neem based pesticide[1]

8/17/2019 Neem Based Pesticide[1]

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NEEM BASED PESTICIDE

CONTENTS

SECTION I PRODUCT CHARACTERISTICS

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT LEVEL

SECTION V PRICE DETAILS

SECTION VI INDIAN DEMAND

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION IX GLOBAL SCENARIO

SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS

SECTION XII FACTORS INFLUENCING THE POSITION FOR

NEW INDUSTRY AND RECOMMENDATIONS



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SECTION - I

PRODUCT CHARACTERISTICS

1.1. General details

Neem pesticides are systemic and do not induce pest resurgence unlike other syntheticinsecticides.

While, every part of Neem tree has pesticidal applications, the important Neem basedproduct, that can be used for pesticide applications are the following

Neem oilAzadirachtin (Active ingredient)

1.2. Neem oil :

General details

Appearance Non drying,bitter liquid.

Colour Greenish brown

Odour Garlic,repulsive

Refractive index at 40deg C 1.4617 to 1.4627

Specific gravity at 30deg C : 0.9087 to 0.9189

Iodine value 68 to 75.8

Saponification value 193 to 204

Unsaponification matter 0.8 to 2.4%

Composition

In composition, neem oil is much like other vegetable oils, composed primarily of

triglycerides of oleic, stearic, linoleic, and palmitic acids.

The neem seeds are reported to have 45% of oil content.

The neem seed kernel is rich in fatty acids, often up to 50 percent of the kernel's weight.

Neem seed oil is bitter with garlic/sulphur smell and contains vitamin E and other essentialamino acids.



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The composition percentages vary from sample to sample depending on place and time of

collection of the seeds.

Fatty acids Percentage

Myristic acid 0.2 to 2.6

Palmitic acid 1.6 to 16.2

Stearic acid 14.4 to 24.1

Oleic acid 49.1 to 61.9

Linoleic acid 2.3 to 15.8

Arachidic acid 0.8 to 3.4

Other lower fatty acid 23

1.3. Azadirachtin (Active ingredient)

Molecular formula C35H44O16

Classification Triterpeniod

Molecular weight 720

Melting point 155 to 185 deg.C

Appearance Microcrystalline pale yellow coloured crystals

Moisture 50% moisture in fresh

10 to 15% moisture in semi dried fruit

9% in well dried fruit



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SECTION - II

PRODUCT APPLICATIONS

2.1. Neem oil

General details

Oil extracted from the seeds goes into soaps, waxes, and lubricants, as well as into fuels

for lighting and heating.

The solid residue left after the oil is removed from the kernel is employed as fertilizer and

soil conditioner.

Application sector

Neem oil in the soap industry:

Generally, the crude oil is used to produce coarse laundry soaps. The non-edible oil gives

soap of unattractive brown colour, which retains its characteristic odour. This could be

rectified by a second boiling of the oil and then salting out of the soaps.

However, more expensive soaps are made by saponifying the crude oil and distilling the

resulting fatty acids before adding the lye. The resulting almost colourless and odourless

product is suitable for top-quality toilet and laundry soaps

* Pesticide

* For soap making

* Refined neem oil for herbal medicine

* Refined neem oil for massage oil



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Pesticide sector

Neem oil, extracted from whole seeds (with the hard shell in tact) by simple mechanical

crushing using country `ghani' is suitable as an insecticide.

Solvent extraction and expeller crushing damage the chemical structure of the bio-acitveprinciples in neem oil, according to experts.

Neem products are efficient against 105 insect species belonging to ten orders namely

Orthoptera, Dictyoptera, Lepidoptera, Hemiptera, Diptera, Coleoptera, Hymenoptera,

Isoptera, Thysanoptera and Siphonaptera.

Refined neem oil for Herbal medicine/Massage oil

Neem oil is found to be a strong spermicide and it is without side effects.

The antibacterial activity of neem oil has been tested and is comparable with activitiesthat of Malkalguni oil, Darudi oil and Karantee oil.

Neem oil has proved as cheaper substitute for pre-operative antiseptic solutions.

