Third-party manufacturing is one of the most practical ways to start a pharmaceutical marketing company without setting up your own manufacturing unit.

However, many beginners get confused about two important questions:

1. What licence is required to market own brand products?
2. What is the minimum order quantity, or MOQ, for third-party manufacturing?

A common query is:

“I want to start a pharma marketing company on third-party manufacturing basis. My registered office is in Mumbai, sales office will be in Kolkata, and my family already runs a pharma wholesale business in West Bengal with a valid drug licence. Can I use that licence to manufacture and market my own brands across India? Also, what is the MOQ? Some manufacturers say 10 lakh tablets, while others say smaller orders are possible.”

Let us understand both topics clearly.

What Is MOQ in Third-Party Manufacturing?

MOQ means Minimum Order Quantity.

It is the minimum quantity a manufacturer agrees to produce in one batch or one order.

MOQ depends on:

• Dosage form
• Product composition
• Batch size
• Raw material cost
• Packing material MOQ
• Machinery capacity
• Manufacturer size
• Product demand
• Brand-new artwork or common packing
• Stability and testing requirements
• Whether product is pharma, Ayurvedic, nutraceutical or cosmetic

There is no single fixed MOQ for all products.

General MOQ for Pharma Third-Party Manufacturing

The following quantities are practical industry ranges. Final MOQ depends on the manufacturer and product.

Tablets and Capsules

Common MOQ:

• 50,000 to 1,00,000 tablets or capsules per product
• For common fast-moving products: around 1,00,000 tablets/capsules
• For costly products: 30,000 to 50,000 may be possible
• For trial batches: some manufacturers may allow 10,000 to 25,000, but rates may be higher

Earlier, some large manufacturers asked for very high quantities such as 10 lakh tablets. Such MOQ is usually difficult for startups.

A small or medium third-party manufacturer is often more suitable for beginners.

Liquid Syrups

Common MOQ:

• 1,000 to 5,000 bottles
• Many manufacturers prefer 2,000 to 5,000 bottles
• For 100 ml or 200 ml syrups, MOQ depends on bottle, label and carton availability

Liquid products are often easier for startups if the manufacturer allows smaller batches.

Dry Syrups

Common MOQ:

• 3,000 to 10,000 bottles
• Depends on bottle size, powder filling, antibiotic category and packaging material

Dry syrup MOQ may be higher because of production and packing setup.

Ointments, Creams and Gels

Common MOQ:

• 1,000 to 5,000 tubes
• Printed lami tube MOQ may be higher
• If custom tube printing is required, MOQ may increase to 5,000 or 10,000 tubes

For small batches, manufacturers may use sticker labels or common tube options, where acceptable and compliant.

Injections

Common MOQ:

• 2,000 to 10,000 vials or ampoules
• Depends on product, section, batch size, sterile facility and packing style

Injectables are not generally ideal for beginners unless there is strong hospital or institutional demand.

Sachets

Common MOQ:

• 5,000 to 30,000 sachets
• Depends on sachet size, powder quantity and packaging roll

Vitamin D3 sachets, probiotics, collagen sachets and protein sachets may have different MOQ.

Softgel Capsules

Common MOQ:

• 30,000 to 1,00,000 softgels
• Depends on shell, fill material, batch size and packing

Softgel MOQ may be higher than normal capsules.

Protein Powder and Granules

Common MOQ:

• 500 to 2,000 jars
• Sachet or pouch packing may have different MOQ
• Tin, jar, pouch and carton MOQ affect final order size

Ayurvedic Products

Common MOQ:

• Syrups: 500 to 2,000 bottles
• Capsules: 20,000 to 1,00,000 capsules
• Tablets: 20,000 to 50,000 tablets
• Oils: 500 to 2,000 bottles
• Churna: 500 to 2,000 packs

Ayurvedic MOQ varies widely because many small Ayurvedic manufacturers offer flexible batches.

Nutraceutical Products

Common MOQ:

• Tablets/capsules: 30,000 to 1,00,000 units
• Syrups: 1,000 to 5,000 bottles
• Protein powders: 500 to 2,000 jars
• Sachets: 5,000 to 30,000 sachets
• Gummies: often higher MOQ

Nutraceutical MOQ depends heavily on ingredient cost and FSSAI category.

