How to Start Ayurvedic Medicine Manufacturing Unit – Ayurveda is a form of ancient medicine for healing several health problems, and thus it is known as the ‘Science of Life’. This medical system was discovered almost 5000 years ago as a remedy for hundreds of diseases. The Ayurvedic Industry is still one of the largest industries in India, and it is going to grow in the future as well. So, if you are interested in starting your own business as an Ayurvedic Medicine Manufacturer in India, this blog will help you a lot. Here, we have given a detailed procedure on how to Start the Ayurvedic Medicine Manufacturing Unit in India.

how to start ayurvedic medicine manufacturing unit

Opening your own manufacturing unit for Ayurvedic Medicines will help you earn higher revenues. This is because of the increasing awareness among people about allopathic medicine’s side effects. Thus, there are many companies that are coming up with an effective ayurvedic range, attractive marketing and promotional strategies to grow in this sector. Thus, in this blog, we are mentioning some essential information on how to start an Ayurvedic Medicine Manufacturing Unit and also provide some steps to open an Ayurvedic Medicine store.

Table of Contents

Future Scope of Ayurvedic Manufacturing Company

India is the biggest consumer of Ayurvedic medications and supplements. Moreover, herbal ingredients are employed in skin care, hair care, massage, aromatherapy, and other applications as well. India is a land of herbal medications, and Ayurvedic products have been in existence for centuries.

But people don’t know about the health benefits of herbal medicines. However, rising social media platforms make it easy to find Ayurvedic product stores. At present, people can easily buy natural and herbal medications from e-commerce sites, which raises the demand for quality herbal medications

Challenges Faced by Ayurvedic Manufacturers in India

There are multiple challenges faced by Ayurvedic medicine manufacturing companies. Below, we list some of the challenges.

Obtaining certifications like AYUSH and GMP certifications is a time-consuming process. Different states may have different requirements, which can lead to delays in approvals.
Sometimes, raw materials are not available due to seasonal shortages of medicinal herbs. Risk of adulteration due to unregulated sourcing.
Deforestation and overharvesting are other factors that can lead shortage of raw ingredients.
Due to the natural variability of herbs, it becomes difficult to ensure uniformity, safety, and dosage.
Scientific validations and clinical trials are essential for creating trust among people and pharmacies.

How to Start an Ayurvedic Medicine Manufacturing Unit

If you want your own ayurvedic manufacturing unit, then here are the following steps you need to work on.

1. Search for a perfect location for the manufacturing Unit

The first thing is to look for a place where you want to set up your manufacturing unit. Further, it can be your own place or a rented one. Choose a place according to your needs and the facilities you want. Thus, depending upon that, the owner of the manufacturing company can either consider the sale or a rental property.

2. Choose a Name for your Ayurvedic Unit

Selecting a desirable name can be the most difficult part of this process. So, choose a name that defines your company’s quality the most. A consumer always trusts the brand name and the products associated with it. Similarly, when a person looks at the logo, the first thing that comes to mind is the name of that particular brand. Therefore, having a unique name can make a huge difference. Moreover, keep the Ayurvedic names of the company with a suffix or prefix related to Ayurveda.

3. Apply for Manufacturing License Number

The third step is to have a license number for your company. Also, a License from AYUSH is a must for opening an ayurvedic manufacturing unit. There are 3 kinds of licenses that you need to have –

Complete Manufacturing License – It is a complete manufacturing license. Thus, this works for both the marketing and manufacturing of the product
Loan License – In this license, you loan a unit of a third-party manufacturer to make your products.
Contract Manufacturing / Third party manufacturing License

4. Applying for the approval of the products along with the Manufacturing License Number File

This is the step of documentation for the Ayurvedic unit. In addition, it may vary from state to state.

Application on prescribed Form 24-D.
Agreed Fees for opening the unit
Inspection of the product range and submit its report on the Performa.
Documents for listing the technical staff, and also at least one person who is a whole-time employee
Further, give the Employee’s information and the qualifications they have
Give the Site Plan of the premises for your unit
You should also give the certification of no objection from the Pollution Control Board
Also, mention the certificate for power Availability from the Electricity Department.
Further, give the list of Machinery/labs and equipment you have.
List of medicines your unit will manufacture
Give your Project Report
Ownership proof or a rent agreement is also an important document to be submitted

5. Apply for GST Number

Additionally, any seller in India who wants to sell products all across the country should enroll for GST (Goods and Services Tax). Furthermore, the process for GST registration is entirely paperless, which means it is done online or digitally.

Generate your GST Application
Filling in your GST Application form
Registering your Digital Signature Certificate
Verify and Submit Your GST Application

6. Ayush Manufacturing License

As mentioned above, licensing from AYUSH is very important. So, here are some of the requirements for an AYUSH manufacturing license –

Incorporation / Proprietary / Other form of business
Your manufacturing unit area should not be less than 1285sqft.
Product Information
Approved under the Drugs and Magic Remedies Act
Technical Officer (BMS doctor)
Technical Officer (BSC with Bio.)
Form of products you will be formulating, like tablets, syrups, etc.
Directors’ list (preferred from the herbal domain)

7. After getting all the above approvals, start manufacturing Ayurvedic Medicines

Now you have got all the required approvals. Thus, you can start the procedure of Ayurvedic Medicine manufacturing. So, to start Ayurvedic Medicine Manufacturing, you will need a required area for production, Machinery and Equipment, and Equipment for the laboratory.

8. Start Selling Products

Lastly, you can sell your ayurvedic medicines in the market. You can also create a website for your company for the sale and purchase process. In fact, you can also use other common online portals like Snapdeal, Flipkart, Amazon, etc. Moreover, you can sell your products directly in the market too by proper promotions in the market and also by appointing distributors all over India on a PCD Franchise basis. It depends on your scale of business and your desire to grow in the market.

Conclusion

So, we have mentioned all the details about how to start an Ayurvedic Manufacturing Unit in India. And we hope our given information on this topic will help you to excel in the Ayurvedic Industry.

FAQs Related to How to Start an Ayurvedic Medicine Factory

How much investment is required to start an Ayurvedic Medicine Manufacturing unit in India?

It depends on the scale of your business. If you want to run a small unit, then it may need Rs. 15 to Rs. 30 lakh, while a medium-sized unit can require Rs. 50 lakh to Rs. 5 Cr.

What are the essential licenses that are required for Ayurvedic medicine manufacturing?

You need some essential documents to run your business legally. It includes an AYUSH manufacturing license from the state AYUSH department, GMP certification, GST registration, and trade license. These are some of the essential documents.

Can I start an Ayurvedic medicine unit without being a pharmacist or doctor?

Yes, you can start your business, but you must employ a qualified Ayurvedic expert who has (BAMS degree to supervise manufacturing and quality control.

What is the profit margin in Ayurvedic medicine manufacturing?

The profit margins vary on the product range; however, the average returns are 30-60% with branded and export-oriented products.

What are the major challenges in Ayurvedic medicine manufacturing?

There are various challenges faced by the Ayurvedic manufacturing company that including getting regular approvals, sourcing genuine raw materials, maintaining quality consistency, heavy competition from big brands, and gaining customers’ trust.