Neem oil displays a stimulative, antiseptic and alternative effect when used for massage of

the body.

It is an active remedy against boils, ulcers resulting from chronic syphills.. It is remarkably

effective in infections of ring worms. It is used in skin disease such as scrofula, as a

liniment in the case of rheumatism, in arthritis, diabetis and also to lower blood pressure.

Cosmetics

Purified neem oil is used in nail polish and other cosmetics.

Lubricants

Neem oil is nondrying and it resists degradation better than most vegetable oils.

In rural India, it is commonly used to grease cart wheels. It could find many similar

lubrication applications in other locations, especially in village settings in the warmer parts

of the world where neem can be grown.



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Birth control formulations

The Defence Institute of Physiology and Allied Sciences (DIPAS) has done research

studies on the birth control properties of neem oil isolates.

These studies conducted on rats, rabbits, monkeys as well as human volunteers reveal thatneem oil can be ideal birth control.

2.2. Azadirachtin

Azadirachtin technical is used for preparing ready to use formulations for agricultural,

textile, domestic, veterinary pest management.



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SECTION - III

INDIAN MANUFACTURERS

Neem oil is produced by a number of small and unorganised units and the important

manufacturers of Neem oil include the following.

* Aazadirachtin Pvt. Limited

Block 94 Sanjay Place,

Agra - 282 002

Product : Cold pressed Neem oil, neem cake, neem bio insecticide, azadirachtin, urea-

coating etc.

* A.P. Products

26, Madhu Estate,

P.B.Marg, Worli, Mumbai - 400 013

Product : Neem tree products like Neem oil, neem extracts

* Bangur Agro Tex Pvt. Ltd.

205, Saraswati, S. V. P. Road,

Borivli (W), Mumbai - 400 003

Product : Herbs, Neem Products like Neem Oil, Neem Cake, Neem Extract

* Cheminova Agro Tech

Gate No. 352, Mohida Turfe Shahada,

Nandurbar - 425 409

Product : Neem oil, neem oil cake, neem kernel oil, neem kernel cake etc.

* Disel & Auto Spares (India)301 Shanti House,

Off C G Road, Ahmedabad - 380 009

Product : Neem oil

* Dr. Jains Forest Herbals Pvt. Ltd.

A-10 Raj Industrial Complex,

Unit No.A-10, 2nd Floor, Military Road Marol,

Andheri East, Mumbai - 400 059

Product : Neem oil

* D.M.R. International/Deluxe International

No.10, Kuya Street,Sriperumbudur - 602 105

Phone: +(91)-(4111)-32709/32067/32518/32244

Fax: +(91)-(44)-5341022/5342211

Azadirachta Indica - Neem - cake

Azadirachta Indica - Neem - Leaves

Azadirachta Indica - Neem - Oil

Azadirachta Indica - Neem - Powder



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* Gayathri Oil Mill

41/545, Kotha Pet,

Kurnool - 518 001

Product : Neem oil, neem cake

* J.D. Corporation

203 Yogeshwar, 135/139 Kazi Sayed Street,

Masjid Bunder, Mumbai - 400 003

Product : Neem oil,

* Lalitha Neem Pvt. Ltd.

PSK Road, Rajapalayam - 626 117

Products: Neem oil and Neem cakes

* Maruthi Sastha Associates

1020, 80 Feet Road, Ist Block,

Koramangala, Bangalore - 560 034

Products: Neem oil and Neem cake

* Nectar Biotech Limited

66 Karpagam Avenue, R A Puram,

Chennai - 600 028

Products: Neem Based products :Neem oil. Neem extracts neem cakes.

* Olympic Exporter

21, Muthamil Nagar, Adiyanuthu (P.O),

Dindigul - 624 003

Products: Neem oil and Neem cake.

