How to Find Right Pharmaceutical Contract Manufacturing Company


Pharmaceutical contract manufacturing

How to Find Right Pharmaceutical Contract Manufacturing Companies

India is the 3rd largest manufacturer of Pharmaceuticals in the world in terms of volume. Pharmaceutical contract manufacturing companies are leading contributors in making India the pharmacy of the world. There are approximately 11,000 pharmaceutical manufacturing units in India. A large number of these companies are also involved in contract manufacturing and research services, popularly known as CRAMS.   


What is pharma contract manufacturing?


Pharmaceutical contract manufacturing is the process of outsourcing the manufacturing of pharma products on behalf of a third party. Pharmaceutical contract manufacturers (PCMS) support the manufacturing of quality backed pharmaceutical products at reasonable prices. Generally, companies seek the help of contract manufacturers to produce a product economically and within a certain period of approved time frame.


The COVID-19 pandemic pushed the contract manufacturing in pharma sector in a big way, as pharmaceutical sector leaned towards it to meet the increased demand. Its global growth from US$934.8 billion in 2017 to $1.17 trillion in 2021 shows the scale that is possible to achieve.


To meet the increasing demand, pharma companies are facing burden on several fronts. Their financial performance takes hit, especially when it comes to buying and running expensive equipment for the mass production of pharmaceuticals. To combat this, many companies have begun outsourcing their manufacturing to CMCs. CMCs have the equipment, facilities, and labor force to carry out a more cost-effective production as a result.


Partnering with the right contract manufacturer is becoming a practical trend among pharma manufacturing companies. Contract manufacturing majorly includes the manufacturing of pharma formulations including solid and liquid dosage forms, injectables as well as bulk drugs and APIs.


Advantages of pharmaceutical contract manufacturing :




Setting up a manufacturing pharma manufacturing facility requires huge investment in terms of both fixed and variable cost. It is more cost effective for a pharma company involved in R&D and new drug development to outsource the pharma manufacturing. A CMO, has an already established expertise and infrastructure to produce the drug at much cheaper rates which can be utilized by pharma companies.


Advanced Skills

Use of advanced technologies and skills for manufacturing in pharma sector is prerequisite for quality production. CMOs have already established expertise and facilities to manufacture at full scale with right regulatory requirements. They have strong ties with the raw material suppliers and have incorporated various efficiency methods to manufacture at the lowest possible operational cost.


Quality Assurance

CMOs have pre-established quality checks in place that have been refined over the years. They have been manufacturing in compliance with various standards used in different countries. Also, they have specific systems in place to control the quality of the end product. Pharmaceutical contract manufacturing helps the companies to make use of such quality control techniques to ensure compliance with different quality standards around the world.

Global Presence

Through CMOs, a pharmaceutical company can enter into new markets at minimal financial risks. There is no need for local investment in the areas of the capital, time and executive talent. A CMO can help such companies in minimizing these kinds of risks.


Capabilities of CMCs 


The main capabilities or capacities of pharmaceutical contract manufacturing include –

  • solid dose tablets, capsules, and oral liquid production.
  • Process development.
  • stability testing programs.
  • clinical supplies manufacturing.
  • analytical method development and validation.
  • unit dose blister packaging with barcoding, and regulatory consultation etc.

How to Find Third Party pharma Contract Manufacturer


Although, contract manufacturing and third party manufacturing is very common in pharma sector, there is lack of information about the CMOs in India. Indian pharma companies and multinationals entering Indian pharma market have to depend on Google Search or references to find the partners. These information sometimes are outdated with not capacity information available.


Online Technology platforms like Capximize becomes handy in such cases. Capximize platform helps pharma companies in finding right third party manufacturing companies for contract manufacturing. Platform helps in online manufacturing by providing in-depth and broad-spectrum information available about available spare manufacturing capacity with pharma companies in India. With its proprietary algorithm-based recommender system it helps its members to connect with global pharmaceutical manufacturers looking for manufacturing capacities across India..

Contact Us for More Information

Cost of Capacity – Is your Textile Manufacturing Utilized Optimally?

Capximize-Textile Sector Expert

Is your Textile Manufacturing Capacity Optimally Utilized?

Cost of Capacity - Is your Textile Manufacturing Utilized Optimally?

