If you want to sell supplements, ayurvedic products or cosmetics under your own brand but do not want to build a factory, third party manufacturing is how most Indian brands start. This guide explains how it actually works, what it costs, and what you need before you place your first order.
What third party manufacturing means
You own the brand. The manufacturer owns the plant. You share a product idea or a formulation, the manufacturer produces it, and the finished goods come to you with your brand name, your label and your MRP printed on them. The manufacturer does not sell your product to anyone else.
It is called third party because the brand owner, the manufacturer and the market are three separate parties. In the nutraceutical and ayurvedic industry it is the most common route for a new brand, because a WHO-GMP plant costs crores to build and years to license.
Third party vs private label vs contract manufacturing
These three terms get used loosely, but they are not the same:
- Private label — you pick a product that already exists in the manufacturer catalogue and put your brand on it. Fastest and cheapest to launch.
- Third party manufacturing — the formulation is developed for you, or you supply your own. The composition is yours.
- Contract manufacturing — usually a longer term agreement, often with dedicated capacity or exclusivity clauses.
For a first-time brand, private label is the lower risk start. Once you know what sells, third party gives you a formula nobody else can copy.
What it costs
There is no single price. Cost is driven by four things:
- Formulation — the actives decide most of the cost. Two capsules of the same size can differ several times over depending on what is inside.
- Dosage form — a tablet costs less to make than a softgel or a gummy.
- Packing — alu-alu costs more than blister; a printed carton costs more than a plain one.
- Quantity — per-unit cost drops as the batch grows.
Minimum order quantity
MOQ in this industry is set by batch value, not by a fixed piece count. That is why a higher-value product needs fewer units and a low-cost product needs more.
At our unit, boxed products such as tablets and capsules start from around 300 boxes for higher-value items and 500 boxes for lower-value ones. Liquids and syrups usually start at 2,000 pieces, dropping to 1,000 for premium products and rising to 3,000–5,000 for very low-cost items.
How long it takes
Standard lead time is 30 to 45 days from order confirmation. A brand new formulation takes longer because it needs bench sample approval and stability checks before the commercial batch runs. Raw material availability, packaging material and artwork approval are the three things that most often move the date.
Documents you need
- FSSAI licence — for nutraceutical and food supplement products
- GST registration
- Trademark certificate or applied-for receipt for your brand name
- AYUSH licence — if you are making ayurvedic products
- Cosmetic manufacturing approval — for cosmetics
How to choose a manufacturer
Ask for these before you commit:
- Certifications — WHO-GMP is the baseline. Ask to see the certificate, not just a logo on a website.
- Visit the plant — a manufacturer confident in their facility will welcome it.
- Certificate of Analysis — confirm you get one with every batch.
- Who owns the formula — settle this in writing before R&D starts.
- Artwork responsibility — statutory content on a pack cannot be fixed after printing.
Lavanya Healthcare Limited has manufactured from a WHO-GMP certified, US FDA compliant unit in Derabassi, Punjab since 2008, with over 2,800 formulations and 5,05,000+ order deliveries completed. To discuss your product, call +91 75087 19141 or use our contact form.