Co-packer Cost Estimator
Model total per-unit cost of production — CM charges, packaging, ingredients, testing & freight
Frequently Asked Questions
What is a typical co-packer contract manufacturing charge in India?
CM charges vary by product complexity and volume. Simple dry mixes or pulses: ₹2–8 per unit. Processed snacks or biscuits: ₹4–15 per unit. Beverages and liquid foods: ₹5–20 per unit. The CM charge covers labour, equipment, and factory overhead plus a 15–25% margin for the co-packer. Always negotiate a tiered rate schedule — most co-packers offer meaningful discounts at 3–5x their stated MOQ.
What should I include in packaging material cost per unit?
Packaging cost has three layers. Primary packaging is the pouch, bottle, jar, or tetra pack in direct contact with the product — usually the largest cost at ₹3–20 per unit. Secondary packaging is the master carton or shrink wrap — typically ₹1–4 per unit. Labels and printing include FSC stickers, in-line printing, or hangtags. Total packaging for most Indian FMCG products runs ₹4–25 per unit; premium glass and metal formats can reach ₹40–80.
How does MOQ affect my per-unit cost?
MOQ determines how batch-level fixed costs — quality testing, setup charges, tooling amortisation, and inward freight — spread across units. A ₹10,000 testing cost adds ₹10 per unit at 1,000 units but only ₹1 at 10,000. This is why scaling volume is the fastest lever to improve co-packer economics. Run this calculator at your actual MOQ and at 2x and 5x to see the sensitivity before negotiating minimum quantities.
What is a healthy total cost of production as a percentage of MRP?
For Indian FMCG brands, total COGS should ideally be 25–45% of MRP. At 25% or below you have enough headroom for distribution (20–30% of MRP), marketing, and profit. If COGS exceeds 50% of MRP, distributor and retailer margins alone can eliminate your profitability. Use the FMCG Profit Margin Calculator alongside this tool to see the full P&L from COGS through to manufacturer net.