What is Third Party Manufacturing in Pharma?
Third party manufacturing (also called contract manufacturing or loan license manufacturing) is a business arrangement where a pharmaceutical company manufactures products on behalf of another company under the latter’s brand name. This allows businesses to market their own branded products without investing in manufacturing infrastructure.
In India, third party manufacturing has become a cornerstone of the pharmaceutical industry, enabling thousands of pharma companies to bring quality products to market efficiently.
How Does Third Party Manufacturing Work?
- Brand Owner (Client) approaches a manufacturer with their product requirements
- Formulation Agreement: Both parties agree on the product specifications, packaging, and pricing
- Regulatory Compliance: The manufacturer must hold valid Drug License and GMP certification
- Production: Products are manufactured under the client’s brand name using the manufacturer’s facility
- Quality Testing: Each batch undergoes rigorous quality testing before dispatch
- Delivery: Finished products are shipped to the client with proper documentation
Benefits of Third Party Manufacturing
For Pharma Companies (Brand Owners)
- Zero Capital Investment: No need to set up a manufacturing plant (saves crores of rupees)
- Focus on Marketing: Concentrate resources on sales, distribution, and brand building
- Wide Product Range: Access multiple dosage forms — tablets, capsules, syrups, ointments, injections
- Quick Market Entry: Launch new products within weeks instead of years
- Reduced Risk: No manufacturing overhead, labor management, or regulatory compliance burden
- Scalability: Easily scale production up or down based on market demand
For Manufacturers
- Optimal utilization of manufacturing capacity
- Revenue from multiple brand clients
- Economies of scale in raw material procurement
Why Choose India for Third Party Manufacturing?
- Cost Advantage: Manufacturing costs in India are 30-50% lower than Western countries
- Regulatory Framework: Well-established FDA and CDSCO regulatory infrastructure
- Skilled Workforce: Large pool of trained pharmaceutical professionals
- API Availability: India manufactures 60% of global APIs, ensuring raw material availability
- Export Capabilities: Many Indian manufacturers are WHO-GMP certified for international markets
Product Categories Available for Third Party Manufacturing
| Dosage Form | Examples | Minimum Order Quantity |
|---|---|---|
| Tablets | Conventional, Dispersible, Chewable, Film-coated | 10,000-50,000 tablets |
| Capsules | Hard gelatin, Soft gelatin, Enteric-coated | 10,000-50,000 capsules |
| Oral Liquids | Syrups, Suspensions, Drops, Dry Syrups | 5,000-10,000 bottles |
| Ointments | Creams, Gels, Lotions | 5,000-10,000 tubes |
| Injections | Ampoules, Vials, Pre-filled syringes | 5,000-20,000 units |
| External Applications | Powders, Sprays, Patches | Varies by product |
How to Choose a Third Party Manufacturer
Key factors to evaluate:
- GMP Certification: Ensure the manufacturer holds valid WHO-GMP or Schedule M compliance
- Drug License: Verify valid manufacturing license from State Drug Authority
- Infrastructure: Visit the plant to assess manufacturing capacity and hygiene standards
- Quality Testing: Check if they have in-house QC lab with HPLC, dissolution, and stability testing capabilities
- Product Range: Assess if they can manufacture your required dosage forms
- Minimum Order Quantities: Ensure MOQs align with your business volume
- Track Record: Check client references and years of experience
- Turnaround Time: Confirm production and delivery timelines
Aarise Pharmaceuticals — Your Third Party Manufacturing Partner
Aarise Pharmaceuticals operates a state-of-the-art WHO-GMP certified manufacturing facility in Haridwar, Uttarakhand, India. We provide comprehensive third party manufacturing services across all major dosage forms.
Our Capabilities
- 58+ product formulations ready for immediate production
- Tablets, Capsules, Syrups, Ointments, Injections, and External Applications
- Annual production capacity of 50+ crore tablets and 10+ lakh liquid bottles
- In-house R&D for custom formulation development
- NABL-accredited quality control laboratory
- Stability testing as per ICH guidelines
- Export-ready documentation and packaging
Why Partner with Aarise?
- Competitive pricing with flexible MOQs
- Fast turnaround — first batch delivery within 15-20 days
- Dedicated relationship manager for each client
- Complete regulatory support for drug licensing
- Pan-India logistics and delivery network
Start your pharma brand today with Aarise Pharmaceuticals as your manufacturing partner. Contact us for a free consultation.
Frequently Asked Questions
What is the difference between third party manufacturing and pharma franchise?
In third party manufacturing, you get products made under your own brand name with no territorial restrictions. In pharma franchise, you sell the manufacturer’s branded products in an exclusive territory. Third party manufacturing gives you more brand control.
What investment is needed to start a pharma company with third party manufacturing?
You can start a pharma brand with as little as 2-5 lakhs INR using third party manufacturing. The main costs are drug license, product registration, initial inventory, and marketing materials.
Do I need a drug license for third party manufacturing?
Yes, you need a wholesale drug license (Form 20B and 21B) to market pharmaceutical products. The manufacturing license is held by the third party manufacturer.
How long does it take to launch a product through third party manufacturing?
Once the drug license and product registration are complete, the first batch can be manufactured and delivered within 15-30 days, depending on the product complexity and order quantity.
Can I export products manufactured through third party manufacturing?
Yes, if the manufacturer holds export licenses and WHO-GMP certification. Aarise Pharmaceuticals is equipped for export-ready production with international quality standards.