The pharmaceutical industry in India is a powerhouse, ranked third globally in terms of volume and 13th in value. A key factor driving this growth is the rise of third party manufacturing pharma companies, which provide manufacturing services to other pharmaceutical firms or startups. This model allows brand owners to outsource the production of medicines, supplements, and healthcare products while focusing on marketing, branding, and distribution.
With India’s reputation for cost-effective, high-quality production and a massive skilled workforce, third party pharma manufacturing has become a cornerstone of the industry. If you’re looking to launch your own pharma brand or scale an existing one without investing in a manufacturing facility, third party manufacturing is the smartest, most efficient route.
This guide explores the concept, benefits, top companies, legal requirements, and how to get started with third party pharma manufacturing in India.
What is Third Party Pharma Manufacturing?
Third party manufacturing, also known as contract manufacturing, is a business model in which a pharmaceutical company outsources the production of its products to another manufacturing company. The outsourcing company provides specifications, formulations (if required), packaging designs, and branding, while the manufacturer handles the production, testing, and packaging.
This model allows businesses to offer their own branded medicines without owning a manufacturing plant.
Example:
If Company A wants to sell tablets under its brand but lacks a factory, it partners with Company B (a certified third party manufacturer). Company B produces the tablets as per Company A’s requirements and delivers them with Company A’s brand packaging.
Why Choose Third Party Manufacturing?
Outsourcing manufacturing has become increasingly popular due to the many advantages it offers:
1. Cost Efficiency
Manufacturing plants require massive investment in infrastructure, machinery, and compliance. Third party manufacturing eliminates this need.
2. Focus on Core Competency
Companies can focus on marketing, sales, and expansion while the manufacturer handles production complexities.
3. Scalability
Production can be scaled up or down based on market demand without worrying about capacity or workforce.
4. Access to Latest Technology
Reputed manufacturers use modern machinery and adhere to global quality standards like WHO-GMP, ISO, etc.
5. Product Diversification
Without heavy investment, companies can introduce new products to their portfolio quickly and efficiently.
Types of Products Manufactured by Third Party Pharma Companies
India’s third party manufacturers cover an extensive range of pharmaceutical and wellness products, including:
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Tablets
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Capsules (softgel, hardgel)
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Syrups and suspensions
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Ointments and creams
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Injectables
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Powders and sachets
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Nutraceuticals
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Ayurvedic and herbal products
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Oncology and specialty drugs
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Veterinary medicines
Top Third Party Manufacturing Pharma Companies in India (2025)
India is home to thousands of manufacturers, but choosing a reliable partner is essential. Here are some of the top-rated third party manufacturing companies you can consider:
1. Swisschem Healthcare (Chandigarh)
An ISO 9001:2015 and WHO-GMP certified company known for high-quality general and specialty drugs, including tablets, capsules, syrups, and injectables.
2. Lifevision Healthcare (Panchkula)
Offers contract manufacturing for a wide range of allopathic and ayurvedic products with high production standards and quick turnaround times.
3. Nimbles Biotech (Chandigarh)
Offers third party manufacturing for a wide portfolio of products and is recognized for professionalism and transparency in operations.
4. Syndicate Life Sciences (Baddi, Himachal Pradesh)
Provides manufacturing for high-demand therapeutic areas like cardiovascular, diabetic, and antibiotics.
5. Medlock Healthcare (Panchkula)
Known for strong quality control systems, Medlock is a preferred partner for pharma startups and growing brands.
6. Blue Water Research (Chandigarh)
Specializes in high-quality herbal and ayurvedic third party manufacturing, offering flexible MOQs and private labeling.
7. Biophar Lifesciences (Chandigarh)
An established name in both PCD pharma and third party manufacturing, with ISO, WHO-GMP certifications and a large product catalog.
8. Elkos Healthcare (Panchkula)
Offers third party manufacturing services in various dosage forms with strict quality assurance protocols and attractive packaging.
Steps to Start Third Party Pharma Manufacturing in India
If you’re ready to begin third party manufacturing, follow these steps to ensure a smooth process:
Step 1: Finalize Product List
Decide on the products and dosage forms you want to manufacture. Be sure to check demand in your target market.
Step 2: Choose a Certified Manufacturer
Shortlist a few companies based on quality, certifications, turnaround time, MOQs (minimum order quantities), and cost.
Step 3: Confirm Product Composition and Price
Share your desired compositions or formulations and request quotations. Manufacturers may also offer readymade formulations.
Step 4: Design and Branding
Work with the manufacturer to finalize product and packaging designs with your brand name and logo.
Step 5: Complete Documentation
Provide necessary documents including:
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Drug License
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GST Registration
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Marketing Agreement (if applicable)
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PAN Card and Aadhaar (for proprietorship)
Step 6: Production & Delivery
The manufacturer begins production, followed by packaging and shipment of goods to your address or warehouse.
Legal Requirements for Third Party Manufacturing in India
Starting a pharma business through third party manufacturing requires specific regulatory documentation:
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Drug License (Issued by State Drug Control Authority)
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Retail or wholesale license depending on your business model.
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GST Registration
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Required for billing and taxation.
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Agreement with Manufacturer
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A formal contract defining roles, responsibilities, and confidentiality.
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Trademark Registration (Optional but recommended)
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To protect your brand name and logo.
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Non-Disclosure Agreement (NDA) (Recommended)
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Ensures your formulations and branding are protected.
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Key Factors to Consider When Choosing a Third Party Manufacturer
1. Certifications
Ensure the manufacturer is WHO-GMP and ISO 9001:2015 certified for compliance and quality assurance.
2. Product Range
Check if the company offers the formulations and dosage forms you need.
3. MOQ Flexibility
Startups should look for manufacturers with low minimum order quantity requirements.
4. Turnaround Time
Inquire about production timelines — typically ranges from 25 to 40 days depending on product and volume.
5. Packaging Quality
Good packaging boosts brand value and customer trust. Ensure the company offers modern packaging options.
6. Reputation and Reviews
Check testimonials, online reviews, and customer references before finalizing the deal.
Advantages of Third Party Pharma Manufacturing for Startups
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No need for manufacturing setup
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Quick market entry
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Wide product options
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Focus on branding and marketing
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Reduced operational risks
This model is especially popular among:
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Pharma startups
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Marketing companies
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E-pharmacies
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Healthcare entrepreneurs
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Ayurvedic and nutraceutical brands
Common Challenges in Third Party Manufacturing – and How to Overcome Them
| Challenge | Solution |
|---|---|
| Delayed delivery | Choose manufacturers with a track record of on-time delivery |
| Inconsistent quality | Partner with WHO-GMP certified manufacturers only |
| Lack of transparency | Always sign detailed agreements and NDAs |
| High MOQs | Negotiate or work with newer manufacturers open to smaller batches |
| Hidden costs | Get detailed cost breakdowns before placing orders |
Final Thoughts
The pharmaceutical industry in India is thriving, and third party manufacturing is the gateway to fast, scalable, and profitable market entry. Whether you’re launching a new brand or expanding an existing portfolio, collaborating with a trusted third party manufacturing company can significantly cut costs and eliminate operational hassles.
With thousands of players in the field, doing thorough research and choosing a reputed manufacturer with strong certifications, product range, and transparency is essential. In the long run, a strong third party manufacturing partnership can be the key to dominating the Indian healthcare market — and even exporting globally.