plantation and extraction of amla

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PLANTATION AND EXTRACTION OF AMLA

CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II APPLICATIONS SECTION III INDIAN EXTRACTORS /FORMULATORS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

FOR AMLA OIL 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

A NEW INDUSTRY AND RECOMMENDATIONS

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PLANTATION AND EXTRACTION OF ASHWAGANDHA

CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION 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


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SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION Family Solanaceae

Common Names

Ashwagandha (Sanskrit) Asgand (Hindi) Indian ginseng Winter cherry (English) Amukkirag (Tamil) Amukkiram (Malayalam) Asundha (Gujarat) Amangura (Kannada) Ashvagandha (Telugu) Asvagandha (Bengali)

Plant Extract Withanolides Min 1.5% w/w Alkaloids Min 1.0 % Specification pH of 5% w/v soln. 4 to 6.5 Loss of drying < 5% w/w Total soluble solids < 90% w/w Ash content < 15% w/w Acid insoluble ash < 5% w/w Bulk density 0.2 - 0.6 g/cc Lead < 10ppm Cadmium < 1ppm Arsenic < 2ppm

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SECTION II

PRODUCT APPLICATIONS * Enhances the oxygen uptake in the blood and acts as stimulant Highly esteemed for its rejuvenating capacity. * Provides tranquility, calmness and adaptogenic activity * Used for treatment of rheumatism, gout, hypertension

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SECTION III

INDIAN MANUFACTURERS Aswagandha is produced both as extract and as formulations by number of units in the country mostly in the unorganised sector The Indian producers and formulators include the following * Healthy Herbals S. Duraisamypuram Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist.-628 902 * Sri Srinivasa Herblex (P) Ltd., Shed No.6, Phase III Autonagar, Vijayawada-520 007 * Dr.Jain’s Forest Herbals Pvt Ltd Mumbai

Ashoka Industrial Estate, Unit No. B-9, Golani Complex. Vajreshwari Rd, Vasai (E) 401202

* Bengal Chemicals & Pharmaceuticals Ltd. (A Govt. of India Enterprise) Panihati B.T. Road, 24-Pgs(N)-743 176 Factories : 1. 168,Maniktala Main Road, Calcutta-700 054 * Care & Cure Herbs Ltd. 787/2, Anna Salai, T.N.E.B. Avenue, Chennai-600 002 * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai-600 106. * The Himalaya Drug Co. (HDC) Makali,

Bangalore-562 123

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* M.M. Herbo Global A-40, Subhash Nagar, Jaipur - 302 016 * Pioma Chemicals 217/C, Shyam Kamal Agarwal Market Vile Parle (E), Mumbai-400 057 * Siris Agritech Opp. Lane to Srinivasa Theatre Markapur-523 316 Prakasam Dist. Andhra Pradesh

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SECTION IV

IMPORT/EXPORT LEVEL 4.1. Import Period:- April 2000 October 2001 Ginseng Extract including Powder Total quanity 3012 kgs Country

Quantity in kgs

China PRP 500 Italy 2281 Japan 56 Korea RP 100 USA 75 Other Ginseng Roots Period:- April 2001 to March 2002 Total quantity 95078 kg per annum Country Quantity in kgs Belgium 16943 Canada 300 China P RP 4497 German F Rep 344 Hong Kong 9135 Iran 26650 Japan 3000 Mexico 8000 Thailand 150 UAE 5000 UK 119 Uzbekstan 17940 Vanuatu Rep. 3000

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4.2. Export Ginseng Extract including Powder Period :- April - October 2001 Total Quantity : 1908 kg

Other Ginseng Roots Period :- April 2001 to March 2002 Total quantity: 867799 kg per annum Country

Quantity in Kgs

Argentina 7000 Australia 100 Austria 4000 Belgium 1400 Brazil 14000 Bulgaria 2500 Canada 17900 China P RP 1000 Finland 2400 France 26882 Germany F Rep 43390 Greece 12300 Hong Kong 2330 Israel 6100 Italy 85430 Japan 28569

German F Rep52%

USA48%

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Kazakhstan 6419 Malaysia 55626 Mexico 24000 Netherland 42200 Newzealand 1000 Poland 8000 Portugal 3000 Qatar 300 Russia 5940 Spain 55690 UAE 125 UK 35366 USA 374832

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SECTION V

PRICE DETAILS

Price of Aswagandha extract Rs.500 per kg Taxes and duties Extra as applicable

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SECTION VI

INDIAN DEMAND

6.1 Driving Factor For Demand : Tonic Aswagandha is used in several formulations of feel-good TONIC AND revitalizers. A large number of general purpose tonics are being formulated and used in the domestic market. Revitalizer Aswagandha improves Oxygen uptake. increased oxygen heightens cognitive functioning naturally. The brain uses 25% of the body's oxygen intake! When deprived of oxygen, brain functioning is impaired. Use of Aswagandha helps improve concentration, increase alertness, enhance perceptual abilities and fight brain fatigue. Adaptogenic refers to the system of coming back to normalcy. for example after a long flight by jet. Aswagandha is a proven Adaptogen and hence can substantially substitute the high priced Adaptogen in the market - Melatonin. 6.2 Traditional Formulations involving Aswagandha Immunomodulator/Rasayan Drug, General Tonic in Arthritis. Ashwagandhadi Churna Ashwagandha Rasayana Ashwagandha Ghrit Ashwagandharishta Revitalizers Containing: Aswagandha, Schizandra, Gotu Kola, Pau D'arco And Ginger In addition to large internal consumption, the above formulations are also exported to some extent.

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6.3 A few Complementary Herbs Combination with Shilajith Aswajith is a combination of extracts of Aswagandha and Asphaltum (Shilajith), a safe and inert excipients, Osogold cap.rejuventive & for sexual debility Swarnabhasma, Makardhwarj shilajit, Keshar, W.Musali, Ashwagandha, Kuchala, Kaunchablister (strip 10*10c) Himani boroplus Marigold, Daruharidra, Aswagandha, Chandan, Saussurea lappa, Tulsi, Karpur Kachari, Koravir, Jasad bhasma, Guduchi salva, Tankan amla, Jatamanshi, Surasar Sankha churna. La-vital Withania somnifera (Aswagandha) 300 mg. Asphaltum (Shilajit) 175 mg. Zinc (Yasad bhasm)25 mg. Corallium rubrum (Praval bhasm)15 mg. Jeevani Withania somnifera Trichopus zeylanicus (Arogyappacha) Evolvalus alsinoides (Vishnukranthi) 6.4 Indian demand for Aswagandha extract Around 75 tonnes per annum

6.5 Growth rate in demand 8 to 9% per annum

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Withaferin A Organ used: roots of Aswagandha. Withaferin a is the most important of the Withanolides isolated so far, to which the curative properties of the leaves are attributed. For its separation, the leaves are extracted with cold alcohol; the extract is purified and dried, and finally crystallized from aqueous alcohol (yield, 0.18% air-dry basis). Withaferin A can also be obtained from the leaves by methanolic extraction, fractionation and chromatographic separation. The powdered drug is greyish with pungent odour and acid taste. It is characterized by the presence of a large number of starch-grains, cork-cells, cortical and xylem-parenchyma, tracheids, and woodfibres. It is insoluble in water and is administered in the form of suspension Technology Agro Technology Central Institute of Medicinal and Aromatic Plants ( CIMAP ) - Lucknow Process Technology * Regional Research Laboratory - Jammu

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Plant and machinery equipment and suppliers Extractor Kulkarni's Hafi Elektra Pvt. Ltd

Post Box No.132, Thane 400 602

Crystalliser Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105 Febchem Engineering Works Plot No.A/2, Sector-A, Sanwer Road, Industrial Area Indore-452 003

Dryer Technical Products Engineers & Manufacturers 159 (O), Vidya Nagari Marg, Vidyanagari, Kalina Bombay-400 098

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1 Botanical Trait Shrub Upto 1.5 m height Leaves Upto 10 cm long, ovate Flowers Pale green, small about 1 cm long bunched in axillary clusters. Fruit Six mm wide, globose, smooth red, enclosed in

membranous calyx. Roots Simple and round starch-grains 8.2 Prevalence : Madhya Pradesh - has cultivation on about 4000 hectares. Punjab, Rajasthan, Andhra Pradesh and Utaranchal also have significant cultivation. 8.3 Popular commercial varieties WS-20, WS-22, Jawahar Asgandh – 20, Jawahar Asgandh 134 Rakshita Poshita WSR The Jawahar variety gives superior yield and in less humid soil. This has roots 10 cm long and about 2 cm thick. they are woody and bright. The cultivated variety normally contains more Withanolides though it looks thinner. Bright, brittle and thick varieties are still preferred in the market. * Recent research has discovered another species called Nagouri Ashwagandha of the same family, which is only found in the Nagaur region of Rajasthan.

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8.4 Cultivation Practices Elevation: 180 to 1700 m above mean sea level Soil Grows well in well drained sandy, sandy loam or light textured red soils having pH 7.5 to 8. Climatic Condition Semi arid tropical areas receiving 500 to 750 mm rain fall are suitable Requires dry season during its growing period Sowing Period Month of August Seeding Generally sown by broadcasting the seeds(10 to 12 kg per hectare) mixed with sand 10 times the weight of seed. Seeds germinate in 6 to 10 days after sowing Harvesting Period 240 to 250 days after planting. The maturity of the crop is judged by drying out of leaves and reddening of berries. 8.5 Yield Dried Roots : 1000 to 1200 kg per hectare Seeds: 75 to 100 kg per hectare Improved Variety from CIMAP Poshita Variety Poshita has a maturity period of 180 to 210 days and yields 1400 kg per hectare of roots and 3 to 5 kg per hectare of Withanolide

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8.6 Post Harvesting ��The entire plant is pulled out ��Cut the stem 1 to 2 cm above the crown ��Separate the roots ��Roots are cleaned and cut into 7 to 10 cm long pieces ��Dried as a whole in the sun and stored. Grading Of Roots - A grade Root pieces Upto 7 cm in length,1 -1.5 cm dia, solid cylindrical with smooth external surface and pure white from inside. B grade Root pieces Upto 5 cm in length,1 cm dia, solid brittle and white from inside. C grade Solid root pieces 3 to 4 cm in length,1 cm or less dia D grade Solid root pieces ,semi solid or hollow, very thin, yellowish inside and less than 1 cm in dia. 8.7 Raw material and utility requirement Raw material Aswagandha Root 1.88 tonnes Utility Total installed Power 60 HP Fule oil 80 litres

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SECTION IX

GLOBAL SCENARIO

9.1 Patent issue US based Natreon Inc. has obtained the US patent in 2000 for the extract of Aswagandha. The US patent office has granted a dozen patents in the last five years on Aswagandha centered findings. In most cases, a majority of investicators are either Indians or people of Indian origin. 9.2 A few Overseas Players * Oxygen Research Institute

20 Sunnyside Ave. Suite A-164 Mill Valley, CA. 94941 USA

* Sabinsa Corporation USA * Nutriscience Innovations Llc USA * Gorkha Exim (P) Limited, Nepal

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 30 tonnes per annum of Aswagandha extract Project cost : Rs.77 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 0.50 acre at Rs.5.5 lakh per acre

2.75

1.2 Cost of levelling, laying internal roads/fencing and compound wall

0.28

Subtotal 3.03 2. Building S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 100 sq.m. at Rs.3200/sq.m.

3.20

2.2 Non-factory building of area 30 sq.m.at Rs.4500/sq.m.

1.35

Subtotal 4.55 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 25.00 3.2 Instrumentation and control 1.88 3.3 Pipelines and valves 2.50 3.4 Structurals for erection 1.25 Subtotal 30.63 3.5 Octroi, excise duty, sales tax, etc.at 12% 3.68 3.6 Packaging and insurance charges (2%) 0.61 3.7 Transportation charges (2%) 0.61 3.8 Machinery stores and spares (2%) 0.61 3.9 Foundation charges (2%) 0.61 3.10 Installation charges (2%) 0.61 Total cost of plant and Machinery 37.36

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4. Technical know-how fees Rs.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 0.80 5.2. Steam boiler and auxillaries 1.50 5.3. Water storage tank, borewell etc. 0.60 5.4. Fuel storage tank 0.60 5.5. Laboratory equipment 0.60 5.6. Office machinery & equipment 0.80 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.80

5.8. Diesel generator 4.40 5.9. Effluent treatment 1.20 Total 11.30 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.80 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.80 6.2.2 Rent rates and taxes 0.80 6.2.3 Travelling expenses 0.60 6.2.4 Interest and commitment charges on borrowings 2.00 6.2.5 Insurance during construction period 0.60 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 5.60 7. Provision for contingency Rs.4.14 lakhs 8. Working capital margin Rs.10.25 lakhs 9. Total project cost Rs.77 lakhs 10. Means of finance (Rs. in lakhs) Promoter's contribution 31 Term loan from financing institutions 46 Total project cost 77

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11. Financial statements A Variable cost

Rs. in lakhs

Raw material and utilities 41.93 Spares and maintenance 2.24 Selling expenses 7.50 Total variable cost (A)

51.67

B Fixed cost

Salaries and wages 12.00 Interest on term loan and working capital loan 13.88 Depreciation 5.04 Administrative expenses 4.50 Total fixed cost (B)

35.42

C. Total cost of production (A+B)

87.09

D. Selling price per kg. (in Rupees)

500.00

E. Annual sales turnover

150.00

F. Net profit before tax (E - C)

62.91

G. Breakeven point in %

36

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SECTION XI

SWOT ANALYSIS

Strength Ready availability of raw material

Weakness Inadequate product standardisation

Opportunity Excellent demand potential

Threat Difficulty in penetrating export market due to competitive conditions

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION

There are several plants that have Adoptegenic characteristics such as the following. American Ginseng (Panax Quinquefolius) Korean and Chinese Ginseng (Panax Ginseng, C.A.Meyer) Devil's Bush (Eleuthrococcus Senticosus) so-called "Siberian Ginseng" Aswagandha (Withania Somnifera) Indian Ginseng Aswagandha taking its due share in the general tonic market depends on market innovative approach of the application developers of the herbal industry. Demand for the formulated products, efficacy being the same, depends only upon the concept promotion and experts' backing. The Ayurvedic Rejuvenative formula Chyavanaprasa contains large amounts of Ashwaganda and Amla which are the main tonic herbs. Adaptogenics industry is rapidly growing.

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FAIRNESS CREAM

CONTENTS

SECTION I PRODUCT CHARACTERISTICS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY


PROJECT COST AND PROFITABILITY PROJECTIONS SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR


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SECTION I

PRODUCT CHARACTERISTICS

1.1. General details Basically creams and lotions are emulsions which are relatively stable mixtures of oils and fats and water. These are generally made by mixing oil soluble and water soluble substances together in the presence of an emulsifying agent The manufacture of creams and lotions dates back to the earliest times when these were prepared by digesting aromatic gum, resins, roots, flowers etc. with fats and oils. Though most of these fairness products are based on one simple formula of controlling dispersion of Melanin (the pigment that controls the skin colour), different companies are adding a number of other additives to position themselves differently from others and it is this positioning that makes the difference. 1.2. Important Categories of Creams Cosmetics creams are marketed and sold on the basis of their function which is generally advertised on the packaging which contains them. Thus consumers have come to learn what type of emulsion they can expect from a packaging marked, “Cold cream” or “Night cream”. However, this is not a particularly precise means of classification, since there are number of variations in appearance, texture, subjective feel, ease of spreading and speed of rubbing and there is a considerable amount of overlapping.

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The consumer, therefore, is likely to make his or her own judgement on the subjective features, using the manufacturer’s functional labels as a guide to end use and quality. The companies generally sell their fairness products under the categories of sunscreen lotions, vanishing creams, cold creams etc. Category

* Cold cream • Cleansing creams • All purpose creams • Emollient creams • Skin Protective and hand creams * Vanishing creams * Foundation creams --------------------------------------------------- * Liquid creams * Sunscreen lotions Usage of Talcum powder for fairness purposes was prevalent in earlier days

��Low end ��Middle end ��High end

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Examples of brand names in different category Low end Fair and Lovely

Godrej ‘Fair Glow’ and ‘Fairever Freschia Vicco Turmeric

Middle end Samara Fairness cream Lotus Fairness gel Avon VIP Fairness cream Oriflame Natural Northern Light Biotique Coconut Milk Oriflame Love A ‘Fair

High End L’Oreal Plenitude White Perfect range Lancome’s Blanc Cristal range YSL’s Blanc Absolu Serum Clinique’s Active White Line Elizabeth Arden’s Visible Whitening Pure Intensive capsules Estee Lauder’s White Light.

1.3. Characteristics Creams are for the most part solid or liquid emulsions. If they set as solid, they are emulsified in the molten state by heating the ingredients to liquify them and permit them to solidify after being filled into the packages. These emulsions are either oil in water or water in oil type though the former type of emulsion predominates in the cream field. Only in a limited number of cases creams are not emulsions but mixtures closely resembling low melting ointment bases. These consist mostly of petrolactum waxes and fats and contain a negligible or a small quantity of water. The introduction of numerous new emulsification aids and cream bases has made possible in the recent years to manufacture a great variety of creams than was formerly possible.

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Characteristics of skin creams Functional Property Physico chemical Property Subjective Property

Cleansing creams Cold creams Massage creams Nigh creams

Medium to high oil content Oil in water or water in oil Low slip point oil phase Neutral pH May contain surfactants of improved penetration and suspension properties

Oily Difficult to “rub in” May be stiff Also popular as lotions

Moisturising creams Foundation creams Vanishing creams

Low oil content Usually oil in water Low slip point oil phase Natural to slightly acidic PH May contain emollients and special moisturising ingredients

Easily spreadable and “rub in” quickly Available as creams or lotions

Hand and body protective Low to medium oil content Usually oil in water Medium slip point oil phase May have slightly alkaline or acidic PH May contain protective factors especially silicones and lanolin

Easily spreadable but do not “rub in” with the ease of vanishing creams

All purpose creams Medium oil content Oil in water or water in oil

Very often slightly oily but should be easy to spread

Packaging: Stand-up tube packs have gold printing and a leaflet inside the pack that reveals information to the discerning user.

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SECTION II

PRODUCT APPLICATION Fairness cream gives fairness with an even tone, while clearing dark spots, discoloured and pigmented skin. The Fairness cream is supposed not only to impart fairness, but also remove blemishes from the skin. Its natural action involves reduction of the black melanin in the skin without changing the skin’s natural balance. No fairness cream can make the individual fairer than the skin with which the person was born. What they can do is to reverse the damage done by unprotected long exposure to the sun and protect the person against the harsh sunrays. When used regularly, it gently but effectively lightens and improves skin tone.

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SECTION III

INDIAN MANUFACTURERS 3.1. Important Fairness cream producers There are number of Fairness cream producers in India both in the organised and unorganised sector. 3.2. Important players and their brand names

Important Players

Brand name Product type

Hindustan Lever Ltd. (HLL is the only listed company that has a visible presence across all segments.) Ponds India Ltd GST Road, Chromepet, Chennai 600 044. Lakme 1st Floor, Army Navy Building M.G. Road, Mumbai-400 001.

Fair & Lovely Ponds Lakme

Cream, soap Fairness cream, Ponds cold cream, Cream, Lotion SunScreen lotion, Lakme sunscreen cream, Cream, Lotion

Emami Limited 6-A, R.N. Mukherjee Road Calcutta-700 001

Naturally Fair, Vicco Turmeric

Cream

Cavinkare Limited Formerly Beauty Cosmetics Limited, 130(New No.237), Peters Road, Chennai-600 086

Fairever

Cream

Paras Freschia

Cream

Godrej Consumer Products Ltd Pirojshanagar, Eastern Express Highway Vikhroli (W), Mumbai-400 079

Fair Glow

Soap, Cream

Procter & Gamble Hygiene and Health Care Ltd.,

Clearasil face cream

Dabur

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Dr Morepen J.L.Morison (India).

SECTION IV

IMPORT/EXPORT LEVEL 4.1. Imports Fairness cream is imported in negligible quantity 4.2. Exports Sample of individual Exports of Fairness creams (In Chennai port) Period 2002 Name of the exporters

Quantity Value in Rs. Country Date

Cavinkare Private Limited 520 BOX 1873381.27 Port Kelang Feb 2002 Cavinkare Private Limited 10 BOX 3816.00 Port Kelang Feb 2002 Cavinkare Private Limited 25 CTN 162029.45 Dubai Feb 2002 Cavinkare Private Limited 50 CTN 287104.81 Dubai Feb 2002 Cavinkare Private Limited 75 CTN 460504.74 Dubai Feb 2002 Cavinkare Private Limited 730 BOX 2660987.50 Port Kelang Feb 2002 Vale Exports (P) Ltd 1440 PCS 12342.40 Colombo APR 2002 Vale Exports (P) Ltd 2160 PCS 18513.60 Colombo APR 2002 Vale Exports (P) Ltd 576 PCS 13807.50 Spain APR 2002 Vale Exports (P) Ltd 720 PCS 32847.37 Spain APR 2002 Saree Museum 12 PCS 406.55 Johannesburg MAY 2002 Saree Museum 6 PCS 145.20 Johannesburg MAY 2002 Cavinkare Private Limited 300 BOX 1032290.75 Kuala Lumpur MAY 2002 Cavinkare Private Limited 1800 CTN 2631410.00 Port Kelang MAY 2002 Cavinkare Private Limited 30 CTN 8775.00 Yangon MAY 2002 Cavinkare Private Limited 225 CTN 698994.02 Yangon MAY 2002 Cavinkare Private Limited 150 CTN 517122.84 Yangon MAY 2002 Cavinkare Private Limited 270 CTN 519522.02 Yangon MAY 2002 Afsan Exports, 160 PCS 11679.84 Singapore MAY 2002 Cavinkare Private Limited 50 CTN 139083.75 Colombo MAY 2002 Cavinkare Private Limited 100 CTN 285298.09 Colombo MAY 2002

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SECTION V

PRICE TRENDS Basic price Rs.28/- for 25 gms Rs.49/- for 50 gms Rs.5 for 9 ml sachet Generally, the sachet packs of fairness creams, are retailed at a lower price per gram than larger pack sizes. It is claimed by the companies that savings in packaging costs are passed on to the users. The size and price strategy is a win-win situation for consumers and the companies. It increases volumes while maintaining margins and at the same time, provides the consumer the flexibility of lower purchase cost and the opportunity to try new products.