* Palakshree Packaging Pvt.LtdB-304, Ganesh Plaza Nr Navrangpura Bus Stop,

Ahmedabad - 380 009

Products: Neem oil and Herbal Products

* Pioneer Enterprise (Mumbai)

101, Raudat Tahera Street,

Mumbai - 400 003

Phone: +(91)-(22)- 23472534

Fax: +(91)-(22)- 23472325

Products: Natural products for Organic Farming like Herbal Extracts, Botanical Herbs,

Natural Colours, Azadirachtin, Allium Sativum, Neem products.

* Plasma Power Private Limited

New B23, "B" Block

2nd Avenue, Anna Nagar

Chennai - 600 102

Products: High purity Neem oil, neem cake



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* P.S.K.Shanmugarajan & Sons (P) Ltd.

21/63-C, West Colony,

Komarapalayam - 638 183

Products: Neem oil, neem herbal extract for termite control,

* Quest Marketing Company

G-2, Sector-C, Awho Colony,

Hyderabad - 500 016

Products: Neem Products like Neem oil, Neem cake, Neem Kernels, Neem Leaf Powder.

* Sahayata

166, Jodhpur Park,

Kolkata - 700 068,

Products: All types of Neem Products like Neem based herbal toilet soap, Pure Neem Oil.

* Shri Ambica Oil Cake Industries

Khatraj Chokdi, Mahemadabad, Kheda - 387 130

Phone: +(91)-(2694)-44661

Fax: +(91)-(2694)-44860

Products: Neem (azadirachta indica), biopesticides of neem

* T.Stanes & Company Limited

8/23-24, Race Course Road

Coimbatore-641 018

Phone : 0422-211514, 213515 to 213518

Fax : 091-0422-217432

Product : Neem based pesticide - Nimbicidine (Azadirachtin)

* Viprama Industries

A-30 M.I.D.C. Dasarkhed,Malkapur - 443 101

Products: Neem Oil, Neem Cake, Neemseed Powder Etc.

* Vinamra Oils & Herbs

41, Anupam Nagar Extn.,

Gwalior - 474 003,

Products: Neem Oil,

* Welcome Trading Corporation

153, Portugese Church Street,

Chennai - 600 001

Products: Neem oil and neem cake



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SECTION IV

IMPORT/EXPORT LEVEL

4.1. Imports Nil

4.2. Present exports level of Neem oil Around 260 tonnes per annum

4.2.1. Countrywise exports of Neem oil

Period: April 2001 to March 2002

Country Quantity in kg

Australia 9943

Austria 1000

Baharain IS 1015Brazil 20990

Canada 8061

Chinese Taipei 2000

China P RP 2010

Colombia 100

Denmark 2648

Egypt A RP 812

Fiji IS 90

France 980

German F Rep 2720Ghana 300

Greece 800

Israel 300

Italy 3700

Japan 15297

Korea RP 4082

Malaysia 18108

Mexico 8780

Netherland 2761

Philippines 1000

Sierra Leone 100

Singapore 5690

South Africa 5928

Spain 26040

Sri Lanka 4075

Switzerland 900

Thailand 985



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UAE 865

UK 2892

USA 102575

Zimbabwe 2320

Sample of Export Details of Neem Oil from Chennai port

Period 2002

Name of the exporters Country Quantity Date Port

Plasma Power Pvt.Ltd. Vancouver 600 Ltr Jan 2002 Chennai

M/S.Commercial Services Singapore 190 Kgs Jan 2002 Chennai

Afsan Exports Singapore 90 Kgs Jan 2002 Chennai

Plasma Power Pvt.Ltd. Los Angeles 1000 Ltr Feb 2002 Chennai

Plasma Power Pvt.Ltd. Pusan 1000 Kgs Feb 2002 Chennai

Southern Petrochemical Ind. Stockholm 6000 Ltr Feb 2002 ChennaiPlasma Power Pvt.Ltd. Vancouver 1000 Ltr Feb 2002 Chennai

Plasma Power Pvt.Ltd. Kawaihae 600 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Chicago 1040.88 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Port Tampa 832.70 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Livorno 1200.00 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Kahoma City 1000 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Chicago 1100 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Chicago 2000 Ltr Mar 2002 Chennai

Plasma Power Pvt.Ltd. Jakarta 400 Ltr Mar 2002 Chennai

E.I.D. Parry

( India ) Ltd.

