GUGGUL INTRODUCTION

The medicinal properties of Guggul are chiefly attributed to the steroid

compound Guggulsterone present in the resin. Guggul extract is believed

to play an important role in controlling atherosclerosis. Guggul reduces

the low density lipoproteins (LDL) in the bloodstream.

Atherosclerosis, which is a condition where the blood vessels become

thickened, occurs due to the accumulation of fat or cholesterol in the

vessels. Cholesterol, which is insoluble in water, is naturally transported

through the blood by the LDL. Excess intake of fat leads the LDL to react

with the oxygen free radicals present in the blood. This damages the

artery walls, triggering a series of immune reactions by the body. The

body subsequently responds to the damage in the arteries by releasing

white blood cells to absorb the oxidized LDL.

White blood cells and platelets are generally incapable of absorbing these

LDL molecules, so they expand and burst, depositing more cholesterol on

the artery walls. This deposition of cholesterol inside the arteries leads to

the narrowing of blood vessels and can result in high blood pressure.

This is considered as a major cause of stroke, heart attack, and most

cardiovascular diseases.

Guggul extract is believed to bring down the platelet stickiness

considerably by reducing the amount of cholesterol deposits in the body.

This is done by converting the cholesterol into bile acids and allowing it

to be excreted from the body. Guggul extract blocks the activity of a

protein, FXR that inhibits the conversion of cholesterol in the liver to

bile. Blocking of the FXR leads to the rapid conversion of cholesterol to

bile.

PRODUCT CHARACTERISTICS AND SPECIFICATION

Synonyms

Commiphora mukul

Commiphora wightii (Arnott) Bhand.

Guggulu

Indian Bedellium

Constituents

Guggul is the mixture of ketonic steroids from the gummy yellowish

oleoresin of the plant extract from India. Mainly resin, volatile oils, and

gum

E & Z Guggulusterones 2 to 5 %

Guggul sterols

Diterpenoids

Terpene

Cambrene

Myrcene

Dimyrcene

Polymyrcene

Uniqueness Has a superior hypolipidaemic activity. Guggul effectively lowers high triglycerides by 30%

Used to treat obesity and other weight related problems. It is reported to be the most powerful cholesterol-lowering herb known.

Endangered plant

Specification

Total Guggulsterone Content : 2.5%, 5 % & 10 %

Alcohol Soluble Extractives : Min: 50 %

Others : Lipid Contents min 20%

Loss On Drying : max 5 % (2hrs@ 105°C)

Extract Ratio : 7:1

Particle Size : 100 % through 80 mesh

Solubility : Soluble in Alcohol

Shelf Life : 24 months unopened

Storage : In cool dry place, away from heat

and direct light.

Actives 2.5% 5%

Appearance Yellow coloured powder Brown coloured viscous

liquid.

Aroma Characteristic pleasant Characteristic pleasant

Taste Bitter aromatic Bitter aromatic

Loss on Drying (at

105deg C)

Ash Content Max 8 % Max 8 %

Heavy metals Max 10 % Max 10 %

Activity ( BY HPLC) Max 10ppm Max 10ppm

Microbial Min. 2.5% Min.5%

Total Plate Counts Max 10,000/g Max 10,000/G

E.Coli Negative /0 parts per g Negative / 0 parts per g

Salmonella Negative /<2 parts per g Negative / < parts per g

Yeast /mold Negative /g Negative /g

PRODUCT APPLICATIONS

Cholesterol

Guggul significantly lowers serum triglycerides and cholesterol as well as

LDL and VLDL cholesterols (the bad cholesterols).

At the same time, it raises levels of HDL (the good cholesterol)

It does this by increasing the liver’s metabolism of LDL-cholesterol, thus

limiting its accumulation in the blood stream.

As antioxidants, Guggulsterone keep LDL cholesterol from oxidising, an

action which protects against atherosclerosis.

Guggul has also been shown to reduce the stickiness of platelets, as it

clears cholesterol from arteries and veins, lowers triglycerides and breaks

up hardening and stagnation -yet another effect that lowers the risk of

coronary artery disease.

Guggul extract is similar to the drug Clofibrate for lowering cholesterol

levels.

Anti-inflammatory

A direct anti-inflammatory effect has been observed for Guggulsterones.

It thus improves inflamed joints in rhumatism (arthritis)

In Ayurvedic medicine, it is used to remove deposits of waste or toxic material in the body, including mucus and mineral deposits in the joints,

thus reducing a possible cause of sluggishness, inflamed joints, and many other conditions.

It compares favorably to tetracycline in the treatment of cystic acne.

