How to Start Ayurvedic Company in India – Are you interested or thinking about opening Ayurvedic/ Herbal/ Unani/Siddha Business, Marketing or Manufacturing Company? Then this article will help you by giving all the required details about How to Start Ayurvedic Company in India. Ayurveda is a rapidly growing aspect of the traditional and alternative health sector. Thus, more and more people after realizing the importance of Ayurveda are getting interested in setting upon Ayurveda’s business.
The primary focus of Ayurvedic medicine is to promote good health and prevent illness, rather than fight disease. Other traditional systems include Siddha, Unani, Iranian, Islamic, Vietnamese, Chinese, Acupuncture, Muti, Ifá, African and other treatments all over the globe. When adopted outside of its traditional culture, traditional medicine is often called complementary and alternative medicine (CAM). In the present time, the Ayurvedic marketing industry is taking a great pace and it would be profitable for you to open your own Ayurvedic company.
Future Scope of Herbal and Ayurvedic Product Market
Herbal medicine or phytomedicine is a medicinal system using a plant or animal materials such as seeds, roots, leaves, bark, flowers, oils, etc. for medicinal purposes. Herbalism has emerged from a long historical tradition of using nature for curing diseases. According to WHO estimates, almost 80% of the population of many Asian and African countries depend on traditional medicine for primary health care. Indian ayurvedic products market is expected to grow at a CAGR of 14% during 2019-2024.
The rising awareness about the harmful effects of the chemical used in cosmetics will trigger the demand for herbal cosmetics especially skin care & hair care products in the coming future. The demand for herbal hair care products is expected to increase in the coming years with a greater focus on natural products especially among the female segment of the population. Rising awareness, attractive marketing and promotional strategies adopted by popular brands such as Dabur, Himalaya will likely drive the sales for herbal hair care products in India in the coming years.
Key Growth Drivers of Ayurvedic Company in India
- Ayurvedic Product awareness: Growing awareness regarding the side effects of chemical-based products and medicines has shifted focus on the natural and herbal products.
- Changing lifestyle: Rising stress levels among working for population and changing lifestyle is leading to rising in skin and hair ailments and people are looking for natural treatments to cure such disorders.
- Differentiating factor: FMCG and pharma companies are looking at natural and herbal based products as a point of differentiation in the market.
- Online availability: Easy availability of herbal products online has driven the demand for such products in the domestic marketplace.
- Rising income: The growing economy has encouraged consumers to spend more on health and wellbeing. The rise in income has driven the demand for premium ayurvedic products priced relatively higher than chemical-based products.
- Large bio-diversity: India is a megadiverse nation. There are ~45,000 plant species that include the Indian medicinal plants and Indian bulb plants. The abundance of the raw material makes it easy for a company to venture into the industry.
How To Setup A Successful Ayurveda Business?
Here is information on essential requisites needed for setting up a successful Ayurveda business or to start Ayurvedic company in India.
- Search Shop at prime location (Rented or Owned). For Distribution wholesale prime location doesn’t matter. For retail it’s necessary.
- Choose a good name for your Ayurvedic Business Company
- Identifying the target market is a requirement for any successful business. However, instead of thinking about how to market Ayurveda, you should think of effective ways to serve potential customers in the best possible way.
- Once you have identified your target audience, make efforts to build up your website and make an online presence. Try incorporating your marketing strategies on the website.
- NABH Accreditation Board is actually a constituent body which has been established to operate accreditation programs for healthcare organizations. Thus, it is mandatory to receive NABH accrediting for running an Ayurveda clinic or healthcare service.
- GST Registration Number if you have more than 20 lac annual turnover
- Ayurvedic medicines have grown from just being antique medicines to popular science. However, as per Indian laws, it is not easy to patent Ayurvedic Medicines. Thus, the Government of India has made amendments to the patent laws in order to protect the interests of patent medicines.
How to start Ayurvedic Marketing Company?
- Choose a Unique Company Name: It is important to choose a unique name for your company or brand because this will increase your brand advancement.
- Make a List of Products you want to launch in Ayurveda: Choosing the right product for sales and marketing is another important step because only a product with great consumption and demand in the market can help the market growth of ayurvedic marketing business. Research and Choose the product list and their brand names of products you want to launch in Ayurveda.
- Search For Premises where you want to start the Marketing Company (Rented or Owned)
- Goods & Tax Registration Goods and Tax (GST) registration is required to make your business legally authorized. Also, it is a moral responsibility of the business owner to have GST registration to pay required taxes on regular time. You can simply go to the govt. GST portal and look for the registration tab and do the formalities required to apply for GST registration.
