Loan License

Loan license manufacturing is a contractual arrangement in which a product owner grants the rights to manufacture their product to another company. In this scenario, the manufacturer, often referred to as the “licensee,” uses the formulation and specifications provided by the product owner, known as the “licensor,” to produce the product. This arrangement is commonly used in the pharmaceutical, cosmetic, and nutraceutical industries.

In the context of ayurvedic and nutraceutical products, a company with expertise in formulation and marketing may choose to outsource manufacturing to a specialized facility. The licensee manufacturer, equipped with the necessary infrastructure and compliance certifications, produces the products under the licensor’s brand name and specifications. This allows the product owner to focus on marketing, distribution, and brand building.