external testing arrangements where permitted.

Step 9: Prepare Documentation

Prepare documents such as:

• Standard Operating Procedures
• Master Formula Records
• Batch Manufacturing Records
• Raw-material specifications
• Finished-product specifications
• Testing procedures
• Cleaning records
• Equipment records
• Calibration records
• Training records
• Complaint procedures
• Recall procedures

Traditional medicine manufacturing still requires a controlled and documented quality system.

Step 10: Apply for Manufacturing Licence

The application for an independent Siddha manufacturing facility is made in:

Form 24-D

The manufacturing licence is granted in:

Form 25-D

by the appropriate State Licensing Authority after the required regulatory review and inspection.

Step 11: Obtain Product Permissions

The manufacturing licence alone does not mean you can manufacture every Siddha formulation.

The proposed products should be included within the approved manufacturing scope.

Submit the required information for:

• Classical medicines
• Patent/proprietary formulations
• Ingredients
• Dosage forms
• Authoritative references
• Safety/effectiveness documentation where required

Step 12: Complete Inspection

The licensing authority may inspect:

• Premises
• Machinery
• Stores
• Quality-control arrangements
• Technical staff
• Documentation
• Hygiene
• Schedule T compliance

Deficiencies must be corrected before approval.

Step 13: Approve Packaging and Labels

The label should comply with the applicable Siddha drug requirements.

Check details such as:

• Product name
• Ingredient list
• Quantity of ingredients
• Manufacturer name
• Manufacturing licence number
• Batch number
• Manufacturing date
• Expiry date
• Net quantity
• Dosage
• Storage
• Marketed-by details
• Required warnings

Products containing substances covered by Schedule E(1) require the applicable caution regarding medical supervision.

Question 2: How Can I Get Siddha Medicines Manufactured by Someone Else and Sell Under My Own Brand?

This is commonly called:

Third-Party Manufacturing / Contract Manufacturing

It is often the most practical route for a startup.

You do not need to construct your own factory merely to launch a Siddha brand.

Third-Party Manufacturing Procedure

Step 1: Register Your Business

Create a business such as:

• Proprietorship
• Partnership
• LLP
• Private Limited Company

Step 2: Select Your Brand Name

Conduct a trademark search before finalising:

• Company name
• Product name
• Logo

Consider filing a trademark application before investing heavily in packaging.

Step 3: Select a Licensed Siddha Manufacturer

Ask for:

• Form 25-D manufacturing licence
• GMP certificate
• Approved product list
• Manufacturing capabilities
• Testing arrangements
• Product permissions

Step 4: Select Products

Choose between:

• Existing classical products
• Existing proprietary products
• New permitted proprietary combinations

Using formulations that the manufacturer already produces can reduce development time and MOQ.

Step 5: Finalise the Formula

For proprietary products, confirm:

• Ingredient
• Botanical or traditional name
• Part used
• Quantity
• Specification
• Extract details where applicable
• Authoritative reference
• Dosage

Step 6: Obtain Regulatory Confirmation

The manufacturer should confirm whether:

• The product is already approved.
• Additional product permission is required.
• Safety/effectiveness documents are required.

Do not rely only on a sales quotation.

Step 7: Finalise the Commercial Terms

Discuss:

• MOQ
• Manufacturing rate
• Packaging
• Testing charges
• Product approval charges
• Advance payment
• Delivery time
• Freight
• Replacement policy

Step 8: Prepare Packaging Artwork

Artwork may include:

• Your brand
• Your logo
• “Marketed by” address
• Manufacturer details
• Licence number
• Formula
• Usage instructions
• Warnings

The manufacturer’s regulatory/QA team should approve the artwork before printing.

Step 9: Sign a Manufacturing Agreement

The agreement should cover:

• Product specifications
• Brand ownership
• Formula
• Quality
• Testing
• Packaging
• Delivery
• Complaints
• Recall
• Confidentiality
• Payment

Step 10: Manufacture and Test the Batch

Obtain:

• Batch invoice
• Certificate of Analysis
• Test reports where applicable
• Batch details
• Manufacturing and expiry dates

Can the Product Be Sold in My Company Name?

Yes, a licensed Siddha manufacturer may manufacture the product while your company appears as the marketer or brand owner, subject to applicable labelling requirements.

A typical pack may state:

Manufactured by:
XYZ Siddha Pharmaceuticals

Marketed by:
ABC Healthcare

The manufacturer remains responsible for manufacturing quality, while the marketer also has responsibilities relating to the claims and marketing of the product.

Do I Need a Siddha Manufacturing Licence for Third-Party Manufacturing?

Not merely because you own the brand.

If another company holding the appropriate manufacturing licence manufactures the product and you operate only as the marketer, you do not automatically need your own Form 25-D manufacturing licence.

However, your business may still need:

• Business registration
• GST registration, where applicable
• Trademark
• Local establishment registration
• Storage/distribution permissions where applicable
• E-commerce compliance where applicable

State procedures should be checked before starting wholesale or retail operations.

