How to start Nutraceutical Business? (Distribution and Marketing)? Difference between Pharma and Nutraceuticals

Hello guys, I am Ajay Kamboj and today we will talk that if you want to sell nutraceutical products or food supplement products or you want to do marketing, then how you can start marketing company or distribution of food supplements or dietary supplements or nutraceuticals and what are the licenses required for it.

We will discuss about it here

Actually, the pharmaceutical sector is a vast sector. There are many industries that are mixed in it. it's hard enough to make them divide and differentiate.

If we look at the product list of any pharmaceutical company, then 40%, 30% or more products will be there which are not pharmaceutical,

they fall in the category of dietary supplements, food supplements or nutraceutical and for these you will not need to have any license related to pharmaceutical.

These products are manufactured at different way, for their distribution also, you will require different type of license so for those you should not have a pharma related drug license

But still the pharmaceutical company may have 30%-40% or more products that do not come in pharmaceutical, they fall under in food supplements, in dietary supplements or come in the category of nutraceutical.

Difference Between Nutraceuticals and Pharmaceuticals:

If you want to differentiate both pharmaceutical and nutraceutical that which product is made in pharma and which is made in nutraceutical or food supplement,

Then there is a simple way

First of all, what is the tax rate

There is a huge difference in tax rate in both pharmaceutical and nutraceuticals. That, pharmaceutical drugs or medicines fall under 12% tax slab and those food or dietary supplements or nutraceuticals come in the category of 18% tax slab. if GST is imposed at the rate of 18% on it, the basic thing is that it must be made in a food supplement.

if you do not have anything related to tax and you want to differentiate which food will come in supplement and which will come in pharma then where the composition is written.

Because the same thing is manufactured under pharma and food, there are many such vitamins, there are minerals and protein supplement that are manufactured under pharma and food supplement both...

When they are made in both ways, they are also made in pharma, they are also made in food, then it becomes necessary to differentiate them.

When it comes to differentiation. If it is made in pharmaceutical, then when you check the composition, then there would be in front like Vitamin C, Vitamin D, A is written, whatever is written, then IP, USP or BP will be written in front of it.

IP means Indian Pharmacopoeia
USP means United States Pharmacopeia
BP means British Pharmacopoeia

So, these are the references which whenever we use ingredient of pharmaceutical, we use active ingredient, we have to mention it there but when you manufacture same thing in food supplement.

If it is found in dietary supplements or in nutraceuticals, then there are no references there, only it will be written directly as vitamin C and directly the dosage form will be written there. there will be no IP, BP or USP etc., then it would have been a little way of differentiation.

One more difference, every food product (including nutraceuticals, food supplements or dietary supplement), there is food logo (green or brown)

License required to start Food supplement Business:

Now come to licensing

If you have to do food supplements, you cannot take pharmaceutical drug license, you can

not do long procedure and only you hold a segment of pharmaceutical industry and want to work only on food supplements or nutraceuticals or only on dietary supplements then for that License will be needed, you need fssai license or registration.

Generally, the food supplement which is a dietary supplement is a very expensive item, so whatever the food authority, whenever we go to register or license in the category related to nutraceutical or food supplement So they prefer us for a state license, recommends that you should take a state license,

Now the registration or license of FSSAI is done on a turnover basis. For less than the annual turnover of 12 lakhs we can work only at registration. Above it State license then Central license is.

Basically, it is divided into three categories, then for that you do not need any high number of documents or formalities when you go for FSSAI license or registration. Simply you can apply it online or you can also apply through a consultant.

You will get their website (FSSAI) online and from there you can login for whole procedure and create your account there and complete whatever steps have been given there. By completing these, you can apply for registration or license, it varies slightly in each state, you have to submit documents at some places physically, at some place no need to submit documents at your food authority, then according to your state. You can apply according to the procedure there.

But all the states have the common centralized portal and you can apply online there.

Products fall under nutraceutical category in pharmaceutical sector:

If generally we talk about the category of food supplements, which products are there. There is so much vaster category when we talk about the pharmaceutical industry that products are sold as a food supplement, dietary supplements or nutraceutical.

For example; All the omega-3 fatty acids , DHA, vitamins, minerals, enzymes, All types the lycopene compositions and many more fall under it

These are manufactured under food supplements, there is vast category, that food supplement nutraceutical is used in the pharmaceutical industry and it remains an easy way because you do not need more license and documents there.

So, you can easily start your own business in the pharmaceutical industry and if you do not want to start related to pharma then you can start marketing company or distribution of nutraceutical, dietary supplements, food supplements.

This is one of the easiest and simple way to enter into pharmaceutical industry, so by which you can start your business in the pharmaceutical industry.

Hope you will like this information, thanks for reading...