Are the textile manufacturers and fabric manufacturers in India utilizing their manufacturing capacities optimally? Are they able to cover the cost of capital expenditure in their textile manufacturing units for better profitability? Therefore, how can these textile and cloth manufacturing companies in India utilize their manufacturing capacities optimally? Is outsourcing textile manufacturing the answer? 

Cost of capacity

Every manufacturing unit, irrespective of the sector, will incur a cost of capacity on setting up its manufacturing plant and machinery. As a result, this makes optimal utilization of manufacturing capacities indispensable and textile industry is no exception to this. Before we delve into more details, it is important to know what is meant by cost of capacity?

What is Cost of Capacity?

Cost of Capacity is the cost incurred by a manufacturing unit for its continuing business operations and also for future expansion in its operations. Generally, capacity costs are fixed in nature and do not change even with varying levels of output. Some examples of the cost of capacity are insurance, depreciation on equipment, maintenance and repair, rent payments, property taxes, etc.

This cost remains the same even when there is underutilization of available manufacturing capacities. Hence, if you are a textile or fabric manufacturer having underutilized manufacturing capacities, you can prevent these costs from affecting your business profitability by leveraging your surplus capacities into a profitable opportunity. Any Indian manufacturer can achieve this by outsourcing surplus capacities to other textile companies seeking to set up manufacturing facilities.

How can you utilize your textile manufacturing capacity optimally?

There are several ways by which you can utilize your textile manufacturing capacity optimally. Outsourcing and white-label or private label manufacturing top the list.

Outsource manufacturing capacity 

Outsourcing of manufacturing capacities simply means allocating them to external manufacturers. These external manufacturers may not have the necessary capital or infrastructure but are looking to either expand their operations or outsource parts of their production operations. There is a great demand for outsourcing in the textile industry specially, as textile goods have a short life cycle. In spite of that there is a need to deliver goods on time at an affordable price and still earn profits. This necessitates outsourcing as part of its operations.

White label manufacturing

White label manufacturing involves manufacturing products for different retailers who sell
these products with their own branding and logo. The textile company utilizing this service will benefit it reduces production cost significantly by saving time and cost.


Indian manufacturers looking to outsource their manufacturing capacities or looking to provide white-label manufacturing services  need access to up-to-date and first-hand information from a reliable centralized platform. Similarly, Indian and global textile companies looking to utilize outsourced manufacturing capacities also needs this information to find right manufacturing partner.

Technology platforms like Capximize helps in online manufacturing by providing in-depth and broad-spectrum information about textile manufacturing companies in India. With its proprietary
algorithm-based recommender system it helps its members to connect with global textile manufacturers looking for manufacturing capacities across India.

What Makes India An Attractive Manufacturing Destination for The Global Textiles Manufacturers ?

  • Variety

India’s textiles industry has the manufacturing capacity to produce a wide variety of products suitable not only for domestic but also for international markets. As per 2001 data, India has the second-largest yarn-spinning capacity in the world only behind China, accounting for roughly 20 percent of the world’s spindle capacity.                                                                                                                            

  • Competitive advantage

India enjoys a competitive advantage in terms of availability of well- developed
infrastructure in this sector. In addition it provides affordable and skilled labour, focus on research and development activities and strong manufacturing capabilities.

  • Policies 

The investment-friendly policies introduced by the Indian Government in the year 2020-21 has led to an increase in foreign direct investment, therefore attracting more global companies to set up their operations in India.

  • Infrastructure 

Advanced infrastructure and manufacturing capabilities in the textile hubs of India. Textile hubs include Tirupur, Madurai, Mumbai, Delhi, Amritsar, Ludhiana, Ahmedabad, Surat and Kanpur. These hubs are great attractions for global textile manufacturers looking to outsource their production operations. Tirupur textile industry has manufacturing capabilities for all aspects of knitwear, starting from spinning, knitting, wet processing, printing, garment manufacturing and exports. 

Maharashtra, especially Mumbai, has the best infrastructure and the state has an installed capacity of 1.66 million spindles. This is equivalent to 17 per cent of the country’s capacity for cotton yarn production. Surat is the hub for synthetic textiles production and has a weaving capacity of 7,20,000 weaving machines. Ahmedabad has excellent manufacturing capabilities for cotton textiles, while Ludhiana has facilities for woolen and acrylic knitwear.

Hope this article threw sufficient light on the optimal utilization of manufacturing

For More Information Contact Us