Which is best – Third Party manufacturing Or Loan License

Which one is the best ?3 Party Manufacturing or Loan Licensing ?


If you are start-up or small company then Third Party manufacturing is best option for you.

If you are Multi nation company and having big set-up then loan licensing is best option for you…

Difference between Loan License and third party manufacturing here

4 Replies to “Which is best – Third Party manufacturing Or Loan License”

  1. Pingback: How to Start Pharmaceutical Manufacturing Unit in India? - Pharma Franchise Help
  2. If any quality arises after supply to distributor and products are returned back to marketer company x, then who will bear expenses of quality issue ?? will it be marketer company “x” or company “Y”.

    2 answers are desired if company “Y” is loan licence company and if company “Y” is third party manufacturer.

    IFFAT says:
    1. Make it simple..
      Marketing Company is X and manufacturing Company is Y.
      In case of loan license responsibility will be of Company X because he has taken loan license in manufacturing company Y. Loan license means company Y has given his plant at rent basis to company X and Company X will be fully responsible for all its manufactured product at Company Y plant.
      But in case of third party manufacturing, quality issue will be responsibility of manufacturing company Y.

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