THIRD PARTY / CONTRACT MANUFACTURING PROCESS
If you have a Good customer base for Health Care & Personal Care Products and do not want the hassle to set up a plant and manufacture the products for sale to your Customers, then you are at the right page. We have complete Manufacturing Setup and provide Contract Manufacturing Services to Client’s who wish to get their products manufactured by us.
Once you have decided on outsourcing the manufacturing work to us, then we require approved brand names and formulas from you in writing along with other documents listed below for third-party manufacturing.
After finalisation of the agreement, there are Six phases of starting a “marketed by” set up:
Formulation approval from DRUG department which takes about 20-25 days or you may use our approved formulae.
Approval of Packaging Material by the Client. Samples of the same will be provided within 7 to 10 days of the signing of the agreement.
Procurement of Raw Material, Packaging Material, etc. This process will take up to 20 to 25 days depending upon availability of the same with our vendors.
Approval of Product samples for appearance, viscosity, colour and effectiveness and results.
Manufacturing of Products after written approval of samples from the Client. Actual production and packaging can take up to 25 to 30 days
Transportation of Finished Product may take up to 3 to 7 days depending upon the location of Client.
Total time taken for the whole process is 50 to 60 days approximately. For repeat orders, 30-40 days shall be required.
Along with the Finished Products, we will supply the Certificate of Analysis for each product manufactured.
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General Policy of working out the cost of the product is given below:
- Cost of Raw-Materials– Active and excipients.
- Cost of Packaging Material–
- PRIMARY (Printed Packaging Material- Bottles, tubes, caps, pumps and measuring cups, Cartons, and Labels)
- SECONDARY (PVC, Shippers, tape, packing slips, strips etc)
Batch Charges– which covers the cost of consumables, Quality control Costs & Local transportation.
In Process loss for RM & PM
Taxation and outward transport
- GST @ 18% is charged as per latest Govt Notification.
OUTWARD TRANSPORTATION: Outward Transport is payable by the Party, the rates quoted by us are Ex-factory. We have tied up with transporters for the shipment of the manufactured goods either to different places in the country and also outside country. Greater Noida is a well-developed Transport hub supplying all over India.
TRANSIT INSURANCE: All our supplies shall be covered under Transit Insurance from A reputed insurance company and nominal transit insurance is charged against this in the Bill/Invoice.
Batch Sizes and Minimum Ordered Quantity
Minimum Batch size is 200 kg for creams and 400 litres for soap based products, we take orders of not less than 200 kg of cream items, 400 litres of soap items and 1000 litres of Fibrous Aloe Vera Juice.
MINIMUM BUSINESS VOLUME
The marketing company shall give a minimum business assurance of minimum Rs. 20 lacs per annum ON NETT RATES.
ORDER AND SUPPLIES
Written order preferable in the format given below is accepted by us, orders through authenticated e-mails are also acceptable, 1st time supply is executed in 50-60 days and repeat supplies are executed within 30-40 days, occasional urgent orders are dispatched within 20 days.
We need an advance payment of 70% along with order as a confirmation of order and balance at the time of dispatch or on raising the Performa invoice. Payment terms for old parties may vary as per their dealing and performance, we raise credit limits for old parties as per their transactions against security instruments for smoother commercial transactions. Once the Goods leave our Factory, we are not responsible for their delivery or damage during transit. The Client is welcome to inspect the finished material before the same leaves our Manufacturing Facility. No goods shall leave the Factory premises without realisation of 100% of the Invoice Amount.
PRINTED PACKAGING MATERIAL
The inventory of the Printed packaging materials viz Cartons, labels etc is principally borne by you, we offer our customers a simple solution for this typical issue of taking care of the procurement of packaging materials on your behalf, thereby providing you big savings on TIME and MONEY, we charge one time PM inventory deposit, details about this are given below in our write up for PM Inventory Charges.
PACKING MATERIAL INVENTORY CHARGES
Minimum procurement quantities of various packing materials are often higher than the Minimum Order Quantity (MOQ) therefore in manufacturing orders of small quantities there is leftover printed packing material. These are as under:
- Bottles/ tubes/ jars
- Shrink wraps
- Labels for bottles and jars
These materials are printed and have the name of the “Marketed by” company and have no other use, hence the cost of residual inventory of these printed packaging materials has to be borne by the company who will have Market the products.
The net rate cost of product covers the cost of packing material. The cost of packing material which is consumed in production, but does not cover the residual packing material inventory,
For the first time procurement of labels, and cartons, cost of design, die and one-time expenses will be charged which will not be applicable in the next round of order.
SAMPLE AGREEMENTSarv Tech Contract Manufacturing Agreement Letter.PdfSarv Tech Contract Manufacturing Agreement Letter.Word File
Documents Required for 3rd Party Manufacturing
Following documents will form the part of the agreement:
- Brief Profile of the company giving a history of the company, a three-year balance sheet, and auditor’s report
- Copy of PAN Card of the company
- Copy of Memorandum & Articles of Association in case of Pvt. Ltd or limited Company. Partnership deed/ Affidavit for proprietary in case of Partnership firm or Proprietorship firm.)
- GST No details
- Fssai license for storage in case of health care products
- Name, Address & Telephones with a copy of Aadhar Card and Pan Cards.(Of all Directors, Partners or Proprietor both official and residential).
On Letterhead of Marketing Company
NON RESEMBLANCE CERTIFICATE
We certify that the following trademarks have been originally coined by us and do not resemble any existing trademark of other company, also the designs on the product packing do not resemble any design, colour combination of any existing product of any company and that we shall be solely responsible for the non-resemblance of trade name & its designs.
We shall be solely responsible for any dispute/claims/liabilities if any, arising out of the use of our trademarks and we further indemnify M/s Sarv Tech Private Limited. for any dispute/claim if arising out of any resemblance of its trade name with any other trade name/design and also undertake that we shall withdraw the product from the market and also withdraw the trade name if instructed by the State Drugs Controller-of the state in this regard.
The facts mentioned above are true to the best of my knowledge and belief and nothing has been concealed thereof.
To contact us for outsourcing your production, please use our Enquiry form for the contract or 3rd party manufacturing.
Disclaimer: Information contained in the portal can be changed without any notice and company shall not be at liberty to change the price and conditions of sale. Acceptance of the order is also at the sole discretion of the company management and there is no fixed rule to accept or reject the request.