The skincare sector in India is on the rise. The kudos go to social media because of many self-care or self-awareness campaigns run by leading companies or influencers. Investing in the skincare industry requires rigorous R&D. Without knowing the ins and outs of the industry, you can’t invest your hard earnings. On top of that, choosing reliable skincare manufacturers in India is not an easy task. Due to the existence of a high ratio of manufacturers, all are self-claimed industry leaders. Before starting the investment in this industry, you need to go through the entire blog, as this is going to be full of information. Such knowledge will guide you on how to select the best skincare manufacturers in India.
5 Essential Tips to Choose Recommended Skincare Manufacturers in India
Congrats, you have reached the most significant part of the blog. Here you will understand the rigorously designed unit of skincare manufacturing Company in India. This design is ideal to read for new investors and B2B investors who are seeking a potential sector where they can value their investment for better ROIs.
Top 5 Tips Investors Should Follow When Selecting a Skincare Manufacturing Company in India
#1 Financial Forensic Filter
The crucial part is to check the debit ratio on the manufacturer’s asset. A high debt means that the manufacturer will use alternate material to fulfill your production demand. This will impact the quality of the final product. It is ideal to check on how the manufacturer is paying their chemical suppliers. If they are not paying their suppliers on time, it will make an impact on supply chain issues because of the credit issues. Further, you need to ensure that skincare manufacturers in India are strictly recording and practicing the yield loss sheet. If the manufacturing is not able to maintain the wastage at 2% to 3%, then it means something is “fishy” with their machinery. The machinery is not calibrated enough to produce quality products while minimizing the waste.
#3 The Floor Level Statistics
Are you still trusting ISO certificates that are pasted on the walls? It’s time to think beyond and face the reality. Along with the adequate certificate, you must inspect the things that actually work on the ground. Ask for OEE (Overall Equipment Effectiveness). If the manufacturer is unable to maintain OEE above 75%, then the machinery is not reliable. Ask for the downtime logs from the past quarters to verify the OEE percentage. In the major portion, the skincare is all about water. Don’t look for RO water purification plants; in fact, ask for conductivity and TOC (Total Organic Carbon) levels of water. The progressive step in phase 2 is to ask for the stability of their production chamber. If the manufacturer has 2 stability chambers with a capacity for 50 clients, then it is an alarming situation because they might be faking or rushing the quality of the final product.
#3 Ingredients Protocol
Even if the manufacturer provides you with a COA (certificate of analysis), it becomes their responsibility to provide valid proof of independent lab verification. This means that the skincare manufacturers in India must take a sample of any manufactured product and take it to the authentic private lab. Get the product tested and submit a clearance certificate. This will ensure that their COA certificate has some weight on it and falls in the recognized category.
#4 Labor Cost-Effective
The high ratio (such as 20%) of on-floor labor staff is inadequate for the final evaluation for tribal knowledge of the machinery. The true potential of the machinery is lost in such scenarios. Look for the backup generator support at such units of skincare manufacturing in India. The hub of manufacturing units like Baddi or Ahmedabad occasionally faces the wide electricity cuts. The backup generator sets ensure that no batch is cooked or ruined due to electricity fluctuation.
#5 The Official Exit Framework
The “formulation ownership” remains the significant challenge at the time of the exit framework. Every other guide will tell you how to enter the business, but no one guide about the exit formalities and legality. This part is essential to read. You need to ask the manufacturer that at the time of exist who owns the white-label and custom formulation ownership. The next thing you need to clarify is to sign the non-compete agreement. In most of the scenarios, one manufacturer receives variants of manufacturing orders from different buyers, so to save time and cost of R&D, they quietly sell the same formula to many companies. Here, the loss is yours, because your IP custom formula is being used by a random distributor without your knowledge. To halt this mishappening, you need to ask the manufacturer to sign the non-compete agreement.
Conclusion:
The selection of reliable skincare manufacturers in India is explained in this blog. The information is written after immense R&D and with the help of industry experts. Go through every piece of information provided and brainstorm what type of manufacturer you want to partner with. The one who is a self-claimed leading source or the one who can fit in the above-described framework.
If you have any doubt or want to know more about starting a skincare business, then get in touch with the expert team at Lifevision Skincare.
Frequently Asked Questions
Q1: How to find the right manufacturers for pharma products in India?
A: 70% of people trust the online data to find the right manufacturer of pharma products in India. The remaining 30% rely upon word of mouth or personal sources.
Q2: How to stop the aging reflected on my face?
A: It is recommended to use the adequate skincare creams to stop aging from reflecting on your face.
Q3: Is it advisable to apply cream at night?
A: As per the experts and online data available, it is not advisable to apply creams during the nights. Such time is ideal for sleep, and if you apply cream during that phase, then your skin will be in working mode, which means it will not have time to rest.
Q4: What certificates should I check during the selection of a manufacturer?
A: The top-rated certificates are ISO, WHO-GMP, and FSSAI.