It has Carminative, Antispasmodic and Diaphoretic effect

Weight Loss

It may also increase thermogenesis through stimulation of the thyroid, potentially resulting in weight loss.

A combination of Guggul, phosphate salts, hydroxycitrate and tyrosine

coupled with exercise is prescribed for weight loss.

Others

Guggul lipid's natural properties are also commonly compared to that of niacin and fish oil.

Guggul lipid decreases high blood pressure.

It is used to strengthen the structural system and support the heart.

MARKET POTENTIAL

GLOBAL SCENARIO

Guggul is predominantly viewed as anticholesterol drug

World-wide sales of anticholesterol drugs

Brand name Marketer Therapy Sales in million

US$

Zocor Merck Cholesterol 2800

Mevacor Merck Cholesterol 1255

Pravacor BMS Cholesterol 1075

Patent expiry date of certain anticholesterol drugs

Brand name Marketer Therapy Patent expiry

Zocor Merck Cholesterol 2005

Mevacor Merck Cholesterol 2001

Pravacor BMS Cholesterol 2005

Research work on Anti Cholesterol properties of Guggul

David D. Moore, a molecular Biologist at the Baylor School of Medicine in

Houston has studied and proved the anti cholesterol property of

Guggul..

The sap from a Guggul tree contains a compound that blocks the action

of a cell receptor, called FXR, that helps regulate the level of cholesterol

in the body

Scientist said that this mechanism is completely different from the action

of statin drugs, which are taken by millions of Americans to control

cholesterol

Results suggest that other compounds that could affect FXR could also

control cholesterol.

INSTALLED CAPACITY

The proposed installed capacity of the unit is 30 Tonnes of Guggul

extract per annum.

PLANT AND MACHINERY

The following items of plant and machinery are required.

The total cost of machinery is estimated at Rs.8.00 lakhs

MANUFACTURING PROCESS

The Guggul tree secretes aromatic oleoresins which are collected, when

dry after exuding from cuts in the bark.

Guggul, the resin from Commiphora mukul, is made into a powder in

this form; it has been used for centuries by tribals in Rajasthan, Gujarat

and Karnataka.

Today, the powder is obtained and compressed into pills in a more

scientific set up.

The standardized powder extract contains a mixture of Z and E

Guggulsterones.

Indian R & D Efforts

Cipla Laboratories Ltd, Bombay have conducted R & D on Guggul,

Air compressor

Granulator

Pulveriser

resulting in manufacture hypolipidaemic drug “Guglip”

The National Chemical Laboratory (Pune) in collaboration with the

pharmacology team of the Central Drug Research Institute (Lucknow)

have isolated and chemically characterized the hypolipidemic compounds

of the oleogum resin.

Source of technology

* Central Institute of Medicinal and Aromatic Plants,

(Council of Scientific and Industrial Research)

Kukrail Picnic Spot Road,

P O CIMAP, Lucknow - 226015

RAW MATERIAL REQUIREMENTS, UTILITY AND

AVAILABILITY

Calculation of Raw Materials

Unit

Qty

Rate- Rs

Rs.lakhs

Guggul Gum 1.50 MTs 45 850000 382.50

Botanical Trait

The mukul myrrh (Commiphora mukul) is a small, thorny shrub

distributed throughout India.

The short shrub prefers arid regions.

Guggul and Gum Guggul are the names given to a yellowish resin

produced from the stem of the plant.

Cultivation

Habit : Perennial crop, a desert plant

Propagation : Stem cuttings

Habitat : Gujarat, Rajastan and Karnataka

Harvesting : Harvesting can be done when the plant attain 5 to 8 years

of age.

Gum is tapped by shallow incision on the bark with sharp chisel and

small quantity of Guggul gum with Ethereal enhances the gum secretion

Harvesting Period: December to March

Yield

700 to 900 Kg per hectare of Guggul gum

Post harvest:

Gum is dried in shade and stored.

LOCATION, LAND AND BUILIDING

Land area 1 acre

Cost assumed Rs per acre 15.00

Built up area-Sq.ft 1300

Rate per sq.ft-Rs 800.00

Building cost s lakhs 10.40

UTILITIES

Power 20 HP

I.e 14.92

No. Of Working hours 8

Per day 119 Kw hrs

Per annum 35700 Kw hrs

Rate per unit Rs.5.5

Power charge per annum Rs.1.97 lakhs

Fuel required per MT 20 litres

Total 600

Rate Rs.42.00

Fuel per annum-Furnace oil 0.25

Total Power & Fuel 2.21

MANPOWER

Category

Nos. Monthly

Total monthly

Salary Salary

Chemist 1 12000 12000

Supervisor 1 9000 9000

Accountant 1 6000 6000

Substaff 2 5000 10000

Machine operators

2

7000

14000

Skilled workers

3

7000

21000

Total 10 72000

Add Benefits 0.20 14400 86400

Annually Rs.lakhs 10.37

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be

implemented in three months time.