Marseille 950 Kgs Mar 2002 Chennai

Plasma Power Pvt.Ltd., Chicago 30.00 Ltr April 2002 Chennai

Plasma Power Pvt.Ltd. San Diego 600.00 Ltr May 2002 Chennai

Plasma Power Pvt.Ltd. Chicago 1600.00 Ltr May 2002 Chennai

Plasma Power. Los Angeles 2000.00 Ltr May 2002 Chennai

Plasma Power Oklahoma City 1000.00 Ltr May 2002 Chennai

Plasma Power Los AngeleS 2498.10 Ltr May 2002 Chennai

E.I.D. Parry

(India )

Avivil Tel 5.00 Ltr May 2002 Chennai

Plasma Power London 25 Ltr May 2002 Chennai

Plasma Power London 25 Ltr May 2002 Chennai

E.I.D. Parry ( NICE 420 Kgs May 2002 Chennai

Plasma Power Mexico City 1600 Ltr May 2002 Chennai

K. Sivaram Seoul 50 Kgs May 2002 Chennai

Southern Manila 800 Lts May 2002 Chennai



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4.2.2. Countrywise exports of Neem extracts

Period April 2001 to March 2002

Country Qunatity in Kgs

Austria 50

Japan 763

Kenya 5000

Malaysia 90

Mauritious 530

Netherland 1000

Spain 200

Sweden 6000

U Arab Emts 300

UK 525

USA 31503

Zimbabwe 2208

48169

4.2.3. Sample of individual exports of Neem based pesticide

Period 2002

Name of the Exporters Quantity in

tonnes

Value in Rs. Country Date Port

E.I.D.Parry (I) Ltd., 0.400 148200 Kobe 21.06.2002 to

10.07.2002

Chennai



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SECTION - V

PRICE DETAILS

Price of Neem extracts Rs.370 per kg

Price of Neem pesticide formulation Rs.460 per kg

Taxes and duties Extra as applicable



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SECTION -VI

INDIAN DEMAND

Indian Azadirachtin potential

Under the optimistic assumption of an azadirachtin content of 5g per kg of driedkernels,there is already in existence reservoir of about 150 tonnes of azadirachtin peryear in India.This quantity can be tapped for commercial exploitation.

Export opportunities

There has been a positive feedback from the United States and Europe for Neempesticides. However, the registration process for pesticides is highly complicated inthese markets. It takes five to six years for a new product to be evaluated and registeredfor field use, besides costing millions of rupees. This is the primary reason why theexpected export turnover has not materialised.

In the US, Neem pesticides are permitted on certain greenhouse and ornamental cropsand tests are continuing with other crops. The American market is monopolised by asingle company Thermal Trilogy which has joint venture partner in India. A few moreIndian companies are likely to get their products registered soon. By 1999-2000, Neempesticides are likely to have a significant market in the US and Europe. Following the USexample, countries in Europe, the Far East and Australia are also expected to approveregistration.

The marketing problems were not anticipated by a number of units in India which startedproducing Azadirachtin powder as a technical grade pesticide during the last two years.Currently, a gram of pure Azadirachtin is valued at $1 in the international market. Theexport turnover cannot be significant unless the market outlets are developed to facilitategreater use of the products in the US. It would, therefore, be wise to concentrate on theIndian market by making CIB-approved formulations.

Marketing problem

In the case of Neem, there are the problems of aflatoxin and lead contamination. TheNeem seed in India is collected during the rainy season and processed in an unhygenicmanner, which can result in fungal growth and aflatoxin production. Fruit collected onroads gets contaminated with lead due to auto exhaust. The organic farmingassociations in Europe have come out against importing from India those agro products,where aflatoxin contaminated neem oil is used as pesticide. The future demand forneem products in organic farming would depend on how effectively these problems aretackled. Quality maintenance is,therefore, crucial for the steady growth in the usage ofneem pesticides.



