Why Third Party Pharma Manufacturing is Booming in India?
The Indian pharmaceutical industry is one of the rapidly growing pharmaceutical industries in the world and has been growing for the past decade, one of the reasons being Third Party Pharma Manufacturing services. Also referred to as contract manufacturing, this strategy enables pharmaceutical companies to subcontract the production of their products to specialized manufacturers. With this, they achieve costs and scalability, as well as advanced infrastructure without the burden of setting up a production facility.
Why, though, is India home to so much Third Party Pharma Manufacturing? In this blog, we will analyze the reason this is an emerging phenomenon and how it is affecting the Indian pharmaceutical industry India poised to become a global hub of pharmaceutical manufacturing and innovation.
Third Party Pharma Manufacturing Explained
In simple terms, it is a business strategy in which a pharmaceutical company engages a third party contractor to produce its goods with its brand label affixed to the products.
This is a win-win scenario –
- The brand takes care of the advertising, sales and logistics.
- The manufacturer takes care of the production, quality control, compliance and outbound logistics.
India has emerged as a favorable hub for such partnerships owing to its affordable manufacturing arms and international reputation for high quality standards.
Key Reasons behind the Boom
1. Reasonably Priced Costing Framework
Investments in equipment, skilled personnel and regulatory compliance are imperative when establishing a pharmaceutical manufacturing unit. With third party manufacturing, such investments are no longer necessary. Businesses can utilize certified manufacturers, alleviating the financial burden.
2. Companies Can Now Direct Their Attention Elsewhere
Marketers and distributors in the pharmaceutical industry are accustomed to spending more time and effort on marketing than manufacturing. Diverting production allows for streamlined operations and enhances investment potential in brand building and market presence.
3. International Standard Compliance
Numerous ISO and WHO-GMP as well as USFDA approved Third Party Manufacturing Pharma Companies in India not only house but allow their infrastructure to be used for international quality control and other pivotal standard regulatory protocol. Such facilities have reason to be trusted by international clients and claim these manufacturers guarantee quality.
4. High Demand for Generic Medicine
All around the world, the need for generic medicines is on the rise, resulting in an unquenchable demand for affordable medicine manufacturing. With the ability to produce large volumes of generics, third party manufacturers dominate the domestic and export markets.
5. Scalability and Flexibility
Business growth often comes with the need to ramp up production. Through third party manufacturing, businesses can easily raise or decrease production levels with no capital investment. This agility is invaluable in the current pace of the pharma industry.
6. Support for Startups and SMEs
Third party manufacturing has provided new opportunities to small and medium enterprises as well as new players in the pharma sector. These businesses are now able to independently market their products without the risk of setting up a manufacturing plant.
7. Export Capability and International Collaborations
Out of all the countries in the world, India stands as one of the leading exporters of pharmaceutical products. International demand is met with the help of third party manufacturers because of:
- Affordable rates
- Quality guaranteed
- Regulatory adherence
- Proficient production capabilities
The Indian manufacturers are heavily relied upon by the countries of Africa, southeastern Asia and Latin America which contributes to greater potential for third party production collaborations.
Conclusion
If you are looking for a Third Party Manufacturing Pharma Companies in India, Pharma Heights is India’s B2B pharmaceutical marketplace. It’s a hub of top-tier pharma companies specializing in Third-party manufacturing. This platform is handled by a team of professionals to redefine the landscape of the pharma business. Committed to fostering meaningful partnerships, we offer user user-friendly interface for businesses to connect and collaborate.