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SECTION VI

INDIAN DEMAND 6.1. General details Turnover of Indian fairness cream market Around Rs.710 crores Growth rate in demand for Fairness cream Around 10% per annum 6.2. Men/Women classification of consumers

6.3. `Number of players Number of fairness cream brands in the National market Around 7

Men32%

Women68%

According to industry estimates, growth rate in the fairness cream market slowed down to three percent in 2001, against 8 to 10 percent earlier. This probably explains why players are turning aggressive in pushing their respective brands. Source: Business Line dated 10.7.2002

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Regional market Many more in the regional market 6.4. Fairness Cream market Market Size of Indian cosmetic and toiletries industry Around Rs.3000 crores Market size of skin care segment Around Rs.1200 crores Market size of Fairness creams Around Rs.710 crores Market share of skin care segment Around 60% Specialty creams such as sunscreen lotions, moisturisers and toners, cleansing lotions, under-eye dark circle removing creams and cold creams contribute the rest. Market segmentation for fairness creams Sales value (Rs. in crore) Growth, %

Aug’2000 to

July 2001 Aug;1999 to July’2000

All India 711.33 619.82 14.76 North Zone 185.56 164.32 12.93 East Zone 129.02 106.02 22.54 West Zone 163.73 145.83 12.27 South Zone 232.13 203.65 13.98 Metro 135.30 118.50 14.17 6.5. Market share of major players Company

Brand Market share in %

Hindustan lever Ltd. Fair and Lovely 53 Cavinkare Ltd. Fair Ever 12 Godrej Soaps Godrej FairGlow 3.4 Emami Gold Turmeric and

Naturally Fair 1 to 2

Revlon Fair & Glow 1 to 2

Others Niveas Torrel’s Pond’s Some other marginal players

Visage Freya Fairness Dream Fairness cream

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6.6. Growth trend Be it a fairness cream or a soap or a tablet, every product in this segment is witnessing growth larger than the overall personal care product category. The bottom-line is that Brands are products that are distinguished from others. Brands constantly evolve. Successful brand proprietors manage to anticipate market shifts and reposition and develop their brands accordingly. Cosmetic companies are growing at a faster pace as indicated below. 2001 (In.Rs.crore)

2000 (In.Rs.crore) Growth (%)

HLL (personal products) 2212.08 1763.87 25.41 J.L. Morison 50.63 41.00 23.49 Emami 210.09 148.1 41.86 Fem Care Pharma 34.05 27.59 23.41 Modicare 180 130 38.46 Amway 500 250 100 Growth trends In percentage Value growth Volume growth Price growth

Skin creams 11 6 5 Lipsticks 13 3 9 Source: ORG-MARG 6.7. Growth Prospects – Highlights of ORG Marg study An ORG Marg study reveals that while most FMCG products were affected by the general slowdown, the cosmetic segment witnessed relatively good growth in volume and value in 2001.

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Not only have more people started using cosmetics, they are also willing to pay more to look and feel good. Skin care segment The penetration rate is higher in the skin care segment compared to lipsticks. In the skin care segment, price and volume play an equal role in value growth. Lipsticks segment: While volume growth has remained low, at 3%, in the case of lipsticks, much of the value growth has come from price rises. Change pattern There is constant upgradation from mass to premium products. Though mass products still constitute a major portion of the cosmetic market, a certain segment is obviously ready to upgrade to the next category, as disposable incomes rise. Increased media exposure, the willingness to spend more on personal care, consciousness about looks and advertisements and promotions targeting various consumer segments are some reasons for these trends in consumption and penetration. Cosmetics are still seen as elitist products and may be the last thing on an average Indian consumer’s mind. Though the low penetration levels for most cosmetic products suggest much potential, the market for cosmetic products may remain a niche market, accessed by a small proportion of the consumers. Despite the tall claims, the actual growth prospects would be limited to this extent

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. General details Emulsions in the form of creams and lotions form a very important part of the cosmetics market and much time is spent in the development of new raw materials by both suppliers and cosmetic companies. The raw materials include water, petroleum oil derivatives, oils, fats and waxes as derivatives, humectants and emulsifying agents. Oils and fats and waxes and derivatives therefrom comprise an essential portion of a cream.. Glyceride oils are derived from vegetable oils and mineral oils and hydrocarbons are derived from petroleum oil. Fats like cocoa butter or stearin are also glycerides containing fatty acids of higher molecular weight. They also exhibit chemical properties similar to vegetable oils. Paraffin waxes and petroleum jellies also have higher molecular weight. They also exhibit chemical properties similar to vegetable oils. Paraffin waxes and petroleum jellies also are higher homologs of mineral oil and hence they also act in the same way chemically as the mineral oil do. Waxes used in creams and other cosmetics include bees wax, carnauba wax, candelilla wax, montan wax, ceresin, ozokerite, Japan wax and spermaceti, out of which beeswax and spermaceti are of animal origin and cariauba, candelglla and Japan wax are of vegetable origin.. Out of these waxes, bees wax, ceresin and spermaceti are the most important for cosmetics.

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7.3. Manufacturing process of creams When a borax solution is mixed with molten beeswax, the sodium salts of the waxy fatty acid will be formed at the oil water interphase. By using less than the theoretical quantity of borax this gives a more stable textured cream. Usually bees wax to the extent of 5-6% by weight is used. The amount of borax neutralised bees wax in a cold cream can vary from 5 to 16%. With lower percentages softer creams are produced which can be stiffened if required by incorporating other waxes. For the preparation of creams, the oils, fats and waxes are melted to a clear solution. Borax is slowly added under stirring, the temperature being maintained at 68 to 72 deg. The selected perfume is added while cooling at 45 to 50 deg. and the mass is well stirred. The cream is poured at 42 deg.C. Sometimes, the cream is stirred until cold, allowed to set for a day, perfumed, passed through an ointment mill and packed warm. Skin nourising creams Night or massage creams are designated to be left on the skin for several hours or to remain mobile on the skin even after vigorous rubbing. These are therefore composed with a substantial oil phase which will spread easily without disappearing but also without rubbing off onto clothing or bed linen in use. Such creams generally have a high oil content and are water in oil type having a soft solid or viscous liquid characteristics. Massage has a valuable part to play in skin that vigorous rubbing of the skin helps to prevent the build up of excessive numbers of dead surface cells and keeps the epidermal blood supply in good condition. The term moisturising has also been applied to water in oil creams of this type. With the advances in scientific research on skin care which have taken place during the recent years. The concept of moisturising has broadened beyond the simple occlusive skin barrier principle, many modern moisturising creams are comparatively light and easy to rub as compared with those of the overnight and massage type, although there still remains a market for the moisturising creams. Besides the constituents which can be shown to have a moisturising effect or a UV filtering effect, claims have been made, from time to time that materials have been discovered which have a beneficial effect on the skin and these often find their way into night or massage creams. Prominent among these are ‘natural’ products particularly vitamins.

16

Other predominant oil phase constituents in massage and night creams are petrolactum, mineral oil, lanolin and low melting point waxes such as beeswax and low melting point miner waxes (ceresins and paraffin). Esters such as isopropyl palmitate, isopropyl myristate and purcellin oil are reserved for higher ‘vanishing cream’ types of product. 7.4. Source of technology * National Research Development Corporation,

(A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048.

Plant and machinery equipment Blender and mixer ACE Pack Machines

23, V.N. Industrial Estate Bharathi Colony, Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Chemfilt 1304/A, GIDC V.U. Nagar-388 120, Gujarat

Packaging machinery A S & T India Ltd. C-30, Neeti Bagh, Khel Gaon Marg, New Delhi-110 049

17

SECTION VIII


Raw material requirement Basis : 200 kgs per day of Fairness cream (Moisturising lotion) Utility Installed power: 40 H.P. 8.1.Formulations for night and massage creams Skin food cream In percent Liquid paraffin wax 51.8 Lanolin 4 Beeswax 6.2 Spermaceti 4 Borax 1 Water 33 Perfume Small quantity Biological cream Liquid paraffin wax 25 Lanolin 25 Beeswax 7.5 Spermaceti 6 Borax 0.5 Water 36 Perfume Small quantity Massage cream Liquid paraffin wax 15 Lanolin 4

18

Beeswax 30 Spermaceti 30 Borax 6 Water 15 Perfume Small quantity Night cream In parts Stearic acid 40 Cetyl alcohol 123 Mineral oil 281 Lanolin 126 Olive oil 45 Triethanolamine 110 Spermaceti 64 Water 400 Preservative 10 Perfume Small quantity First water is heated to about 70 deg.C, then triethanolamine is added to it in a vessel. Then in another vessel olive oil, lanolin, mineral oil, stearic acid, spermaceti and cetyl alcohol are heated to 70 deg.C. Then mix both mixtures in a vessel with continuous stirring till temperature reduces to 50 deg.C. Then add preservative and perfume and stir for complete mixing. 8.2. Moisturising creams and lotions In parts Lanolin 5 Acetylated lanolin 5 Mineral oil 80 Stearic acid 30 Glycerolmonostearate (self emulsifying type) 30 Iso propyl palmitate 20 Glycerin 35 Propylene glycol 25 Triethanolamine 2 Water (softened or distilled) 768 1000 Perfume 0.5% Methyl parahydroxybenzoate 0.1% Propyl parahydroxybenzoate 0.05%

19

Cream Cetyl alcohol 20 Glyceryl monostearate 75 Mineral oil 75 Isopropyl myristate 10 Polyethylene glycol 400 monostearate 110 Lanolin 15 Sodium lauryl sulphate 2 Glycerin 25 Propylene glycol 50 Sorbitol (70%, solution) 15 Water 603 1000 Perfume 0.5% Methyl parahydroxybenzoate 0.15% Propyl parahydroxybenzoate 0.05% Lotion Isopropyl palmitate 75 Propylene glycol monostearate 60 Polyethylene glycol 50 Triethanolamine 5 Glycerin 25 Propylene glycol 25 Water (softened or distilled) 760 1000 Perfume 0.3% Methyl parahydroxybenzoate 0.15% Propyl parahydroxybenzoate 0.05% Lotion for hands, face or body Mineral oil 100 Woolwax alcohols 2 Cetyl alcohol 2 Stearic acid 20 Sorbitan sesquioleate 2 Glycerin 7.5 Sorbitol (70% solution) 2.5 Propylene glycol 5 Triethanolamine 5

20

Water (softened or distilled) 854 1000 Perfume 0.5% Methyl parahydroxybenzoate 0.15% Propyl parahydroxybenzoate 0.05% 8.3. Vanishing creams Vanishing creams are oil in water type emulsions of stearic acid in water containing soap. The basic ingredients are stearic acid, water, alkalies (caustic soda, caustic potash, borax, soda ash, potash, triethanolamine etc.) and glycerine. A part of stearic acid is taken and mixed with alkali to saponify and the soap obtained is emulsified with the bulk of the acid. Stearic acid forms 15 to 25% of the mixture and 15 to 35% of it is saponified. Stearic acid 23.5 Potassium hydroxide 1 Glycerine 5.5 Diglyed stearate 6 Water 64 Process of manufacturing First stearic acid is melted and heated to about 85 deg.C, then an aqueous solution is prepared containing the alkali and glycerine, it is also heated to 85 deg.C. Then both stearic acid and aqueous solution are slowly mixed with continous stirring. A curdy, jelly like viscous mass is obtained which is turned over from time to time until the crust formation ceases. The cream is left overnight and then perfume is mixed with that and homogenised. The product is filled into containers. The final product acquiries the required body a few days after packing. Vanishing cream (with lanolin) Stearic acid 188 Glycerin 27 Lanolin 20 Triethanolamine 10 Water 800 Preservative 10 Perfume Small quantity Process of manufacturing

21

Stearic acid and lanolin are melted together and heated to 176 deg.F. Then prepare a mixture of water, glycerine and triethanolamine and heated to 176 deg.F. Then this and first mixture are mixed together with constant stirring upto 1 hour. Add preservative when temperature reduces to 140 deg.F and then add perfume when temperature reduces to 104 deg.F. Formulations of vanishing foundation creams Formulation 1 Glycerol 10 Stearic acid 25 Potassium hydroxide 1 Perfume 0.05 Water 63.5 Formulation 2 Glycerol 9.5 Stearic acid 22.5 Mineral oil 1.9 Lanolin 1.1 Sodium hydroxide 0.5 Potassium hydroxide 0.5 Perfume 1 Water 63 Formulation 3 Glycerol 5 Lanolin 5 Mineral oil 5 Cetyl alcohol 0.5 Stearic acid 20 Triethanolamine 2 Perfume 0.5 Water 62 Formulation 4 Glycerol 8.5 Cetyl alcohol 0.5

22

Sodium hydroxy 0.4 Stearic acid 19.5 Triethanolamine 1.2 Water 69.9 Formulation 5 Glycerol 6 Lanolin 4 Stearic acid 15 Potassium hydroxide 2 Water 73 8.3. Raw material availability

The raw material are required in small quantity and therefore can be procured from trading houses. There is no constraint in the availability of raw material

23

SECTION IX

GLOBAL SCENARIO

Global cosmetic market 4.3 billion US$ Pattern of market (in Percentage) Active ingredients 6.7 Speciality additives 16.1 Processing aids 16.2 Flavours and fragrances 20.4 Cleansers and foamers 20.3 Emollients and moisturises 20.3 Global trend The pace of change in cosmetics is brisk, embracing the performance of formulations as well as the packaging, advertising and pricing of the products. During the past decade, an unprecedented explosion of cosmetics based on newly discovered or rediscovered ingredients filled the market Innovation is certain to continue. Skin aging starts at about 20 years, the largest part of human life is aging, which would need to increased demand for fairness cream.

24

SECTION X


Economic capacity 200 kgm per day Project cost Rs.73 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1

Cost of land of 0.5 acre at Rs.5.5 per acre 2.75

1.2 Cost of levelling, laying internal roads/fencing and compound wall

0.28


Rs.in lakhs 2.1 Factory building of area 100 sq.m. at Rs.3200/sq.m. 3.2 2.2 Non-factory building of area 20 sq.m.at Rs.4500/sq.m. 0.9 Subtotal 4.1 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 10.00 3.2 Instrumentation and control 0.75 3.3 Pipelines and valves 1.00 3.4 Structurals for erection 0.50

25

Subtotal 12.25 3.5 Octroi, excise duty, sales tax, etc.at 12%� 1.47 3.6 Packaging and insurance charges (2%) 0.25 3.7 Transportation charges (2%) 0.25 3.8 Machinery stores and spares (2%) 0.25 3.9 Foundation charges (2%) 0.25 3.10 Installation charges (2%) 0.25 Total cost of plant and Machinery 14.95 4. Technical know-how fees Rs.1.5 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1 Electrification 0.6 5.2. Steam boiler and auxillaries - 5.3. Water storage tank, borewell etc. 0.6 5.4. Fuel storage tank - 5.5. Laboratory equipment 0.4 5.6. Office machinery & equipment 0.6 5.7. Material handling equipment, packaging machinery,


5.8. Diesel generator - 5.9. Effluent treatment 0.6 Total 3.2 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 0.2 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.2 6.2.2 Rent rates and taxes 0.2 6.2.3 Travelling expenses 0.2 6.2.4 Interest and commitment charges on borrowings 1.2 6.2.5 Insurance during construction period 0.2 6.2.6 Other preoperative expenses and deposits 6.2.7 Interest on deferred payment Total 7. Provision for contingency Rs.1.64 lakhs 8. Working capital margin Rs.42.21 lakhs 9. Total project cost Rs.73 lakhs

26

Say Rs. lakhs

10. Means of Finance Promoter's contribution Rs.29 lakhs Term loan from financing institutions Rs.44 lakhs Total project cost Rs.73 lakhs 11. Financial statements Cost of production A Variable cost

Rs. in lakhs


441.26

B Fixed cost


46.71

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

487.98


1120

E. Annual sales turnover E

537.60

F. Net profit before tax (E-C)

49.62


48

27

SECTION XI

SWOT ANALYSIS

Strength Growing market due to improving economic conditions

Weakness High cost of product

Opportunity Technical innovation

Threat Competition from multinational companies

28

SECTION XII

FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND RECOMMENDATIONS

Market penetration Market penetration is higher in the skin care segment compared to lipsticks. In the skin-care segment, price and volume play an equal role in value growth. The factors contributing to market penetration are strong brand promotion, good distribution and quality improvement, the ability to provide a variety of products and introduce affordable products without compromising on quality. It is niche market and the scope for rising volumes is low. That does not mean the market is not growing. The growth in the premium segment is usually because of people upgrading from the mass to the premium rather than a growth in consumption per se. The rural market has not been reached adequately, which is a very big market in itself. The urban market itself is largely unexploited. India, consumes less of cosmetics than most Asian countries. In India, skin-care is still at a nascent stage. So this is the actual growth area. Driving factors for demand and strategies for growth While some strategies are tested and have been successful in the Indian market, the others are nascent concepts and their bearing on the growth will be viable a couple of years down the line. The cosmetics industry is one of the rapidly growing fast moving consumer goods segments. But it has not been without blemishes for the players. The cosmetics market has been constantly changing colours to suit Indian tastes and pockets and its players

29

have had to regularly work out new and innovative strategies to retain their hold on the market and establish a niche market for themselves. That explains the success of this market segment. Fair & Lovely is the market leader in the fairness cream market. Cosmetic companies are spending considerably on research for ingredients that block melanin production. The strong growth in the demand and success of new players in the market has prompted existing players to venture into cross categorization. Ponds did attempt cross categorization when it l0aunched its Fairness cream under the same brand as its vanishing and cold cream but it failed to do big. The market however continued to be dominated by F&L. As of now, the scenario is encouraging for a number of players who have the opportunity to cash on. The market is not restricted to an HLL or a Godrej alone. What is important is the positioning and the style of the appeal for "making consumers fairest of all" that will make the difference. Today’s beauty care market is totally brand driven. Indian companies sell their brands primarily with high profile advertising campaigns. Growing acceptance * Fairness of the skin and the appreciation factors * It is also found that women who have used fairness cream for several years, have got habituated to it and would continue to use it regardless of their age. * Today, it is not only women but also a significant number of men who use the fairness cream Factors towards growth of Fairness Cream * Media exposure * Growing consumerism and the move towards personal grooming are the key to the growth. * The increase in number of working women who are conscious about their looks is a big reason for the growth. * Traditionally, Indians have favoured fair skinned complexion and considered it as important criteria in judging beauty. This has been a significant cause for the success of Fair & Lovely which has the largest market share among skin care products. * Within the skin care category, penetration levels vary across different sub-categories. Fairness creams (including cold cream) and vanishing cream continue to be the dominant category accounting for nearly 50% of the total market.

30

* The lotion category is the new and emerging area which is slowly replacing creams. Lotions include moisturising toners, astringent item till recently a small market., but companies are focussing their efforts here. * Price apart, distribution and retailing are likely to be the key factors. * Multinational companies will compete effectively in Speciality Products such as sun-protection and antistress cream, where a higher price may be justified in the consumer’s mind due to the specific value addition.

1

PLANTATION AND EXTRACTION OF GUGGUL

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS 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


2

SECTION I

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

3

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

SECTION II

4

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, Guggulsterones 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 favourably 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

5

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.

6

SECTION III

INDIAN MANUFACTURERS There are number of units involved in the production of Guggul extract and formulations. Such units include the following * Alchem International Ltd., 201, Empire Plaza, Mehrauli-Gurgaon Road, Sultanpur, New Delhi-110 030 * Indfrag Biosciences Ltd./Indfrag Ltd., 1320, 12th Cross, Indiranagar 2nd Stage, Bangalore-560 038 * Poojan Texspun 8, Pushpadeep Apt., Pushpakunj Society, Kankaria, Ahmedabad - 380 001 * Sri Srinivasa Herblex (P) Ltd., Shed No.6, Phase III Autonagar, Vijayawada-520 007 * Spectromed 2, E113/16th Cross St., Opp. SBI Besant nagar Chennai 600 090 * Sami Labs. Ltd. No.19/1 & 19/2, I Main, II Phase, Peenya Indl. Area Bangalore-560 058

7

SECTION IV

IMPORT/EXPORT LEVEL

4.1. Imports Nil 4.2. Sample of Indian Exports Description

Quantity Value (Rs) Country Company

Guggul Dry extracts

50 Kgs 58662 Brussels Siris Impex

Guggul Dry extracts

5 Kgs 6311 Milan Plant Lipids Ltd

8

SECTION V

PRICE

Basic price of Guggul powder extract Rs.750 per kg Taxes and duties Extra as applicable

9

SECTION VI

INDIAN DEMAND 6.1. Sample of formulations RUMOSH TAB. An Anti Inflammatory & Anti Rheumatic Constituents: Mahayograj Guggulu, Exts. Maharasnadi Quath,Shilajit, Parasik Yavani (STRIP 10*10T and Pla.Bott.100T) CULOSH TAB. For Leucorrhoea Constituents: Hirabol, Lodhar, Shilajit, Guggul (STRIP 10*10T Pla. Bott.100T) BUILDIM TAB. Herbal an antibacterial Constituents: Guggulu, Exts. Maharasnadi quath,Manjishtha, Guduchi (STRIP 10*10T and Pla. Bott.50 T) BUILDIM SYRUP Herbal an antibacterial Guggulu, Exts. Maharasnadi quath,Manjishtha, Guduchi, Shankh Bhasma (Bottle 100ML and Bottle 200ML) Nature's Sunshine Guggul Lipid Contains 500 mg of Guggul lipid standardized to contain 25 mg of Guggulsterones per gramme. Enzymatic Therapy Guggul Plus (It is a maximum strength Guggul lipid extract.) OSIM CAP For Slimming Medohar Guggul, Tryusnadi Loh,Triphala Guggul, Cow Mutra Exract Pla.Bott. 50Cap. And Pla.Bott 100Cap Caution

10

In clinical trials of standardized Guggul extract, no significant side effects other than occasional mild gastrointestinal distress have been seen. Guggul may be used with caution by people with liver disease and in cases of inflammatory bowel disease and diarrhea. 6.2. Driving Factor for Demand Guggulsterones are the active substances in the Ayurvedic formulations Its claim to cardio health fame is its ability to lower elevated LDL Cholesterol levels. 6.3. Indian demand Around 90 tonnes per annum of Guggul extract powder Growth rate in demand 10 to 11% per annum

11

SECTION VII

BROAD OUTLINE OF 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, 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 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

Air compressor ELGI Equipments Ltd., Elgi Industrial Complex III,

12

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

SECTION VIII

13


Botanical Trait The mukul myrrh (Commiphora mukul) is a small, thorny shrub distributed throughout India. The short shrub prefers arid regions. Guggul and Gum Guggulu 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 Guggal gum with Etheral 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.

