How to Start Ayurvedic Medicine Manufacturing Unit – Ayurveda is an ancient healing therapy that enhances longevity, it’s also known as “Science of life”. Ayurveda is one of the ancient surviving medical systems in the world that dates back almost 5000 years. If you want to start the Ayurvedic Medicine Manufacturing Unit, this blog will help you. Here, we have provided all the details and procedures to start your own Ayurvedic Manufacturing company in India. Opening your own Ayurvedic business will always be profitable, as nowadays people are moving towards the Ayurvedic system of medicine again.
Table of Contents
Also, check – Do we need a Drug License to open a herbal medical store?
The rising awareness about the harmful effects of chemicals and medicines used in allopathic drugs will trigger the demand for herbal medicines and products in the future. Rising awareness, attractive marketing, and promotional strategies adopted by popular brands such as Dabur, Himalaya will likely drive the sales for herbal hair care products in India in the coming years. According to WHO estimates, almost 80% of the population of many Asian and African countries depend on traditional medicine for primary health care. The Indian ayurvedic products market is expected to grow at a CAGR of 14% during 2019-2024.
Explore – Top Ayurvedic Medicine Manufacturers in India
Steps to Start an Ayurvedic Medicine Manufacturing Unit
If you are interested in Ayurvedic/Herbal Medicine Manufacturing, then you have to take a manufacturing license for the manufacturing of Ayurvedic medicine from your state Ayush department. I have compiled this blog to give an overview of starting an Ayurvedic Medicine Manufacturing Unit in India.
Check in Hindi – आयुर्वेदिक चिकित्सा निर्माण इकाई कैसे शुरू करें
1. Search Premises for Ayurvedic Manufacturing Unit
The first step to open your own manufacturing unit is to search for Premises for a Manufacturing Unit. It can be rented or owned. Once an Ayurvedic business owner determines his or her facility needs and searches for and locates the right facility, it’s time for another decision regarding the business property: Do you buy or rent your Ayurvedic Manufacturing Unit? This question is raised in two contexts:
- The owner of the Ayurvedic Manufacturing Company would consider either a sale or a rental of the property.
- You are selecting from a group of competing sites, some of which are for sale and others that are for lease.
2. Choose Ayurvedic Company Name
Choosing a name for a new Ayurvedic company is always a difficult and important task. We trust a product by a name, A name associated with that product. When we see a logo, A Name comes to mind. Before choosing a name for any business, think few facts:
- The name of your company should satisfy your Ayurvedic Business Identity Need.
- Your Ayurvedic company name should be Unique
- Letters in your business name play an important role. Make it short and simple so that it is easily memorable and attracts attention.
- Remember not to put any silent character in your Ayurvedic business name.
- The name should be technical. Ayurvedic names should have a suffix or prefix related to Ayurveda.
- Last but not least, it should be unique in pronunciation and availability. No other firms should have resembled or used similar names.
For more details, visit our blog, Best Names for Ayurvedic Company
3. Apply for Manufacturing License Number:
To manufacture Ayurvedic / Herbal products in India, one needs a license from AYUSH and not from FSSAI. Given below are 3 types of manufacturing licenses issued by AYUSH :
- Complete Manufacturing License: is a full-fledged manufacturing license. In this case, you will be both marketing and manufacturing the product. Thus, you will have to set up your own manufacturing unit.
- Loan License: is a manufacturing license where you loan a manufacturing unit of a third-party manufacturer to make your products. Thus, you will not have to own a manufacturing unit. You will have to apply for a Loan license with a GMP-certified manufacturer, and it will be issued to your company. Then you will have to get approval for your product from the authorities.
- Contract Manufacturing / Third-party manufacturing / White label Manufacturing / Product-to-product manufacturing: is a License where you will use the manufacturing license of a third-party manufacturer to manufacture the product. You will be just marketing the product. Thus, you don’t have to own any manufacturing unit and don’t have to get any license. All licensing with the AYUSH office will be done by the manufacturer.
4. Apply for product approval along with the Manufacturing License Number File:
Documentation and Procedure of Ayurvedic Manufacturing Unit ( Requirement may vary state to state or area to area ) needed to start an Ayurvedic Company in India of your own.
- Application on prescribed Form 24-D.
- Prescribed Fees as mentioned
- Subject to the conditions of Rule 157 being fulfilled, the license will be issued in Form 25-D, which will be valid for a period of some years from the date of issue.
- The requirements of schedule ‘T’ are to be fulfilled, for which the Departmental Inspection Team will conduct the
- inspection and submit its report on the prescribed Performa.
- Documents in respect of competent technical staff consisting of at least one person, who is a whole-time
- An employee who possesses the qualifications as mentioned below, as a competent person staff section.
- Site Plan of the premises.
- Attested copy of No Objection Certificate from the Pollution Control Board.
- Power Availability Certificate from the Electricity Department.
- List of Machinery/Lab. Types of equipment.
- List of medicines to be manufactured.