Why Some Manufacturers Ask for 10 Lakh Tablets

Some manufacturers ask for high MOQ because:

• Their machine capacity is large
• Their batch size is fixed
• Their packing-line setup cost is high
• They work with big companies
• They do not want small custom orders
• Raw material MOQ is high
• They want annual commitment
• Packaging vendors require large quantities

For a startup, 10 lakh tablets of one product is usually too high unless the company already has strong sales.

Is It Possible to Sign Contract for 10 Lakh Tablets but Order 10,000 Each Time?

This depends on the manufacturer and agreement.

Sometimes, manufacturers may say:

• Annual commitment: 10 lakh tablets
• First dispatch: 10,000 or 25,000 tablets
• Manufacturing batch: larger
• Delivery: partial dispatch

But this arrangement can be risky for startups.

Before signing, check:

• Are you legally bound to buy the full quantity?
• What happens if sales do not happen?
• Who will hold remaining stock?
• Who will bear expiry loss?
• Will the manufacturer produce all stock at once?
• Will you pay advance for entire quantity?
• Will packing material be printed for the full quantity?
• Is the commitment product-wise or total order-wise?
• Can the balance quantity be adjusted in other products?

Do not sign a large annual quantity contract without sales confidence.

Best MOQ Strategy for Startups

A new pharma marketing company should not start with very large batches.

Better approach:

• Start with 10 to 20 products
• Choose fast-moving products
• Use manufacturers with flexible MOQ
• Start with smaller batches where possible
• Avoid slow-moving expensive products
• Reorder after checking market response
• Keep working capital for repeat orders
• Do not block all money in stock

A small, fast-rotating product list is better than a large stock that expires.

Can You Start With 10,000 Tablets?

Sometimes yes, but not always.

10,000 tablets may be possible if:

• Product is commonly manufactured
• Manufacturer has flexible production
• Packing material is available
• You accept higher rate
• You use ready foil or simple packing
• Product is costly
• It is a trial order
• Manufacturer is small or medium-sized

But for many pharma products, 10,000 tablets may not be commercially viable for the manufacturer.

Why Small MOQ Has Higher Cost

Small batches generally cost more because:

• Machine setup cost is same
• Cleaning cost is same
• Testing cost is same
• Documentation cost is same
• Packing artwork cost is same
• Labour cost is not proportionally reduced
• Raw material may be purchased in minimum packs
• Wastage percentage is higher

Therefore, small MOQ is possible but usually at a higher per-unit rate.

Licence Requirement for Third-Party Manufacturing

Third-party manufacturing involves two sides:

1. Licensed manufacturer
2. Marketing company or product owner

The manufacturer must have a valid manufacturing licence for the product category and dosage form.

The marketing company must ensure proper legal arrangement for purchase, storage, billing, sale and distribution.

Do You Need a Drug Licence to Start a Pharma Marketing Company?

If you are dealing in allopathic medicines and you will purchase, stock, sell, distribute or invoice medicines, a wholesale drug licence is generally required for the premises and firm conducting those activities.

A marketing office that only handles promotion, administration, branding, digital work or customer communication may not require a drug licence if no drugs are stocked, sold or billed from that office.

However, the premises from where goods are purchased, stocked, billed, dispatched or sold must have proper licence support.

Can You Use Family Wholesale Drug Licence?

You may use the family wholesale business only if the transaction is legally routed through that licensed firm and licensed premises.

For example:

• Manufacturer bills goods to the family wholesale firm.
• Goods are received at the licensed premises.
• Stock is stored under licence conditions.
• Goods are billed and dispatched from that firm.
• Records are maintained under that licence.
• The business constitution supports such activity.
• The marketing arrangement is documented.

But you should not casually use a family member’s drug licence for a separate company, separate office or separate premises without proper structure and approval.

A drug licence is not only a number. It is linked with a licensed premises, licensed firm and approved conditions.

Registered Office in Mumbai and Sales Office in Kolkata

You can have a registered office in Mumbai and a sales or corporate office in Kolkata.

But licensing depends on actual activity.

Mumbai Registered Office

If Mumbai office is only used for company registration, correspondence and address, it may not require a drug sale licence if no medicines are stocked, sold or billed from there.

Kolkata Sales Office

If Kolkata office is only used for marketing, calls, administration and sales coordination, it may not require a drug licence.

But if Kolkata office will:

• Receive stock
• Store medicines
• Dispatch goods
• Issue invoices
• Sell medicines
• Supply stockists
• Maintain physical inventory

then a wholesale drug licence for that premises should be obtained.

