If you are thinking of starting your own brand but don’t have a factory? You do not need any of the factories. You might have seen brands in medical shops, online stores and supermarkets but that are made in someone else’s factory. This is called third party manufacturing.
If you will select the third party manufacturing partner in India then you can launch your product faster with less investment and more selling. But if you select the wrong ones then you will face more delays, more investment and poor quality with zero sales. So this choice matters a lot
In this page, we will explain how it works, why India is a good place for it, and how to choose a partner you can trust. We have kept everything simple.
What is third party manufacturing?
It simply means another company makes the product for you. You bring the idea and the brand name. They bring the factory, machines, licences and trained workers.
Your product is packed with your name and your logo. The customer only sees your brand.
You will get to know other names for it such as contract manufacturing, private label manufacturing and many more. The meaning is almost the same everywhere: you sell, they make.
Big companies use this method too, not just new ones. When we run a factory it takes a lot of time and effort, that’s why many brands prefer to leave it for the experts.
Why choose India?
Some reasons why so many brands are choosing India.
First of all it is cheaper. The cost of labor, power and land here is more economical than in many other countries. So you can keep your prices down and still make a healthy profit.
Secondly, you get skilled people. India has a vast pool of qualified pharmacists, chemists, food experts and engineers.
Third, everything is nearby. There are some factories in areas of Himachal Pradesh, Haridwar, Gujarat and Maharashtra. The raw materials, testing rooms and packing materials are all at hand and readily accessible so that work does not have to wait for supplies.
Better standards is fourth. Many of the companies follow WHO-GMP, ISO or FSSAI rules, as they sell goods to other countries. When your third party manufacturing partner in India adheres to these rules on a daily basis, your product benefits too.
What you save, and what you still have to do
Third party manufacturing saves you lot of money at the beginning. You don’t need to buy land, build a plant, buy machines or spend months waiting for licences. With your own factory, it may take a year to launch a product. Here, it can often be done in two or three months.”
But you’ve got some work to do. You will be in charge of marketing, sales, pricing and customer handling. It’s also up to you how much you order. If you have got excess stock of material, it will be lying in godown. Your manufacturer will advise you but it is your decision.
Which businesses use it?
Pharma companies use it the most, mainly PCD and franchise companies who sell tablets, capsules, syrups and ointments under their own brand. Nutraceutical and supplement brands use it a lot too. Besides these, you will find it in cosmetics, skincare, Ayurvedic and herbal products, packed food and animal health products.
You require a formula, licence and production line for your product but this is only benefecial if someone is making it for other brands
You need a formula, a licence and a production line for your product but it can be beneficial to you if somebody is already making it for other brands.
Is this correct for you?
This will works fine if you are:
- Launching Your First Product
- Adding a new product to existing
- Run a market or distribution business.
- Want to have your own brand
- Create a private label line Test the market before you invest on a plan
If you want to own a brand, but not a factory, this is probably the way to go.
How to choose the right partner
When looking for a third party manufacturing partner in India, don’t pick the lowest price. Have a look at these and take your time.
See the papers. Ask for the manufacturing licence and certificates such as GMP. See if they are valid and cover your product type. A good manufacturer will show them readily.
Look at the mill. See if you can visit. If not, ask for a video of production area, store room and lab. You don’t have to be a tech person. You can tell when a place is clean and well maintained.
Ask about the quality control. Do they inspect the raw material before use? Do they maintain batch records? Do they have a lab of their own? A good sign is if you receive clear and quick answers.
Ask about the minimum order quantity. It varies from manufacturer to manufacturer. Some will allow a small first order and some won’t. Ask about it up front so confusion doesn’t arise later.
Sample first. Check the quality, the packing and the printing on the label. A sample can tell you a lot about how they operate.
Watch their reaction. If it takes days to get a simple question answered before you pay, it could be worse down the road. Request two or more client references and make the calls.
And you can sign a confidentiality agreement after that before you start a business or share any of the formula.
How the process works
- You tell them your product idea, your target market and your budget.
- They do sampling. You do the checking.
- You both agree in writing on rates, timelines and terms.
- You approve the label and carton design which is done.
- It is made, tested, packed and sent out to you.
The first order is the slowest one. The orders will then be faster, because everything is already prepared.
Frequently Asked Questions
Will I need my own manufacturing license? No, generally not, as it is manufactured under license from the manufacturer.
Can I use my own brand name and packing? Yes, it’s got your name on it, and your design and label.
How long does it take to launch? A few weeks for standard formulations, longer for custom ones.
Is my formulation safe ? Yes, after a confidentiality agreement is signed.
Ready to start?
If you think of a product and need to start for that, then you can freely contact us. You can actually tell us what you want to make, how to sell and plan for order. We will send samples, certificates and clear quotations. You can visit our plant before you make your final decision.
A good third party manufacturing partner in India will never push you to make quick decisions. They will clear all your queries and will show their work which will help you to launch your product with confidence.