SECTION IX

14

GLOBAL SCENARIO

Guggul is predominently 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 New Drug for Cholesterol Raloxifene, a new safer drug, may replace estrogen, a hormone which many postmenopausal women take to reduce the risk of osteoporosis and heart disease. The disadvantage of estrogen is that it increases the risk of cancer, especially breast cancer. The new drug reduces bone loss, lowers cholesterol and cuts down on the risk of endometrial cancer because it does not stimulate the uterus like estrogen. Preliminary studies have shown that the drug appears to reduce the risk of breast cancer The clinical trials, which are going on, have included 10000 women worldwide. If all goes according to the plan raloifence is expected to hit the market in the next 6 to 12 months.

15

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.

16

SECTION X


Economic capacity : 30 tonnes per annum Project cost : Rs.65 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 75 acre at Rs.45000 lakh per acre

33.75


Rs.in lakhs

2.1 Building of area 75 sq.m. at Rs.3200/sq.m.

2.4

Subtotal 2.4 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Miscellaneous machinery 4.5 3.2 Packaging machinery 4.0 Total cost of plant and Machinery 8.5 4. Technical know-how fees Rs.1.00 lakhs

17

5. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

5.1. Preliminary expenses 0.2 5.2. Pre-operative expenses:- 5.2.1 Establishment 0.2 5.2.2 Rent rates and taxes 0.2 5.2.3 Travelling expenses 0.2 5.2.4 Interest and commitment charges on borrowings 1.2 5.2.5 Insurance during construction period 0.2 5.2.6 Other preoperative expenses and deposits - 5.2.7 Interest on deferred payment - Total 2.2 6. Provision for contingency Rs.0.71 7. Working capital margin Rs.16.69 8. Total project cost Rs.65 9. Means of finance (Rs. in lakhs) Promoter's contribution 26 Term loan from financing institutions 39 Total project cost 65

18

10. Financial statements Cost of production

A Variable cost

Rs. in lakhs


137.95

B Fixed cost


41.87


179.82

D. Selling price per kg. (in Rupees) 750


225


45.18


48

19

SECTION XI

SWOT ANALYSIS Strength

Large availability of plantations in India

Weakness

Lack of standardised product

Opportunity

Export

Threat Poor quality agricultural and extraction practices

20

SECTION XII


Guggul is the traditional plantation in India which has been known to treat various ailments such as Cholesterol, inflammation and others. Guggul is almost an entirely Indian product, with tremendous export potential. If adequate efforts would be made in developing the market for the product in India an abroad, Guggul would be an exciting investment prospect.

1

PROFILE ON HERBAL COSMETICS

CONTENTS PAGE NO. SECTION I PRODUCT CHARACTERISTICS 1 SECTION II PRODUCT APPLICATIONS 3 SECTION III INDIAN MANUFACTURERS 4 SECTION IV IMPORT/EXPORT LEVEL 9 SECTION V PRICE 10 SECTION VI INDIAN DEMAND 11 SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 14 SECTION VIII RAW MATERIAL REQUIREMENTS,

UTILITY AND AVAILABILITY 22 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS 23 SECTION X SWOT ANALYSIS 26 SECTION XI FACTORS INFLUENCING THE POSITION

FOR A NEW INDUSTRYAND RECOMMENDATIONS 27

2

SECTION I


Herbal Cosmetics consists of herbal based products such as Shampoos, Hair dye, Shikkai Powder, Cream rose skin toner, Skin lotions, Herbal scrubs, Face pack, Hair oil etc. Herbal cosmetics are particularly preferred since they are eco friendly and would not provide allergic reactions to the skin and the body. Some of the important herbs and substances required for making herbal cosmetics include the following: * Alcohol * Cleavers * Allantoin * Cloves * Almond * Comfrey * Aloevera (Ghee Kanvar) * Corn Oil * Alum (Fitkari) * Corn Milk * Amla(or IndianGooseberry) * Cucumber(Khira) * Angelica * Dandelion (Kanphul) * Apple * Eggs * Apple Cider Vinegar * Elder * Apricot(Khubani) * Emulsifying wax B.P. * Ascorbic acid * Eyebright * Avocado * Fennel * Baby Oil * Fuller’s Earth(Multani Mitti) * Basil (Tulsi) * Garlic * Beeswax(Madu Mom) * Gelatine * Benzoic acid * Glycerine * Bergamot * Groundnut oil * Betony * Gum resin * Bicarbonate of Soda * Henna(Mehandi) * Blackberry * Hollyhocks * Borage * Honey * Borax(Suhaga) * Jasmine Oil * Bran (Chokar) * Kaolin * Brewers Yeast(Khamir) * Kelp * Calamine Lotion * Kohi * Calendula * Lanolin * Camomile * Lavender * Camphor * Lecithin Powder * Canophor Oil * Lemon * Carrots(Gajar) * Lemonbalm * Castoroil * Margosa(Neem) * Celandine * Marigold(Ganda)

3

* Marshmallow * Mineral Oil * Mint ((Podina) * Myrrh * Nettle * Oak * Oatmeal (jai Ka Atta) * Oleic acid * Orange * Olive Oil * Orange flower water * Orangepeel * Peach * Peppermint * Petroleum jelly * Pimpermel * Pine * Plum * Potatoes * Raspberries * Rhubarb * Rhubarb * Road * Rose Oil * Rose water * Rosehips * Rosemary * Safflower Oil * Sage * Salt * Seasame Oil * Soapflakes * Sodium sesquicarbonate * Spermaceti * Stearic acid * Storax * Strawberry * Sulphur * Sunflower Oil * Tumeric * Tarragon * Tea * Thyme * Turtle oil * Vaseline Oil * Vinegar * Vitamins * Wheatgum flour * Wheatgum Oil * Witch Hazel * Yarrow * Zinc oxide

4

SECTION II

PRODUCT APPLICATIONS The herbal cosmetic products are used for beauty care, skin care, hair care, body care. The manufacturer has to obtain Licence under State Drug Control Act and manufacturing practices have to be strictly according to the act and the guidlines

5

SECTION III

INDIAN MANUFACTURERS There are a number of manufacturers of Herbal Cosmetics, both in the organised and unorganised sector. The important producers include the following: * Aarogya Herbals (P) Ltd., K-185/1, Surya Plaza Building 3rd Floor, Sarai Julena New Friends Colony, New Delhi-110 025 * A Spiderman India 82, Dabri Ext. Main, New Delhi - 110 045 * Amar Remedies Ltd., 207, Roop Raj Building 497, S.V.P. Road, Opera House, Mumbai-400 004 * The Aroma Shop C4A/40C, Janak Puri, New Delhi - 110 058 * Ayur Herbals 7/28, South Patel Nagar, New Delhi - 110 008 * Anil Ayurpharma (India) Pvt. Ltd., Lagdiwala Estate Hingwala Lane,Ghatkopar (East) Mumbai 400 077 * Allo-Ayur Formulations Pvt. Ltd. 11, Tukoganj Main Road Indore-452 001

6

* Amsar Private Limited 47, Laxmi Nagar, Industrial Estate, Fort, Indore - 452 006 * Artefacts No.577, Sector-09, Faridabad - 121 006 * ABI Herbal Products Vettukattu Valasu Ingur P.O., Erode-638 058, Tamil Nadu * Cears Exports Pvt. Ltd. Alappat Cross Road, Kochi - 682 015 * Crystal India C-316, Yojana Vihar, New Delhi - 110 092 * Dabur India Ltd. 3, Factory Road, Near Safdarjun Hospital New Delhi-110 029 * Dew Herbal Cosmetics 211, Dalamal Chambers, New Marine Lines, Mumbai - 400 020 * Eisenhowen International A-8 East of Kailash, New Delhi - 110 065 * Famay Marketing Services (P) Ltd. D-120, Krishna Park, Khanpur Devli Road, New Delhi - 110 062, * Ganga Amrit Exports Ltd. Gangatat Dhanvantari Marg Virar, Mumbai - 401 303

7

* Green Earth Products W-105, Khuranas, Greater Kailash Part I, New Delhi - 110 048 * Harsha Pharma Pvt. Ltd. WZ-49H, 1st Floor, Bodella, Vikas Puri, New Delhi - 110 018 * Herbal Cosmetics Pvt. Ltd., MKV Road, Cochin 25, Kerala * Hennamart Private Limited B-28, Raisar Plaza, Indira Bazaar, Jaipur - 302 001 * Indo Herbal Products 659/3, Devli Village, Khanpur, New Delhi * Maargi Natural Healthcare P Limited 337/2A, Chandavakar Road, Matunga, Mumbai - 400 019 * Madhu Exports 95/1 CPWD Quarters, K.K Nagar, Chennai - 600 078 * Natural Remedies Karnataka US Business Associate Pegasus Universal Inc., 1310, Tully Road, Suite 111 San Jose, CA 95122 * Nisha Herbals & Cosmetics 14-A Seth Ji Ki Bari,Near Canara Bank, Udaipur - 313 001 * N.M. India Cosmetics Co. J-268, Gali No. 5 31/2, Pusta Telecom Block, Karatar Nagar, Shahdara, New Delhi - 110 053

8

* Om Ayurveda-Shop.Org 425/82 T. M. V. Colony, Saraswati Apts, Pune - 411 037 * Premsons Herbal Cosmetics Pvt. Ltd., 11, Vijay Udyog Nagar, Indore 452 001 Madhya Pradesh * Pretty Ma'am Herbal Cosmetics 32/637, MKV Road, Palarivattom, Cochin-25 * PTC Herbals & Cosmetics Pvt. Ltd. 10/16, Spartan Avenue Mugappair, Chennai-600 050 * Rasraj Herbal Exports S. V. Road, Borivali (West), Mumbai - 400 092 * Rohit Extractions Ltd. 5-9-191, First Floor Brindavan Commercial Complex, Chirag Ali Lane, Abids, Hyderabad-500 001 * Sanora Research Laboratories 4857/173, Pant Nagar, Ghatkopar (E), Mumbai - 400 075 Phone: +(91)-(22)- 25126858 * Shree Baidyanath Ayurved Bhawan Ltd. 1, Gupta Lane, Calcutta-6 172, Gusainpura, Jhansi-284 002, Uttar Pradesh * Surya Herbal Ltd., Shrirang Apartments, 1st Floor, Above Sabina Restaurant, Nehru Road, Vile Parle East Mumbai-400 057

9

* Simla Chemicals Pvt. Ltd. A-76, Phase-I Naraina Industrial Area, New Delhi - 110 028 Phone: +(91)-(11)-5796273/5797734/5799664 Fax: +(91)-(11)-5799665 * Sai Health Care 216, Dayanand Vihar, Vikas Marg Extension, New Delhi - 110 092, * Sarita Manufacturing Company 5394/3, Janta Market, Sadar Bazar, New Delhi - 110 006 * Seascope Exports 158/33 laxmi Ind.Estate, New Link Road, Andheri (W), Mumbai - 400 053 * Sidda 617, Surveyor Colony, Madurai - 625 007 Phone: +(91)-(452)-681574 36-DSP Nagar, Madurai - 625 010 * Simco Herbals A-76,Phase-1, Naraina Industrial Area, New Delhi - 110 028 Sukarisi Natural Medicines 118-A, Paper Mill Road, Pallipalayam, Erode - 638 006

10

SECTION IV

IMPORT/EXPORT LEVEL

Imports Negligible quantity 4.2. Exports Sample of individual Exports of Fairness creams (In Chennai port) Period 2002 Name of the exporters

Quantity Value in Rs. Country Date

Cavinkare Private Limited 520 BOX 1873381.27 Port Kelang Feb 2002 Cavinkare Private Limited 10 BOX 3816.00 Port Kelang Feb 2002 Cavinkare Private Limited 25 CTN 162029.45 Dubai Feb 2002 Cavinkare Private Limited 50 CTN 287104.81 Dubai Feb 2002 Cavinkare Private Limited 75 CTN 460504.74 Dubai Feb 2002 Cavinkare Private Limited 730 BOX 2660987.50 Port Kelang Feb 2002 Vale Exports (P) Ltd 1440 PCS 12342.40 Colombo APR 2002 Vale Exports (P) Ltd 2160 PCS 18513.60 Colombo APR 2002 Vale Exports (P) Ltd 576 PCS 13807.50 Spain APR 2002 Vale Exports (P) Ltd 720 PCS 32847.37 Spain APR 2002 Saree Museum 12 PCS 406.55 Johannesburg MAY 2002 Saree Museum 6 PCS 145.20 Johannesburg MAY 2002 Cavinkare Private Limited 300 BOX 1032290.75 Kuala Lumpur MAY 2002 Cavinkare Private Limited 1800 CTN 2631410.00 Port Kelang MAY 2002 Cavinkare Private Limited 30 CTN 8775.00 Yangon MAY 2002 Cavinkare Private Limited 225 CTN 698994.02 Yangon MAY 2002 Cavinkare Private Limited 150 CTN 517122.84 Yangon MAY 2002 Cavinkare Private Limited 270 CTN 519522.02 Yangon MAY 2002 Afsan Exports, 160 PCS 11679.84 Singapore MAY 2002 Cavinkare Private Limited 50 CTN 139083.75 Colombo MAY 2002 Cavinkare Private Limited 100 CTN 285298.09 Colombo MAY 2002

11

SECTION V

PRICE

Price for Fairness cream Price: Rs.28/- for 25 gms Rs.50/- for 50 gms

12

SECTION VI

INDIAN DEMAND

6.1. General details Size of the cosmetic and perfumery market Around Rs. 12000 million per annum Colour cosmetics Ltd., Market size: Rs.1530 million Lakme scores over a host of both Indian and foreign companies with its sheer range of products which span from the lowest to the highest end. Therefore, in this segment Lakme comes out as the leader. Market share of major cosmetic companies Pond's India 53%

Lakme 46% Arugs Cosmetics 1% Zee (a new entrant) and others

6.2. Skin care creams/lotions - The market (in tonnes) Cold/winter cream 755 Moisturising cream 730 Speciality cream 1462 Cold/winter lotion 344 Moisturising lotion 506 Speciality lotion 782 Skin care creams/lotions - Market segmentation (in tonnes) Fairness cream 1254 Anti wrinkle/ageing 31 Acne/cleansing 17 Bleaches/facepacks 155 Others 5 Total 1462 Market for non durables Product Value

(Rs. in million) Nail polish 35.1

13

Lipstick 38.1 6.3. Men/Women classification of consumers for cosmetics

6.4. Fairness Cream market Market Size of Indian cosmetic and toiletries industry Around Rs.3000 crores Market size of skin care segment Around Rs.1200 crores Market size of Fairness creams Around Rs.710 crores Market share of skin care segment Around 60% Specialty creams such as sunscreen lotions, moisturisers and toners, cleansing lotions, under-eye dark circle removing creams and cold creams contribute the rest. Market segmentation for fairness creams Sales value (Rs. in crore) Growth, %

Aug’2000 to

July 2001 Aug;1999 to July’2000

All India 711.33 619.82 14.76 North Zone 185.56 164.32 12.93 East Zone 129.02 106.02 22.54 West Zone 163.73 145.83 12.27 South Zone 232.13 203.65 13.98 Metro 135.30 118.50 14.17

Men32%

Women68%

14

6.5 Market share of major players Company

Brand Market share in %

Hindustan lever Ltd. Fair and Lovely 53 Cavinkare Ltd. Fair Ever 12 Godrej Soaps Godrej FairGlow 3.4 Emami Gold Turmeric and

Naturally Fair 1 to 2

Revlon Fair & Glow 1 to 2 Others Niveas Torrel’s Pond’s Some other marginal players

Visage Freya Fairness Dream Fairness cream

6.6. Demand for Herbal cosmetics Estimated demand for Herbal Cosmetics is in the region of 5 to 7% of the overall cosmetic market. 6.7. Growth rate in demand: 10 to 11% per annum

15

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. General details Creams and emulsions are all basically mixtures of water, oils, waxes and fragrances perfumery products in varying proportions. A slight change in the quantities in the preparations changes the character of the preparation and one should be careful when measuring the ingredients. Generally most of the creams are basically made in the same way and hence when measuring the quality the following rough equivalents should be kept in mind while formulating the product. 7.2. Formulation details for sample of cosmetic products Skin Lotions Complexion lotions/sunscreen lotions for all skin types Complexion lotions not only improve the colour of the skin but also protect it from the harmful effects of the sun by providing a screen between skin and the sunrays. Therefore they are generally known as sunscreen lotions. Lime complexion Lotion Process Put the lime flowers in boiling water for an hour. Strain and let the mixture cool. Add sodium benzoate to it. This is a very good complexion lotion and for better results add equal part of rose water to it. Keep it under refrigeration and use it with the help of cotton buds. Lime flowers 25 gm Distilled water 250 ml Sodium benzoate ¼ tsp Lavender Complexion Lotion Process: Mix borax powder in rose water and add boiling oil to the mixture. Keep stirring, when cool and lavender extract too. It can be kept under refrigeration for more than 2 months. Borax powder 1 tsp Rose water 1 cup

16

Olive oil 2 tbsp Lavender extract ½ cup Almond Complexion Lotion Process: Heat the almond oil and paraffin together and add all the other ingredients to it. Shake it well, apply it and let it remain till it dries. Rinse off with cold water preceded by lukewarm water wash. It leaves the skin looking fairer and smoother. Almond Oil 1 tbsp Cucumber/carrot juice 1 tsp Glycerine 2 tsp Liquid paraffin 1 tsp Extract of cornflower 1 tsp Sesame Complexion Lotion Process: Mix all the oils together and apply it on the face and neck. It is an exclusive tonic to protect the skin from scorching heat of sun or is a very effective measure to get rid of sun tanning. Sesame Oil 40 ml Olive oil 10 ml Almond oil 10 ml Brook Lime Complextion Lotion Process: Boil the water and put the brook lime leaves/stems in it. Leave it for an hour. Strain and let it cool. Now mix sodium benzoate in it. Apply it on the face and neck with cotton. It removes the spots and blackheads. It can be kept under refrigeration for more than 2 months. Leaves/stems of brook lime

50 gm

Distilled water 500 ml Sodium benzoate ½ tsp Pimple Removing Lotions Process: Mix all the ingredients well and apply the paste on the face. Leave it on for 15 minutes. The wash off with lukewarm water followed by a cold water rinse. It is also very good for removing spots caused by pimples. Pimple removing tomato lotion

Camphor lotion ½ tsp Tomato juice 1 tsp

17

Honey 1 tsp Pimple removing garlic lotion Process: Blend all these together and apply this mask on the face for 20 minutes. After that wash off with lukewarm water. Never forget to give a cold water rinse because the pores which get opened by lukewarm water wash, get contracted if you rinse off with cold water. Multani mitti powder 1 tbsp Honey 1 tsp Carrot Juice 1 tsp Garlic (paste) ½ tsp Pimple removing camphor lotion Process: Mix all these ingredients well and make a mixture of it. Apply this on the face and leave it to dry. When it is dry, wash off with lukewarm water. Finally rinse off with cold water. Glycerin 1 tsp Borax powder ½ tsp Distilled water 1 cup Camphor lotion ½ tsp Astringent Lotions for All Skin Types Astringent lotions are antiseptic in nature and therefore these should be used by the people having skin problem-for example acne prone skin. Lemon Astringent Lotion Process: Mix all the ingredients together and use with a cotton pad. Lemon juice 2 large lemons Distilled water 16 tbsp Tincture of benzoin 1 tbsp Cornflower Astringent Lotion Process: Boil the water and soak the corn flower in it. Strain the mixture and mix witch hazel. It can be used by soaking the cotton pad in this mixture an then applying it on the desired places. Distilled water 250 ml Cornflower 100 gm Witch hazel 1 tsp

18

Rose Astringent Lotion Process: Boil the water and soak the rose petals in it. Then mix sodium benzoate in the mixture. Apply it with cotton pads. It is very good for tightening the skin and removing the wrinkles. Rose petals/roots 500 gm Distilled water 1.50 litres Sodium benzoate 0.5 tsp Lilly Astringent Lotion Process: Soak the lilly flower in boiling water for an hour. Then strain and mix sodium benzoate in it. Soak cotton buds in the mixture and apply it on the face. It leaves the skin fair and soft. Distilled water 2 litres Lilly flower 500 gm Sodium benzoate 0.5 tsp Nutmeg Astringent Lotion Process: Mix them thoroughly. Let it stand for 7 days. Then use it. It can be keep for more than 2 months if kept under refrigeration. Honey 1 tbsp Nutmeg powder 1 tbsp Clove powder ½ tbsp Grated lemon peels 2 tbsp Brandy 2 tbsp Rose water 4 tbsp Orange flower extract 2 tbsp Tincture of benzoin 1/8 tsp Peppermint Astringent Lotion Process: Mix them thoroughly and apply on the face for deep cleansing and opening of pores. Keep the remaining under refrigeration for further applications. Calomine lotion 4 tbsp Witch hazel extract 4 tbsp Peppermint extract 2 tbsp Vinegar (cider) 1 tsp

