PROFILE

CONTRACT MANUFACTURING PROCESS

1.  Brand & formulation approval from DRUG department   5-7 days
2.  Procurement of Printed Packing material like foils, cartons, labels 10-12 days
3.  Actual Production. 10-15 days
4.  Transportation.2-7 days.
   Total time taken for whole process is 45 days approximately. For repeat orders 15-21 days shall be required.

COSTING

1. Cost of Raw-Material
2. Cost of excepients
3. Cost of Primary Packaging Material- i.e. Printed Packaing Material- Foil, Cartons, Labels
4. Cost of Secondary Packaging Material- i.e PVC, Shippers, tape, packing slips, strips etc
5. Batch Charges- which covers cost of consummables i.e.stereos etc & Local transportation cost of RM/PM/FG
6. Testing Charges - which covers cost of testing of Excepients, Active RM, PM, In-process & Finished Product.
7. In Process loss for RM &PM
8. Manufacturing Charges- which are as given below
9. Margin on RM+PM where-ever applicable
10. CST of 1% to be charged against FORM C.
11. Prices are ex-factory, government taxes and other levies extra.

BATCHES

MINIMUM BUSINESS ASSURANCE

PRINTED PACKAGING MATERIAL

SIZES

AGREEMENT

DELIVERY SCHEDULE

PAYMENTS

DOCUMENTS REQUIRED FOR 3rd PARTY MANUFACTURING

1.  CONSTITUTION;
   (Copy of Memorandum of Articles of association in case of Pvt. Ltd or limited company. Partnership deed/ Affidavit for proprietary in case of Partnership firm or Proprietorship firm.)
2. NAME , ADDRESS & TELEPHONES
   (Of Directors, Partners or Proprietor with official, residential, addresses & telephone numbers.)
3. ANNUAL TURNOVER OF LAST THREE YEARS
   (Skip if not applicable)
4. MANUFACTURING DONE FROM AT PRESENT.
   (Skip if not applicable)
5. NAME OF THE BANKERS/ CREDIT LIMIT IF ANY.
6. DRUGS LICENCES NO & VALID UPTO:
   (Attested copy of Drugs Licences to be provided)
7. SALES TAX REGISTRATION NO./CSTNO./TIN NO.
   (Attested copy of Sales tax Registration Certificate to be provided)
8. PRODUCT FORMULAS & QUANTITIES REQUIRED INITIALLY/ ANNUALLY
   (Please enclose a product list of your company)
9. COPY OF RESOLUTION FOR AUTHORISED SIGNATORY TO DEAL
   (For limited and partnership companies )
10. AGREEMENT FOR MANUFACTURING.

                                                          FORMAT OF AGREEMENT

This agreement for manufacturing is made on                 200  between M/s Radico Remedies through its authorized representative Mr. Vikramjeet Singh Sawhney s/o Dr. K.S.Sawhney r/o D-142, Bathla Aptts, I.P.Extn, Delhi-110092 hereinafter called as Manufacturer or the party of 1^st part.

                                                            AND

Herein after called as the party of 2^nd part.

Where  as party of the first part is manufacturer of pharmaceutical products, the party of the 2^nd part is engaged in marketing and distribution of the pharmaceutical products.

1.                   That it is agreed that the products listed below shall be marketed by the party of 2^nd part and manufactured by the party of 1^st part.

2.                   It is agreed that the 1^st party shall manufacture and supply the above products to the 2^nd party at nett rates worked out by the agreed upon formula which shall contain the prevailing rates of active raw-materials, Excepients, testing charges plus any other material or miscellaneous expenses expended in the production and the manufacturing job charges.

3.                   The 2^nd party shall give a pre-planned work schedule to the 1^st party which shall be dispatched between 3-4 weeks. The 1^st party shall send 50% advance along with each order and shall make the balance payments at the time of delivery. The cost of transportation to & fro the manufacturing premises for Raw-Materials, Packing materials and finished goods shall be borne by the 2^nd party.

4.                   The 1^st party shall use the materials for the 2^nd party which are in regular use with the 1^st party in case any new or typical material is required it shall be supplied by the 2^nd party or shall bear the inventory cost of that material. Also the 2^nd party shall supply all types of printed packaging materials to the 1^st party.

5.                   It is further agreed that the goods shall be billed at the prevailing Excise and Central Sales Tax rules which offer exemptions .It is further agreed that any liabilities/ Arrears/Claims of any Statutory Government Bodies viz Central Excise Deptt / Sales Tax Depts./ D.P.C.O. or any other Government Department arising out of the transaction between the parties shall be sole responsibility of the 2^nd party during or after the expiry of this agreement, since the 1^st party is charging only job charges and is not making any profit out of the sale of the products and all the profit is being taken by the  2^nd party.

6.                   It is further agreed that the quality of the product shall be responsibility of the  1^st party. The 2^nd party shall provide the master formulas and the SOP for all its products duly received by the 1^st party. The 1^st party shall strictly adhere to the master formulas provided by the 2^nd party in observation to the Drugs & Cosmetics Act and rules there under. The 1^st party shall supply test-reports for the batches manufactured to the 2^nd party on demand.

7.                    It is further agreed that the 1^st party shall preserve the secrecy of business of the 2^nd party and shall not divulge any information related to the products of 2^nd party to anyone, in general the 1^st party shall protect the interests of 2^nd party in all ways whether or not specifically mentioned here in terms of market reputation and market competition.

8.                   It is further agreed that the 1^st party and the 2^nd party shall not adopt, whether during the term of this agreement, or any time after its expiry/ termination, thereof any symbol which is similar to the registered Trade mark/ Applied for that which could draw any reference to the said trade mark as to be likely to cause confusion or deception or detract from or adversely affect the rights of proprietor of the said trade marks.

9.                   This agreement is initially for three years and can be terminated by either of the parties by giving two month’s notice in writing. However without any dispute it is deemed to be renewed even after the end of the third year. During the pendency of this agreement the 2^nd party shall not  get the products manufactured with the 1^st party from any other manufacturer.

10.               It is agreed that both the parties shall be liable and responsible to complete the pending Statutory Governmental works of each other like Sales tax etc even after the contract has ended, the agreement is entered and signed in a very cordial spirit and if at all there arises a need to terminate this agreement it shall be in a brotherly and cordial manner.

11.               The Force Majure Clause is applicable to this agreement.