By the Rehaan Healthcare editorial team, Mohali, Punjab. Last reviewed: October 2026. This guide is general information for brand owners, not legal advice. Confirm the rules for your specific product with the state licensing authority or a regulatory professional.
Quick answer: how do you choose an Ayurvedic third-party manufacturer?
Choose an Ayurvedic third-party manufacturer by checking documents, not promises. Ask for the current manufacturing licence and confirm it covers your dosage form, review the GMP records that apply to Ayurvedic medicines, request product specifications and a test plan, and agree responsibilities for formula, labelling and batch release in a written contract. Verify every certificate with the authority that issued it before you pay an advance.
Key takeaways
- A licence is specific to a facility and to the dosage forms it lists. “Licensed” alone is not enough.
- Ayurvedic medicines and food-category herbal products fall under different rules, so confirm which category your product belongs to first.
- Ask for a specification, a finished-product test panel and stability evidence for your formula, not a generic brochure.
- Put formula ownership, label approval, batch release and recall responsibilities in writing.
- Be cautious of any supplier that quotes a price, a minimum order and a timeline before seeing your brief.
What is Ayurvedic third-party manufacturing?
Ayurvedic third-party (contract) manufacturing is an arrangement in which a licensed manufacturer produces an Ayurvedic product for another business, which markets it under its own brand. The brand owner and manufacturer agree the product, formula, packaging, regulatory responsibilities and batch requirements before production begins. It lets pharma marketing companies, PCD businesses, clinics and new wellness brands launch products without building a plant.
In India, Ayurvedic, Siddha and Unani medicines are regulated under the Drugs and Cosmetics Act, 1940 and the rules made under it, with manufacturing licences issued at state level. Herbal products sold as food or dietary supplements are governed instead by the Food Safety and Standards Authority of India (FSSAI) framework. The checklist below applies to both, but the documents you request will differ.
The 12-point checklist
1. Is the manufacturing licence current, and does it cover your dosage form?
Ask for a copy of the manufacturing licence. Note the issuing authority, the licence number, the validity date and the exact dosage forms listed (for example tablets, capsules, syrups, powders or oils). A manufacturer licensed for tablets cannot assume it may also make liquids. If your product is not on the licence, it should not be quoted until the position is clarified in writing.
2. Can you verify the licence independently?
Do not rely on a scanned copy alone. Contact the state licensing authority named on the document to confirm that the licence exists, is valid and covers the stated forms. This single step removes most document-fraud risk.
3. Which GMP standard applies, and what evidence supports it?
Good Manufacturing Practice for Ayurvedic, Siddha and Unani medicines is set out in Schedule T of the Drugs and Cosmetics Rules. Some manufacturers also hold additional certifications such as WHO-GMP or ISO. Treat each as a separate claim: ask for the certificate, check its scope and validity, and confirm the issuing body. A logo on a website is not evidence.
4. Is the product category clear before any quote is issued?
Decide whether your product is positioned as an Ayurvedic medicine, a herbal food supplement or something else. The category drives the licence route, labelling, permitted claims and testing. A reputable manufacturer will ask this question early.
5. Who owns and controls the formula?
Clarify whether you are supplying the formula, adopting a classical formulation or asking the manufacturer to develop one. Agree in writing who owns the formula, whether the manufacturer may sell the same formula to others, and what happens to it if the relationship ends.
6. How are raw materials identified and tested?
Herbal raw materials vary by source and season. Ask how the manufacturer confirms ingredient identity, what standards it refers to (such as the Ayurvedic Pharmacopoeia of India where applicable), and how it screens for contaminants such as heavy metals, microbes and pesticide residues.
7. What is in the finished-product test panel?
Request the proposed test list for your product, whether testing is done in-house or at an outside laboratory, and what a certificate of analysis (COA) will show for each batch. The panel should match the dosage form and the claims you intend to make.
8. Is there stability evidence for the proposed shelf life?
Shelf life should be supported by data for your formula in your chosen pack, not copied from another product. Liquids, oils and honey-based products in particular need a clear preservation and stability approach.