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Use of Neem oil in pesticide sector

Plant products recommended for pests and diseases

Product Target crop Insect pest disease Dose

Neem seed kernel

Neem oil

Coconut

Rice

Redgram

Green gram

Powdery

Coconut

Cotton

Bengalgram

Gingelly

Rhinocerous beetle

BPH

Sheath rot

Shealth blight

Pod borers

Mildew

Termite

Mealy bug

Whitefly

Pod borer

Shoot webber and Pod

borer

With sand 1:2 ratio

3% FS

15 lt/ha FS

(to be followed after neem

cake soil applications)

2% FS

3% FS

5% spray on the base upto

2m Ht.

3% FS

5% FS

0.01% combined with

Endosulfan 0.07%

0.01% FS

Neem cake Rice

Coconut

Sheath blight

Tanjore wilt

150 kg/ha soil application

5 kg/tree



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Advantages

* Neem Emulsifiable Concentrate (EC) acts as an ovipositional deterrent. Insects do not lay

eggs on treated crop.

* It is an insect growth regulator. Malformed adults emerge which eventually suffer

mortality without damaging the crop.

* Neem EC works as an antifeedant and repellent.

* Neem EC does not affect the health of human beings, live stock, poultry and fish.

* It is selective in action against insects. Neem does not kill plant friendly predators and

parasites.

* It has been observed that crops when sprayed with neem oil EC are pest-free and growvigorously.

Presently available neem kernel all over India is 4,18,000 tonnes

Indian demand for Neem oil: Around 1.5 lakh tonnes per annum

NEEM CAKE

Neem cake is produced as byproduct in the production of Neem oil

Neem has demonstrated considerable potential as a fertilizer..

The residue left after the oil has been removed varies widely in composition. However, the

broad ranges in composition of Neem cake are:

Crude protein 13-35 percent

Carbohydrate 26-50 percent

crude fiber 8-26 percent

Fat 2-13 percent

Ash 5-18 percentAcid-insoluble ash 1-17 percent

The neem cake has considerable local potential. Although too bitter for animal feed, it

seems to have unique promise as a fertilizer. It contains more Nitrogen, Phosphorus,

Potassium, Calcium, and Magnesium than farmyard manure or sewage sludge.

It is widely used in India to Fertilise cash crops, particularly sugarcane and vegetables.



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Plowed into the soil, it protects plant roots from nematodes and white ants, probably due

to its content of the residual limonoids.

Neem cake sometimes seems to make soil more fertile than calculations predict. This is

apparently due to an ingredient that blocks soil bacteria from converting nitrogenouscompounds into nitrogen gas. When mixed with Urea, for example, neem cake cuts down

on the amount of Urea converted to nitrogen gas in the soil. So far, this finding, which

might prove to be a major breakthrough, has not been pursued beyond the laboratory. If it

proves real in everyday practice, it might boost the effectiveness of fertilizers everywhere,

restoring to the soil that part of their power now lost by bacterial action.

Size of the industry

The size of the Indian Neem industry is currently only Rs.40 to Rs.50 crore of which exports

accounted for about 50%.

Growth rate in demand 5 to 6% per annum



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SECTION -VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Drying of the seeds

Drying of the seeds is carried out by guadrant method. In this process, the space (mostlyit is the godown as the season coincides with monsoon) is divided into four guadrants.

The stock is piled in three of them to a height of two feet. Each of the lot is shifted to thenext quadrant every two or three days. The stock gets heated due to auto oxidation. Theheat is used for expediting the drying on one hand and on the other, during agitation, theextra heat is ventilated to avoid burning up or deterioration of the seed.

Drying can also be carried out in sun. The foreign matter is separated from the seeds byusing sieves of different sizes, before storing the seeds in gunny bags.

Storing of the seeds

The seeds are stored for 1 to 2 months during which they achieve maturation in oilcontent. Storing is necessary to get optimum yield of oil.

Decortification and Winnowing

The seed or fruit is decorticated in stone chakki or decorticator.

The husk is separated with winnowing fan.

