Third Party Manufacturing Business: A Step-by-Step Guide by Apromart

Introduction

The pharmaceutical industry in India is one of the fastest-growing sectors in the world, offering immense opportunities for entrepreneurs, distributors, and pharma professionals. One of the most profitable and low-risk entry models in this industry is Third Party Manufacturing, also known as Contract Manufacturing. This business model allows you to launch your own pharma brand without owning a manufacturing unit.

With platforms like Apromart, starting and scaling a third party manufacturing business has become simpler, more transparent, and more efficient. This detailed step-by-step guide will help you understand the complete process, legal requirements, benefits, challenges, and growth strategies for building a successful third party manufacturing business in India.

What is Third Party Manufacturing in Pharma?

Third party manufacturing is a business arrangement where a pharma company (brand owner) gets its products manufactured by a WHO-GMP or ISO-certified manufacturer under its own brand name. The manufacturing company handles production, quality control, and packaging, while the brand owner focuses on marketing, sales, and distribution.

In simple terms:

You own the brand
The manufacturer owns the factory
Apromart connects you with the right manufacturer

Why Choose Third Party Manufacturing Business?

Third party manufacturing has become popular due to its low investment and high scalability. Here are the key reasons why entrepreneurs choose this model:

1. Low Initial Investment

You don’t need crores to set up a plant. With minimal capital, you can start your own pharma brand.

2. No Manufacturing Hassles

No need to worry about machinery, labor, raw materials, or production compliance.

3. Faster Market Entry

You can launch products quickly using ready formulations and approved dossiers.

4. Focus on Marketing & Sales

You can dedicate your time and resources to brand building and distribution.

5. Scalable Business Model

You can expand your product range and enter new markets easily.

Role of Apromart in Third Party Manufacturing

Apromart is a B2B pharmaceutical portal designed to simplify third party manufacturing and pharma business growth. It acts as a bridge between:

Pharma brand owners
WHO-GMP manufacturers
PCD pharma franchise companies
Distributors and exporters

With Apromart, you can:

Find verified manufacturers
Compare prices and MOQs
Access multiple product categories
Build trusted business partnerships

Step-by-Step Guide to Start Third Party Manufacturing Business

Step 1: Market Research & Product Selection

Before starting, research is critical. Identify:

High-demand therapeutic segments (e.g., antibiotics, nutraceuticals, dermatology)
Competition in your target market
Price points and profit margins

Step 2: Decide Your Brand Name

Choose a unique, memorable, and legally safe brand name. Make sure:

The name is not already registered
It reflects trust and quality
It aligns with your long-term vision

You may also register your brand name as a trademark for legal protection.

Step 3: Legal Requirements & Documentation

To start third party manufacturing, you need the following documents:

Drug License (Retail or Wholesale)
GST Registration
Company Registration (Proprietorship / LLP / Pvt Ltd)
Trademark (optional but recommended)
Address Proof & ID Proof

Apromart-listed manufacturers guide you through documentation requirements smoothly.

Step 4: Select the Right Third Party Manufacturer

Choosing the right manufacturer is crucial for quality and long-term success. Check for:

WHO-GMP / ISO Certification
Product range & customization options
Minimum Order Quantity (MOQ)
Packaging & labeling standards
Delivery timelines

Through Apromart, you can directly connect with verified manufacturers across India.

Step 5: Finalize Product Specifications

Once the manufacturer is selected, finalize:

Product composition
Dosage form
Packaging type (blister, bottle, strip)
Label design & carton design
Batch size & pricing

Apromart ensures transparent communication between both parties.

Step 6: Agreement & Order Placement

Sign a manufacturing agreement covering:

Product ownership
Quality responsibility
Payment terms
Confidentiality clauses

Place the purchase order and initiate payment as per agreed terms.

Step 7: Manufacturing & Quality Control

The manufacturer will:

Procure raw materials
Manufacture products
Conduct quality testing
Package and label products

Ensure that batch samples and COAs (Certificates of Analysis) are provided.