9. Who reviews labels and claims?
Labels must carry the details required for the product category, and advertising claims are restricted. In India, the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 limits claims about certain diseases and conditions. Agree who prepares artwork, who checks it, and who approves it before printing.
10. What do batch records and release documents look like?
Ask to see a sample batch manufacturing record and release format with confidential details removed. Traceability from raw material to dispatched batch is what lets you investigate a complaint or run a recall.
11. Are the commercial terms specific?
A written quotation should state the quantity, what is included (raw materials, packaging, testing, artwork support), payment terms, sampling arrangements, lead time after approvals and how rejected batches are handled. Minimum order quantity depends on the dosage form, ingredients, packaging and batch size, so it should be confirmed for your project rather than assumed.
12. Can you visit, or audit remotely?
Visit the facility if you can, or request a structured video walkthrough of storage, production, filling, quality control and dispatch areas. Check that what you see matches the licence and the documents you were sent.
Third-party vs loan licence vs own plant: which fits you?
| Option | How it works | Best for | Key consideration |
|---|---|---|---|
| Third-party / contract manufacturing | The manufacturer makes your product under its own licence and facility; you market it under your brand. | New brands, PCD companies, clinics | Agree formula ownership, labelling and batch responsibilities in writing. |
| Loan licence | A brand owner holds a licence but uses another licensed facility to manufacture. Availability and conditions vary by state. | Established brands wanting more control | Check current state rules and who is accountable for compliance. |
| Own manufacturing plant | You build, license and operate your own facility. | Large, high-volume businesses | High capital cost, licensing time and ongoing compliance burden. |
Red flags when evaluating a manufacturer
- Reluctance to share licence copies or to let you verify them with the authority.
- Certificates shown as logos without a document, number or validity date.
- A firm price and timeline before any review of your formula or category.
- Promises of cures or guaranteed results to include on your label.
- No written contract covering formula ownership and batch responsibilities.
- No testing arrangement, or only a generic COA that is not batch-specific.
What to prepare before you contact a manufacturer
- Company or brand name and a business contact.
- Product category and proposed dosage form.
- Formula or ingredient brief, if you have one.
- Target market and intended claims.
- Packaging preference and estimated first-order quantity.
- Any test reports or documents you require.
If some details are not final, send what you have and list the open questions. You can send your product brief to Rehaan Healthcare at Plot No 529 JLPL, Sector 82, Mohali, Punjab 160055, call +91 98888 86220, or email info@rehaanhealthcare.in. We confirm licence scope, formats, minimum quantities and timelines for each project in writing rather than assuming them in advance.
Frequently asked questions
Is Ayurvedic third-party manufacturing legal in India?
Yes, when the product is made by a manufacturer holding a valid licence for that dosage form and the product meets the labelling and advertising rules for its category. Rules differ by state and product type, so confirm the position with the state licensing authority.
What documents should I ask an Ayurvedic manufacturer for?
Ask for the manufacturing licence, applicable GMP documentation, a product specification, the test panel and a sample certificate of analysis, stability evidence for your pack, and a sample batch record. Verify licences with the issuing authority.
What is the minimum order quantity for third-party manufacturing?
It depends on the dosage form, ingredients, packaging and batch economics. Ask for a written quotation that states the quantity and exactly what is included.
How long does a first order take?
Timelines depend on formula readiness, ingredient sourcing, sample approval, label review, testing and the production schedule. Request a project-specific estimate once the specification is agreed.
What is the difference between third-party manufacturing and private label?
Third-party manufacturing describes who makes the product. Private label describes who owns the brand. In practice they overlap: a brand owner uses a contract manufacturer to produce a product sold under the brand owner’s name.
Sources and further reading
- Ministry of Ayush, Government of India: ayush.gov.in
- India Code, Drugs and Cosmetics Act, 1940 and Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: indiacode.nic.in
- Food Safety and Standards Authority of India: fssai.gov.in