The decorticator gives 70% shell and 25% kernel, when dried fruits are used. It gives45% shell and 50% Kernel when depulped seeds are used. The windege loss is 4 to 5%.



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Neem based products

Neem Kernel Extract

50 gm of Neem kernel is required for use in 1 litre of water. The Neem kernel ispounded gently. It should be pounded in such a way that no oil comes out. The outercoat is removed before pounding. This is used as a manure.

The seeds that are used for preparation of Neem kernel extract should be atleast 3months old and should not be used after 8 to 10 months. Before 3 months or after 8months, the azadirachtin contents is quite low in the seeds and hence it cannot beefficiently used for pest control.

The pounced Neem kernel powder is gathered in a muslin pouch and this is soakedovernight in the water. The pouch is squeezed and the extract is filtered. To the filtrate,an emulsifier like tween 80, sandovit, soap oil, nirma or soap cake powder is added. One

ml of emulsifier is added to one litre of water. The emulsifier helps the extract to stickwell to the leaf surface.

The kernel extract should be milky white in colour and not brownish.

Neem leaf Extract

For 5 litres of water, 1 kilogram of green leaf is required. Since the quantity of leavesrequired for preparation of this extract is quite high(nearly 80 kilograms are required forhectare), this can be used for nursery and kitchen gardens. The leaves are ground andthe extract is filtered. The extract is beneficial against leaf eating caterpillars, grubs,locusts and grasshoppers. To the extract, emulsifier is added as mentioned for kernel

extract.

There is no need to boil the extract. Boiling reduces the azadirachtin content. Hence thecold extract is more effective. Some farmers prefer to soak the leaves for about oneweek. However, this creates a foul smell.

Neem Cake Extract

100 gms of Neem cake is required for 1 litre of water. The Neem cake is put in a muslinpouch and soaked in water. It is soaked overnight before use in the morning. It is thenfiltered and emulsifier is added at the rate of1 ml for 1 litre of water. It is now ready forspraying.

Neem Oil Spray

30 ml Neem oil is added to 1 litre of water and stirred well. Only then will the oil andwater mix well. To this emulsifier is added (1 ml/1 litre). It is very essential to add theemulsifier and mix properly. It should be used immediately. Otherwise oil droplets startfloating. A knapsack sprayer is better for Neem oil spraying in preference to a handsprayer.



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Neem as Fertiliser

Neem has shown great promise as a potential fertilizer. Neem cakes and Neem leavescan be used for this purpose. They widely used in India to fertilise cash crops. When it

is ploughed into the soil, it also protects plant roots from nematodes and white ants. Theleaves are also used as fertiliser.

AZADIRACHIN

Yield of Azadirachtin

The yield of azadirachtin per kilo of Neem seeds collected from various sources has beenestimated as follows:

Source Yield of azadirachtin (g/kg)

Commercial Indian 0.75,0.2Kenya 1.00Nigeria 2.00Ghana 3.5

Extraction of Neem oil

The neem oil which is extrated from the neem fruit is a very valuable medicine andinsecticide.

The neem oil extraction process includes collection of the fruits, drying, storage,decortification, winnowing and finally crushing in expellers.

Collection : The neem fruits are swept together or handpicked. They are depulped byrubbing with soil or ash and then trampling on them.

The fruits are sold either as fresh or dried ones or depulped seed or even as kernels.

The moisture content in commercial neem fruit is 6 to 9.6% and after drying the moisturecontent in 5%.

Extraction process

Extraction is carried out in Ghani expeller. 30-40% oil is obtained when Kernels are

crushed. Ghani gives about 5% less oil. The fruits give 4-6% and depulped seeds give14-15% oil in expellers. 7-9% residual oil in cake is recovered by deoiling in solventextraction plant.

Maximum oil yield is obtained after 2 to 5 months fruit collection.

The refining process for oil is patented. The refining can be carried out with silica gel.



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Oil yield

Crushing in Whole fruit Depulped seed KernelGhani - - 25-30%

Expeller 406% 12-16% 30-40%

Neem extract as pesticide

The most important active ingredient is Azadirachtin, extracted from the neem seedkernels. It basically acts as an antifeedent and phogorepellant.

