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Sales License for Ayurvedic, Siddha and Unani Medicines

We Files RTI request to ministry of AYUSH regarding sales license for ayurvedic, siddha and unani medicines. Download RTI Pdf file by clicking here Here what reply we get: - Query we sent: Dear Sir, I want to clarify that is there any type of drug license required to sale, purchase, retail and distribution of ASU (Ayurvedic, Siddha and Unani) Medicines ? Thanks Reply we received from Department: Dear Sir, I am to refer to your Request for information under RTI Act, 2005, received vide letter dated 20.10.2021 and to say that the information sought by you is not available with the Ministry of AYUSH. Rule, 154 & Rule, 157 of Drugs & Cosmetics Rules, 1945 provides the guidelines for license to manufacture for sale of Ayurvedic (including Siddha) and Unani drugs and Rule 158(B) provides Guidelines for issue of license with respect to Ayurveda, Siddha or Unani drugs under section 3(a) & 3(h) (ii) of Drugs & Cosmetics Act 1940 and enforcement of these legal provisions of the D

What is Loan Licensing in Ayurvedic Sector?

You have seen a number of marketing companies who don’t have own manufacturing units but use manufactured by name of own company. They pretend to do manufacturing as well as marketing by own self.

If you are confused how they can show like manufacturing company but in actually they don’t have any manufacturing plant. So, you can assume they are manufacturing their product at loan licensing basis.

In this article, we will try to understand what is loan licensing and loan licensing works?

Loan Licensing:

Loan licensing is defined as a license given to a person/company/organisation who doesn’t have any manufacturing unit but want to avail facility of manufacturing unit owned by a licensing having ayurvedic manufacturing license.

In simple words, it’s like to take a rented place in other manufacturing unit; where you can use manufacturer’s plant, machinery, competent person and other resources to manufacturer your own products.

Procedure to take Loan License:

For taking loan license, application has to be submitted to Ayush department with supporting document. Loan licensing document’s is similar to new manufacturing unit documents. General documents required for taking loan license are:

How does it work?

When a Loan License is issued, actual manufacturing having primary license has to provide working area, documents room, office and other facility to loan licenser. A new license number is issued to loan licenser by ayush department. Loan licenser pays rent/charges/commission/profit as per mutual agreement to primary licenser. After receiving manufacturing license number, loan licenser can conduct manufacturing activities in area assigned by primary manufacturer to him.

Condition of Loan License:

The manufacturing unit has adequate equipment, staff, and capacity for manufacture and facilities for testing, to undertake the manufacture on behalf of the applicant for a loan licence.

Advantage of Loan Licensing:

Loan licensing has own advantage and disadvantage but has more advantage with less disadvantage.
  • Enjoy benefits of own manufacturing unit without any huge initial investment
  • Manufactured by address of own firm at packaging of products
  • Your company will get manufacturer image in market
  • You can manufacture own products by securing own secrets and maintaining quality as per own specification
  • You can get experience of manufacturing before establishing own manufacturing unit.
  • Raw material, packaging material, die, specifications etc, all could be maintained and procured by your self

Disadvantage of Loan License:
  • As you are performing all manufacturing activity, you will be directly responsible for quality and sampling of products
  • You will also have to concentrate at both aspects of business i.e. manufacturing as well as marketing

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Comments

  1. Does repacking of ayurvedic products bought from wholesaler and selling amounts to manufacturing?

    ReplyDelete
    Replies
    1. yes repacking come under manufacturing and you need license to do repacking

      Delete

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