19

Tincture of benzoin 1 tbsp Sandalwood Astringent Lotion Process: Mix all these ingredients well. Keep it under refrigeration so that you can preserve it for months. Sandalwood oil 8 tbsp Sodium bicarbonate 5 gm Almond oil 2 tsp Rose water 4 tbsp Orange flower extract 4 tbsp Honey 1 tbsp Rosemary Astringent Lotion Process: Soak orange peels, lemon peels and mint leaves in boiling rose water. Leave it so for an hour. Then strain and mix all the other ingredients to the mixture. Mix them thoroughly and keep under refrigeration. Sodium benzoate ½ tsp Rosemary powder 2 tbsp Orange peels 1 tbsp Lemon peels 2 tbsp Mint leaves 30 leaves Brandy ¼ cup Rose water 1 cup Witch Hazel Astringent Lotion Process: Mix them thoroughly. Apply on the face and neck at night and keep the rest under refrigeration for further applications. Rose water 1 cup Witch hazel extract 2 tbsp Tincture of benzoin 1 tbsp

20

Skin Toning Lotions * Grapefruit Skin Toning Lotion Process: Remove the skin of the grapefruit and cut it into small pieces. Put the pieces through the blender then mix with youghurt to make a paste. Refrigerate for an hour and add sodium benzoate, then smear over the face and neck. Leave for 30 minutes until you feel your pores tightening. Wash off with lukewarm water. It is very good for oily and sensitive skin. Grapefruit (ripe) 100 gm Yoghurt 250 gm Sodium benzoate 0.5 tsp * Sunflower Skin Toning Lotion Process: Melt lanolin in a pan over a low flame and stir in sunflower oil. Remove from the heat and stir in wheat germ oil and witch hazel with sodium benzoate. Bottle and refrigerate and then massage a little into the face and neck at bed time. It is an effective tonic for dry skin. Wheat germ oil or vitamin E oil is very effective for dry skin. Apply it by dipping cotton bud in the oil. Rub a piece of potato over the face and neck and leave the juice for 15 minutes to dry on and then wash off. It is very effective for oily skin and can also be used for dry skin with a moisturiser. Lanolin 1 cup Sunflower oil 1 cup Wheat germ oil 1 tsp Witch hazel extract ½ cup Sodium benzoate 1 tsp Skin Soothing Preparations * Cucumber Skin Soothing Preparation Process: Peel and chop the cucumber and place the slices in a bowl. Squeeze the lemon over cucumber and let them stand for an hour. Then rub the cucumber slices over the face avoiding the area encircling the eyes. Leave it so for 30 minutes and wash off with cold water. It is an extra luxurious preparation for oily skin. Cucumber 1 medium Lemon ½

21

* Yoghurt Skin Soothing Preparation Process: Put the cucumber through a blender and mix it with the yoghurt. Apply the paste on the face and neck. Leave to dry and then wash off with cold water. This is a good preparation for normal and sensitive skin. Cucumber 1 small Yoghurt 100 gm * Witch Hazel Skin Soothing Preparation Process: Grind the cucumber and mix honey and witch hazel to the pulp of cucumber. Apply on the face and neck, and leave it on for 20 minutes. When dry, wash off with cold water. This gives a luxurious touch to the dry skin. Cucumber 1 small Honey 1 tsp Witch hazel extract 1 tsp * Cleansing Creams/Cold Creams The following cleansing creams can be applied during winter as cold creams because in winter, some creamy substance is needed to protect the skin from the drying effects of cold wind. And cold creams do the same. Process: Heat the beewax in a saucepan. When it is melted, add almond oil, rose water and borax powder. Mix them thoroughly and keep stirring till the mixture cools. It can be kept under refrigeration for a long time. Almond Cleansing (ream (1)

White beewax 120 gm Almond oil 500 ml Rose water 1 cup Borax powder 1 tsp * Almond Cleansing Cream (2) Process: Mix all the ingredients except sodium benzoate over a low flame. When the mixture cools down, add sodium benzoate. Keep it in a bottle under refrigeration. Sweet almond oil 1 cup Bitter almond oil 1 cup Sodium benzoate 1 tsp

22

Honey dew soap 30 gm * Almond Cleansing Cream (3) Process: Beat egg yolk honey. Mix almond oil and powder making them into a paste. Now blend the beaten egg and honey to the paste of almond oil and add sodium benzoate too. Sweet almond oil 1 cup Ground almond 120 gm Egg yolk 0f 4 eggs Honey 250 gm Sodium benzoate 1 tsp * Cucumber Cleansing Cream Process: Put a bowl in an open pot filled with boiling water. Pour spermaceti and beewax in the bowl. After they have melted, remove the bowl form the pot. Pour olive oil and cucumber juice. Keep stirring while the mixture is still warm and sodium benzoate. Beeswax 30 gm Spermaceti 30 gm Olive oil 500 ml Cucumber juice ½ cup Sodium benzoate 1 tsp Source of technology * National Research Development Corporation,

(A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048.

Plant and machinery equipment Blender and mixer ACE Pack Machines

23, V.N. Industrial Estate Bharathi Colony, Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Chemfilt 1304/A, GIDC V.U. Nagar-388 120, Gujarat

Packaging machinery A S & T India Ltd. C-30, Neeti Bagh,Khel Gaon Marg,

23

New Delhi-110 049

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Cleansing creams formulation The oils and waxes are melted, the usual way over a pan of boiling water. The cucumber juice, glycerine, colouring and borax is heated separately, ensuring that the borax dissolves thoroughly when the contents of both bowls are in molten form and warm, water is added drop by drop to the oil with continuous stirring. The heating is stopped and the contents of both bowls are mixed till the mixture thickens and cools. The cream is kept in a refrigeration as cucumber juice decays outside. The cream is made in small letches every time. Formulations details (Raw material requirements) Beeswax 3 tps Coconut oil 4 tps Mineral oil or olive oil 4 tsp Cucumber juice 4 table spoons Glycerine 1 tsp Borax 1 pinch Green colouring 1 drop Availability The above raw materials are readily available in the retail market

24

SECTION IX

DISCUSSIONS ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic Capacity 45 tonnes per annum Project cost Rs.77 lakhs Assessment of project cost 1. Land

Description

Cost Rs. In lakhs

1.1. Cost of land of 0.5 acres at Rs.5.5 lakh per acre 2.75 1.2. Cost of levelling,laying internal roads/fencing and

compound wall 0.28

Sub total 3.03 2. Building

Description

Cost Rs. In lakhs

2.1. Factory building Rs.3200 per sq.m 6.40 2.2. Non-factory building at Rs.4500 per sq.m. 2.70

Sub total 9.10 3. Cost of Plant and Machinery

Description Cost Rs. In lakhs

3.1. Cost of basic plant and machinery 10.00 3.2. Instrumentation and control 0.75 3.3. Pipelines and valves 1.00 3.4. Structurals for erection 0.50

Sub total 12.25 3.5. Octroi excise duty, sales tax, etc. at 12 1.47 3.6. Packaging and insurance charges(2%) 0.25 3.7. Transportation charges (2%) 0.25 3.8. Machinery stores and spares (2%) 0.25 3.9. Foundation charges (2%) 0.25 3.10. Installation charges (2%) 0.25

Total cost of plant and machinery 14.95

25

4. Technical know-how fees Rs.1.50 lakhs 5. Miscellaneous fixed assets

Description Cost Rs. Inlakhs

5.1. Electrificatiion 1.5 5.2. Steam boiler and auxillaries 2.50 5.3. Water storage tank, borewell etc 0.60 5.4. Fuel storage tank 0.40 5.5. Laboratory equipment 0.50 5.6. Machinery & equipment 0.60 5.7. Material handling equipment, packaging machinery,

weigh balance etc. 0.50

5.8. Diesel generator 3.6 5.9. Effluent treatment 0.50

Total 10.7 6. Preliminary &Pre-operative expenses: 6.1. Preliminary expenses 0.20 6.2. Pre-operative expenses:- 6.2.1. Establishment 0.20 6.2.2. Rent rates and taxes 0.20 6.2.3. Travelling expenses 0.20 6.2.4. Interest and commitment charges on borrowing 1.20 6.2.5. Insurance during construction period 0.20 6.2.6. Other preoperative expenses and deposits - 6.2.7. Interest on deferred payment -

Total 2.20 7. Provision for contingency Rs.2.12 lakhs 8. Working capital margin Rs.33.49 lakhs 9. Total Project Cost Rs.77 lakhs 10. Means of Finance (Rs. in lakhs) Promoters contribution 31 Term loan from financing institutions 46 Total project cost 77

26

11. Financial statements A. Variable cost Rs. In lakhs

Raw material and utilities 257.30 Spares and maintenance 0.90 Selling expenses 22.50 Total variable cost 280.7

B. Fixed cost

Salaries and wages 15 Interest on term laon and working capital loan 26.41 Depreciation 2.55 Administrative expenses 13.50 Total Fixed cost 57.46


338.15

D. Selling price per kgs( in Rupees)

1000


450


111.85

G. Breakeven point in % 34

27

SECTION X

SWOT ANALYSIS

Strength Increasing demand due to eco friendly nature of product

Weakness Lack of certification procedures Inadequate number of product grades and specification

Opportuntiy Export

Threat Competition from synthetic products

28

SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY

AND RECOMMENDATIONS With the increasing percapita income in the country and raising standards of living, the demand for cosmetic products are registering healthy growth trends. In view of the suspected side effects of synthetic chemicals used in cosmetics, there is increasing preference for use of natural and herbal materials in cosmetic products. Under the circumstances, the demand for herbal cosmetics are bound to go up substantially and steadily in the coming years The Indian herbal cosmetic industry should exploit this favourable conditions by putting forth more product development efforts and R&D work in the field. Apart from process technology, the market thrust and campaign is a vital factor in improving the prospects of herbal cosmetics.

1

PROFILE ON HERBAL EXTRACT CONTENT PAGE NO. SECTION I PRODUCT CHARACTERISTICS 1 SECTION II PRODUCT APPLICATIONS 3 SECTION III INDIAN MANUFACTURERS 4 SECTION IV IMPORT/EXPORT LEVEL 7 SECTION V PRICE 10 SECTION VI INDIAN DEMAND 11 SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 13 SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY 20 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS 22 SECTION X SWOT ANALYSIS 25 SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS 26

SECTION I

PRODUCT CHARACTERISTICS 1.1. General details

2

Different parts of the herbal plants are used for extractions ranging from roots, stem, leaves, flowers to fruits. The extracted products are either in the form of powder or mixture of oil and oleoresins. 1.2. Standards The Bureau of Indian Standards has formulated following specifications for herbal products IS 326-1986 Methods of sampling and test for natural and synthetic perfumery materials. IS 6774:1972 Classifications of essential oil bearing aromatic plants. 1.3 Specifications of Selected Herbal Extracts 1.3.1. Amla Ingredients Amla Colour Creamish Flavour and Taste Characteristics of amla Total soluble solids 100 to 120 brix Acidity%(as Citric acid) 2.5 + 1.0 PH 3.6 + 0.4 Mesh Ratings 1.5 mm 1.3.2. Aloe Vera gel

Appearance Translucent Odour Slight vegetable like odour Taste Slick/Tangy Specific gravity 1.006+ 0.006 PH 3.8 To 4.8 Solids 0.5% Calcium 99 Mg/L Magnesium 26 Mg/L Heavy Metals Less Than 0.001% Storage Store in sealed, light resistant containers at cool, dark, dry place

1.3.3. Guggul 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

3

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. 1.3.4. Vetiver Type I Type II Colour and appearance Light to reddish brown,

sometime greenish viscous liquid

Light to reddish brown, sometime greenish viscous liquid

Odour Characteristic & persistent aroma with pleasant woody character

Characteristic & persistent aroma with pleasant woody character

Specific gravity 30/30 deg.C 0.992 to 1.015 0.990 to 1.032 Opt.rotation 10 to 25 deg -50 to 130 deg. Refrative index 30 deg.C 1.516 to 1.530 1.512 to 1.523 Acid value 35 max 40 max Ester value 25 to 50 25 to 80 Carbonyl value 55 min 24 min Total alcohol 55 min 70 min

SECTION II

PRODUCT APPLICATIONS Application Sector

4

SECTION III

INDIAN MANUFACTURERS There are a number of Herbal extract producers all over India. Important producers include the following

Cosmetics Food Pharmaceuticals

* Creams * Shampoos * Lotions * Talcum powder * Moisturisers

* Food supplement * Sports drinks * Health drinks

* Anti-inflammatory * Detoxification * Treatment of

several illness

5

* Asean Aromatics Pvt. Ltd., Factory & Office : Plot 15-A, IIIrd Cross Street, Nehru Nagar, Kottivakkam,

Chennai-600 041 * Cigma Herbo Tech. P. Ltd., 910/1-A, Thimmampalayam Karamadai-641 104 Coimbatore * Dhawan International B-134, G.F.(Front), Malviya Nagar, New Delhi - 110 017 * Lotus Herbals Ltd. B-9, Sector-58, Noida-201 301, Uttar Pradesh * Dabur Ayurvet Ltd., 6th Floor, Sagar Plaza, Dist. Center, Laxmi Nagar, Vikas Marg, Delhi-110 091 Dabur Ayurvedic Specialities Limited Harsha Bhawan, Block-E, Connaught Place, New Delhi - 110 001 * Envin Foods & Industries Pvt. Ltd. Indian Herbs House, Sharda Nagar, Saharanpur - 247 001 * Excel Industries Ltd. Bio-Tech Division 184-87, Swami Vivekanand Road Post Box No.7474, Jogeshwari (West) Mumbai-400 102, Maharashtra. * Flavex Aromats (I) Ltd. B-2/17, Sarvatra Soc, Paud Road, Kothrud, Pune - 411 029 * Flavours & Essences Pvt. Ltd., 10th Km. Hunsur Road, Belevadi Mysore-571186

6

* Global Herbs Pune Satara Road, Pune - 411 043 * Gufic Biosciences Ltd./Gufic Ltd. Office : Subhash Road-A,Vile Parle (E),Bombay-400 057 Factory: Kabilpore,Navsari,Gujarat * Gujarat Terce Laboratories Ltd. 209, Samir Complex, Opp. Municipal Market, C.G.Road, Ahmedabad - 380 009 * The Himalaya Drug Co. (HDC) 22, Mahakali Road Andheri, Mumbai-400 093 * Indfrag Biosciences Ltd./Indfrag Ltd., 1320, 12th Cross, Indiranagar 2nd Stage, Bangalore-560 038 Factory at Hosur, Tamil Nadu * Kancor Flavours and Extracts Limited, XVII/138, Kanakkankadavu Road, Angamaly South-683 573, Kerala * Laxmi Natural Products Pvt. Ltd. Chandermukhi Basement, Nariman Point, Mumbai - 400 021 Phone: +(91)-(22)- 22853753 Fax: +(91)-(22)- 22853752 Products: Herbal Extracts and Ayurvedic Formulations. * Medimix Group of Companies Sowparnika Herbal Extracts & Pharmaceuticals (P) Ltd. Office : Cholayil, No.1583 J-Block, 15th Main Road, Anna Nagar, Chennai-600 040 * Pioma Chemicals 217/C, Shyam Kamal

7

Agarwal Market Vile Parle (E), Mumbai-400 057 * PSSJ Suthanthira Enterprises 121, North Cotton Road, Tuticorin 628 001, Tamil Nadu * Pharmed Medicare (P) Ltd. Pharmed Gardens, Whitefield Rd. Bangalore 560 048, * Sanmar Speciality Chemicals Ltd. Corporate Office: 9, Cathedral Road,

Chennai - 600 086 * Sri Srinivasa Herblex (P) Ltd., Admn. Office : Shed No.6, Phase III Autonagar, Vijayawada-520 007 Factory : Survey No.218/2A, Gannavaram Road Punadipadu-521 151 * Surya Herbal Ltd., Shrirang Apartments, 1st Floor, Above Sabina Restaurant, Nehru Road, Vile Parle East Mumbai-400 057 * Sami Chemicals and Extracts (P) Ltd. Factory : 104/1, Unit No.3, Singa Sandra Village, Hosur Road, Bangalore - 560 068.

SECTION IV

IMPORT/EXPORT LEVEL The import/export details of a few herbal extracts are given below:

8

4.1. Aloe vera 4.1.1. Imports Nil

4.1.2. Sample of Individual Exports

Period 2001 Name of the Exporters Product Quantity Country

Date Port

White House (Country Drugs) Karia Pavalam Aloe

1500 Kgs. Port Kelang Feb Chennai

Sarathi International Inc.

Perfumed Agarbathies Aloes

2750 box

Rio De Janeiro

August Chennai

Period 2002 Name of the Exporters Product Quantity

Country Period Port

Packiam Botanicals Vegetable Extract Aloe Vera Juice

400 Ltr Linz April Chennai

Sarathi International Inc.

Indian Incense Sticks Aloes

1200box Rio De Janeiro

May Chennai


1000 Ltr Linz May Chennai


300 Ltr Linz May Chennai


1000ltr Linz June Chennai

Arhandicraft Aurocore Aloe Vera Shampoo (10 gr)

144 Nos Rotterdam June Chennai

Arathi International Inc. Indian Incense Sticks Aloes

550box Vancouver June Chennai

4.2. Guggul 4.2.1. Imports Nil 4.2.2. Export details

9

4.2.2.1.Sample of Indian Exports Description

Quantity Value (Rs) Country Company

Guggul Dry extracts

50 Kgs 58662 Brussels Siris Impex

Guggul Dry extracts

5 Kgs 6311 Milan Plant Lipids Ltd

4.3. Amla 4.3.1. Present import level Around 8000 kg per annum Period April 2001 to March 2002 Countrywise import level 7820 kg per annum from Pakistan Present export level Around 40 tonnes per annum Countrywise exports Period: April 2001 to March 2002 Brazil 17500 Japan 72 Malaysia 1600 Pakistan 12760 UAE 7470 USA 126 4.4. Vetiver 4.4.1. Imports Nil 4.4.2. Exports of Vetiver Oil Export level Around 500 kg per annum

10

4.4.2.2. Sample of individual Exports Chennai Port Name of the product

Name of the Exporters Quantity Value in Rs.

Country Date

Vetiver Venus Exports 30.00 Kgs 3219.70 Penang July 2000

Perfumed Incenses Vetiver

Padmini Products 50.00 Kgs 5228.74 Genova July 2000

Vetiver Curtains

Fi Kone Elevator India Ltd.,

4 Pcs 700 Helsinki March 2000

Vetiver Rumi Exports 10.00 Kgs 599.25 Penang September 2001

SECTION V

PRICE

11

Basic Price details of selected herbal extract products are given below:

Herbal Extract Basic price Amla Rs.50 per kg Aloevera gel Rs.140/- per kg Guggul Powder Rs.750 per kg Vetiver oil Rs.1500 per kg

12

SECTION VI

INDIAN DEMAND

The Indian demand for Herbal extract is registering steady growth, particularly in pharmaceutical and cosmetic applications. A few of the herbal extracts are exported from the country, showing an increasing trend in export. Most of the drugs of established therapeutic value used in the pharmacopoeias of different countries grow in the great abundance and often in a state of nature in many parts of India. As per an estimate, India has about 4000 species of herbal plants. Over 9% of them are available in wild state. Only 20% of these industrially useful herbs have so far been under commercial cultivation. In recent times, Indian System of Medicine came to limelight due to its limited side effects and easy accessibility, India is a repository of large number of medicinal plants which needed exploration and experimentation for their sustainable use. Some of the Indian units operating in the Herbal sector such as Vaidyanath, Dabur, Zandu, Hamdard, Himalaya Drug are reported to have produced 500 to 700 numbers of different herbal medicines, tonics and lotions etc. with extensive business to the tune of Rs.100 to Rs.150 crores per annum by each. There are at present more than 7000 pharmacies in Indian system of medicine in the country, out of which about 600 are on loan licence and the remaining are having manufacturing facilities. In addition, there are over 3 lakh Ayurved, 30000 Unani and 12000 Sidha registered practitioners in the country The present market of Indian System of Medicines (ISM) including Ayruvedic drugs is estimated at around Rs.4300 crores. This includes 16 categories of classical ayurvedic medicines and a large number of patent and proprietary ayurvedic medicines. This include oils, pastes, tablets, pills, capsules and liquids

13

Market for Indian System of Medicines in India

Market size (Million Rs.) Ayurveda 41125 Siddha 282 Unani 1645 Total 43052

ISM System Number of products Ayurveda >600 products Siddha > 100 products Unani > 30 products

Driving factors for demand • Important use in medicinal applications due to absence of side effects • Eco-friendly nature of the product Herbal extracts are used extensively in the production of above Indian Systems of Medicines. In addition Herbal extracts are also used considerably in cosmetic products Likely Growth rate in demand for Herbal Extracts 9 to 10% per annum

14

SECTION VII


7.1. General details The manufacturing process for various herbal extracts depend upon the nature of the individual herbs and the specific process requirements. The various unit operations are used in the extraction of herbs such as extractors, dryers pulverisers etc. Observance of specific and stipulated conditions for the production of herbal extracts are necessary to ensure that there would not be any deterioration in product quality or stability. 7.2. Technology Practices in Herbal extract Processing 7.2.1. Procurement: Identification a must, before purchasing or growing fresh/dried herbs. Discriminate look alikes, identical species and adulterated herbs. 7.2.2. Post Harvest: Cleaning and Drying of plant material; to be specific to species as well as end products. Freeze drying, Spray drying and Flash drying are important methods Sun drying is usually the common initial step. 7.2.3. Storage: Storage in controlled atmosphere in an aseptic lay out is a must to maintain keeping quality in terms of colour, actives and fragrance. Temperature, air flow and humidity are closely monitored. 7.2.4. Pulverisation: Grinding media & temperature can play a vital role in quality of final product.

15

7.2.5. Sifting: Sifting through various mesh sizes for different end use is strictly followed. This directly determines the absorption and effectiveness of the herb. 7.2.6. Sterilization: Plant materials contain microbial contamination which resist most of the cleaning techniques. Total Sterilization is mainly effected through exposure to Ethylene Oxide and Gamma radiation. 7.2.7. Filling: It is a must to automate or semi-automate filling. The guage and material of the packing materials should prevent ingress of air and moisture. This avoids oxidation, discolouration or deterioration. 77..22..88.. TTeessttss:: Standard analytical methods are used to determine characteristics. Organoleptic tests can sometimes determine trace component levels. Chromatographic methods are used for quantitative analysis. Microbiological Examination and Toxicological tests have to be performed to determine the safety of the herb. Pesticide Residue and Heavy metals are to be analysed to ensure nil side effects. Clinical trials or post marketing surveillance ensures that adverse drug interactions are avoided. 7.2.9. Standardisation Standardisation and purification are ongoing debates especially in the developed countries. There are two very strong camps influencing the market scenario. The leading Herbal player Sabinsa for instance takes the middle ground. They offer both Standardised extracts as well as whole product and leaves the decision to the customer. It is too premature to conclude on the merits of any single method. The Herbal sector has still some way to go before stabilizing.