Loan Licence Option

Third-party marketing and a loan licence are not exactly the same thing.

If you want a more formal licensed manufacturing position without owning your own factory, you may consider a loan licence.

Application:

Form 24-E

Loan licence:

Form 25-E

Under this arrangement, you use the facilities of an existing licensed Siddha manufacturing unit.

The Licensing Authority checks whether the host manufacturer has adequate:

• Capacity
• Equipment
• Technical staff
• Testing arrangements

Third-Party Manufacturing vs Loan Licence

Factor	Third-Party Marketing	Loan Licence
Own factory	No	No
Manufacturer holds Form 25-D	Yes	Yes
Marketing company owns brand	Usually	Can
Separate loan licence	No	Yes
Regulatory involvement	Lower for marketer	Higher
Suitable for startup	Very suitable	Suitable for larger/structured businesses

Question 3: What Are the Steps to Start a Siddha Pharmacy?

If by “Siddha pharmacy” you mean a business selling Siddha medicines, follow these steps.

Step 1: Decide Business Model

Choose:

• Retail shop
• Wholesale distribution
• Online store
• Siddha clinic pharmacy
• Marketing company
• Franchise business

Step 2: Register the Business

Arrange:

• PAN
• Bank account
• GST registration where required
• Local business registrations
• Udyam where appropriate

Step 3: Select Licensed Suppliers

Purchase Siddha medicines only from authorised manufacturers or distributors.

Keep:

• Purchase invoices
• Batch details
• Expiry details
• Manufacturer information

Step 4: Arrange Suitable Storage

Follow product label storage conditions.

Protect medicines from:

• Moisture
• Excessive heat
• Direct sunlight
• Pest infestation
• Contamination

Step 5: Maintain Inventory

Track:

• Brand
• Batch
• Expiry
• Purchase quantity
• Sales quantity
• Returns
• Damaged goods

Use the first-expiry-first-out system.

Step 6: Check State-Specific Requirements

The central ASU drug rules focus heavily on manufacturing, product quality and labelling, but local or state requirements may also apply to:

• Shop registration
• Trade licence
• Storage
• Professional operation
• Clinic-linked dispensing

Confirm these requirements with the concerned State AYUSH/Drug Licensing Authority.

Siddha Manufacturing Licence vs Marketing Company

Activity	Own Form 25-D Required?
Manufacturing Siddha medicines in own factory	Yes
Manufacturing under own loan licence	Form 25-E route
Brand owner using third-party manufacturer	Generally no Form 25-D merely for owning brand
Buying finished products and reselling	No manufacturing licence
Repacking or manufacturing products yourself	Manufacturing approval may be required

Classical vs Proprietary Siddha Product

This distinction is important.

Classical Siddha Medicine

The product should follow an authorised traditional formulation.

Advantages may include:

• Established classical reference
• Defined formulation
• Easier product documentation than an entirely new proprietary formula

Patent/Proprietary Siddha Medicine

Useful when a business wants:

• Unique formulation
• New combination
• Differentiated brand
• Specific market positioning

However, regulatory documentation may be greater.

Siddha Raw-Material Quality

Raw materials should be purchased from qualified suppliers.

Maintain:

• Supplier details
• Purchase invoice
• Batch/lot number
• Identity
• Test report
• Storage records

Special care is required with:

• Mineral ingredients
• Metal-containing ingredients
• Schedule E(1) ingredients
• Ingredients requiring purification
• Raw herbs prone to contamination

Purification Procedures

Traditional Siddha manufacturing may involve purification procedures.

These should not be performed based only on verbal tradition during commercial manufacturing.

Maintain documented:

• Raw-material identification
• Purification method
• Process parameters
• Yield
• Batch record
• Testing

The manufacturing process should correspond with the authorised formulation and company SOP.

Product Testing

Depending on the medicine, testing may involve:

• Identity
• Moisture
• Ash values
• Extractive values
• pH
• Microbial limits
• Heavy metals
• Pesticide residues
• Aflatoxins
• Assay/marker testing
• Finished-product characteristics

The relevant pharmacopoeial or approved standard should be followed.

Heavy-Metal Testing

This requires particular attention in Siddha medicines containing mineral or metal ingredients.

Do not simply market such products as:

• Completely safe
• Non-toxic
• Free from side effects

without adequate evidence.

The raw materials, purification process, manufacturing controls and finished-product specifications should all be properly documented.

Siddha Medicine Advertising

A licence does not provide permission to make unlimited advertising claims.

Avoid:

• Guaranteed cure
• Permanent cure
• “No side effects”
• Claims prohibited under applicable advertising laws
• Misleading disease claims
• Claims beyond the approved product scope

The same rules should be considered for:

• Facebook
• Instagram
• YouTube
• Website
• Amazon listing
• WhatsApp marketing
• Printed advertisements

Can Siddha Medicines Be Sold Online?

Yes, subject to:

• Product licensing
• Business registrations
• GST requirements where applicable
• Marketplace policy
• Proper invoicing
• Label compliance
• Advertising restrictions

Confirm documentation requirements with the intended marketplace before placing a large manufacturing order.