Step 8: Product Delivery & Distribution

Once manufacturing is complete, products are dispatched to your warehouse or distributor. Now you can:

Appoint distributors
Launch PCD pharma franchise
Start hospital or retail marketing
Explore exports

Apromart supports pan-India distribution connections.

Investment & Profit Margin in Third Party Manufacturing

Estimated Investment

Initial setup: ₹50,000 – ₹2,00,000
Depends on product type and MOQ

Profit Margin

Average margin: 30% – 70%
Higher margins in nutraceuticals and specialty segments

With smart marketing and the right partners via Apromart, profitability increases significantly.

Challenges in Third Party Manufacturing & Solutions

1. Quality Consistency

Solution: Choose certified manufacturers listed on Apromart.

2. Delayed Delivery

Solution: Clear timelines and written agreements.

3. Price Fluctuations

Solution: Long-term contracts and bulk planning.

4. Brand Competition

Solution: Strong marketing and differentiated positioning.

Marketing Strategies for Third Party Manufacturing Business

Digital Marketing (SEO, Google Ads)
Medical Representative Network
PCD Pharma Franchise Model
Distributor Appointments
Online B2B platforms like Apromart

A strong online presence builds credibility and lead generation.

Why Apromart is the Best Platform for Third Party Manufacturing

Verified pharma manufacturers
Wide product categories
Transparent communication
Trusted B2B ecosystem
Dedicated pharma-focused platform

Apromart empowers startups and established pharma businesses alike.

Future Scope of Third Party Manufacturing in India

With rising healthcare demand, exports, and government support, the future of third party manufacturing is bright. Growth areas include:

Export-oriented manufacturing
Herbal & Ayurvedic products
Nutraceuticals
Specialty therapies

Apromart is continuously evolving to support this growth.

Conclusion

Starting a Third Party Manufacturing Business is one of the smartest ways to enter the pharmaceutical industry with minimal risk and maximum growth potential. With the right planning, reliable manufacturers, and strong marketing strategies, you can build a successful pharma brand.

Apromart simplifies every step of the journey—from finding manufacturers to scaling your business. If you are looking to start or expand your third party manufacturing business, Apromart is your trusted partner for long-term success.

Start your pharma journey today with Apromart – Your B2B Pharmaceutical Growth Partner.

Frequently Asked Questions (FAQ)

1. What is third party manufacturing in the pharmaceutical industry?

Third party manufacturing is a business model where a pharma company gets its products manufactured by a certified manufacturer under its own brand name without owning a production unit.

2. How much investment is required to start a third party manufacturing business?

The initial investment usually ranges from ₹50,000 to ₹2,00,000 depending on the product type, quantity, and packaging requirements.

3. Do I need a drug license for third party manufacturing?

Yes, a valid drug license (retail or wholesale) and GST registration are mandatory to start a third party manufacturing pharma business in India.

4. Is third party manufacturing profitable in India?

Yes, third party manufacturing is highly profitable with margins ranging from 30% to 70%, especially in nutraceuticals and specialty pharma segments.

5. How does Apromart help in third party manufacturing?

Apromart connects pharma brand owners with verified WHO-GMP manufacturers, helping in product selection, pricing comparison, and smooth business collaboration.

6. Can I start my own pharma brand through third party manufacturing?

Yes, third party manufacturing allows you to launch and promote your own pharma brand without investing in a manufacturing plant.

7. Which products are best for third party manufacturing?

High-demand products include tablets, capsules, syrups, injectables, nutraceuticals, and Ayurvedic or herbal medicines.

8. How long does it take to manufacture pharma products?

The manufacturing timeline usually ranges from 30 to 60 days, depending on product type, approvals, and order quantity.

9. Is third party manufacturing suitable for startups?

Yes, it is ideal for startups due to low investment, reduced risk, and quick market entry.

10. Can I expand my business using the PCD pharma franchise model?

Yes, third party manufacturing combined with a PCD pharma franchise model is a popular strategy for rapid expansion.

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Third Party Manufacturing Business