The amount of Azadirachtin neem seed kernels is influenced by a number of factors suchas humidity, climatic exposure to sunlight, seed drying, pH and method of extraction.Although, Azadirachtin is one of the many constituents of the seed kernel, it is thecompound found in the highest concentration and may therefore, serve as a subrepresentative of the biological activity.

The concentration varies from source to source and the percentage ranges from 1.5% to7%. On average, the Indian seed kernel contain about 3.5% of Azadirachtin.

Source of technology

* SPIC Science Foundation, Chennai

Major plant and machinery details

Name of the equipment Name of the suppliers

Dryer The Anup Engineering Ltd.,

Behind 66 KV Electric Sub Station

Odhav Road, Ahmedabad-382 415

ATRE Thermal Products Pvt. Ltd.,

Pushpa Heights, 1st Floor,

Bibwewadi Corner, Pune-411 037

Extractor Bangalore Pollution Control Systems Pvt. Ltd.,

2, IInd Floor, 5th Phase, Ist Stage

Bangalore-560 044

The EIMCO-K.C.P. Ltd.,

183, Anna Salai,

Chennai-600 006

Wet grinder K.B. Engineering

B/58, Kiran Estate, M.G.Road,

Goregaon (W), Mumbai-400 062



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Netzsch India Pvt. Ltd.

P.O. Box No.7314,Plot No.1961-B,

Asidad Colony,

Chennai-600 101

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

Boiler Cethar Vessels Ltd.,

No.4, Dindigul High Road,

Trichy

Firetech Boilers Pvt. Ltd.

No.211, 2nd Cross,

38th Main, B.T.M. Layout

2nd Stage, Bangalore-68



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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirement

Basis: One tonne

Deoiled neem cake 2.61 tonneSpices, vegetables and other chemicals

Utilities:-

Fuel 480 litresPower 100HP

Raw material availability:

Neem seeds constitute the basic raw material for Neem pesticides. Some 25 yearsback,the Khadi and Village Industries Commission (KVIC) estimated seed production atfive lakh tonnes.However,recent estimates indicate the quantity may be many timesmore.Nearly 100 oi mills and 40 bio pesticide units consume more than five lakh tonnesof seed annually.

Fruit collection and marketing has become an organised business in Tamil Nadu,AndhraPradesh,Maharashtra and Uttar Pradesh.Adequate quantity of seed is available for thenext four to five years,but in the long run,a shortage of Neem seeds is likely.This gap hasto be filled by new Neem plantations.

Production level of Neem seeds : 1,85,000 tonnes per annum

The domestic demand is likely to gallop as increasing applications are found for neemseeds, ranging from pesticidal to fungicidal, as a contraceptive and anti-diabeticpreparations, for skin care, in soaps and shampoos, and for toothpaste and mouth-washes. The present surplus in supply over demand (both domestic and export) of neemseeds couls turn into a deficit in a few years. The solution is commercialisation of neemplantations.



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Neem cultivation can be viable, if intercropped with the jaffra plant which produces theannato-coloure (orange) natural dye. On one acre, 80 neem trees intercropped with 90

jaffra plants is not expected to yield returns on an operational cost of about Rs.6,000 inthe first year and Rs.2,000 in the second. The jaffras are expected to generate a returnof about Rs.5,000 in the second year.

Alternately, neem can be intercropped with indigo. Some corporates have already startedgetting into the commercialisation of neem.



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SECTION IX

GLOBAL SCENARIO

Global suppliers

* International Sourcing Inc.

