A Comprehensive Guidelines on How To Start a small Ayurvedic Manufacturing Unit
We have a listener who is impressed by the growing popularity of Ayurvedic and wants to set up his own small Ayurvedic manufacturing unit. They want to know from us what kind of resources and how much space they will need for this, so in today’s article we will discuss it in detail, so you can stay with us till the end of the blog article.
In this article, we will try to give you complete information about how you can set up your own small Ayurvedic manufacturing unit. And what are the necessary documents and licenses you would need to start an Ayurvedic Manufacturing Company?
Let us know what are the benefits of starting Ayurvedic medicine manufacturing business.
- Growing Demand for Ayurvedic Products:- The way global interest in natural and traditional medicine is increasing among people all over the world including India. Due to this, there is a huge increase in demand for Ayurvedic products.
- Health and Wellness Trend:- Today in this era every person wants a good healthy life. Therefore, most of the people are showing their inclination towards natural remedies, due to which the market of Ayurvedic products is increasing day by day.
- Diverse Product Range:- When you set up an Ayurvedic manufacturing unit, you can market a portfolio of products like herbal supplements, skin care, hair care to meet the needs of a variety of health concerns.
- Increasing consumer confidence in Ayurveda:- Ayurveda has a long history of use, and many consumers rely on traditional treatments. Because they believe that Ayurvedic products are of high quality and efficacy and their side effects are also negligible.
Prepare the business plan and financial planing for small Ayurvedic manufacturing unit
Prepare a business plan and financial plan for the small Ayurvedic manufacturing unit. In this, you will have to try to understand market analysis as well as industry overview, marketing strategy and financial projects.
Ayurvedic Industry Overview:- Before setting up an small Ayurvedic manufacturing unit, you should try to understand the market size of the Ayurvedic industry sector and its future growth prospects. Additionally, identify your competitors in the market, try to understand their products and marketing strategies, and see what sets them apart.
Market analysis:- In order to grow a successful business, you must make an effort to develop a marketing strategy. Highlight your Unique Selling Proposition (USP) for your business and create a plan to identify and reach your target market. In this, you can promote your products through digital marketing, social media, traditional advertising.
Products and Services:- You can consider Ayurvedic products and services that you want to manufacture through your manufacturing unit. In which you can analyze the products offered by your competitors that what type of products they are offering in the market and making profit.
Operations Planing for small Ayurvedic manufacturing unit:- You will need essential facilities like water supply, electricity and machinery to produce Ayurvedic products. Additionally, detail the day-to-day operations of your manufacturing facility, including staffing requirements.
Choose a good name for your company:- Choose a name for your company that is unique and simple, relates to your industry sector and defines the quality of your company
Apply for Ayush Manufacturing License Number:- If you want to manufacture Ayurvedic products or cosmetics in India, you will need to obtain a license under the Drugs and Cosmetics Act, 1940 from your state’s drug control department to operate legally. Here are some suggestions from our side that keeping in mind what things you can take an Ayurvedic license
While producing Ayurvedic medicines, the manufacturing premises have to follow certain standards of hygiene and safety. You should have all your cleaning equipment with you.
To obtain a Manufacturing License, the applicant must have the appropriate technical qualification with appropriate educational qualification and experience.
For a specified manufacturing process, you need to obtain a Good Manufacturing Practice (GMP) certificate from your AYUSH department to ensure the quality standards set by the manufacturer of Ayurvedic, Siddha and Unani medicines.
Dont forget to Apply for Goods and Service Tax Registration:- You can contact any nearest chartered account firm to get Goods and Service Tax Number, you can also apply for GST number yourself, for this you can visit https://www.gst.gov.in/ can go
Estimate start-up costs:- Before starting your own small Ayurvedic manufacturing unit make a list of the machinery and raw material costs you will need, as well as legal compliance, licensing, and future marketing costs. This will help you understand the cost of your business
Cost of machinery and equipment:- Firstly you need to estimate the cost to be incurred on the size of the small Ayurvedic manufacturing unit and the type of products to be produced. Some of the necessary equipment may include mixing tanks, boilers, and packaging machines. The cost of these machinery and equipment can range from 5 lakh to 45 lakh
Raw Material Cost:- Ayurvedic medicines require many important herbs and other natural ingredients. The cost of raw material will depend on the type of Ayurvedic products. Generally the cost of raw material to make Ayurvedic medicines can range from 1 lakh to 5 lakh
Marketing and advertising expenses:- You have to estimate how much money you are ready to invest in marketing and advertising to promote and sell your Ayurvedic products, this mainly includes creating a website, digital marketing, traditional promotion etc.