16

7.2.10. Distillation * Hydro-distillation. * Steam distillation * Water-steam distillation * CO2 Supercritical Extraction * Hydro-diffusion * Molecular Distillation * Spinning Cone Column Distillation 7.3. Factors determining the Production and Quality Selection : Geographical origin, Organ to Extract and distill, Botanical variety, Harvest time, Biochemical specificity, Contamination and Organoleptics. Comminution : Heat induced deterioration must be prevented during size reduction. It must also be closely followed by soaking and extraction. Quality is ensured through: Physical tests, Chemical tests, GC analysis and Sensory analysis FCC guidelines for Specific Gravity, Refractive index, Optical rotation and Colour have to be followed. GC-MS profiling gives accurate chemical information of the constituents. It can be used to determine: Origin, adulteration, degradation and the complete list of components. Pesticides residue and Heavy metal analysis yield information on safety. Sensory analysis and Head space analysis are the final word on colour, flavour and odour. Extraction : Generally, water is the main media through which extraction is effected. The separation of components are in the order of their solubility in water and not their Boiling Point.

17

Steam Distillation uses high pressure and heated steam optimised so as to keep the spice surface on the false bottom always wet but not saturated, ie., the moisture content suits the absorptive capacity of the herb material. Hydro-distillation is slow and ineffective except that it is portable. Water-Steam Distillation is a blend of the above two processes. It is suitable for most herbs and is also portable. Hydro-diffusion is carried out with the flow top-down. The condensation is at the bottom. Used for seed materials processed in bulk. Supercritical extraction is an effective method for high value extracts. SCE uses gases such as CO2 to diffuse into plant material and extract the soluble components. It can be optimised to yield pure oil. Post-Treatment and Storage of the extracted oil is vital. All the methods except SCE yield moisture containing extract. Sodium sulphate or Chloride are used to remove moisture. Nitrogen is purged into the extract and maturation for a few days is allowed. Storage is usually in clean stainless steel drums. Control of Microbial Load Option: Ethylene oxide (EO) and Propylene oxide (PO) fumigation Disadvantage: Harmful residues (ethylene chlorohydrin/bromohydrin, ethylene glocol.) & Worker Exposure to toxic gases. Reported to be banned in a few developed countries Microwave treatment Disadvantage: Dry commodities unsuitable. Ultraviolet irradiation Disadvantage: Dry commodities unsuitable. Steam or dry heating Disadvantage: Heat destroys flavour, aroma and micronutrients.

18

Methyl bromide Disadvantage: Ozone depleting chemical. To be phased out by 2005 in advanced countries and 2015 in developing countries. Radiation processing Disadvantage: None of the above hazards but cumbersome and expensive. Radiation Processing Advantages It is a cold treatment. Its penetrating nature permits its use in : Raw materials, Finished products and pre-shipment containers. Products irradiated are safe and free from residual radiation Permitted radiation: Cobalt-60, Cesium-137, X-rays (sub 5 MeV), Electron (sub 10 MeV) Spices, Herbs and dry vegetable seasoning are largely irradiated. 10 % of the Herbs and Spices are irradiated to enhance shelf life. 7.4. Source of technology * National Research Development Corporation, (A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048. * Central Institute of Medicinal and Aromatic Plants, (Council of Scientific and Industrial Research) Kukrail Picnic Spot Road, P O CIMAP,Lucknow - 226015 * Central Drug Research Institute, (Council of Scientific & Industrial Research) Chattar Manzil Palace, Mahatma Gandhi Marg, Post Box No. 173,Lucknow-226 001.

19

7.5. Plant and machinery equipment and suppliers * Water Extractor * Falling Film Evaporator * Filler Decanter * Tray Drier * Grinder * Solvent Extractor with Stripping Condenser and Rectifier * Mixing Tanks 1. Size reduction The raw materials is available as Leaves, Stems, Barks, roots, Flowers, Seeds, Kernels and Shells. Depending on the physical properties, including shape and size one has to select the equipments from the following. • Jaw crusher • Hammer Mill • Magnetic Separator • Belt Conveyor • Dust Collection Equipment 2. Extraction equipment 3. Filtration a. Nutch filter b. Enclosed filter press 4. Evaporation/Distillation 5. Solvent Recovery 6. Drying of extracts a. Tray dryer b. Vacuum dryer c. Spray dryer

20

Utilities Equipment Boiler a. Coal fired boiler b. Light diesel/Furnace oil fired babay boiler c. Packaged boiler Cooling Tower a. Spray ponds b. Natural draft cooling tower c. Forced/Induced draft cooling tower 4. Refrigeration Plant 5. Air Compressor Supplier of plant and machinery Boiler Cethar Vessels Ltd.,

No.4, Dindigul High Road, Trichy

Refrigeration plant Voltas Ltd., Chennai

Air compressor ELGI Equipments Ltd., Elgi Industrial Complex III, Trichy Road, Singanallur, Coimbatore-641 005

Jaw crusher K.G. Khosla Compressors Ltd., 19.8 KMS, Delhi-Mathura Road, Faridabad-121 003, Haryana

Dryer Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Valluvar Kottam Nungambakkam, Chennai-600 034 Ganson Ltd. 645, Anna Salai, Chennai-600 006

Filter Fluid Control Equipments 77/574, Mount Road, Chennai-600 006 Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014

21

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITYAND AVAILABILITY

Raw material requirements for selected herbal extracts are given below 8.3 Raw material and utility requirement 8.3.1 Amla Basis : one tonne of Amla oil Amla Fruit 9.16 tonnes Utility Total Installed power 50 HP Fuel oil 80 litres 8.3.2. Aloe Vera Generally, three leaves provide one kg. of Aloe vera gel. Supply of Aloe Vera Leaves Aloe Vera is extensively cultivated in Tamil Nadu and other states in the country. There is no particular constraint in expanding the area of cultivation of Aloe Vera to meet the projected increase in the demand. Therefore, the supply scenario of Aloe Vera Plant material is likely to remain comfortable. 8..3. Guggul 700 to 900 Kg are produced per hectare of Guggul gum plantation. Gum is dried in shade and stored. Guggul is cultivated in Gujarat, Karnataka and Rajasthan. 8.4. Vetiver For 1.5 kg of Vetiver oil 100 Kg Vetiver

22

Raw material availability The herbs are grown all over India in different climatic and seasonal conditions.

23

SECTION IX

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS Economic Capacity 30 tonnes per annum Project Cost in Rs. lakhs Rs.74 lakhs Assessment of project cost 1. Land S.No Description Cost Rs.in Lakhs 1.1 Cost of land of 0.5 acre at

Rs.5.5 lakh per per acre 2.75

1.2 Cost of levelling,laying internal roads/fencing and compound wall

0.28

Sub total 3.03 2. Building S.No Description Cost Rs.in Lakhs 2.1. Factory building at

Rs.3200/sq.m 3.20

2.2. Non-factory building at Rs.4500/sq.m

1.35

Sub total 4.55 3. Cost of Plant and Machinery Description Cost Rs. In lakhs 3.1. Cost of basic plant and machinery 25.00 3.2. .Instrumentation and control 1.88 33. Pipelines and valves 2.50 3.4. Structurals for erection 1.25 Subtotal 30.63 3.5. Octroi excise duty, sales tax, etc. at 12% 3.68 3.6. Packaging and insurance charges(2%) 0.61 3.7 Transportation charges (2%) 0.61 3.8 Machinery stores and spares (2%) 0.61 3.9. Foundation charges (2%) 0.61 3.1. .Installation charges (2%) 0.61 Total cost of plant and machinery 37.36

24

Technical know-how fees Rs.1 lakhs Miscellaneous fixed assets Description Cost Rs. Inlakhs 5.1. Electrificatiion 1.60 5.2. .Steam boiler and auxillaries 1.50 5.3. Water storage tank, borewell etc 0.60 5.4. Fuel storage tank 0.60 5.5. Laboratory equipment 0.60 5.6. Office machinery & equipment 0.80 5.7. Material handling equipment, packaging machinery, weigh balance etc. 0.80 5.8. Diesel generator 3.60 5.9. Effluent treatment 1.20 Total 11.30 Preliminary &Pre-operative expenses: 6.1 Preliminary expenses 0.80 6.2. Pre-operative expenses:- 6.2.1. Establishment 0.80 6.2.2. Rent rates and taxes 0.80 6.2.3. Travelling expenses 0.60 6.2.4. Interest and commitment charges on borrowing 2.00 6.2.5. Insurance during construction period 0.60 6.2.6. Other preoperative expenses and deposits - 6.2.7. Interest on deferred payment - Total 5.60 Provision for contigency Rs. 4.07 lakhs Working capital margin Rs.8.47 lakhs Total Project Cost Rs.74 lakhs Means of Finance (Rs. in lakhs) Promoters contribution 30 Term loan from financing institutions 45 Total project cost 74

25

Financial statements A Variable cost

Rs. In lakhs

Raw material and utilities 46.43 Spares and maintenance 2.24 Selling expenses 6.00 Total variable cost 54.67

B Fixed cost

Salaries and wages 12.00 Interest on term laon and working capital loan 12.60 Depreciation 5.04 Administrative expenses 3.60 Total Fixed cost 33.25


87.92

D. Selling price per kg. (In Rupees) 400.00 E. Annual sales turnover 120.00 F. Net profit before tax (E-C) 32.08 G. Breakeven point in % 51

26

SECTION X

SWOT ANALYSIS

Strength Largely grown in India Weakness Inadequate R & D efforts to conclusively

prove the efficacy and superiority of the product

Opportuntiy Export Threat Other countries developing the cultivation

of the plant in a big way

27

SECTION XI


AND RECOMMENDATIONS Herbal extract are known to treat various ailments such as Cholesterol, inflammation and others. Herbal extracts also have cosmetic and perfumery applications, apart from healthcare. A number of herbal extracts are produced only in a few countries in the world and India can emerge as a significant player. If adequate efforts would be made in developing the market for herbal extracts in India and abroad, Herbal extracts would be an exciting investment prospect.

1

PROFILE ON HERBAL HAIR OIL




2

SECTION I


Hair oils are combination of oils and suitable perfumes. Coconut oil is the most commonly used base for hair oil manufacture, to which manufacturers add other herbal or non-herbal ingredients in order to add value to the product. The base oils like Castor oil, Coconut oil and Seasamum oil are mostly used vegetable based oils. Besides vegetable based oils, another class of base oils which are used in Hair Oils are floral oils such as Bela Oil, Chameli oil, Henna oil etc., which poses most delicate fragrances. Vegetable oils are refined before using it in the Hair Oil formulations. The natural scents added to hair oil such as Balsom peru, Cantharidin and Fly Cantharides help to invigorate the growth of hairs and prevent baldness.

3

SECTION II


In the earlier days, many Indians have been using coconut oil as hair oil because of its inherent properties. However, in recent times, this trend has been changing and people now buy attractive and expensive packs of hair oil, which have several other constituents such as perfumes. Perfumed liquid paraffin hair oils called as non-sticky hair oils are available and purchased as the users need not wash their hands after application. Such developments have given scope for introduction and development of market for Herbal Hair oil in a big way. Herbal hair oil are particularly preferred in view of the medicinal and eco friendly properties that it possesses.

4

SECTION III

INDIAN MANUFACTURERS Both herbal oils and non-sticky hair oils have been quite successful as product concepts. Dabur India’s Vatika hair oil is one of the first herbal hair oils to be introduced in the sector. Hindustal Lever Ltd’s (HLL’s) Clinic Plus non-sticky hair oil(which combines coconut oil and mineral oil) has also been an unqualified success. There are number of producers of Herbal hair oil in India, both in the organised and unorganised sector.. The Indian producers include the following: * A.G.I.Restorative Foundation Anil House D - 136, Shankar Road, New Rajinder Nagar, New Delhi - 110060 * Aditi Herbochem 5, Jairam Niwas, 1st Floor, Swastik Park, Sion Trombay Road, Chembur, Mumbai - 400 071 * Ajantha Chemicals P.O. Poonithura, Thripunithura, Kochi - 682 317 * Ajay Pharmacy 36/201,

Race Course Park, Airport Road, Rajkot - 360 001 * Aravindh Herbals 75/11, North Vadambokki Street (Near Zam Zam Sweets) Madurai-625 001 Shanmuga, Kallekulengara Palakkad-678 009

5

* APS Pharma Chem Pvt. Ltd. 31, Chittaranjan Avenue, 2nd Floor, Kolkata - 700 012 * Auriga International 13, Subhlaxmi Society, Opp Police Staion, Sabarm, Ahmedabad - 380 005 * Arshik Herbal Remedies (India) Ltd. Mulayara,

Thiruvananthapuram * ABI Herbal Products Vettukattu Valasu Ingur P.O., Erode-638 058, Tamil Nadu * Bakson Drugs & Pharmaceuticals Pvt. Ltd. Delhi Works : Parwancoo, Himachal Pradesh * Bhavnagar Oil & Chemical Industries Pvt. Ltd. 414, Rewa Chambers, Sir. V.T. Marg, New Marine Lines Street, Mumbai - 400 020 * Bio - Remedies 969, Sector-4, Gurgaon - 122001 * Dabur India Ltd. 3, Factory Road, Near Safdarjun Hospital New Delhi-110 029 * Emami Group of Companies 18, R.N. Mukherjee Road, Kolkata - 700 001, * Goolabkhan Peerkhan Co. 178, Nagdevi Street, Mumbai - 400 003

6

* Grow-On Exports (India) Limited 19/5 IIIrd Floor, Shakti Nagar, New Delhi - 110 007 * Hindustan Lever Ltd., Hindustan Lever House, 165/166, Backbay Reclamation, Mumbai-400 020 No.50 & 51, SIPCOT Indl. Complex Hosur-635 126. The company launched a new range of Ayurveda products called Ayush, backed by an Ayush Therapy centre as well. The Lever Ayush range at present includes five products : Cough Naashak syurp, Headache Naashak Roll on, Hair poshak oil, Dandruff naashak shampoo and Body rakshak shampoo. These over-the counter products will be sold through chemists and retail outlets. * H V Homeopaths (P) Ltd. Malviya Road, Sitabuldi, Nagpur - 440 012 * Hi-Tech Global Enterprises 4/14, Ragavi Complex, Opposite Tamil Nadu Theatre, Pall, Coimbatore - 641 605 * J.D. Corporation 203 Yogeshwar, 135/139 Kazi Sayed Street, Masjid Bunder, Mumbai - 400 003 * Madhu Exports 95/1 CPWD Quarters, K.K Nagar, Chennai - 600 078 * Pravek Kalp Ayurvedic Oils 1711, S.P. Mukherjee Marg, New Delhi - 110 006

7

* Prima Exports 1106, Pragati Tower, Rajendra Place, New Delhi - 110 008 * Radhika Herbal B-159, Faridabad - 121 001 Phone: +(91)-(129)-5424870 * Regal Enterprises 7-D, Nedungadan Residency, Chittoor Road, Ernakulam - 682 018, Kerala * Sujan Chem- Tech Vile Parle (E), Mumbai - 400 057 * Sunrise Remedies Pvt. Ltd. 13, Subhlaxmi Society, Opp Police Station, Sabar, Ahmedabad - 380 005 Phone: +(91)-(79)-7506907/6754164 Fax: +(91)-(79)-7506907 * Saini Herbs (P) Ltd. 17, 19, 20 Kanishka Shopping Complex, Kanishka Hotel, Ashoka Road, New Delhi - 110 001 * Vaipani Herbal (Keshwardhini) Maharashtra Product range Vaipani Keshwardhini Oil: Keshawardhini hair oil is made from Brahmi, Amal Jabakusum and other vital herbs. This oil prevents hair fall, greying and strengthens hair root. It helps in sound sleep and release tension. * Wonder Herbs 604-L, Model Town, Panipat - 132103 * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai-600 106.

8

The Corporation commenced its commercial activities in August 1985 with one product namely Herbal Hair Tonic (a siddha medicine) by producing and marketing in a small scale. In the subsequent years, the production and sale of Herbal Hair tonic has reached to the level of 1,00,000 litres per annum. Tampcol Hair tonic, at one point of time, commanded about 36% of the market share in Tamil Nadu. It is the first product of Tampcol. It had gained wider acceptance in the hair oil market. At present, the Herbal hair oils and other thailams (oils) are manufactured in the pharmacy complex of Anna Hospital at Chennai.. Now Corporation is planning to increase the production of herbal hair oils by expanding the production facilities. Tampcol has proposed to market the herbal hair oils in the neighbouring states such as Andhra Pradesh, karnataka and Kerala and to expand the marketing activities to all Metro towns like Calcutta, Bombay and other States in India. Range of herbal hair oils produced a) Improved herbal hair tonic 100 ml and 200 ml b) Amla thailam 100 ml and 200 ml c) Classic herbal hair tonic 100 ml and 250 ml

9

SECTION IV

IMPORT/EXPORT LEVEL 4.1. Imports Negligible quantity 4.2. Exports 4.2.1. Sample of individual exports Name of the exporter Brand name Quantity Value in Rs

Country Date Port

National Trading Co. Castroline 100 ml 378 Port Kelang

January 2002

Chennai

National Trading Co. Castroline 400 ml 260 Port Kelang

January 2002

Chennai

San Exports V.V.D. 420 Pcs 19635 Singapore January 2002

Chennai

San Exports V.V.D. 40 Pcs 3133.58 Singapore January 2002

Chennai

San Exports Brami Amla 60 Pcs 2880.92 Singapore January 2002

Chennai

India Exports and Imports

Dabur Amla 60 Pac

4656.09 Le Havre January 2002

Chennai


Dabur Amla 120 Pac


Chennai


Dabur Vatika

45 Pac


Chennai


Dabur Vatika

35 Pac


Chennai


Dabur Vatika

4 Pac


Chennai


Dabur Vatika

56 Pac


Chennai

Foor Exports Hair Oil 600 doz 81838.11 Port Kelang

February 2002

Chennai

Foor Exports Hair Oil 450 doz 11048.48 Port Kelang

February 2002

Chennai

Sri Sakthi Exim Hair Oil 67 Doz 8556.60 Colombo February 2002

Chennai

Yusuff Exports Hair Oil 5 Box 4342.50 Singapore February 2002

Chennai

Rajan & Company Cocount Hair Oil

48 doz 4271.51 Port Kelang

March 2002

Chennai

Remy Impex Cocount Hair Oil

90 doz 16861.31 Port Kelang

March 2002

Chennai

Kamar exports Medimix 20 Box 20088.49 Singapore April Chennai

10

Hair Oil 2002 Durga Exports Almond

Hair Oil 125 Pcs 2121.89 Port

Kelang April 2002

Chenai

Sambavi Enterprices Navratan Hair Oil

80 Nos 3220.40 Mombasa April 2002

Chennai

Delux Export and Import Co.,

Herbal Hair Oil

200 Ltrs 38359.96 Singapore April 2002

Chennai

KR & CO. Aswini Hair Oil

5 CTN 64464.71 Singapore May 2002

Chennai

KR & CO. Kesavarthini Hair Oil

4 CTN 9710.24 Singapore May 2002

Chennai

Gaffor Exports Amla hair Oil

800 Doz 190758.05 Port Kelang

June 2002

Chennai

Kumar Traders Pvt.Ltd.

Amla hair oil

5 CTN 7503.27 Melbourne June 2002

Chennai

11

SECTION V

PRICE Price of 144 packs and each pack of size 100 ml

Rs.3083

Price of 72 packs and each pack of size 250 ml

Rs.3547

Taxes and duties extra as applicable

12

SECTION VI

INDIAN DEMAND 6.1. Size of Indian Hair Oil Industry

Size of Indian Hair Oil Industry

Rs.2000 crores

Indian production level of Hair oil

Around 1000 Kilo litre per annum

13

6.2. Market Share of the Hair oils of various types

6.3. Important Herbal oil brands

• Clinic All Clear-150 ml

• Clinic Plus-100 ml & 200 ml • Dabur Amla-200 ml • Dabur Vatika-150 ml

• Parachute-100 ml & 200 ml • Nihar-200 ml • VVD-200 ml

Heavy hair oils(Dabur Amla,Dabur Jasmin, Bajaj Brahmi Amla)

55%

Hair tonics2% (Brylcream, Cinic Active, Vaseline Hair

tonic)

Coconut based oils (Dabur Vatica,

Clinic Plus,

Parachute Herbal)10%

Cooling hair oils (Himtaj, Banphool,

Dabur keshraj)10%

Light hair oils (Keo Karpin, Dabur

Special, Hair & Care)23%

14

Estimated Indian market for Herbal hair oil

75 to 100 kilo litre per annum

Estimated growth rate in demand

15% per annum

15

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. Important Herbal Hair oil extracts Coconut oil is the base for most of the herbal hair oils. Herbal well known for use in Hair oils are processed into thick pulp which is soluble in both vegetable and mineral oils. These include the following: Common name

Sanskrit name Botanical name Part used

Amla Amarphalam Amalakam

Emblica Offcienalis Phyllanthus emblica

Dried fruit

Brahmi Mandukaparni Centella asiatica Herb Bhiringraj Bringraja Ecliptica alba/eracta Herb Kaddu seeds Alabu Legenarie sinceraria Seeds 7.2. Efficacy of Herbal Hair Oils Hair oil containing any one or combination of herbs mentioned above have been used in India since time immemorial and are highly spoken of in folklore and books on indigenous drugs. Amla Fruits are rich in tannins; Fixed oil berries

strengthen and promote growth of hair. Brahmi Local stimulant useful for skin eruption,

Eczema. The extract is a remedy in ulcers. Eczema and Psoriasis.