Can You Market Pan India from One Wholesale Licence?

You may promote products across India, but physical sale, storage, dispatch and billing must follow licence conditions.

One licensed wholesale premises can supply to legally permitted buyers according to applicable rules and business feasibility.

However, if you create multiple stocking points, C&F locations, branch offices or warehouses, each location may need separate licence or approval as applicable.

Always confirm from the concerned State Drug Control Department before starting interstate stock movement.

What If You Operate Through C&F Agent Only?

If you appoint a C&F agent, the C&F premises must have proper drug licence support for storage and distribution.

You should also have a written C&F agreement covering:

• Storage responsibility
• Billing process
• Stock ownership
• Dispatch process
• Expiry handling
• Breakage handling
• Recall procedure
• Returns
• Records
• Taxation
• Insurance
• Payment terms
• Regulatory inspection support

If your company itself purchases and sells medicines, your own licensing structure should be reviewed carefully.

Best Recommendation

For long-term business, take a separate wholesale drug licence in the name of your own pharma marketing company at the actual place of stock and billing.

You may keep:

• Registered office in Mumbai
• Corporate/sales office in Kolkata
• Licensed warehouse or wholesale premises in West Bengal
• C&F arrangement in other states later

This gives a cleaner and more professional structure.

Product Label: Marketed By Address

In third-party manufacturing, the label generally shows:

• Manufactured by: Licensed manufacturer name and address
• Marketed by: Marketing company name and address

The “marketed by” address should be truthful and connected with the marketing company.

If your Mumbai registered office is printed as marketed-by address, ensure it is legally connected with your business.

If you use Kolkata office as marketed-by address, ensure it is legally connected with your business.

Documents Required for Third-Party Manufacturing

Common documents may include:

• Company registration documents
• GST certificate
• Wholesale drug licence, if applicable
• PAN
• Trademark application or brand-name proof
• Marketed-by address proof
• Product list
• Brand names
• Artwork approval
• Agreement with manufacturer
• Purchase order
• Advance payment
• Product composition
• Packaging details
• Final label matter
• FSSAI licence, if nutraceuticals
• AYUSH-related documents, if Ayurvedic products

The manufacturer may ask for additional documents depending on product category.

Documents to Collect From Manufacturer

Before placing order, collect or verify:

• Manufacturing licence
• GMP certificate, where applicable
• Product permission
• COA format
• GST details
• Manufacturing agreement
• Product quotation
• MOQ confirmation
• Batch size
• Delivery timeline
• Packing material cost
• Testing responsibility
• Replacement policy
• Stability responsibility
• Defect handling policy

Do not finalize a manufacturer only because of low rates.

How to Select Products for First Order

Start with a limited and practical product range.

For example:

• 5 to 10 tablets/capsules
• 3 to 5 syrups
• 2 to 3 nutraceutical products
• 1 to 2 pain products
• 1 digestive product
• 1 liver product
• 1 calcium product
• 1 multivitamin product

Avoid launching too many products at once.

Which Products Need Lower MOQ?

Generally, lower MOQ may be easier for:

• Syrups
• Ayurvedic liquids
• Oils
• Protein powders
• Ointments
• Common tablets from flexible manufacturers
• Nutraceutical capsules
• Products with ready packing material

Higher MOQ may apply to:

• Softgels
• Sterile injectables
• Printed lami tubes
• Sachets with printed rolls
• Uncommon molecules
• Custom formulations
• Imported raw materials
• Products requiring special testing

How to Negotiate MOQ With Manufacturer

Ask these questions:

1. What is your minimum batch size?
2. Can you provide trial batch quantity?
3. Can I start with smaller quantity at higher rate?
4. Is packing material included in MOQ?
5. What is the MOQ for printed foil or carton?
6. Can balance packing material be kept for next batch?
7. Can you manufacture common products in smaller quantity?
8. What is delivery time?
9. What is expiry period?
10. Can you provide COA with every batch?

Negotiation should be based on practical production, not only price.

Packing Material MOQ

Many times, the real issue is not product MOQ but packing material MOQ.

Packing material includes:

• Foil
• Carton
• Labels
• Bottles
• Caps
• Measuring cups
• Lami tubes
• Sachet rolls
• Shippers

For example, a manufacturer may allow 50,000 tablets, but printed foil vendor may require a larger minimum print quantity.