COST OF PRODUCTION AND PROFITABILITY

A cost and profitability statement projected for the first 3 years of

operations is given in Annexure. The profitability is based on the

following assumptions.

Assumptions

Installed capacity 30 MTs of Guggul Extract per annum

Capacity utilisation Year-1-60%

Year-2- 70%

Year-3-80%

Selling price Rs.1900000 per MT.

Raw materials As per the details given above

PLANT AND MACHINERY AND SUPPLIERS

Pulveriser ACE Pack Machines

23, V.N. Industrial Estate

Bharathi Colony,Near

Athiparasakthi Temple

Peelamedu, Coimbatore-641 004

Frigmaires Engineers

PO Box 16353, 8, Janata Industrial

Estate

Senapati Bapat Marg

Opp Phoenix Mill, Lower Parel

(W) Mumbai-400 013

Packing materials As per details given above

Power and fuel Rs.2.21 lakhs per annum at 100%

Wages and salaries Rs. 10.37 lakhs with increase 5% every

year.

Repairs and Maintenance Rs.1.20 lakhs per annum

Depreciation Written down value method -15 % on

machinery

Selling general and

administrative expenses

Rs.4.80 lakhs per annum

Interest on Term loan 14% per annum

Interest on working capital 14 % per annum

Income tax 34 % on profits

Air compressor ELGI Equipments Ltd.,

Elgi Industrial Complex

III, Trichy Road,

Singanallur, Coimbatore-641 005

K.G. Khosla Compressors Ltd.,

19.8 KMS, Delhi-Mathura

Road, Faridabad-121 003,

Haryana

Granulator The Bombay Engineering

Works 1, Navyug Industrial

Estate, Opposite Swan Mills

185, Tokersey Jivraj

Road, Sewree, Mumbai-

400 015

Cadmach Machinery Co. Ltd

H.O. and Factory

Plot No.3604 and

3605 GIDC Industrial

Estate

Phase IV, Vatva, Ahmedabad-382

445

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land 0.00

Building 1.50

Plant & Machinery 10.00

Other Misc. assets 1.00

Pre-Operative expenses 2.00

Margin for WC 10.69

------

25.19

------

2. MEANS OF FINANCE

Capital 16.57

Term Loan

8.63

------

25.19

------

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS

Years 1 2 3

Installed Capacity MTs per annum 30 30 30

Utilisation 60% 70% 80%

Production/Sales Mts per annum 18 21 24

Selling Price Rs.1,900,000 MT

Sales Value 342.00 399.00 456.00

Sales Value 342.00 399.00 456.00

Raw Materials 229.86 268.17 306.48

Power 1.33 1.55 1.77

Wages & Salaries 10.37 10.89 11.43

Repairs & Maintenance 1.20 1.26 1.32

Depreciation 2.03 1.74 1.49

Cost of Production

244.79

283.61

322.49

Admin, & General expenses 4.80 5.04 5.29

Interest on Term Loan 1.21 1.06 0.75

Interest on Working Capital 6.67 6.67 6.67

Total 257.47 296.38 335.20

Profit Before Tax 84.53 102.62 120.80

Provision for tax 28.74 34.89 41.07

Profit After Tax 55.79 67.73 79.73

Add: Depreciation 2.03 1.74 1.49

Cash Accruals 57.82 69.47 81.22

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 1.00 19.16 25% 4.79 14.37

Finished goods 0.50 10.20 25% 2.55 7.65

Debtors 1.00 28.50 10% 2.85 25.65

Expenses 1.00 0.50 100% 0.50 0.00

58.36

10.69 47.67

Say-> - Rs.47.64 lakhs

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 79.73 - 17%

Sales 456.00

Profit before Interest and Tax 128.22 - 176%

Total Investment 72.83

Profit after Tax 79.73 - 481%

Promoters Capital 16.57

5. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 11.43

Repairs & maintenance 1.32

Depreciation 1.49

Admin. & General expenses 5.29

Interest on TL 0.75

20.28

Profit Before Tax (P) 120.80

FC x 100 20.28 0.80

BEL =

141.08

12% of installed

capacity

FC +P

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 11.43

Repairs & maintenance 1.32

Depreciation 1.49

Admin. & General expenses 5.29

Interest on TL 0.75

20.28

Profit Before Tax (P) 120.80

FC x 100 20.28 0.80

BEL =

141.08

12% of installed

capacity

FC +P