Ask five suppliers what "third party manufacturing" means and you will get five slightly different answers. The terms contract, third party, private label and OEM get used interchangeably — but the model you choose decides who owns the formula, whose licence the product is made under and how fast you can launch.
- Contract manufacturing: you bring the formula, the manufacturer produces it for you.
- Third party manufacturing: the product is made by the manufacturer and marketed under your brand.
- Private label: you pick from existing formulations and sell them under your label.
- OEM: the manufacturer develops and produces a product to your specification for your brand.
The four models side by side
| Model | Formula from | Brand on pack | Typical speed | Best for |
|---|---|---|---|---|
| Contract manufacturing | You | Yours | Medium | Companies with their own formulation |
| Third party manufacturing | Manufacturer or you | Yours | Fast | Marketing companies, PCD and franchise partners |
| Private label | Manufacturer’s existing range | Yours | Fastest | New brands and range extensions |
| OEM | Developed for you | Yours | Slower | Differentiated products |
Contract manufacturing
A softgel capsule contract manufacturer produces your formulation to your specification. You own the formula; the manufacturer brings the softgel facility, the process expertise and the quality system. It suits pharmaceutical companies and established brands that already have a product and need a dependable production partner.
Third party manufacturing
In India, "third party manufacturing" usually means the manufacturer produces the softgels and you market them under your brand name — often used by pharma marketing companies, PCD and franchise partners. Working with a third party softgel capsule manufacturer means you can build a range without owning a plant.
Private label
Private label is the quickest route to market: you choose proven formulations the manufacturer already makes — Vitamin D3, fish oil, CoQ10, multivitamins — and sell them in your own packaging. A private label softgel manufacturer in India can usually move from enquiry to dispatch faster than any other model because the formulation work is already done.
OEM
With OEM, the manufacturer develops or adapts a product to your brief — a specific strength, a new combination, a vegetarian shell — and manufactures it for your brand. It takes longer than private label but gives you something competitors cannot simply copy from a catalogue. See how we work as a softgel OEM manufacturer in India.
How to choose the right model
- Do you already have a formulation? Yes → contract manufacturing.
- Do you need to launch fast with proven products? → private label.
- Are you a marketing or PCD company building a range? → third party manufacturing.
- Do you need something no one else sells? → OEM development.
Many brands combine models — launching with private label products and adding OEM products as they grow. The important thing is that every model runs through the same facility and the same quality system.
