How to Get an Ayurvedic Medicine Manufacturer License?

. 7 min read
How to Get an Ayurvedic Medicine Manufacturer License?

Ayurveda, or the "Science of Life," is an ancient, nature-based healing therapy. It is one of the most ancient medical systems in the entire world. As per popular belief, Ayurveda is an almost 5000 years old medical system. Ayurvedic medicines are absolutely natural and have no side effects. They have the capacity to cure patients effectively and permanently. Hence, the concept of Ayurveda is quite popular. Although Ayurveda has its roots in India, yet people across the globe rely on Ayurveda for its effective medicinal prowess.

More and more people are increasingly inclining towards Ayurveda because of the harmful side effects of allopathic drugs. Thus, Ayurvedic products can be the next big thing in the world of medicines.

If you are looking forward to starting an Ayurvedic manufacturing unit and want to know how to get an Ayurvedic medicine manufacturing licence, then this blog is meant for you. You need not look for details elsewhere. Simply go through the article, and you will get all the relevant tips and advice for starting your ayurvedic manufacturing unit.

Starting your own Ayurvedic medicine manufacturing unit: Steps involved

In order to commence your journey as an ayurvedic medicine manufacturer, you need to get a license from the Ayush Department of your state. Without a license, it is illegal to run an ayurvedic medicine manufacturing unit. We will enlighten you regarding all the steps necessary to obtain the permit.

1. Searching for a perfect premise for your manufacturing unit

If you are wondering how to get a manufacturing license for ayurvedic medicine, then know that this is the first-ever step towards obtaining a license. You need to find a premise for setting up your manufacturing unit there. It can be rented or owned as per your budget. The premise should be chosen keeping in mind the industrial activities. Always avoid residential areas for such purposes. Otherwise, you may not get a license for the manufacturing unit.

2. Selecting an attractive and catchy name for your company

Choosing a name that grabs the attention of your target customer is of extreme significance. Your potential customers will rely on your brand if the company name is trustworthy enough. We can never emphasise enough the significance of having a catchy, bold, and impactful company name.

Make sure that the name of your company goes well with your ayurvedic business needs. Keep it short, simple, and attractive. It is always better to avoid any silent character in your company name. Also, the name should be technical and carry prefixes or suffixes related to Ayurveda. The name should be easy to pronounce. Also, you cannot use any name that has already been registered by any other Ayurveda firm.

3. Hiring the right technical persons

You will need the following technical persons for your ayurvedic medicine manufacturing unit:

  • Registered Vaid or hakim who has at least 4 years of experience in ayurvedic medicines.
  • An Ayurvedic Siddha and Unani pharmacist who have over 8 years of experience.
  • Diploma or degree in Ayurveda, ayurvedic pharmacy, or Siddha system.
  • Siddha degree for Siddha manufacturing, BAMS for ayurvedic manufacturing, BUMS for Unani manufacturing, and so on.
  • Graduation in Chemistry, pharmaceutical chemistry, or pharmacy graduation.

4. Applying for the manufacturing license number

You need to procure your license from AYUSH and not from FSSAI. AYUSH offers 3 different categories of manufacturing licenses:

  • Loan license: You need to procure this license when you loan a manufacturing unit from a third-party manufacturer in order to make your products. All you need is a loan license with a GMP-certified manufacturer.
  • Complete manufacturing license: This one is a full-fledged manufacturing license, and you will be responsible for both manufacturing and marketing of your products.
  • Third-party manufacturing/contract manufacturing/white label manufacturing/product to product manufacturing: In this case, the third party will have to get the license from AYUSH. You will simply be handling the marketing of the products.
Indian Ayurvedic medicine in the tradition of Thai massage

5. Applying for product approval along with manufacturing license number file

To start your own ayurvedic medicine manufacturing company, you need to go through the documentation and procedures of AYUSH. Following are some documents that you will be needing:

  • Prescribed fees
  • Application form 24-D
  • Documents testifying the availability of technical staff
  • Inspection and submission of reports as per the Performa.
  • Complete list of medicines to be manufactured
  • Complete a list of the type of lab and machinery.
  • Project report

The requirement of documents may vary as per your state governance and regulations.

6. Applying for GST number

The GST registration process involves no documents and papers. You need not submit any physical printouts or hardcopies for the enrolment process.