- Apply for Trademark registration of Company Name and Brand Names (Optional)
- Company registration: You can register an Ayurvedic Marketing Company as One Person Company, Private Limited Company, Limited Liability Company or Public Company
- Third party manufacturing of your products: Contract / Third-Party Manufacturing is a License where you will use the manufacturing license of a third-party manufacturer to manufacture the product. You will be just marketing the product. Thus you don’t have to own any manufacturing unit and don’t have to get any license. All licenses with the AYUSH office will be done by the manufacturer.
How to start Ayurvedic Manufacturing Company?
- Search Premises for Manufacturing Unit (Rented or Owned)
- Choose Company Name: It is important to choose a unique name for your company or brand because this will increase your brand advancement.
- Apply for Manufacturing License Number: Complete Manufacturing License is a full-fledged manufacturing license. In this case, you will be both marketing and manufacturing the product. Thus you will have to set up your own manufacturing unit. You will have to fulfill all the requirements stated by the state authority of AYUSH. All states in India have different requirements for the manufacturing license
- Apply for GST Number
- Apply for products approval along with Manufacturing License Number File
- After approval start manufacturing of Ayurvedic/Sidha/Unani Medicines
- Start Selling Products
Types of Manufacturing License for Ayurvedic / Herbal medicines
To manufacture Ayurvedic / Herbal products in India, we need a license from AYUSH and not from FSSAI. The Ministry of AYUSH is located at INA and The AYUSH Department of Delhi is located in Tibbia College, Karol Bagh.
Below are 3 types of manufacturing licenses issued by AYUSH :
- Complete Manufacturing License: is a full-fledged manufacturing license. In this case, you will be both marketing and manufacturing the product. Thus you will have to set up your own manufacturing unit. You will have to fulfill all the requirements stated by the state authority of AYUSH. All states in India have different requirements for the manufacturing license.
- Loan License: is a manufacturing license where you loan a manufacturing unit of a third party manufacturer to make your products. Thus you will not have to own a manufacturing unit. You will have to apply for a Loan license with a GMP certified manufacturer and it will be issued to your company. Then you will have to get approval for your product from authorities.
- Contract Manufacturing / Third party manufacturing / White label Manufacturing / Product to Product manufacturing.: is a License where you will use the manufacturing license of a third-party manufacturer to manufacture the product. You will be just marketing the product. Thus you don’t have to own any manufacturing unit and don’t have to get any license. All licensing with the AYUSH office will be done by the manufacturer.
Documents Required For Ayush Manufacturing License to start Ayurvedic Company in India
- Plan and layout of the premises showing the installation of Machinery and Equipment. – 2 Hard Copies
- Attested copies of documents relating to the ownership/rent/lease – 2 Hard Copies
- Declaration of the Proprietor/Partnership/Director etc., in Affidavit-I (enclosed with an online form), attested
Partnership Deed/Memorandum and Articles of Association. – 2 Hard Copies
- A detailed list of Manufacturing and Analytical Equipment as required for formulations applied – 2 Hard Copy
- Appointment letter to full-time Technical Supervisor – 2 Hard Copy
- Attested copies of certificates of academic qualification, experience certificate from Ayurveda/Unani and declarations of Technical Staff in the prescribed proforma with photo duly attested – 2 Hard Copy
- List of Shastric Medicines and Xerox copies of concerned pages of references duly signed by F.T.S with samples – 2 Hard Copy
- Passport size photos each of the proprietor and F.T.S – 2 Hard Copy
- Sales pack draft labels for each drug as per D & C Rules with different sizes, if any – 2 Hard Copy
- Sample of each drug with sales pack draft labels with different sizes, if any – 2 Hard Copy
- A self-addressed envelope with sufficient postal stamps for registered post. – 2 Hard Copy
- Clinical trial reports from (3) institutionally qualified Ayurvedic /Unani Practitioners as the case may be, on at least 30 patients for each drug used orally as per the proforma guidelines. – 2 Hard Copy
- Drug information in the following lines for AnubhuthaYogas (patent drugs) duly signed by the proprietor and F.T.S – 4 Hard Copy
a. Name of the Product
b. The formula shall contain Shastri/Tibbi Name, Part used and quantity
c. The detailed method of preparation
d. Purification of drugs wherever required
e. Indications (In Ayurveda/Unani Terminology)
f. Dosage schedule in details
g. Side effects
i. Diet restrictions, if any
The requirement for manufacturing Licence for Ayurvedic Products:
Documentation and Procedure of Ayurvedic Manufacturing Unit ( Requirement may vary state to state or area to area ) needed to start Ayurvedic Company in India of your own.
- Application on prescribed Form 24-D.
- Prescribed Fees as mentioned
- Subject to the conditions of Rule 157 being fulfilled the license will be issued Form 25-D which will be valid for a period of —– years from the date of issue.
