Query:
I want to start a dietary/nutraceutical/food supplement business in Kolkata. I have a PhD in Botany.
I came across your blog and got interested in the contract manufacturing idea.
I have some queries which are as follows:
1) Suppose I have an idea for addressing a particular health issue with a set of ayurvedic/herbal extract/food components (in a particular ratio), but I dont have the capital to manufacture it, will contract manufacturing be affordable for me?
2) What is minimum investment required for manufacturing and packaging my idea ? Is it feasible for starters with low capital?
3) Can it be done in small scale with low investment and based on its response and units sold in the market, it can then be scaled up? If Yes, how much? If No, should I start it myself?
4) If I give my product to be manufactured by contract manufacturers, will all safety testing and feasibility of the idea be clinically tested by them?
5) What is the profitability of following this for starters like me in the long term? Using an example, please give me a approx profit figure from this whole process starting from manufacturing my idea to selling it, with numbers.
6) How much say do I have after giving the idea? Which areas are under my control and say? Can I set the price and profit margin? Do they have a fixed rate?
Response:
1) In that case Contract manufacturing would be affordable for you...
2) Investment depends at experience and knowledge. No fixed investment could be figured out for starting manufacturing unit but approx. You may require minimum of 5 to 10 lakh for starting manufacturing unit of Food Supplements.
3) As we discussed above, a exact figure couldn’t be figured out. You can start at small scale but approximate investment as mentioned above will be required.
4) If you give product to contract manufacturer then they will manufacture it according to your composition depend at approved minimum and maximum range of ingredients proposed by FSSAI. Clinical testing would not be provided by Food Supplement manufactures. They can only manufacture it as per FSSAI regulations.
5) Food supplements are profitable products. Margin range for food supplements are more than pharmaceutical products i.e. 50%,100%,200% vary product to product.
6) After giving for contract manufacturing, all manufacturing process will be responsibility of contract manufacturer or you can control packaging, raw material supply, designs etc. Contract manufacturing rates will depend at costing of raw material and packaging material. Profit margin, Maximum retail price etc. You can fix as per your requirement.
I want to start a dietary/nutraceutical/food supplement business in Kolkata. I have a PhD in Botany.
I came across your blog and got interested in the contract manufacturing idea.
I have some queries which are as follows:
1) Suppose I have an idea for addressing a particular health issue with a set of ayurvedic/herbal extract/food components (in a particular ratio), but I dont have the capital to manufacture it, will contract manufacturing be affordable for me?
2) What is minimum investment required for manufacturing and packaging my idea ? Is it feasible for starters with low capital?
3) Can it be done in small scale with low investment and based on its response and units sold in the market, it can then be scaled up? If Yes, how much? If No, should I start it myself?
4) If I give my product to be manufactured by contract manufacturers, will all safety testing and feasibility of the idea be clinically tested by them?
5) What is the profitability of following this for starters like me in the long term? Using an example, please give me a approx profit figure from this whole process starting from manufacturing my idea to selling it, with numbers.
6) How much say do I have after giving the idea? Which areas are under my control and say? Can I set the price and profit margin? Do they have a fixed rate?
Response:
1) In that case Contract manufacturing would be affordable for you...
2) Investment depends at experience and knowledge. No fixed investment could be figured out for starting manufacturing unit but approx. You may require minimum of 5 to 10 lakh for starting manufacturing unit of Food Supplements.
3) As we discussed above, a exact figure couldn’t be figured out. You can start at small scale but approximate investment as mentioned above will be required.
4) If you give product to contract manufacturer then they will manufacture it according to your composition depend at approved minimum and maximum range of ingredients proposed by FSSAI. Clinical testing would not be provided by Food Supplement manufactures. They can only manufacture it as per FSSAI regulations.
5) Food supplements are profitable products. Margin range for food supplements are more than pharmaceutical products i.e. 50%,100%,200% vary product to product.
6) After giving for contract manufacturing, all manufacturing process will be responsibility of contract manufacturer or you can control packaging, raw material supply, designs etc. Contract manufacturing rates will depend at costing of raw material and packaging material. Profit margin, Maximum retail price etc. You can fix as per your requirement.
Great Blog. Ikon Remedies is at the leading edge of nutraceutical manufacturing in India, providing new health solutions and a diversity of products, committed to quality nutraceutical manufacturer in India.
ReplyDeleteGreat site ........... For more details Visit ayurvedic third party manufacturing.
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