  • Get yourself the temporary registration number or TRN using your valid mobile number, PAN card, and email address.
  • Get yourself the scanned copies of the GST application form and add personal details such as proof of incorporation of your business, account number, IFSC number, and so on.
  • Get your digital signature certificate registered. This will come in handy in verifying your GST application.
  • Submission of the GST application form takes place in 3 different methods – verification with EVC, verification with DSC, and verification with e-signature.

7. Machinery requirement

Keep in mind that all the machinery should be in SS-304 and the contract part in SS-316. There should be the following machinery at your manufacturing unit:

  • PP Cap sealing machine
  • High-speed mixer for tank
  • Liquid filtration unit
  • Tables
  • SS Tank 200 litre/500 litre/ 1000 litre and so on.
  • Air compressor
  • Blister packing machine
  • Dehumidifier
  • Mass mixer
  • FBD
  • Double cone blender
  • Multi mill
  • Air conditioner
  • Tablet punching machine
  • Capsule filling machine with zero number
  • Sifter
  • RO plant
  • Batch printing machine
  • Lab equipment
  • Balances – 200 gm, 30 kg, and 100 kg

8. Ayush manufacturing license

In order to obtain the AYUSH manufacturing license, you will have to submit the below-given details:

  • Proprietary/other forms of business
  • Product information
  • Directors
  • Form of products (whether the medicines are in the form of powder, tablets, or liquids)
  • Technical office (B.Sc. with Biology)
  • Technical Officer (BMS doctor)
  • DMR Act

After you submit all the relevant documents and get approval from AYUSH and other authorities, you will finally be able to start your own ayurvedic medicine manufacturing unit.

9. Selling and marketing tips for ayurvedic medicines

  • Try using common portals like Flipkart, Snap Deal, Amazon, etc., and reach out to your target audience online conveniently.
  • You can hire a website developer and get a website developed for your ayurvedic medicines and products. There you can advertise and display all the products you deal in. Having a website makes your brand reliable and easily accessible.
  • Try selling your products offline as well. Reach out to shops that deal in ayurvedic medicines. Promote your brand through fliers and banners. Also, you can take the help of an Ayurveda practitioner.
  • Ayurveda is immensely popular even in overseas countries. You can try exporting your Ayurveda products as well.
  • Keep looking for efficient distributors of Ayurvedic medicines and products all across the nation. Simply appoint distributors all over India. You can do this on a franchise or PCD basis.
Traditional alternative therapy or medicine and silhouette of man with chakras in background

10. Advantages of Ayurvedic Medicine Business

Now that you know how to get an ayurvedic license, let us guide you with the advantages of the ayurvedic medicine manufacturing business:

Ayurvedic medicine is in great demand nowadays – thanks to the hefty prices and side effects of Allopathy medicines. Also, the government nowadays is focussing on self-reliance or "Atma Nirbharta." Going local is the essence of successful business nowadays. Hence investing in the ayurvedic medicine manufacturing unit and learning how to get an ayurvedic manufacturing licence can bring great results for you.

  • At present, the health infrastructure is crippling, and there is no cure available for COVID 19. Ayurveda can be a hope of ray in such a grim situation. Ayurveda can act like that "sanjeevni booti" for all the pandemic-ridden patients.
  • Nominal fees are required to procure the license for the manufacturing unit.

Use these tips and advice to start your ayurvedic medicine manufacturing unit in a hassle-free and easy manner.

Also read:

1) Startups in India: Growth & Other Factors to be Considered for a Startup
2) What Are Some Good Startup Ideas?
3) Where to Get a Small Business License?
4) Startup Ideas: How do you know if your Startup idea already exists?

5) Best Ayurvedic Brands in India
6) OkCredit: All you need to know about OkCredit & how it works.

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Q. What is the minimum area requirement for my manufacturing unit premises?

Ans. The minimum area requirement is 1200 square feet.

Q. From where do I need to procure a license for the Ayurvedic medicine manufacturing unit?

Ans. You need to get your license from the Department of AYUSH in the state where you are planning to start your manufacturing unit.

Q. How many people are nowadays relying on Ayurveda?

Ans. As per the estimates of WHO, almost 80% of the Asian and African population relies on ayurvedic medicines.

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