Ask separately:

• Product MOQ
• Packing material MOQ
• Printing cost
• Plate/cylinder cost
• Balance packing material policy

First Order Strategy for Startup

For your first order:

• Select fast-moving products
• Avoid very costly products
• Avoid large MOQ products
• Avoid too many antibiotic combinations
• Start with practical quantities
• Choose products with at least 18 to 24 months shelf life, where possible
• Keep enough budget for marketing
• Keep working capital for reorder
• Take COA with every batch
• Verify batch and expiry before dispatch

Do not spend the full budget only on inventory.

Common Mistakes to Avoid

Avoid these mistakes:

• Signing 10 lakh tablet commitment without sales
• Using another firm’s drug licence casually
• Stocking at an unlicensed office
• Billing from an unlicensed premises
• Starting with too many products
• Ignoring packing material MOQ
• Not checking product permission
• Not checking banned or restricted FDCs
• Not checking DPCO/price control
• Selecting manufacturer only by lowest rate
• Not signing written agreement
• Not checking expiry and stability
• Not calculating total landed cost

Practical Answer to the Query

For your situation:

• You can keep registered office in Mumbai.
• You can operate sales/admin office in Kolkata.
• If Kolkata office only does marketing and no stock/billing, it may not require drug licence.
• If Kolkata office stores or sells medicines, take wholesale drug licence there.
• You should not casually use family wholesale licence for a separate company unless billing, storage and sale are legally routed through that licensed firm.
• If you use a C&F agent, the C&F premises must have proper drug licence support.
• For long-term professional working, obtain a separate wholesale drug licence in your company’s name at the actual stocking and billing location.
• For MOQ, avoid very high commitments. Start with flexible third-party manufacturers that allow practical startup quantities.

Final Thoughts

The minimum order quantity in third-party manufacturing depends on product category, batch size, packaging material and manufacturer policy.

For most startups, common practical MOQ may be around:

• Tablets/capsules: 50,000 to 1,00,000 units
• Costly tablets/capsules: 30,000 to 50,000 units
• Liquids: 1,000 to 5,000 bottles
• Ointments/creams: 1,000 to 5,000 tubes
• Sachets: 5,000 to 30,000 sachets
• Protein powders: 500 to 2,000 jars

Do not select manufacturers asking for very high MOQ unless you already have confirmed market demand.

For licensing, remember that promotion and branding are separate from physical sale and distribution. Wherever medicines are stocked, billed, sold or dispatched, proper licence support is required.

The safest long-term approach is to create a clean company structure, take your own wholesale licence at the actual business location, select reliable manufacturers and start with controlled MOQ.

Frequently Asked Questions

1. What is MOQ in third-party manufacturing?

MOQ means minimum order quantity. It is the minimum quantity a manufacturer agrees to produce for one product or batch.

2. What is the normal MOQ for tablets?

Common MOQ for tablets is usually 50,000 to 1,00,000 tablets, but costly products may be accepted at 30,000 to 50,000 tablets by some manufacturers.

3. Can I start with 10,000 tablets?

Some small manufacturers may allow 10,000 tablets for trial or common products, but the per-unit cost may be higher.

4. What is the MOQ for syrups?

Syrup MOQ is commonly 1,000 to 5,000 bottles, depending on bottle size, label, carton and manufacturer policy.

5. Why do some companies ask for 10 lakh tablets?

Large manufacturers may have high batch sizes, high machine capacity or annual-order expectations. Such MOQ is usually not suitable for beginners.

6. Do I need a drug licence for third-party manufacturing?

The manufacturer needs a manufacturing licence. The marketing company needs proper licence support if it purchases, stocks, sells, bills or distributes allopathic medicines.

7. Can I use my family wholesale drug licence?

Only if transactions are legally routed through that licensed firm and premises. Do not use another firm’s licence casually for a separate company or separate premises.

8. Do I need a licence if I appoint a C&F agent?

The C&F premises must have proper licence support. Your own company’s licensing requirement depends on billing, ownership, stock transfer and sale structure.

9. Can I print my Mumbai registered office as marketed-by address?

Yes, if it is a truthful and valid business address of the marketing company and having a valid license for that location. The manufacturer’s address must be printed separately as manufactured-by.

10. What is best for a startup: high MOQ or low MOQ?

Low or moderate MOQ is better for startups. It reduces dead-stock risk and allows product testing in the market.

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