How to Start an Ayurvedic Manufacturing Unit

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How to Start an Ayurvedic Manufacturing Unit in 2024

How to Start an Ayurvedic Manufacturing Unit in 2024 –  Owing to the increased  preference towards natural and herbal products, the Ayurveda sector has become the leading healthcare method around the whole globe. As a result, the scope of Ayurvedic products and business is expected to reach new heights. Many businessmen are turning towards  this industry for future profit ventures. Are you also looking forward to start your own business in the Ayurvedic industry? Then you don’t need to go anywhere as we are going to discuss the various steps required to Start an Ayurvedic Manufacturing Unit.

The Ayurveda Industry is experiencing major growth patterns due to their increased preference in the general public. Unlike pharmaceutical and synthetic products, Ayurvedic products show lesser side effects as they are made from natural ingredients such as herbs, spices, fruits and roots. These natural products help in treating many health conditions including Gastrointestinal issues, stress, sleep problems, and skin issues etc. The increased health consciousness, hectic lifestyle and easy availability of ayurvedic products has played a very important role in rising the market potential.  The India market size of Ayurvedic products was estimated to be INR 748.5 billion in the year 2023, and is predicted to cross 3206.7 billion by the year 2032 at a CAGR ( compound annual growth rate) of 17%. 

How to Start an Ayurvedic Manufacturing Unit in 2024

Before starting  an Ayurvedic manufacturing unit, you need to make an  effective business plan and need to implement it using various strategies. 

  • Select a unique company name  – The initial and most essential step in starting an Ayurvedic manufacturing unit is to choose a unique and distinctive company name. This helps you to lay the foundation of your company. 
  • Create Product List – Selecting an effective product list helps to increase the online and offline sales. Try to choose the products depending upon customer needs and market trends. 
  • Choose appropriate premises –  You can choose to purchase or rent land according to your budget. While selecting a location, choose the one where there is an extensive need for your products and services for future profit endeavors. 
  • Apply for GST registration – GST registration is very essential in order to distribute and sell your products across PAN India. After this registration, you need to pay the required taxes yearly through the GST portal. 
  • Obtain AYUSH manufacturing license number – AYUSH license is very important for smooth production of Ayurvedic products.
  • Other registration – These include obtaining trademark registration to register your company and brand name to avoid future hassles. You are also supposed to get Company registration for registering your company as Private limited, Public, LLP( Limited Liability Partnership) or single proprietorship.  
  • Contract or Third Party Manufacturing –  If you lack the expertise and resources to set up an Ayurvedic Manufacturing unit, then you can outsource them to third party manufacturing. This frees you from worrying about the manufacturing process, so that you can focus on the marketing and promotion. How to Start an Ayurvedic Manufacturing Unit in 2024
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Basic Needs for Starting an Ayurvedic Manufacturing Unit

Below we have mentioned some of the requirements needed for starting an Ayurvedic Manufacturing Unit in India.

  1. Registration and Licensing – License and registration are necessary in order to operate legally. These include a manufacturing license, retail license, wholesale license, and loan license.
  2. Product Approval – Getting approval by the AYUSH Ministry, FSSAI, and DCGI is necessary to ensure the quality of products in order to win customers’ trust.
  3. Ayurvedic products Awareness – Creating awareness regarding benefits and side effects of products is important for business. 
  4. Qualified Personnel – Hiring qualified and experienced professionals can help you to ensure the quality and efficiency of manufactured products. 
  5. Compliance with Legal Requirements: It involves obeying all necessary laws such as  tax regulations, labor laws, and any other legal requirements. 
  6. Franchise Agreement: – Sign a Franchise agreement with the mother company to help you to build a strong and professional  bond with your partners.
  7. Quality Standards –  Always focus to maintain the optimum quality of your products manufacturing them in ISO, WHO, and GMP-certified manufacturing plants.
  8. Advertising and Promotion – Implement effective marketing and promotion strategy to attract customers and increase your future profit.  
  9. Investment –  Investment is one of the most important requirements in starting any business. You might have to spend your investment on franchise fee, infrastructure cost, marketing expenses, and working capital. The amount of investment required may depend on the size and location including other expenses.

List of Documents Required for Starting an Ayurvedic Manufacturing Unit

For starting an Ayurvedic Manufacturing Unit you need to collect the following mentioned documents. 

  • Application on prescribed form 24D along with fees proof
  • Blueprint or site plan of the premises 
  • A copy of NOC( No objection Certificate) from Pollution Control Board 
  • Power availability certificate from the Electricity Department 
  • Complete bio data of the hired staff including qualification, experience, ID proofs along with 2 passport photographs. 
  • List of the fitted machinery and laboratory equipment
  • List of medicinal products to be manufactured in the premises
  • Ownership proof or rent agreement of the land 
  • Valid ID proof of the owner
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List of Machinery and Equipment Required

Make sure to use the latest and reliable machinery and equipment for the manufacturing process. The list of the machinery are as follows. 

  • High speed mixing tank
  • Liquid filling machine
  • Liquid filtration unit
  • Air conditioner
  • Air compressor
  • Blister packing machine
  • Capsule filling machine 
  • Tablet punching machines 
  • Dehumidifier
  • Mass mixer 
  • Double cone blender
  • Shifter 
  • Multi mill
  • RO plant
  • Batch printing machines  

 Conclusion 

In conclusion, starting an Ayurvedic manufacturing unit is not that complex if you implement the best strategies and plan. You need to thoroughly understand all the basic and legal requirements in order to run smoothly and  generate high profits.  Make sure to obtain all the license and registration numbers. 

FAQS on How to Start an Ayurvedic Manufacturing Unit

Question 1.  What is the basic business plan in order to start an Ayurvedic products manufacturing unit?

Answer 1. Before starting an Ayurvedic manufacturing unit, you need to implement  a productive business plan. 

  • Rent or own premises for manufacturing unit
  • Select a company name
  • Get manufacturing license
  • Obtain a GST(Goods and Service Tax)registration 
  •  Get product approval
  • Start manufacturing and selling the products

Question 2.  What is the need for an AYUSH license?

Answer 2. AYUSH license grants you legal permission to manufacture, store and sell Ayurvedic and related products. It provides a framework of practices to ensure that the customers receive safe and quality products. 

Question 3. What kind of investments are required to start an Ayurvedic manufacturing unit?

Answer 3. There are three main types of investment required. 

  • Fixed capital investment – This involves investment in terms of license expenses, land, assets, furnishing, fixtures, machinery and equipment. 
  • Working capital investment – This involves salary, bills, loans, and advertising cost. 
  • Inventory investment – It is similar to working capital investment and involves cost related to raw material, packing, APIs etc.