Securing funding for small ayurvedic manufacturing unit:-You can invest your own money to get financing for your small Ayurvedic manufacturing unit. Apart from this, you can also take business loans from banks. Or you can also approach angel investors. Who may be willing to invest money in your business.
Types of documents required to start ayurvedic manufacturing unit
- For license to manufacture Ayurvedic, Siddha or Unani medicines you have to apply for Form 24D and for loan license you have to apply for Form 24E
- Prescribed Fee Challan
- If your firm is registered as Sole Proprietorship, Partnership, Private Limited Company, then you need to submit Aadhaar Card/PAN Card as documents.
- You will need proof of address of the premises like (Sale Agreement / Rent Agreement / Electricity Bill / Water Bill etc.)
- You may need to provide proof of competency of the technical persons and Ayurvedic pharmacists of the manufacturing unit who will be responsible for the manufacturing process on the basis of goodness and quality.
- You will need to draw up a plan of the production premises site showing the layout and dimensions of the various sections involved such as quality control areas, storage areas and packaging areas.
- List the equipment, laboratory machinery used in the process of manufacturing Ayurvedic medicines.
- Make a list of the medicine you want to make, including their brand names, list of ingredients, their quantities and their method of preparation.
- You can give your project report
- As mentioned, the power supply details will be required
- No Objection Certificate may be required to be obtained from the Pollution Control Board
- You may be asked for other documents for inspection by the Drug Officer at the time of filing the application.
After you submit the application, the regulatory authority inspects the manufacturing facility to ensure compliance with the requirements. If the manufacturing facility is meeting the standards set by the regulatory authority, you are issued a license by the Department of AYUSH
Establish your small Ayurvedic manufacturing unit
Find a suitable location for your company:
Select a location for your small Ayurvedic manufacturing unit where you can easily locate the proximity of raw material sources for your company and easy availability of transport facilities apart from ensuring that the location is compliant with the Drug and Cosmetic Act conforms and complies with the regulations.
Prepare a list of machinery, equipment specific to the manufacturing unit:
If you want to produce high quality Ayurvedic products, you will need specific machinery, equipment for small Ayurvedic manufacturing unit Some common types of machinery commonly used in Ayurvedic manufacturing include pulverizers, grinders, mixers, extractors, distillation units, tablet compression machines, coating machines, and packaging machines. While sourcing all these machinery you must consider the capacity, quality and efficiency of the equipment
Contact raw material suppliers for your small Ayurvedic manufacturing unit:
Natural ingredients along with herbs, minerals, metals are used in the manufacturing of Ayurvedic medicines. Therefore, for Ayurvedic formulation, raw materials should be procured from reliable and reputed suppliers who adhere to relevant quality standards along with following good agricultural and harvesting practices. And ensure that the raw material is free from contaminants such as pesticides, heavy metals and microbial impurities.
Requirement area for ayurvedic manufacturing unit
The establishment of an small Ayurvedic manufacturing unit will depend on adequate space and infrastructure which includes storage area, packaging area, quality control and laboratory. If we talk about sufficient land for the production of Ayurvedic products, then you should have at least 1200 square feet of land and 15 to 20 lakh rupees will be required for investment.
Register Your Ayurvedic Company Legally:
Once you decide the location for your small Ayurvedic manufacturing unit you need to decide where you need to legally register your firm. You can register your business in India as a Proprietorship Firm, or Partnership Firm, or LLP and Private Limited
Start Manufacturing Ayurvedic Medicines
Once you have successfully obtained all the necessary licenses, permits and equipment, you can start manufacturing Ayurvedic products. But your professional team should closely monitor the manufacturing process from time to time to ensure that the quality and purity of the medicines is maintained and the medicines are produced as per the highest quality standards.
Market and sell your Ayurvedic medicine
You have set up a small Ayurvedic manufacturing unit, and are manufacturing quality medicines, now you need to market and promote your brand and products. You can identify your target audience and find them through social media, online advertising and print media.
You can also sell Ayurvedic medicines online and tie-up with distributors and wholesalers in your area to increase your reach and sales.
Conclusion
Starting an small Ayurvedic manufacturing unit can be an exciting and profitable opportunity. In the last few years, the demand for Ayurvedic products has increased rapidly in other countries including India. But starting an Ayurvedic medicine manufacturing unit would require careful planning and preparation. In this you can launch your high quality products in the market by doing thorough market research after obtaining all necessary licenses and permits and establish a successful Ayurvedic medicine manufacturing business.
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