We are offering our plant for contract manufacturing for globally reputed companies in nutraceuticals, ingredients, cosmetics and other businesses. We believe that even for world Class Company having all competences it will be a compelling commercial proposition to use our plant for the following reasons. Our offering will be value additive both for those who do not have in-house capacities and those who have in-house capacity for In-house Co2 extraction

Why to do contract manufacturing?

Co2 is a very capital intensive technology. It requires highly trained manpower. The costs of co2 extraction are heavily in nature of fixed costs. The amount of Co2 extracts used in end consumer products is small hence requirements in the initial phase of adoption are likely to be small.It may be advantageous for players to outsource their requirements to a vendor like us with adequate capacities who can offer scalability and competitive price. The capital thus saved in setting up Co2 facilities can be invested in product formation, regulatory approvals, R&D, advertising and brand building and entry into new categories of and new products.

Capturing market share without suffering any asset utilization problems

In-house Capacities go up in step function each time a new line is added whereas the marketing sales goes up in linear way. Adding new capacity additions as soon as you run out of capacity will fulfil all unfulfilled orders but the return on capital of the new asset can be low for some time as its utilization will be low.

By using an outsourced capacity as a buffer, you can continue to serve your markets and customers even after you have run out of capacity but do not have enough additional sales to justify a good scale plant by outsourcing the incremental requirements.Co2 extraction is a highly capital-intensive business and having an outsourcing partner can add to the bottom line.

Managing seasonal shortfalls in capacities without incurring any financial costs

Sometimes there are demand patterns which vary across seasons and managing capacity and demand becomes difficult. If adequate capacity is added to satisfy peak season loads, it will lead to low capacity utilization and if lower capacity is maintained it may lead to lost sales or opportunity costs in peak seasons.

Outsourcing can help you manage your capacities and capital costs and inventory costs without having any opportunity costs from lost sales.

Higher response time

Sometimes when in-house capacities are running on campaigns, you may get some urgent enquiries. Having an outsourcing partner allows you to fulfill such orders without disturbing your production schedule. We believe that having Biocritical Extracts India as an outsourcing partner will help you to boost your operating and financial performance and offer you tremendous flexibility of operations to capture more business without investing capital in plant capacities or idling excess capacities.