What is Loan Licensing in Ayurvedic Sector
Hello friends, today we will talk about what is loan licensing in Ayurvedic sector and how can it be obtained. Generally you will find many marketing companies in India who do not have their own manufacturing unit to manufacture products and services. But still they are manufacturing their products and services on loan license basis from other manufacturing units or organizations and selling them under their own brand name
Loan Licensing in the Ayurvedic Sector:
Loan licensing in the Ayurvedic field refers to a business arrangement where a company (as the licensee) grants a loan license to another person/organization or company. Who do not have any manufacturing unit for manufacturing their Ayurvedic products. They (licensee) can use the machinery, manpower, plant as well as other resources of the manufacturer for manufacturing their products by obtaining a loan license from the manufacturer.
Who Can Apply Ayurvedic Loan License In India
In India, the Department of AYUSH has to follow the guidelines set by the regulatory authority for obtaining loan license based on the following conditions
- For the production of Ayurvedic products, you must have a good manufacturing facility that complies with the requirements specified by the Ayurvedic medicines manufacturing license
- Prepare a list of the Ayurvedic products you wish to manufacture and a list of necessary documents related to the ingredients used in their manufacture, manufacturing process, quality control measures and safety standards.
- As a manufacturer, you must have sufficient resources available to meet production capacity in a timely manner
- An AYUSH manufacturer should have sufficient qualified manpower. Which has a deep understanding of the manufacturing of Ayurvedic medicines and ensures that all Ayurvedic products adhere to the norms and standards based on quality and purity.
Procedure for obtaining loan license:
Before getting an Ayurvedic loan licensing in India, you need to follow all the terms and conditions to maintain the quality and purity of the medicines under the Ayurvedic Medicine Act (The Drugs and Cosmetics Act). Apart from this, you need to submit an application along with some supporting documents to the AYUSH department of your state to get the loan license. Furthermore, the processing of loan license documents is similar to that of a new manufacturing unit. Some of the common documents required for obtaining loan license can be as follows
- Copy of manufacturing license of the manufacturing company
- Prepare a list of documents related to the marketing firm/company
- The details and eligibility certificate of the competent person will be required to obtain the Ayush loan license.
- Any other document may be asked by the authority if required
- Click here for documents required to start Ayurvedic manufacturing company article
How it works after the loan license is issued
After the loan license is issued by the Department of AYUSH, it is the responsibility of the primary licensee to provide document room, construction work area and other necessary facilities to the loan licensee on the basis of specific rules. Apart from this, a new number is issued to the loan licensee by the Department of AYUSH. Pays commission/fee/rent/profit as per mutual agreement between the loan licensee and the primary licensee. When an individual or group has successfully obtained the Ayurvedic Manufacturing Loan License Number, they can manufacture the drugs in the area designated by the primary manufacturer.
Advantage of Loan Licensing in Ayurvedic Sector
- If we talk about Ayurvedic loan licensing in India, then it can have its own advantages and disadvantages. But loan licensing may have more advantages and fewer disadvantages.
- You do not need any huge investment to avail the benefits of your own manufacturing unit.
- You get the facility to print your firm’s address on the packaging of your Ayurvedic products
- After obtaining Ayurvedic loan license your company gets recognized as a manufacturer in the market.
- You can manufacture the products by researching the medicines as per the needs of your customers and following the regulatory and guidelines issued by the Department of Ayush to maintain the quality and purity of the products.
- By getting loan license you can get experience of manufacturing unit and later you can set up your manufacturing unit.
- You can easily purchase and maintain your own raw materials and dye and packaging materials
- Being an AYUSH licensee you do not have to worry much about labor management
Disadvantage of Ayurvedic Loan Licensing
- Since you are manufacturing all Ayurvedic medicines by obtaining loan license, you are directly responsible for the quality and sample of the products.
- As a loan licensee you need to focus on two aspects first manufacturing and second marketing
- Complete control over the production line may be unattainable as a loan licensee, as you will need to comply with all regulatory standards including contractual terms in order to have complete control over the production line.
Conclusion:
In recent years, there has been a growing interest in Ayurvedic products for physical health and well-being among most people. As a result, the Ayurvedic industrial market has witnessed attractive growth. If you want to take advantage of this business opportunity then you can get a loan license from an Ayurvedic manufacturing company and manufacture your products and services yourself using their manufacturing unit. How to apply for Ayurvedic Loan License, we have discussed in detail in the above article.
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