Bhringraj Antiseptic, excellent for head: renders hair black and promotes luxurious growth; paste of herb in oil is useful for skin diseases, itch, headache and also for dyeing hair black.

Bhangra Contains oil soluble dye useful in alopecia and skin disease.

Kaddu seeds Have fatty oil which is applied in headache, The oil has cooling effect and is emollient.

Henna leaves For treatment of head ache; astringent; detergent and deodorant applied to hair to promote growth.

16

7.3. Manufacturing process for Herbal Hair oil The herbs are cleaned thoroughly, dried and ground in a pulveriser to a fine powder. A known weight of the herb is taken and boiled in 10 times its volume of water to extract all its nutrients. The solution is filtered and the resulting solution is concentrated on a simmering flame till a dark fluid mass results, after almost complete evaporation of water. 40% of the mixture is mixed with 60% of pure coconut oil and the mixture is heated to remove completely any traces of water. The oil is cooled and packed in suitable container. 7.4.3. Source of technology National Research Development Corporation, (A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048. 7.4.4. Plant and machinery equipment and suppliers • Gas burners and accessories • Measuring vessels • Stainless steel reactors • Bottle washing machine • Stainless steel working tables • Working tools Supplier of plant and machinery * Spark Engineers Pvt. Ltd Spark Enterprises 5/332, State Bank Colony II Salem-636 004

SECTION VIII

17


8.1. Formulation Details Formulation-I Ingredients Quantity Refined Coconut or Sesamum oil 5 seers Balsam peru 2.50 oz Fly Cantharides 5 drop. Sanda Oil 15 drop. Alkanet root 15 drop. Otto of Henna 5 drop. Oil Rosemary 10 drop. Process outline: First of all the oil is treated with alkanet root and allowed to remain undisturbed for 2 days for colouring. Then strain the oil through cloth. The fly canthanrides are nex fried in fresh coconut or seasamum oil and when these are well fried and discoloured, these are allowed to cool. Afterwards, add the previously coloured oil, and the Balsam Peru (after melting it over a slow fire). Finally add the other ingredients one by one with constant shaking. Formulation-II Ingredients Quantity Refined Seasamum Oil 24 oz Alkanet root 2 drop. Oil Bergamot 6 drop. Oil Lemon 3 drop. Oil Rosemary 2 drop. Oil Neroli 1 drop. Oil Lavender(English) 2 drop. Oil Orange 1 drop. Oil Rose Geranium 2 drop. Canthridin 3 grains Balsam Peru 2 drop. Process outline

18

The best quality of refined seasamum oil is taken and into it is added alkanet root previously cut into small pieces. The whole is then allowed to stand undisturbed for 2 days and then filtered through a piece of fine cloth. Next add the other ingredients one after another in the order they appear in the recipe and shake the whole for 15 minutes after each such addition. Balsam Peru, the last ingredient, is to be melted over a slow fire before incorporation. When the ingredients are all incorporated, the whole is kept aside air-tight in a vessel for a fortnight and then packed. Formulation-III Ingredients Quantity Chameli Oil 2 litre Almond oil 1 litre Alkanet root 1 oz. Cantharidin 12 grains Balsam Peru 5 oz. Sandal oil 3 oz. Flora Jasmine 12 drop. English lavender 2 oz. Process outline Mix the Chameli and almond oil together and drop into this the alkanet root in small pieces and let the oil remain undisturbed for 2 days. Then strain through a piece of cloth and add the ingredients one after another with constant shaking. While adding the balsam peru, take care that it is melted over a slow fire before addition. When all the ingredients are well incorporated, pack in a vessel with the mouth well-covered and put in strong sunlight for 20 days together. Finally strain and pack into container.

19

Formulation-IV Ingredients Quantity Sesamum oil 6 litre Alkanet root 2 oz Otto Keora 1 oz Oil Lavender 2 oz. Oil Rosemary 1 oz. Process outline The seasamum oil is first of all treated with animal charcoal and put in Sun for a fortnight. This is then filtered through a filter paper or through flannel. To the oil thus refined, add the alkanet root in small bits and strain after two days. Then incorporate the other ingredients one after another with constant stirring and let the whole stand for 7 days in a vessel tightly closed. Finally strain again and pack into containers. This oil keeps the brain cool and stimulates the growth of hair. Formulation-V Ingredients Quantity Coconut oil 12 ch White oil 4 ch Oil Lavender 3 drop. Oil Sandal 3 drop. Oil Bergamot 3 drop. Alkanet root 1.5 drop. Process outline First refine the coconut oil and add the alkanet roots. The whole is left for colouring for 2 days. Now filter and add the essential oils one by one and shake well before the addition of the next one. The whole is left well closed for 7 days for ripening.

20

Formulation-VI Ingredients

Quantity

Coconut or Castor Oil 500 parts Balsam Peru 15 parts Oil of Jasmine 60 parts Oil of Roses 30 parts Oil of Bitter Almons 30 parts Oil of Vanilla 60 parts Oil of Ambergris 30 parts Oil of Musk 30 parts Process outline The balsam peru is first of all digested for 14 days in the oil, shaking the vessel frequently. When the mixture is clear, add the essential oils one by one. The oil keeps for a long time and resembles very much the heliotrope oil in odour. Formulation-VII Ingredients

Quantity

Benzoated Oil 20 oz Otto of Rose 25 minims Heliotropin 20 dr. Process outline: The benzoated oil is made by digesting an ounce of benzoin, in a pint of almond or olive oil for three hours and filtering through filter paper. Finally add the scent, shake. The oil does not become rancid. In the preparation of these scented hair oils, precautions are to be taken that procedures are to be followed strictly so that desired quality is achieved. The addition of scents and colouring of hair oils are two important steps. 8.2. Availability The above raw materials are available from the various trading houses who are located in leading cities all over the country.

21

SECTION IX


Economic capacity 15 Kilo litress per annum Project cost Rs.26 lakhs Assessment of project cost Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.65 1.2 Cost of levelling, laying internal roads/fencing and

Compound wall

0.17


Rs.in lakhs

2.1 Factory building at Rs.3200 per sq.m. 3.20 2.2 Non-factory building at Rs.4500 per sq.m. 2.25 Subtotal 5.45 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 7.00 3.2 Instrumentation and control 0.53 3.3 Pipelines and valves 0.70 3.4 Structurals for erection 0.35 Subtotal 8.58 3.5 Octroi, excise duty, sales tax, etc.at 12% 1.03 3.6 Packaging and insurance charges (2%) 0.17 3.7 Transportation charges (2%) 0.17 3.8 Machinery stores and spares (2%) 0.17 3.9 Foundation charges (2%) 0.17 3.10 Installation charges (2%) 0.17 Total cost of plant and Machinery 10.46

22

4. Technical know-how fees Rs. 1.20 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 1.2 5.2. Water storage tank, borewell etc. 0.3 5.3. Laboratory equipment 0.3 5.4. Office machinery & equipment 0.3 5.5. Material handling equipment, packaging machinery,


Total 2.4 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.20 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.20 6.2.2 Rent rates and taxes 0.30 6.2.3 Travelling expenses 0.20 6.2.4 Interest and commitment charges on borrowings 0.40 6.2.5 Insurance during construction period 0.20 Total 1.50 7. Provision for contingency Rs.1.17 8. Working capital margin Rs. 2.25 9. Total project cost Rs. 26

10. Means of finance Promoter's contribution Rs 10 lakhs Term loan from financing institutions Rs 16 lakhs Total project cost Rs 26 lakhs

23

Financial statements (Rs. in lakhs) Cost of production Variable Cost

Raw material and utilities 11.16 Spares and maintenance 0.63 Selling expenses 1.61 Total variable cost

13.40

B Fixed cost

Salaries and wages 6.00 Interest on term loan and working capital loan 4.05 Depreciation 1.42 Administrative expenses 0.97 Total fixed cost

12.5

C. Total cost of production A + B

25.69


215

E. Annual sales turnover (Rs.in lakhs)

32.25

F. Net profit before tax (Rs.in lakhs)(E-C))

6.35


66

24

SECTION X

SWOT ANALYSIS

Strength Growing demand due to increasing per capita income

Weakness Higher price compared to synthetic hair oil Opportuntiy Export opportunity Threat Mushroom growth and competitive market

conditions

25

SECTION XI


AND RECOMMENDATIONS Entry into the value-added hair oils segment is an attractive investment opportunity. Major players in the branded hair oils market have been training their sights on value added hair oils. This has spawned a range of product innovations such as hair oils with herbal ingredients, non-sticky oils, light hair oils and lately dandruff solution hair oil. There is no particular entry barrier to set up the project from the point of technology or raw material availability. The challenging task would be the market penetration ,since the market is bound to remain competitive. The project promoter should carefully evaluate his strength to operate in a highly competitive consumer market, before venturing into the project.

1

PROFILE ON HERBAL SHAMPOO


UTILITY AND AVAILABILITY 13 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS 14 SECTION X SWOT ANALYSIS 17 SECTION XI FACTORS INFLUENCING THE POSITION


2

SECTION I


1.1. General details A Shampoo can be defined “as a preparation of a surfactant (i.e. surface-active material) in suitable form – (liquid, solid or powder-), which when used under the conditions specified will remove surface grease, dirt and skin debris from the hair shaft and scalp without affecting adversely the hair, scalp of health of the user”. A successful shampoo may be defined as a product having some cleansing and foaming action which leaves the hair soft, lustrous and manageable. 1.2. Classification of Shampoos Classification is made according to the physical appearance or in some instances according to the special ingredients or properties.

Liquid clear shampoos Liquid cream or cream lotion shampoos

Cream paste shampoos Egg shampoos

Herbal shampoos Dry shampoos

Liquid dry shampoos Colour shampoos Aerosol shampoos

3

SECTION II


A good shampoo should cleanse hair and scalp thoroughly without staining or irritation and should not remove too much of the natural oil from the scalp. The success of shampoos in replacing a cake of soap, lies in the fact that the shampoo is not only a detergent but a cosmetic as well and that it must impart luster, beauty and manageability.

4

SECTION III

INDIAN MANUFACTURERS There are a number of manufacturers of Herbal shampoo, both in the organised and unorganised sector. The important producers include the following: * A Spiderman India 82, Dabri Ext. Main, New Delhi - 110 045 * Ajantha Chemicals P.O. Poonithura, Thripunithura, Kochi - 682 317 * APS Pharma Chem Pvt. Ltd. 31, Chittaranjan Avenue, 2nd Floor, Kolkata - 700 012 * Auriga International 13, Subhlaxmi Society, Opp Police Staion, Sabarm, Ahmedabad - 380 005 * Azba Herbals 6/320 M.L. Street, Periapet, Vaniyambadi - 635 751 * The Ayur Beauty Care P.O. Box 6032 New Delhi-8 * Bakson Drugs & Pharmaceuticals Pvt. Ltd. Works : Parwancoo, Himachal Pradesh * Brihans Natural Products Fourth Floor, Rajeev Apartments Kale Path, Off Bhandarkar Road Pune-411 004 A-5, Blue Bird Hsg. Society, 1046, Shivajinagar, Pune - 411 016

5

* CavinKare Pvt. Limited, (Formerly Beauty Cosmetics Limited,) 130 (New No.237), Peters Road, Chennai-600 086 * Emami Limited Unit I: CS 46 & 47, PIPDIC Industrial Estate Mettupalayam, Pondicherry-605 009 6-A, R.N. Mukherjee Road, Calcutta-700 001 * Healthy Herbals Factory & Office : S. Duraisamypuram Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist.-628 902 Farm : Parambu, Keelamangalam Ottapidaram Taluk Thookthukudi District Tamil Nadu * Herbal Cosmetics Pvt. Ltd., MKV Road,

Cochin 25, Kerala * Hindustan Lever Ltd., Hindustan Lever House, 165/166, Backbay Reclamation, Mumbai-400 020 * H V Homeopaths (P) Ltd. Malviya Road, Sitabuldi, Nagpur - 440 012 * Mas International Bodinayakanur,

Tamil Nadu * Radico Export Import 1329, Sector-17,

Faridabad - 121 002 * Shree Baidyanath Ayurved Bhawan Ltd. 1, Gupta Lane, Calcutta-6 172, Gusainpura, Jhansi-284 002, Uttar Pradesh

6

* Sarok Marketing Media 6/817, Chhpria Sheri, Mahidhar Pura, Galemandi Bazar, Surat - 395 003 * Simla Chemicals Pvt. Ltd. A-76, Phase-I Naraina Industrial Area, New Delhi - 110 028 * Sidda 617, Surveyor Colony, Madurai - 625 007 * Sky International 24, "Arunoday", Sudarshan Nagar

Chinchwad, Pune - 411 033

* Sunprene International Ltd. Ravi Bhavan, Jaistambh, Raipur - 492 001 * Sunrise Remedies Pvt. Ltd. 13, Subhlaxmi Society, Opp Police Station, Sabar, Ahmedabad - 380 005 * Sareen Herbal E-101 Greater Kailash Enclave-1,

New Delhi - 110 048 * Vaipani Herbal Maharashtra * Wella Ayurvedic `Om', 25, Ulkanagar, Aurangabad - 431 005 * Wonder Herbs 604-L, Model Town, Panipat - 132103

7

SECTION IV

IMPORT/EXPORT LEVEL

4.1. Sample of individual imports Name of the importer

Type of shampoo

Quantity Value Country Port Date

J.N.Exports and Imports

Personal Shampoo conditioner

703 Doz 340814 Singapore Chennai January 2002

J.N.Exports and Imports

Personal Shampoo conditioner

1297Doz 628785 Singapore Chennai January 2002

Proctor and Gamble

Head & Shoulders Refreshing Menthol

55584 Pcs 1115509 TH Chennai March 2002

Proctor and Gamble

Smooth and Silky


Proctor and Gamble

Pantene Pro-V


Proctor and Gamble

Head & Shoulders Refreshing Menthol

1763 CTN 596990 TH Chennai March 2002

Proctor and Gamble

Pantene Pro-V


Multi Link Exporters and Importers

Shampoo wild rain

86 doz 41691 SG Chennai March 2002

Multi Link Exporters and Importers

Shampoo natural

150 doz 72718 SG Chennai March 2002

Proctor and Gamble

Head & Shoulders

3840 CTN 1236108 TH Chennai May 2002

Proctor and Gamble

Pro-V Anti dandruff

32400 Nos 662414 TH Chennai May 2002

Henkel Spic India Ltd.

Bonacure Gloss Shampoo

200 Nos 6476 DE Chennai June 2002

Henkel Spic India Ltd.

Bonacure Gloss Shampoo

190 Nos 5719 DE Chennai June 2002

8

4.2. Sample of individual exports Name of the exporter

Type of shampoo

Quantity Value Country Port Date

Afsan Exports

Shampoo 612 Pcs 63409 Singapore Chennai January 2002

Ambika Marketing

Clinic Plus Shampoo

240 Pcs 17126 Singapore Chennai January 2002

KR & CO. Vatika Shampoo

5 CTN 10236 Singapore Chennai January 2002

Cavinkare Private Ltd.

Nyle shampoo

120 Box 76793 Port Kelang Chennai February 2002

Cavinkare Private Ltd.

Nyle shampoo

110 Box 85776 Port Kelang Chennai February 2002

Yusuff Exports

Shampoo 5 Box 5307 Singapore Chennai February 2002

Afsan exports

Meera Shampoo

200 Pcs 7390 SG Chennai March 2002

Yusuff exports

Shampoo 5 box 5456 SG Chennai March 2002

Deluxe Export and Import Co.

Herbal Shampoo

600 Ltr 115079 SG Chennai April 2002

KR & CO. Vatika Shampoo

5 CTN 10554 Singapore Chennai May 2002

Cavin Kare Private Ltd.

Nyle shampoo

35 CTN 17341 Colombo Chennai May 2002

Visnukumar Traders Pvt.Ltd.

Vatika Shampoo

2 CTN 3495 Australia Chennai June 2002

Kipling & Company Arts Pvt.ltd.

Herbal Shampoo

12 Nos 514 Stockholm Chennai June 2002

Arhandicraft Aloe vera shampoo

144 Nos 5515 Rotterdam Chennai June 2002

Arhandicraft Aloe vera shampoo

144 Nos 5370 Rotterdam Chennai June 2002

9

SECTION V

PRICE

Price of herbal shampoo – 1000 ml Rs.240

10

SECTION VI

INDIAN DEMAND

6.1. Indian market size for Shampoo 6.2. Major players Procter & Gamble Head and Shoulders

Pantene

Hindustan Lever Ltd. Ayush antidandruff Clinic All Clear Organics Anti dandruff

Colgate Palmolive Optima 6.3. Market share of Hindustan Lever Market Share of Hindustan Lever 60% Market Share of Clinic brand of Hindustan Lever

25%

Market Share of Pantene 15% 6.4. Herbal Shampoo market

Size of the Indian Shampoo market

(Both synthetic and herbal)

Around Rs.400 crores

Size of Indian herbal Shampoo market Around Rs.40 crores

Growth rate

Synthetic shampoo 15% Natural shampoo 25%

11

6.7. Major herbal shampoo brands Nyle, a herbal shampoo owned by Madras based Beauty Cosmetic Ltd has become the third largest selling shampoo brand in the country. Market share of Nyle 15% The other important Shampoo brands are Clinic Plus and Sunsilk which have largest and the second largest shampoo market in the country.

s

12

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. Amla based shampoo Soak Amla, Shikkai, Henna, Khus, Charilla and Reetha for one night for 12 hours. Boil till the mixture remains half strain and add lavender oil and sodium benzoate. 7.2. Coconut oil based Shampoo Coconut Oil Shampoo is made made by saponifying odourless oil with potash. Sometimes other fixed oils are added and these include palm, peanut etc., but they have a tendency to decrease the foaming properties of the product and are only used in cheaper grade articles. Usually, 1000 parts of coconut oil require for complete saponification about 3000 parts of potassium hydroxide. This is dissolved in 1 litre of water at about 75 deg.C and added to the oil at the same temperature in a steam pan. Saponification can be tested by using phenolphthalein as indicator. If the liquid remains white, further additions of alkali are necessary whereas when it turns red more oil should be added. The heat is continued until saponification has taken place and the product is neutral. It is then diluted to 5 litres with distilled water in which some carbonate of potash has been dissolved. 7.4.3. Source of technology National Research Development Corporation, (A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048. 7.4.4. Plant and machinery equipment and suppliers Reactor Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

13

Mixing vessel Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Valluvar Kottam Nungambakkam, Chennai-600 034 Ganson Ltd. 645, Anna Salai, Chennai-600 006


Packaging machinery E.C. Packaging Pvt. Ltd., 14/7, Mile Stone, Mathura Road, Faridabad-93, Haryana

14

SECTION VIII


8.1. The formulations for Amla based shampoo Ingredients Quantity Amla 1 kg Shikakai 2 kg Char 1 kg Charilla 1 kg Khus 1 kg Reetha 2 kg Water 25 litres Glycerine 4 gms Lime juice 200 kg Sodium Benzoate 75 gms 8.2. Formulation for Coconut oil shampoo Ingredients Quantity Coconut oil 1000 parts Potassium hydroxide 300 parts Distilled water 1000 parts Potassium Carbonate 30 parts Distilled water 2970 parts The raw materials are readily available in the market. . 8.3. Hair Shampoo (dry) Herbs Quantity Bhandir 15 parts Amla 20 parts Gritakumari 5 parts Bahera 5 parts Harita 5 parts Bhiringraj 15 parts Arishtak 10 parts Shikakai 25 parts Availability of raw material The raw material are readily available in the market

15

SECTION IX


Economic Capacity 75.00 kilo litres per annum Project cost Rs.88 lakhs Assessment of project cost 1. Land Description

Cost Rs. In lakhs

Cost of land of 0.5 acre at Rs.5.5 lakh per acre 2.75 Cost of levelling,laying internal roads/fencing and compound wall 0.28

Subtotal 3.03 2. Building Description

Cost Rs. In lakhs

Factory building at Rs.3200 per sq.m 3.20 Non-factory building at Rs.4500 per sq.m. 1.36

Subtotal 4.56 3. Cost of Plant and Machinery Description

Cost Rs. In lakhs

Cost of basic plant and machinery 30 Instrumentation and control 2.25 Pipelines and valves 3.00 Structurals for erection 1.80

Sub total 36.75 Octroi excise duty, sales tax, etc. at 12 3.31 Packaging and insurance charges(2%) 0.74 Transportation charges (2%) 0.74 Machinery stores and spares (2%) 0.74 Foundation charges (2%) 0.74 Installation charges (2%) 0.74


16

4. Technical know-how fees (Rs. In lakhs) Rs. 1.50 lakhs 5. Miscellaneous fixed assets Description

Cost Rs. Inlakhs

Electrificatiion 2 Steam boiler and auxillaries 2.60 Water storage tank, borewell etc 0.40 Fuel storage tank 0.30 Laboratory equipment 0.40 Office machinery & equipment 0.40 Material handling equipment, packaging machinery, weigh balance etc.

0.60

Diesel generator 3.60 Effluent treatment 1.20

Total 11.5 6. Preliminary &Pre-operative expenses: Preliminary expenses

0.60

Pre-operative expenses:- Establishment 1.00 Rent rates and taxes 0.40 Travelling expenses 0.60 Interest and commitment charges on borrowing 2.40 Insurance during construction period 0.40 Other preoperative expenses and deposits - Interest on deferred payment -

Total 5.40 7. Provision for contigency Rs. 4.74 lakhs 8. Working capital margin Rs.12.78 lakhs 9. Total Project Cost Rs.88 lakhs 10. Means of Finance (Rs. in lakhs) Promoters contribution 35 Term loan from financing institutions 53 Total project cost 88

17

11. Financial statements A Variable cost

Rs. In lakhs

Raw material and utilities 73.44 Spares and maintenance 2.69 Selling expenses 9.00

Total variable cost

85.13

B Fixed cost

Salaries and wages 12.00 Interest on term loan and working capital loan 16.44 Depreciation 5.82 Administrative expenses 5.40

Total Fixed cost 39.66

C. Total cost of production (A+B) 124.79

D. Selling price per litre. (In Rupees) 240.00

E. Annual sales turnover 180.00

F. Net profit before tax (E-C) 55.21

G. Breakeven point in % 42

18

SECTION X

SWOT ANALYSIS

Strength Steady increase in demand due to raising standard of living

Weakness Non-availability of more grades and specifications of the product for diversified applications

Opportuntiy Export opportunity

Threat Competition from synthetic products

19

SECTION XI


AND RECOMMENDATIONS With the increasing standards of living in the country, the demand for Shampoo are likely to go up steadily in the coming years. In view of the consumer acceptance and eco friendly nature of the product, herbal shampoo is rapidly substituting the synthetic shampoo. Since India has good strength in the herbal sector, the export opportunity for Herbal Shampoo can be well exploited, by introducing innovative and relevant specifications of the product and initiating R & D efforts.