- The requirement of schedule ‘T’ are to be fulfilled for which Departmental Inspection Team will conduct the
- inspection and submit its report on the prescribed Performa.
- Documents in respect of competent technical staff consisting of at least one person, who is a whole-time
- employee and who possesses the qualifications as mentioned below as a competent person staff section.
- Site Plan of the premises.
- Attested copy of No Objection Certificate from Pollution Control Board.
- Power Availability Certificate from the Electricity Department.
- List of Machinery/Lab. Types of equipment.
- List of medicine to be manufactured.
- Project Report.
- Ownership proof or rent agreement
Area required for starting Ayurvedic Manufacturing unit
Area Requirement is depended on the number of sections you want to start. The minimum area required under the drug and cosmetic act is 1200 square feet. if Unani medicines are manufactured on the same premises an additional 400 square feet area is required. Section-wise partition is required as per the dosage form. For example, for the tablet/capsule section, you have to partition a minimum of 100 square feet, for the liquid section, you require a minimum of 150 square feet of area.
Area Required Section Wise to start Ayurvedic Company in India
- Anjana/Pisti: 100 sq. feet.
- Churna / Nasya/Manjan/Lepa/Kwath Churn: 200 sq feet
- Pills/Vati /Gutika Material and tablets: 100 sq. feet
- Kupi pakava/Ksara/ Parpati/Lavana Bhasma Satva/Sindura Karpu/ Uppu / Param: 150 sq. feet
- Kajal: 100 sq. feet
- Capsules: 100 sq. feet
- Ointment/Marham Pasai: 100sq. feet
- Pak/Avaleh/Khand/ Modak/Lakayam: 100 sq. feet
- Panak, Syrup / Pravahi Kwath Manapaku: 150 sq, feet
- Asava / Arishta: 200 sq. ft
- Sura: 100 sq. ft
- Ark Tinir: 100 sq. ft
- Tail/Ghrit Ney: 100 sq. ft
- Aschyotan / Netra Malham Panir/Karn Bindu/Nasabindu: 100 sq. ft
- Each manufacturing unit will have a separate area for Bhatti, furnace boilers, puta, etc. This will have proper ventilation, removal of smoke, prevention of flies, insects, dust, etc. The furnace section could have a tin roof: 200 sq. ft
Machinery and Equipment:
All the machines are in SS-304 and contact part in SS-316. These all Machinery and Equipments You need if you are thinking to start Ayurvedic Company in India.
Liquid & oil section needed to start Ayurvedic Company in India:
- High-speed mixer for tank
- S. S. tank- 200 liter/500 liter/1000 liter capacity with wheel and cover lid
- Liquid filling machine double head
- P.P. cap sealing machine
- Liquid filtration unit
Capsule/Tablet section needed to start Ayurvedic Company in India.
- Air compressor
- Air conditioner
- Blister packing machine
- Capsule filling machine zero number
- Capsule Loader zero number
- Tablet Punching Machine
- Mass mixer
- Multi mill
- Double cone blender
Miscellaneous Equipment needed to start Ayurvedic Company in India:
- Batch printing machine
- RO plant
- Lab types of equipment
- Balances- 200gm, 30kg, 100kg
Competent Person Staff Qualification For Manufacturing and to Start Ayurvedic Company:
The manufacture of Ayurvedic (including Siddha) or Unani drugs or to start Ayurvedic company in India shall be conducted under the direction and supervision of competent technical staff consisting at least of one person, who is a whole-time employee and who possesses a minimum of any of the following qualifications, namely:-
- A degree in Ayurveda or Ayurvedic Pharmacy, Siddha or Unani system of medicine, as the case may be, conferred by a University, a State Government or Statutory Faculties, Councils and Boards of Indian Systems of Medicine recognized by the Central Government or a State Government for this purpose, or
- A diploma in Ayurveda, Siddha or Unani System of medicine granted by a State Government or an Institution recognized by the Central Government for this purpose is must start Ayurvedic company in India, or
- A graduate in Pharmacy or Pharmaceutical Chemistry or Chemistry or Botany of a University recognized by the Central Government with experience of at least two years in the manufacture of drugs pertaining to the Ayurvedic or Siddha or Unani system of medicine, or
- A Vaid or Hakim registered in a State Register of Practitioners of indigenous systems of medicines having experience of at least four years in the manufacture of Siddha or Unani drugs, or
- A qualification as Pharmacist in Ayurvedic (including Siddha) or Unani systems of medicine, possessing experience of not less than eight years in the manufacture of Ayurvedic or Siddha or Unani Drugs as may be recognized by the Central Government.
These all degrees or Qualification one need to start herbal Company in India of his own.
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