- Project Report.
- Ownership proof or rent agreement
5. Apply for GST Number
As of July 1, 2017, any seller who wants to sell across India needs to enroll for GST (Goods and Services Tax), except if the seller sells goods or services under exempt categories. The GST registration process is entirely paperless, which means that it will take place online or digitally. There will not be any hard copies or physical printouts required for the enrolment.
- Generate your GST Application form -The first step is to obtain the Temporary Registration Number (TRN). To obtain this, you need a valid mobile number (an Indian number), email address, and PAN (Permanent Account Number) for the business.
- Filling in your GST Application form: The form contains 10 sections/tabs. For this process, you need scanned copies of the following documents and some additional personal information: Valid Bank Account Number and IFSC, and Proof of constitution/incorporation of business
- Registering your Digital Signature Certificate: To verify your GST application, you would need to digitally sign the form.
- Verify and Submit Your GST Application: You can apply by choosing any one of the 3 verification methods: Verification with DSC, Verification with e-signature, and Verification with EVC.
6. Ayush Manufacturing License
Some of the documents you require for the Ayush Manufacturing License are:
- Incorporation / Proprietary / Other form of business
- The area of the manufacturing unit should be not less than 1285 sqft.
- DMR Act [The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954]
- (DMR act compliances must be followed by all manufacturers)
- Technical Officer (BMS doctor)
- Technical Officer(BSC with Bio.)
- Product information (what products are the product going to be manufactured)
- Form of product [in what form (tablets/liquid/powder) the product is going to be manufactured)
- Directors (related to the herbal domain) will be more preferable
7. After all these Approvals, you can start manufacturing of Ayurvedic Medicines
After all these approvals, you can finally start your Ayurvedic medicine Manufacturer procedure. Below are the requirements to start an Ayurvedic Medicine Manufacturing Unit
- Area Requirement depends on the number of sections you want to start. The minimum area required under the Drug and Cosmetic Act is 1200 square feet.
- Machinery and Equipment: All the machines are in SS-304, and contact parts are in SS-316. These are all the Machinery and equipment you need if you are thinking of starting an Ayurvedic Company in India.
- Laboratory Equipment: An Ayurvedic manufacturing unit either establish its own testing laboratory or unit can get testing done at government-approved laboratories.
8. Start Selling Products
- You can sell Ayurvedic medicines and Herbal products online by building your website for the sale and purchase of Ayurvedic products, but it is time time-consuming and expensive process.
- You can also use other common portals (Snap Deal, Flipkart, Amazon, etc) to sell ayurvedic herbal products online.
- Another option is to sell Ayurvedic medicines and Herbal products offline directly in the Market by promoting your Ayurvedic products directly to Ayurvedic practitioners or customers.
- You can also search for distributors all over India/the World for your Ayurvedic/Herbal preparations. If you don’t want to do direct marketing, you can also sell your Ayurvedic products by appointing distributors all over India on a PCD/franchise basis or appointing authorized distributors or importers in any country worldwide.
- You also have to comply with import-export in case you are exporting to other countries.
Conclusion:
We have listed above all the details about how to start an Ayurvedic Medicine Manufacturing Unit. Follow these steps to start the process for your company.
Important Faqs
Everyone talks about the 20% growth rate, but what’s the real-world profit margin after all the cuts?
In a B2B distribution arrangement, gross margins of proprietary drug treatments might be 30% to 50%. If you’re handling “Classical” medicines (like Ashwagandha Churna), it’s far a count of extent with lower margins (approximately 15-20%). Currently, Ayurvedic Aahara (meal supplements) is the major earnings due to the regulatory route through FSSAI’s new 2025 portal being faster, and the consumer markup being better
What is the highest hidden cost that entrepreneurs miss in their first year?
Typically, it’s Standardisation and Stability Testing. You ought to produce a delicious syrup nowadays, but if it spoils inside the bottle three months after the distributor’s shelf, your logo is not alive. In 2025, supermarkets would require “Real-Time Stability Data.” Set apart an annual budget of at least ₹3 to 5 Lakhs exclusively for batch trying out and NABL-certified lab reports.
Is the export market still open for small units, or is it only for the big players?
The doorways are very a good deal open, especially for the Middle East and Southeast Asia. Still, you may need to obtain a CoPP (Certificate of Pharmaceutical Product). The absence of this document will make it impossible as a way to sign in your merchandise in the majority of countries. It is extraordinarily advocated that in case you are planning to start building your unit already, you should recall the layout being “Export Ready” from the first day, as it will be a lot less expensive than having to do renovations later on.
If I want to exit or sell my brand in 5 years, what should I focus on now?
Concentrate on IP (Intellectual Property) and Compliance Records. A purchaser isn’t only acquiring your system but also your “Approved Formulas” and “Clean Audit History.” Maintain a digital report of every batch from the very beginning. In the B2B industry, “Data is the new Amla”—it’s what sustains your business and makes it precious.