Documents to Ask From a Third-Party Siddha Manufacturer

Before placing an order, ask for:

• Form 25-D licence
• GMP certificate
• Product permission
• Approved formula
• GST certificate
• Manufacturing address
• COA
• Test reports
• Manufacturing agreement
• Approved artwork
• Invoice

For a classical product, ask for the authoritative Siddha reference.

Investment Required

Investment depends heavily on your business model.

Third-Party Marketing Company

Main costs include:

• Business registration
• Trademark
• Initial stock
• Packaging
• Marketing
• Website
• GST/compliance
• Working capital

Loan-Licence Business

Additional costs may include:

• Licensing
• Regulatory documentation
• Technical arrangements
• Host-factory charges

Own Siddha Manufacturing Unit

Investment may include:

• Factory premises
• Civil work
• Machinery
• Quality-control arrangements
• Technical staff
• GMP compliance
• Raw materials
• Packaging
• Regulatory fees
• Working capital

For beginners, third-party manufacturing normally carries much lower financial risk.

Common Mistakes to Avoid

• Assuming Siddha and food supplements are the same category
• Manufacturing without Form 25-D
• Calling a product Siddha without proper regulatory basis
• Selecting an unlicensed contract manufacturer
• Printing artwork before regulatory approval
• Ignoring Schedule T
• Buying unknown raw herbs without testing
• Making unsupported claims
• Assuming a trademark is the same as a product licence
• Paying for large batches before checking documents
• Mixing loan licence and third-party manufacturing concepts
• Assuming every herbal product is a Siddha medicine

Answer to the Questions

Question 1: What Is the Procedure for Starting Siddha Medicine Manufacturing?

Establish a Schedule T-compliant manufacturing facility, appoint qualified staff, arrange quality control, apply in Form 24-D and obtain the manufacturing licence in Form 25-D from the appropriate State Licensing Authority.

The proposed medicines must also satisfy product-approval requirements.

Question 2: How Can I Get Medicines from Another Manufacturer and Sell Them Under My Name?

Select a properly licensed Siddha manufacturer and use a third-party manufacturing arrangement.

Your company can generally own the brand and appear as the marketer while the licensed manufacturer appears as the manufacturer.

Alternatively, you may obtain a loan licence in Form 25-E.

Question 3: What Are the Steps for Starting a Siddha Pharmacy?

Decide whether you want a manufacturing unit, retail shop, online business or marketing company.

For a marketing/retail business, arrange the business, GST and local registrations applicable to your activities and purchase only properly licensed Siddha medicines.

Do not assume that the manufacturing licence held by the product manufacturer replaces every registration needed for your own business.

Frequently Asked Questions

1. Which licence is required to manufacture Siddha medicines?

A manufacturing licence is issued in Form 25-D after an application in Form 24-D.

2. What is the loan licence for Siddha medicines?

A Siddha loan licence is issued in Form 25-E following the applicable Form 24-E application.

3. Is Schedule T applicable to Siddha medicines?

Yes. Schedule T contains GMP requirements for Ayurvedic, Siddha and Unani medicine manufacturing.

4. Do I need my own factory to launch a Siddha brand?

No. You may work with an existing licensed Siddha manufacturer.

5. Can my company’s name appear on the product?

Yes, subject to applicable labelling requirements, the pack may identify your company as the marketer while identifying the actual licensed manufacturer.

6. Is a manufacturing licence required only because I own the brand?

No. Brand ownership alone is different from performing manufacturing activity.

7. Can I make my own new Siddha combination?

Only after confirming that the proposed formulation satisfies the applicable patent/proprietary Siddha medicine rules and obtaining the required product permission.

8. Can Siddha medicines contain metals and minerals?

Certain authorised Siddha medicines may contain such ingredients, but raw-material quality, purification, manufacturing and testing requirements must be rigorously controlled.

9. Is AYUSH Premium Mark compulsory?

No. It is a voluntary quality-certification scheme and does not replace the statutory manufacturing licence.

10. Is GST compulsory?

GST liability depends on turnover, nature of supply, interstate transactions and other GST rules. It should be checked for the specific business model.

11. Can I sell Siddha medicines online?

Yes, provided the product and business comply with applicable manufacturing, labelling, tax, e-commerce and advertising requirements.

12. Who issues Siddha medicine manufacturing licences?

The appropriate State Licensing Authority issues the manufacturing licence under the Drugs Rules.

Final Thoughts

There are three practical routes to enter the Siddha medicine business:

Third-party manufacturing → lowest infrastructure requirement

Loan licence → greater regulatory control without own factory

Own Form 25-D manufacturing unit → highest investment and operational responsibility

For most new entrepreneurs, starting with a small, carefully selected range through a reliable licensed Siddha manufacturer is usually more practical than immediately building a complete factory.

Once demand, distribution and repeat sales are established, the business can evaluate whether a loan licence or independent manufacturing facility is commercially justified.

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