1

HERBAL SOAPS

SECTION I

PRODUCT CHARACTERISTICS Herbal soaps are made from extracts of herbs and coconut oil. Ingredients of Ayurvedic bar soap produced by Medimix Ingredients Pharmacological action Dharu Haridra (Breberis aristata) Antibacterial, anti fungal Nimba twak(Melia azadirachta Antiseptic, anti fungal, antibacterial, antidandruff Yashtimadhu(Glycyrrhiz glabra) Improves complexion of skin, acts as a sunscreen

and also improves hair growth Sariba(Hemidesmus indicus) Coolant to skin, prevents itching and removes bad

body odour Kutaja(Holarrhena antidysentrica) Coolant, prevents excessive sweating Krishnajeeraka(Nigella sativa) Deodorant Chitraka(Plumbago rosea) Excellent antifungal, acts against, antidandruff,

also useful in many skin problems Bakuchi(Psoralea corylifolia) Proven medicine against psoriasis,

Vitilgo(switram) and improves hair growth Davadaru(Cedrus cyminum) Provides pleasant body odour Jeeraka(Cumminum cyminum) Provides pleasant body odour Dhanyaka(Coriandrum sativam) Provides pleasant body odour Vacha (Acorus calamus) Antibacterial, antiviral, deodorant, Repels

parasites from body Usheeram(Andropogan muricatus) Coolant to body, acts against wet and dry eczema Jyothishmati(Celastrus paniculatus) Improves smoothness of skin Vidangam (Embelia ribes) Effective against all sorts of parasitic organisms Guggulu (Balasamodendron mukul) An effective antiseptic, antibacterial, antiviral and

anti inflammatory agent, deodorant Chopchini(Smilax ching) Anti inflammatory drug Vanardraka(Zingiber zerumbet) An effective anti fungal, anti bacterial agent

2

SECTION II


• Herbal soaps remove dandruff from the hair • They prevent prickly heat • They have antiseptic properties • They act as body deodorizers preventing any foul odour coming from the body • They beautify the skin • They do not bleach the colour of the hair • They are not corrosive to the skin and do not remove the essential oils from the

skin

3

SECTION III

INDIAN MANUFACTURERS There are a number of manufacturers of Herbal soap, both in the organised and unorganised sector.

The important producers include the following: * Antelope International 12, Kalpataru, Ghatla Vilage Marg, Chembur, Mumbai - 400 071 * Cears Exports Pvt. Ltd. Alappat Cross Road, Kochi - 682 015 * Girijan Cooperative Corporation Ltd., Corporatiion Head Office, Opp. New VUDA Park, East Point Colony, Visakhapatnam-530 017, * Docras Market Makers Ltd. Cholayil Pharmaceuticals Pvt. Ltd. No.7, M-Block, Anna Nagar (E) Chennai-600 102 * Emami Group of Companies 18, R.N. Mukherjee Road, Kolkata - 700 001, * Girijan Cooperative Corporation Ltd., Opp. New VUDA Park, East Point Colony, Visakhapatnam-530 017, * Hindustan Lever Ltd., Hindustan Lever House, 165/166, Backbay Reclamation, Mumbai-400 020 No.50 & 51, SIPCOT Indl. Complex Hosur-635 126. * Healthy Herbals Factory & Office : S. Duraisamypuram, Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist.-628 902

4

* H V Homeopaths (P) Ltd. Malviya Road, Sitabuldi, Nagpur - 440 012 * J.D.Corporation 203 Yogeshwar, 135/139 Kazi Sayed Street, Masjid Bunder, Mumbai - 400 003 * Jyothy Laboratories Ltd. Post Box No.17440 Andheri (E), Mumbai-400 059 * Khoday Ribbon Carbon & Allied Industries A-44, Naraina Industrial Area, Phase - I, New Delhi - 110 028 * Medimix Group of Companies Sowparnika Herbal Extracts & Pharmaceuticals (P) Ltd. Office : Cholayil, No.1583 J-Block, 15th Main Road, Anna Nagar, Chennai-600 040 * Nagajothi Herbal Soap 27, Chakrapani Street West Mambalam, Chennai * S.N. Laboratories Post Box No.2309 Chennai-600 019 Ayurvedic Research Centre 56, Manali Express Road Ernavoor, Chennai-600 057 * Simla Chemicals Pvt. Ltd. A-76, Phase-I Naraina Industrial Area, New Delhi - 110 028 * Sahayata 166, Jodhpur Park, Kolkata - 700 068, * Sri Ramtirth International 41/4 Krishna Nivas, Sir Bhalchandra Road, Dadar (E), Mumbai - 400 014

5

SECTION IV

IMPORT/EXPORT LEVEL 4.1. Sample of individual Imports Name of the Importer Brand name Quantity Value

in Rs. Country Port Date

Roshan Commercial Traders Pvt

DXN ganozhi bath soap

6750 Pcs 89919 MY Chennai March 2002

Sunshine Enterprises Fruity soap 187200 Pcs 472527 INS Chennai June 2002 4.2. Sample of individual exports Name of the Importer

Brand name Quantity Value Country Port Date

Global Impex Company

Petmosol soap 144 pcs 4469 Port Kelang Chennai January 2002

Afsan Exports Soap 7526 Pcs 95094 Singapore Chennai January 2002

A.T. India exports and Imports

Chandrika soap 288 pac 5363 Le Havre Chennai January 2002

Haseena International

Tulsi soap 400 Doz 27896 Port Kelang Chennai January 2002

Dorcas Markets Ltd.

Ayurvedi toilet soap

10000 Nos 182144 Mauritius Chennai February 2002

Jayaco New Thulasi Soap

95 CTN 80115 Singapore Chennai February 2002

Jayaco Chandrika soap 30 CTN 49266 MY Chennai February 2002

Remy Impex Medimix soap 150 doz 11240 Port Kelang Chennai March 2002 Sri Ruthra Exports Chandrika Soap 120 pac 1164 Port Kelang Chennai March 2002 Sri Ruthra Exports Tulsi soap 120 pac 1164 Port Kelang Chennai March 2002 Dorcas Market Makers Ltd.

Medimix soap 270 Pcs 675 Manila Chennai April 2002

Durga Exports Shikkai soap 432 Pcs 2095 Port Kelang Chennai April 2002 Senthil Kumar Exports

Tulsi Soap 240 Nos 1737 Port Kelang Chennai April 2002

Dorcas Market Makers Ltd

Medimix soap 10 CTN 1362 Gothenburg Chennai May 2002

Al-Awhad Associates

Chandrika soap 2800 Pcs 28664 Port Kelang Chennai May 2002

Al-Awhad Associates

Tulsi soap 1440 13338 Port Kelang Chennai May 2002

Jayco Tulsi soap 50 CTN 95133 Port Kelang Chennai June 2002 Kumaran Exports Medimix soap 125 doz 13420 Port Kelang Chennai June 2002

6

SECTION V

PRICE

Price of Herbal soap Rs.11 for herbal soap of weight 75 gms

7

SECTION VI

INDIAN DEMAND

6.1. Production trends for soaps and detergents(synthetic)

8.277.887.51

6.776.215.75.234.84.54.153.83.53.332.782.57

39.9637.72

19.15

21.83

35.92

31.79

28.13

24.89

17.3515.75

14.2512.95

11.7510.5

9.158

0

5

10

15

20

25

30

35

40

45

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Year

in L

akh

tonn

es

Soaps

Synthetic Detergents

The ratio of powder to bar is 60:40

Powders60%

Bars40%

8

Growth rate in demand Soap Weighted Average annual growth rate in demand : 7 to 9% per annum Detergents Weighted Average annual growth rate in demand : 11 to 14% per annum Estimated demand for herbal soap While several units have commenced production of herbal soaps in recent times, the market is still to develop and mature The Soap market is still largely dominated by the organised players producing synthetic products. The present estimated share of the herbal soaps in the total soap market in the country is in the region of 3 to 5% per annum. Likely growth rate in demand 10 to 11 % per annum

9

International developments Unilever's New Aloe Vera Laundry Soap Unilever recently introduced a laundry soap called Persil with Aloe Vera that it claims is good for sensitive skin. Persil Aloe Vera was launched in United Kingdom supermarket supported by a 16 million pound sterling (Euro 26 million, $23.2 million) marketing campaign that includes television commercials, billboards, direct-mail samples and in-store promotions. Consumer seems to have fundamental faith in the Aloe Vera plant, the sap of which has long been recognised for its moisturing and soothing properties. Production Five million boxes of Persil Aloe Vera are targeted to be produced by the end of the April 2003.

10

SECTION VII


7.1. Process details The extracts of herbs are made as per the required formulation. Soap stock is prepared by treating pure coconut oil with pure potassium hydroxide. The extracts are mixed as per the required formulation. The soap is allowed to set in the pan and cut to the required wieght and size. It is then wrapped in tissue paper and placed in a paper board carton. 7.2. Source of technology National Research Development Corporation, (A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048. 7.3. Plant and machinery equipment and suppliers Boiler and accessories 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

Mixing tanks/steel pans Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Valluvar Kottam Nungambakkam, Chennai-600 034 Ganson Ltd. 645, Anna Salai, Chennai-600 006

Packaging unit E.C. Packaging Pvt. Ltd., 14/7, Mile Stone, Mathura Road, Faridabad-93, Haryana

11

SECTION VIII


Raw material requirements in the Herbal soap formulation Botanical name

Common name Applications Quantity in mgms

Acorus Calamus Vacha Anti dandruff 3 Vetivera zianioides Vettiver Anti prickly heat 3 Berberis aristata Dhanuharidra Anti pimples 3 Cerous deodara Devadara Antiseptic 3 Cuminim Cyminum Jeerakam Deodoriser 3 Embli ribes Vidangam Deodoriser 3 Phyla Nodiflora Podutalal Anti dandruff 15 Plumbago zeylanica Venkodiveli Anti pimples 300 Cyamopsis tetragonolob Kothavarai Anti dandruff 3 Emblica officianalis Nellikai Hair conditioner 3 Phyllanthus amarus Khizzanelli Hair tonic 3 Zinziber officianale Inji Deodoriser 105 Azadirachta indica Neem Antiseptic 50 Availability The above raw materials are readily available in the country.

12

SECTION IX


Economic capacity in number of soap pieces per annum 300000 Project cost Rs.49 lakhs Assessment of project cost Land S.No. Description Cost

Rs.in lakhs


Compound wall

0.14


Rs.in lakhs

2.1 Factory building at Rs.3200 per sq.m. 6.4 2.2 Non-factory building at Rs.4500 per sq.m. 1.8 Subtotal 8.2 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 10 3.2 Instrumentation and control 0.75 3.3 Pipelines and valves 1.00 3.4 Structurals for erection 0.5 Subtotal 12.25 3.5 Octroi, excise duty, sales tax, etc.at 12% 1.47 3.6 Packaging and insurance charges (2%) 0.25 3.7 Transportation charges (2%) 0.25 3.8 Machinery stores and spares (2%) 0.25 3.9 Foundation charges (2%) 0.25 3.10 Installation charges (2%) 0.25 Total cost of plant and Machinery 14.95

13

4. Technical know-how fees Rs. 1.50 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 1.50 5.2 Steam boiler and auxillaries 2.50 5.3. Water storage tank, borewell etc. 0.8 5.4 Fuel storage tank 0.6 5.5. Laboratory equipment 0.4 5.6. Office machinery & equipment 0.5 5.7. Material handling equipment, packaging machinery,


5.8 Diesel generator 3.6 5.9. Effluent treatment 0.8 Total 11.1 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.8 6.2.2 Rent rates and taxes 0.6 6.2.3 Travelling expenses 0.8 6.2.4 Interest and commitment charges on borrowings 2.4 6.2.5 Insurance during construction period 1.5 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 6.9 7. Provision for contingency Rs.2.58 lakhs 8. Working capital margin Rs.2.18 lakhs 9. Total project cost Rs.49 lakhs

10. Means of finance Promoter's contribution Rs.20 lakhs Term loan from financing institutions Rs.29 lakhs Total project cost Rs 49 lakhs

14

Financial statements (Rs. in lakhs) Variable Cost


8.26

B Fixed cost

Salaries and wages 6.00 Interest on term loan and working capital loan 6.46 Depreciation 2.54 Administrative expenses 0.99 Total fixed cost

15.99

C. Total cost of production A + B

24.24


11

E. Annual sales turnover (Rs.in lakhs)

33

F. Net profit before tax (Rs.in lakhs)(E-C))

8.76


65

15

SECTION X

SWOT ANALYSIS

Strength Growth in demand

Weakness Small capacity plants preventing them from carrying out large scale marketing efforts

Opportuntiy Ready availability of raw material. Eco-friendly nature of the product

Threat Competition from synthetic product

16

SECTION XI


AND RECOMMENDATIONS Soaps and detergents have been registering steady growth in demand in the country, in tune with the industrial and economic growth. The Indian per capita consumption of soaps and detergents is still very low, compared to the developed countries. Obviously, this implies that there is substantial scope for increase in demand for the product in the country. Herbal soap has generated considerable interest and enthusiasm amongst the consumers in recent times, due to eco-friendly nature of the product. There is good scope for setting up herbal soap projects in the country. While there is no particular entry barrier from the point of view of technology, adequate market thrust is necessary to competitively sell the product in the market.

17

PROFILE ON HERBAL SOAP




1

HERBAL SHIKKAI

SECTION I

PRODUCT CHARACTERISTICS Herbal shikkai powder is made from powders of shikkai, soapnut, hibiscus, tulsi, amla and maruthani. It is commonly used in all households today.

2

SECTION II

PRODUCT APPLICATIONS Shikkai powder is used to cleanse hair and scalp thoroughly without staining or irritation and should not remove too much of the natural oil from the scalp. The success of shikkai powder, lies in the fact that the shikkai powder must impart luster and smoothness to the hair.

3

SECTION III

INDIAN MANUFACTURERS There are number of producers herbal shikkai in India is mostly in unorganised sector. * The Ayur Beauty Care P.O. Box 6032 New Delhi-8 * Bharat Herbal Products Surat * CavinKare Pvt. Limited, (Formerly Beauty Cosmetics Limited,) 130 (New No.237), Peters Road, Chennai-600 086 * Dr. Jain's Forest Herbals Pvt. Ltd. A-10 Raj Industrial Complex, Unit No.A-10, 2nd Floor, Military Road Marol, Andheri East, Mumbai - 400 059 * Goolabkhan Peerkhan Co. 178, Nagdevi Street, Mumbai - 400 003 * J.D. Corporation 203 Yogeshwar, 135/139 Kazi Sayed Street, Masjid Bunder, Mumbai - 400 003 * Simla Chemicals Pvt. Ltd. A-76, Phase-I Naraina Industrial Area, New Delhi - 110 028

4

SECTION IV

IMPORT/EXPORT LEVEL Export details Name of the exporter

Brand Quantity Value Country Port Date

Visnukumar Traders Pvt.Ltd.

Meera Shikkai Powder

1 CTN 1230 Hong Kong Chennai February 2002

Afsan Exports Pulimark Shikkai Powder

100 Kga 2021 Singapore Chennai January 2002

There is no evidence of import of Shikkai powder

5

SECTION V

PRICE TRENDS Basic price Rs.250 per kg

6

SECTION VI

INDIAN DEMAND 6.1. Indian market size for Shampoo The estimated Indian market for shampoo for all grades is in the region of around Rs.400 crores Shikkai powder can be largely considered as substitute for shampoo, since both shampoo and shikkai powder are used for the same purpose of treating the hair The shikkai powder takes share of the Indian herbal shampoo market The Indian herbal shampoo market is estimated to be around Rs.40 crores Growth rate in demand Around 10 to 11% per annum

7

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS The herbs such as shikkai, soapnut, hibiscus, tulsi and maruthani are first cleaned thoroughly, dried and ground in a pulveriser to a fine powder. They are then mixed thoroughly for uniformity. A known weight of the herbs is taken. Shikkai and soapnut are also dried thoroughly and ground fine in the pulveriser. All the three ingredients are mixed thoroughly and packed in a packing machine. Herbal shikkai powder is commonly packed in saschets with each sachet weighing 5 grams to 8 grams. Source of technology National Research Development Corporation, (A Government of India Enterprise), Anusandhan Vikas, 20-22, Zamroodpur Community Centre, Zamrudpur, Kailash Colony Extn., New Delhi- 110 048. Plant and machinery equipment and suppliers Pulveriser ACE Pack Machines

23, V.N. Industrial Estate Bharathi Colony, Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004

Ribbon blender Amit Engineering Works 2, Prabhunath Singh Thakur Indl. Estate Opp. Ruby Coach Builders Chimat Pada, Marol Naka Andheri-Kurla Road Andheri (East), Mumbai-400 059

Fill and seal packing machine Classic Engineers

8

137/1, Kulle Gowda Industrial Estate, Kamakshipalya, Near Bridge, Magadi Road, Bangalore-560 079 Karnataka

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Sample of formulations for Shikkai powder Ingredients

Quantity

Shikkai 2 kg Amla 1 kg Henna 1 kg Khus 1 kg Char 1 kg Charilla 1 kg Reetha 2 kg Sodium Benzoate 75 gms Lavender Oil 400 ml Water 25 litres Methi Shikakai Shikkai 10 kgs Ingredients Quantity Methi 2.5 kgs Orange peel 1 kg Lavender Shampoo Ingredients Quantity Amla 1 kg Shikkai 2 kg Henna 1 kg Khus 1 kg Char 1 kg Charilla 1 kg Reetha 2 kg Sodium Benzoate 75 gms Lavender Oil 400 ml Water 25 litres

9

Methi Shikakai Shampoo Process:Crush all the ingredients into powdery form to make dry shampoo. Ingredients Quantity Methi 2.5 kgs Shikkai 10 kgs Orange peel 1 kg Sandalwood shampoo Shikkai 200 gm Khus 100 gm Char 100 gm Charilla 100 gm Amla 100 gm Reetha 200 gm Sodium benzoate 0.5 tsp Water 2.5 litres Sandalwood oil 8 tsp Neem shampoo Gram flour 1 kg Sandalwood powder 250 gm Neem leaves powder 4 to 5 cups Shikkai Powder 1 kg Availability The above raw materials are generally available in the retail market readily

10

SECTION IX


PROJECT COST AND PROFITABILITY PROJECTIONS Economic Capacity in tonnes per annum 30.00

Project Cost in Rs. lakhs 33 Assessment of project cost Land

Description

Cost Rs. In lakhs

Cost of land of 0.25 acre at Rs.5.5 lakh per acre 1.38 Cost of levelling,laying internal roads/fencing and compound wall 0.14

Sub total 1.52 Building Description

Cost Rs. In lakhs

Factory building at Rs.3200 per sq.m 2.4 Non-factory building at Rs.4500 per sq.m. 0.9

Sub total 3.3 Cost of Plant and Machinery Description

Cost Rs. In lakhs

Cost of basic plant and machinery 6.5 Instrumentation and control 0.49 Pipelines and valves 0.65 Structurals for erection 0.33

Sub total 7.97 Octroi excise duty, sales tax, etc. at 12 0.96 Packaging and insurance charges(2%) 0.96 Transportation charges (2%) 0.96 Machinery stores and spares (2%) 0.96 Foundation charges (2%) 0.96 Installation charges (2%) 0.96


11

Technical know-how fees Rs.2 lakhs Miscellaneous fixed assets

Description

Cost Rs. Inlakhs

Electrificatiion 1.20 Water storage tank, borewell etc 0.30 Laboratory equipment 0.30 Material handling equipment, packaging machinery, weigh balance etc.

0.30

Diesel generator 2 Effluent treatment -

Total 4.1 Preliminary &Pre-operative expenses Preliminary expenses 0.6 Pre-operative expenses:- Establishment 0.5 Rent rates and taxes 0.8 Travelling expenses 0.5 Interest and commitment charges on borrowing 2.2 Insurance during construction period 1.0 Other preoperative expenses and deposits - Interest on deferred payment -

Total 5.6 Provision for contingency Rs.1.55 lakhs Working capital margin Rs.5.51 lakhs Total Project Cost Rs.32 lakhs Means of Finance (Rs. in lakhs) Promoters contribution 13 Term loan from financing institutions 19 Total project cost 32

12

Financial statements A Variable cost

Rs. In lakhs

Raw material and utilities 39.25 Spares and maintenance 0.58 Selling expenses 3.75

Total variable cost 43.58

B Fixed cost

Salaries and wages 6 Interest on term laon and working capital loan 6.48 Depreciation 1.42 Administrative expenses 2.25

Total Fixed cost

16.15


59.73

D. Selling price per kgs( in Rupees)

250


75


15.27


51

13

SECTION X

SWOT ANALYSIS

Strength Popular product and likely to have steady

demand Weakness Lack of marketing thrust to expand the

market base Opportuntiy Export market Threat Competition from synthetic product

14

SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS

Herbal Shikkai powder is a popular product extensively and traditionally used in India Though synthetic shampoo material are available as substitute, Herbal shikkai powder is likely to hold its place in the market and the demand is likely to go up in the coming years, due to expanding population and increase in percapita income Adequate efforts has not been putforth so far to penetrate in the export market, possibly due to the fact that most of the producers are in the unorganised and tiny sector. If the efficacy of the product can be scientifically proved and adequate certification measures can be developed, the export market can go up substantially

15

PROFILE ON HERBAL SHIKKAI




1

JOJOBA OIL

CONTENTS





2

SECTION - I

PRODUCT CHARACTERISTICS AND SPECIFICATION

1.1. General details Botanical name Simmondsia chinensis

Family

Simmondiaceae

Appearance A small tree like shrub Long living dioceious, evergreen shrub Thick leathery bluish green leaves Usually bushy, it is a long lived, dioecious, drought resistant plant often reaching heights of three meters or more under ideal growing conditions.

