How to start Herbal Products business in India?

Herbal products and herbal medicine industry is growing rapidly. Manufacturing, distribution, retail and online selling are the major profitable business opportunities in herbal products industry. In this article, we will cover specific things related to starting herbal products business in India whether you are manufacturing, distributing, retailing or online selling. We will cover licenses, certifications and permissions required to start herbal and natural products business.

For Distribution and Retailing of Herbal Products:

For distribution and retailing of herbal products in India, you will require licenses, certifications and permissions depend upon nature of manufacturing of these products. If a herbal product is manufactured under FSSAI license then you will require FSSAI registration/license to sell and distribute it. If a herbal product is manufactured under ayurvedic manufacturing license or cosmetic manufacturing license, then you will not require any type of license for selling and distributing it.

For manufacturing of herbal products:

Herbal products includes herbs preparations, cosmetic products (Dusting Powder, Baby Powder, Lip sticks, Eye liner, Face powder, Tooth pastes, Tooth powder, Hair oil, Hair Samphoo, Hair Creams, Skin Creams, Shaving Creams and After shave lotions, Nail polishes, Hair Dyes/lotions/liquids, Liquid soaps, Baby Soaps, Shaving Soaps, Toilet Soap, Bindi, Kum-kum powder), food and dietary products, herbal tea, supplements etc.

For manufacturing of specific herbal product, there is requirement of specific license. You need to study the type of herbal product, you want to manufacture.

Preparations related to herbs could be manufactured in two ways either as dietary food supplement or under ayurvedic manufacturing license. Herbs preparations are covered below under for herbal Powder and Churna Preparations section. Check out how to start herbal products manufacturing under ayurvedic medicine manufacturing license?

Herbal cosmetic preparation can be manufactured by taking cosmetic manufacturing license. Check out procedure and requirements to take cosmetic manufacturing license here

Food and dietary products and supplements can be manufactured by taking FSSAI license/registration. Whether you need to take registration or license will depend at nature or your business. Check out how to apply for FSSAI license/registration here

For herbal Powder and Churna Preparations:

Herbal and homemade powder and churna preparations can be manufactured under FSSAI license or ayurvedic manufacturing license or Udyog aadhar. If you want to start production of these powders and churna at small level then you can start these products manufacturing as proprietary food products and start commercial selling. Below query will clear doubt regarding starting manufacturing of constipation fakki, single herb powders, churn mixed of multiple herbs, liquid preparations etc

Licenses Required for Herbal preparation manufacturing:

  • FSSAI License or Ayurvedic Manufacturing License
  • Udyog Aadhar
  • Goods and Service Tax Number

Query for herbal Powder and Churna Preparations:

I have the following query.
Requesting you to suggest us what licenses, certification, and permission will be required to manufacture and trade in herbal or natural products

We want to manufacture following products
1. Constipation Faakhi - It’s a powder made from ingredients like Haritaki, ajwain, rock salt, hing, castor oil etc. It may be useful in stomach related problems like constipation, has, acidity etc
2. Detox Preparation- made from jaggery, jeera, and ghee. These may be useful to reprove body pain, inflammation, increase hemoglobin in blood and it’s a natural detox
3. Diabetic preparation- main ingredients in this are methi, Karela, jamun seed, neem, gurmar, salt, ginger etc. Can be helpful to reduce blood sugar levels
4. Moringa powder - made from leaves of drum stick tree. It has nutritional benefits that support number of bodily functions and organs. It helps in bone and joint wellness.
Please suggest us what kind of licenses , permission, or certification will be required to manufacture and sell these products. We have formed a Propreitor ship co and applied for fssai registration too

Response for herbal Powder and Churna Preparation’s query:

These products can be manufactured under FSSAI license and Ayurvedic Manufacturing License. But there will be difference in labeling requirements, expiry date, instructions etc.

In FSSAI license, you can manufacture these as proprietary food, not for medicinal use and has to fix this statement at your products label. You also have to show statement “This product is not intended to diagnose, treat, cure or prevent any disease(s)".

Under FSSAI License, you can't make any claims regarding the treatment of disease, only specify the usefulness of ingredients used in particular type of disease.

You can’t claim these as ayurvedic medicines and can’t sell as medicines. You can promote these as beneficial for health.

As you mentioned, you have done FSSAI registration but it’s not clear whether you have included manufacturing in it or not. We will suggest you to take FSSAI state license for manufacturing of these molecules.

Along with FSSAI license/registration, you need to take GST number (for turnover above 40 lakh or interstate sale) especially if you want to do interstate business.

You can also manufacture these products under ayuvredic manufacturing license. If you want to manufacture these as ayurvedic medicines then you need to complete all requirements for ayurvedic manufacturing license and apply for it. Check out how to take ayurvedic medicine manufacturing license here?


Hope above information is helpful to you...
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com 


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