779 Susquehanna Ave.

Franklin Lakes, NJ 07417, USA

Contact: Larry Smith

Vice President

Tel:(201)560-0111

Fax: (201)560-1156

E-mail : [email protected]

Activity : Trading house

* Pokonobe Industries,

PO Box 1756

Santa Monica, CA90406, USA

Contact: Robert Grebler

General Manager

Tel:(310)392-1259

Fax:(310)392-3659

E-mail : [email protected]

Activity : Trading house



26

SECTION X

ECONOMIC CAPACITY AND PROJECT COST

Economic capacity 15 tonnes per annum of Natural extracts100 tonnes per annum of Neem formulation

Project cost Rs.171 lakhs

Assessment of project cost

1. Land

S.No. Description CostRs.in lakhs

1.1 Cost of land of one acre at Rs.5.5 lakh per acre 5.5

1.2 Cost of levelling, laying internal roads/fencing andcompound wall 0.55

Subtotal 6.05

2. Building


2.1 Factory building of area 320 sq.m. at Rs.3200/sq.m. 10.242.2 Non-factory building of area 70 sq.m.at Rs.4500/sq.m. 3.15

Subtotal 13.39

3. Cost of Plant & Machinery


3.1 Cost of basic plant and machinery 453.2 Instrumentation and control 3.383.3 Pipelines and valves 4.53.4 Structurals for erection 2.25

Subtotal 55.133.5 Octroi, excise duty, sales tax, etc.at 12%

6.623.6 Packaging and insurance charges (2%) 1.13.7 Transportation charges (2%) 1.13.8 Machinery stores and spares (2%) 1.13.9 Foundation charges (2%) 1.13.10 Installation charges (2%) 1.1

Total cost of plant and Machinery 67.25



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4. Technical know-how fees Rs.2.00 lakhs

5. Miscellaneous fixed assets


5.1. Electrification 4.55.2. Steam boiler and auxillaries 4.55.3. Water storage tank, borewell etc. 0.85.4. Fuel storage tank 1.25.5. Laboratory equipment 0.85.6. Office machinery & equipment 1.65.7. Material handling equipment, packaging machinery,

weigh balance, etc.1.3

5.8. Diesel generator 4.45.9. Effluent treatment 1.3

Total 20.4

6. Preliminary & Pre-operative expenses:


6.1. Preliminary expenses 1.36.2. Pre-operative expenses:-

6.2.1 Establishment 1.36.2.2 Rent rates and taxes 1.66.2.3 Travelling expenses 0.86.2.4 Interest and commitment charges on borrowings 86.2.5 Insurance during construction period 1.76.2.6 Other preoperative expenses and deposits -6.2.7 Interest on deferred payment -

Total 14.7

7. Provision for contingency Rs.7.83 lakhs

8. Working capital margin Rs.39.32 lakhs

9. Total project cost Rs.171 lakhs

10. Means of Finance

Promoter's contribution Rs.68 lakhsTerm loan from financing institutions Rs.103 lakhsTotal project cost Rs.171 lakhs



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11. Financial statements

Cost of production

A Variable cost Rs. in lakhs

Raw material and utilities 340.98

Spares and maintenance 4.04

Selling expenses 25.78

Total variable cost (A) 370.79

B Fixed cost

Salaries and wages 9

Interest on term loan and working capital loan 39.7

Depreciation 9.1

Administrative expenses 15.47

Total fixed cost (B) 73.26

C. Total cost of production (A+B) 444.05

D. Selling price per kg. (in Rupees)

Neem extract

Neem formulation

370

460

E. Annual sales turnover 515

F. Net profit before tax (E-C) 71.45

G. Breakeven point in % 51%



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SECTION XI

SWOT ANALYSIS

Strength Large availability of Neem plantation

Weakness Lack of consolidation of the industry

Opportunity Eco friendly product and exports

Threat Poor product quality due to mushroomgrowth



SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATION

Neem is one of the widely discussed subjects in India today. The advocates of use of

natural pesticides, the green campaigners and those who believe in appropriate resources

based development are propagating at every available forum about the tremendous

relevance of Neem for India. The fact the Neem trees are grown in large quantities in India

have made many people in India think that the Indian neem trees represent great

opportunity for the country in several ways.

Neem pesticides represents an excellent investment opportunity, in view of the eco-

friendly nature of the product, its use in highly relevant and growth oriented sector such as

pesticides, export prospects and reasonable return.

neem based pesticide[1]

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