Pronounciation Pronounced ho-ho'-bah

Nativity Native of the Sonaran desert of Mexico, California and Arizona.

Dimension Shrub reaches a height of 25 to 30m.

1.2. Content of Jojoba seed Seed from the Jojoba plant is the only botanical source of commercial quantities of unsaturated straight chain wax esters. Seed contains 45 to 55% oil or liquid wax, with chemical properties similar to those of the body fat obtained from sperm whale. It has no traces of resins, tars or alkaloids and contains a very small amount of saturated wax, tocopherols, steroids and hydrocarbons. An oblong to oval seed produced by the female Jojoba plant weighing 0.2 - 1.5 grams each with a diameter of 3-15 mm and which at maturity is reddish brown with a wrinkled surface.

3

Liquid wax ester

45 to 50%

Protein 15% Moisture 3% Others Rich proportion of carbohydrates and fibres

1.3. Historical Indian scenario: The arid lands of Rajasthan are all set to usher in a revolution in Indian agriculture, with planned large scale cultivation of the exotic Jojoba plant. 1.4. Sex of the plant Jojoba plants are either male or female. The female of the species bears one crop of seed (sometimes called nuts) per year from buds that develop predominantly on alternating leaf nodes of new plant growth. Since only the female Jojoba plants will produce beans and the males are only used for pollination, overplanting is necessary, to ensure that there would be females. It takes Jojoba at least 3 years to flower. Until that time, one cannot figure out the sex of the Jojoba plant. After the plant has flowered and sex is figured out, the extra males are removed and at least another 2 years are required before the females will produce beans.

Jojoba is cultivated in the following regions Arid western plain and semidried easteren plain of Rajasthan Western agro climatic zone of Haryana Western plain agro climatic zone of Punjab Southern western semi arid zone of Uttar Pradesh, Saurashtra and Kutch region of Gujarat Coastal region of Orissa, Coastal Telungana region of Andhra Pradesh,

4

1.5. Conditions of cultivations for Jojoba

It grows naturally in sandy soils, stony and gravel lands. Grows on variety of soil types from porous rocks to clays and acidic to alkaline range. However, well areated and well-drained soils are ideal for its growth. Its pH requirement of the soil ranges from 5 to 8 indicating its tolerance to acidity as well as alkalinity.

Soil conditions

Can tolerate extreme temperature ranging from 5 to 55 deg C.

Rain fall

♦ 500 mm of rainfall is sufficient to support productive stands of Jojoba

Water

Responds more to poor quality water like brackish water. This desert shrub is hardy and can withstand dry conditions.

Temperature condition

Area of cultivation

* Grows well in the areas of low rainfall and low soil fertility. * Thrives well on mountain tops down to sea level and in valleys. * Indian subtropic coastal belt is better suited for Jojoba growth.

5

1.6. Life of Jojoba plant Jojoba plants have a natural life span of at least 100 years and perhaps over 200 years. It also appears that after the plant starts to produce that it will produce larger quantities of beans each year as it grows larger. 1.7. Plantation Plantations are raised using seed, seedlings, rooted cuttings or platelets produced from tissue culture. Yield - When seedlings are used as planting materials. Yields consistently from the fourth year with 50 gms of seeds per plant and one kg per plant in tenth year Seed production After 10 years, seed production would be 2500 kg per ha. Male flowers and female flowers Ratio 1:10 male and female ratio found to be better. Male flowers are borne in clusters and Female flowers bloom in December - January and seeds mature in May and June. 1.8. Indian Study and investigation by Jodhpur based Central Arid Zone

Research Institute (CAZRI) The Jodhpur based Central Arid Zone Research Institute (CAZRI) has done some pioneering work on Jojoba cultivation under Indian conditions. Studies carried out at CAZRI have shown that the plant can be cultivated in all types of soils, including sandy, silty, sloppy and well drained, except heavy soils and soils prone to flooding. The plant can tolerate water salinity upto 10000 ppm. Therefore, it can be cultivated even in desert and coastal areas with brackish water for irrigation. Although the plant can survive in areas with annual rainfall as low as 200 to 400 mm or as high as 700 to 1200 mm (without water logging), the ideal level of rain fed irrigation is 450 to 650 mm of annual rainfall. In normal plants, irrigation is necessary at least during the flowering stage. In commercial plantations, however, for high yield and better vegetative and reproductive growth, watering of plants at least once in a month is recommended.

6

Although the plant can survive at temperatures ranging between -5 deg.C to 45 deg.C, long exposures to temperatures beyond the range of 0 deg.C to 45 deg.C, results in a loss of fruit bearing capabilities of the plant. 1.9. Product characteristics of Jojoba oil The Jojoba plant produces beans, which contain up to 50% their weight in oil. The oil found in the Jojoba bean is similar to that found in the sperm whale. Appearance: Light golden coloured fluid Boiling point High Freezing point Low Smoke point High Flash point High Decomposition temp. 315 deg.C Jojoba Oil is a liquid wax, as opposed to other vegetable oils, which are triglycerides. The Jojoba oil is a complex solution of long chain, unbranched esters ranging from thirty-four to forty-eight carbon atoms. The esters are diunsaturated and very resistant to oxidation. The oil has a dry luxurious feel, and will provide formulations with additional cushion. Jojoba Oil has been successfully formulated into treatment, hair care, and color cosmetic products. Advantages The most important features: Jojoba oil is undamaged by repeated heating to high temperature and does not change viscosity after repeated temperature variations. Jojoba oil can be hydrogenated into different levels depending upon the thickness one would want.

Unsaturated liquid wax Has high viscosity index Good miscibility in mineral oil base stocks Good compatibility with other additives

7

The benefit is that one would get a thickener and at the same time a skin moisturizer. Hydrogenated Jojoba Oil improves the cushion and viscosity of cosmetic formulations. Because of its high melting point, this product is particularly useful in elevated temperature stability applications. Hydrogenated Jojoba Spheres are available in three standard sizes and colors. These gentle exfoliating spheres are the perfect alternate to polyethylene beads and are readily incorporated into any clear or pearlized surfactant-based cleanser or emulsion. Standards for Jojoba Oil The parameters in the following table are adopted by the International Jojoba Export Council in an effort to establish consistency of testing and reporting. The methods determined to be most universally accepted are listed. Where the designated method is not specific enough to address all variables, a supplementary method is provided. The supplementary method provides more explicit instructions not given in the primary method.

PARAMETER UNITS/SPECIFICATION RANGE

TEST METHOD SUPPLEMENTARY METHOD

Lite Golden Specific Gravity 0.86-0.87 0.86-0.87 AOCS Cc 10a-25 Refractive Index, nD @40°C

1.45-1.46 1.45-1.46 AOCS Cc 7-25

Iodine Value, g/100g 80-85 80-85 AOCS Cd 1-25 Saponification Value, mg KOH/g

88-96 88-96 AOCS Cd 3-25

Peroxide Value, meq/kg

2 max 2 max AOCS Cd 8-53

Triglyceride Content, %

1 max. 1 max. AOCS Ci 2-91 JEC01

Acid Value, mg KOH/g

1.0 max. 1.0 max. AOCS Ci 4-91

Color, Gardner units 1+ max 9 max AOCS Td 1a-64

Color, Lovibond units 1 Red, 3 Yellow max

5 Red, 75 Yellow max.

AOCS Cc 13e-92

Microbial Contamination CFU

20 max. 20 max CTFA M-1 JEC03

8

Gram Negative Bacteria, CFU

zero allowed

zero allowed CTFA M-2

Ester

Composition, Area % C36 C38 C40 C42 C44 C46

0-2 5-8 26-34 44-56 8-12 0-3

0-2 5-8 26-34 44-56 8-12 0-3

Gas Chromatography (optional - typical property only)JEC02

9

SECTION – II


Jojoba oil is a naturally golden liquid wax ester found in the seed of the Jojoba plant. Although similar in appearance to other vegetable oils, the chemical composition of Jojoba oil resembles that of sperm whale oil. Jojoba oil is composed principally of 40 and 42 carbon chain length esters, which are in turn composed of monounsaturated fatty acids and fatty alcohols of 20 and 22 carbon chain length. Jojoba oil is an unusually pure compound with less than 3% triglyceride content and therefore highly resistant to oxidation. Properly packaged, the oil can be stored indefinitely without degrading. Jojoba oil imparts unique and beneficial properties when used for a variety of industrial purposes. While the oil has been proven to be an excellent lubricant for mechanical applications, the principal use of Jojoba oil is for its excellent cosmetic properties such as skin softening, skin penetration and emolliency. Jojoba oil contains no trans isomers. Jojoba oil has versatile industrial uses such as : ��Cosmetics (more than 200 products) ��Lubricants ��Factices and Adhesives ��Medicines Pharmaceuticals ��Source of Acids and Alcohols ��Electric Insulators ��Foam Control Agents, Plasticizers, Transformer oil etc.. Important commercial application sector

• Cosmetic ingredients • Lubricants • Waxes • Other applications

10

SECTION III

INDIAN MANUFACTURERS 3.1. General details The cultivation of Jojoba and production of Jojoba oil have commenced in India only in recent times. Profile of Indian producer * LOTUS HERBALS LTD

B-9, Sector 58, Noida 201301 Uttar Pradesh

Products: Jojoba oil, Skin and hair care products, Background details Lotus Herbals comprises a whole range of 45 skincare and haircare products. While Lotus is the flagship brand. Safe Sun and Safe Winter are two sub brands. Lotus Herbals, which claims to be the first company to launch a sunscreen in the country competes directly with two personal care major companies in the country namely: Hindustan Lever with its Lakme sunscreen and L’Oral’s Garnier Synergie. Among the company’s new products in the pipeline are three new face packs based on aroma therapy and a few line of skin treatment products called serums. The company has been working on the serum technology for the last two years at its inhouse R&D facility. Exports Apart from marking its presence in India, Lotus is also being exported to parts of Europe, the US, Asia and Africa. About 60% of the total produce is being exported, while the balance is retailed in India. The brand commands total sales of Rs.15 crore in the domestic market and is targeting a growth of 60% in the current financial year. Herbal products of this company have been widely exported to U.S.A, Middle East, Europe, England and South Africa.

11

Important product range of the company LOT BRIGHT-O: Jojoba moisturising lotion (for oily skin).

Key Ingredients : JOJOBA OIL: Nourishing, helps prevent moisture loss. Natural Extracts of - CUCUMBER : Softening, toning. DUDAL: Astringent, helps balance oil production. Actions: Helps normalise sebaceous secretions. Helps maintain moisture level of skin. Leaves skin soft and supple.

LOT BRIGHT-D: Cocoa Butter Moisturising Lotion (for normal to dry skin).

Key Ingredients : COCOA BUTTER : Nourishing, improves skin feel. ROSE WATER : Moisturising, toning. HONEY : Moisturising, helps maintains hydrolipidic film and prevents moisture loss. Actions : Moisturises and softens. Stimulates and tones. Promote soft, silky-smooth skin. Increases hydration to strengthen the resistance of the skin against dehydration caused by airconditioning, over heating, or external factors (wind, cold, dust).

12

SECTION– IV

IMPORT\EXPORT LEVEL 4.1. Imports of Jojoba oil and its fractions Countrywise Imports Period April 2001 to March 2002 Country Quantity in Kgs Argentina 100 Spain 100 USA 20 220 4.2. Exports of Jojoba Seed Countrywise exports Period April 2001 to March 2002 Country

Quantity in Kgs

Chile 500

13

SECTION - V

PRICE TRENDS

Jojoba oil - Global price trends Jojoba oil is riding high from strong demand coupled with tight supplies caused by poor weather. Prices for the oil have climbed to a range of $28 to $40 per kilogram, which is an increase of about 25 percent in one year. The global price for the supply of high quality Jojoba oil in small packs is around $90 per kg, while for bulk supplies, the price range between $13 to 40 per kg for different grades of oil.

14

SECTION - VI

INDIAN DEMAND The Jojoba oil from the seeds is unusual in that it is not an oil but a pure liquid ester The difference between an oil and an ester is small and yet large in terms of properties. Vegetable oils have several alcohol groups on the molecule and some have forked molecules and will eventually oxidize and become rancid. Jojoba has only one alcohol group and is a straight chain molecule; therefore it is not subject to oxidizing and in fact is an anti-oxidant and will never become rancid. However, the liquid ester does have the ability to self polymerize in the presence of sunlight, so it is best to keep it in brown glass bottles, in the dark, or in closed metal cans. Research is presently underway at Jojoba Obispo to investigate the qualities and uses of polymerized Jojoba oil. The liquid ester is chemically almost identical to spermaceti oil which is also a pure ester found in the head of the Sperm whale. Jojoba is the ideal substitute for the oil of the Sperm whale which until restrictions was used for high temperature lubrication, cosmetics and as a lubricant for automatic transmissions. Jojoba "oil" is a natural mimic of the oil secreted by human skin so it may be used to protect and lubricate skin and hair. It is soothing, stops multitudinous skin problems and protects against premature aging and wrinkling of the skin caused by exposure to ultra violet radiation. Indian demand for Jojoba oil 1000 kg per annum Growth rate in demand 5 to 6% per annum

15

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS Process technology have been developed by Indian Institute of Petroleum, Dehradun * Scientists at the Indian Institute of Petroleum, Dehradun have found that Jojoba

seed oil can be a potential environment friendly and renewable source for replacing some of the constituents of petroleum.

* Scientists revealed that two industrial gear oil formulations developed using

sulphurised Jojoba oil met with the required standards and their properties are comparable to those of special type of commercial industrial gear oils

* Development of new uses for Jojoba wax and its derivatives and testing products

for their importance and value to industry. * Development of commercial methods of repetitive propagation for rapid

production of desirable varieties. Central Salt and Marine Chemicals Research Institute, Bhavnagar, Gujarat Central Salt and Marine Chemicals Research Institute has successfully established well organised cultivation of Jojoba in India. Technology in Israel Presently, Israel is reported to be having the best technology for cultivation and processing of Jojoba in the world. Process for Jojoba oil extraction Technology for Jojoba oil form seed can be extracted by : •Cold Process Oil Expeller and Solvent Extraction

16

AJORP Jojoba oil Analysis Report :

Characterisation Method Observed Value

Specific Gravity 250 / 250 IP 59 / 72 0.8699

Kinematics Viscosity cSt ASTM D 445 40 deg.C 100 deg.C

24.61 6.40

Viscosity Index

ASTM D - 2270 - 79

232

Pour Point

IP 15 / 67

+9

Av. molecular weight

Vapour Pressure Osmometer(VPO)

654

Water Content

Karl Fisher

349 ppm

Acid value mg / g

KOHASTM D - 974 –975 0.54

Iodine value g / 100g

IP D - 84 / 81

80

Peroxide Value meq / kg

ASTM D - 1832 – 99 7.2

Saponification value mg /

KOHASTM D - 94 –93 86

Unsaponifiable matter(%) ASTM D - 128 - 94a

53%

Bacteria - total plate count CFU

Standard Microbiological test

10

Approximate boiling point oC ASTM D - 5307

500 - 548

Technology source Association of Rajasthan Jojoba Plantation and Research Project,(AJORP) Room no. 331, Pant Krishi Bhawan, Jaipur -302 005(Rajasthan) Promoter AJORP' was established in Rajasthan with the assistance of the Rajasthan State Govt. and erstwhile Department of Waste Lands Development Govt. of India in 1995.

17

The main objectives of AJORP The main objective is to obtain high production per unit of area and to develop improved varieties of Jojoba. To develop technology for raising seedlings from rooted cuttings or plantlets produced from tissue culture. To develop suitable agro-packages for large scale cultivations. To develop varieties having high oil content. (More than 50%) To find out methods to reduce oscillating yield in Jojoba. Training of Agriculture Extensions Officers and Farmers. Model farms 'AJORP' has already established and developed two model Jojoba farms – At Fatehpur (Sikar Distt.) in 70ha. At village Dhand(Distt. Jaipur) in 37 hectares with the help HAIGUD, ISRAEL Technology AJORP has developed suitable technology adaptable to various agro - climatic conditions for cultivation of Jojoba. Known - Sex Jojoba cuttings are being produced in the state of art Green House of AJOPR and are being supplied to cultivators along with seedling raised in model nursery with high yield and high oil content i.e., oil more than 50%. AJORP has got expertise in different disciplines of Jojoba cultivation and can provide consultancy for the development of large scale plantations in arid, semi arid areas and waste lands. Production level Year

Seedling plants Rooted cuttings

1999-2000 2.09 lac 25000 2000-2001 1.7 lac 49500

18

Some Important Achievements :- Raised plantation in 100 hectares with high yielding, high quality and high oil-content Jojoba varieties. Organized training camps for farmers and extension workers and provided technical know-how for successful cultivation of Jojoba in Rajasthan, Orissa, Gujarat, Maharastra, Punjab, Andhra Pradesh, and Haryana. Developed technique for raising known sex plants. AJORP is in a position to make available rooted cuttings for commercial plantations. AJORP has registered 59 farmers and 6 companies for Jojoba cultivation with its Jojoba Growers Association. Organized a National Seminar on Jojoba on 19th -20th February 2001 at Jaipur. Plant and machinery equipment and suppliers

Extractor Adam Fabriwerk Pvt. Ltd.

203, Rajguru Apartments New Nagardas Road Andher (E), Mumbai-400 069

Storage tank Agarwal Associates, 255, Kalpana Society Waghodia Road, Baroda-390 019

Steam boiler Energy Machine C1, B/423 GIDC IV Phase, Vithal Udyognagar-388 121 Dist. Anand, Gujarat

Dryer Bhuvaneswari & Co. Old Trunk Road Chennai-600 043 Dynamic Furnaces Pvt. Ltd. 65, Universal Industrial Estate I.B. Patel Road, Goregaon (E), Mumbai-400 063

19

SECTION VIII


Raw material requirement Basis: One kg of Jojoba oil Jojoba seeds 2.5 kg Utility Power: 80 H.P Raw material availability Association of Rajasthan Jojoba Plantation and Research Project,(AJORP) Room no. 331, Pant Krishi Bhawan, Jaipur -302 005(Rajasthan)

20

SECTION - IX

GLOBAL SCENARIO

Historical details The international legislation for the protection of the endangered Sperm Whale created the need to find a substitute, which led to emergence of Jojoba as potential plant species of the future, yielding a non-edible oil of the fossil hydro carbons. The Jojoba plant is native to the desert region of California, Arizona and Sonaram in Mexico Jojoba is now cultivated commercially in Argentina, Australia, Egypt, Israel, Mexico, Peru, and the USA. Jojoba is being examined for its potential as a crop in many countries around the world with climate and soil conditions similar to those of its native habitat. Legal status of Whales oils Jojoba oil is considered as an ideal substitute for Whales oil. In 1972, the U.S Marine mammal Protection Act made it illegal to bring whale meat and whale by-products, including sperm whale oil, into the United States. However, other countries are still slaughtering the sperm whale to obtain the oil. Until there is a replacement at a low price there does not seem to be an end to the slaughtering in sight. Global production and demand for Jojoba oil Commercial production of Jojoba commenced in 1976. Commercial plantations exist in Argentina, Australia, Egypt, Israel, Peru and the United States of America. Total cultivated acreage in all countries - 8,500 Hectares Total installed capacity for Jojoba oil 3,500 metric tonnes per annum

21

Total world market potential for Jojoba oil The total world market potential for Jojoba oil at prices of $4.00-$6.00/kg has been estimated to be 64,000 tons by the United Nations Industrial Development Organization Report US/GLO/77/034 - May 4, 1981. Period Estimated actual demand

1986 150 tonnes per annum 1996 800 tonnes per annum 2002 Estimated to be 1500 to 1600 tonnes per

annum Worldwide Jojoba Production Worldwide Jojoba Cultivation by Country - As of 1 November, 2000

COUNTRY

HECTARES

Argentina 3,400 Australia 400 Egypt 140 Israel 600 Mexico 310 Peru 300 USA 2,240 Total 7,390

Worldwide Jojoba Seed Production by Country - (Metric Tonnes) COUNTRY

2000 2001 (est.) 2002 (est.) 2003 (est.)

Argentina 950 900 1500 2000 Australia 8 20 50 80 Egypt 15 25 35 50 Israel 1000 1000 1000 1100 Mexico 90 100 100 100 Peru 75 300 600 900 USA 1455 1000 1400 1000 Wild Harvest 50 100 100 100 Total 3643 3445 4785 5330 Global market for Jojoba The product is often in short supply in the global market due to weather failures and increasing demand.

22

Primary area of application – Cosmetics Personal care 6. Major producing countries 9.7. Global players Two of the USA’s major Jojoba producers have merged their operations. The New York Corporation, Jojoba growers & processors Jojoba commodities group of Los angeles are now operating from the administration and manufacturing facilities of the growers & processors company in Arizona International Jojoba Export Council (IJEC) C/o Sacks Tierney 4250 North Civic Center Blvd., 4th Floor Scottsdale, Arizona 85251-3900 1-480-545-7000 x115 [email protected]

USA: Largest producers in the world

♦ Mexico ♦ Argentina

♦ Israel.

23

SECTION X


PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity 3 tonnes per annum Project cost Rs.55 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs


compound wall 0.28


Rs.in lakhs

2.1 Factory building of area 100 sq.m. at Rs.3200/sq.m. 3.2 2.2 Non-factory building of area 30 sq.m.at Rs.4500/sq.m. 1.35 Subtotal 4.55 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 15 3.2 Instrumentation and control 1.13 3.3 Pipelines and valves 1.5 3.4 Structurals for erection 0.75 Subtotal 18.38 3.5 Octroi, excise duty, sales tax, etc.at 12% 2.21 3.6 Packaging and insurance charges (2%) 0.37 3.7 Transportation charges (2%) 0.37 3.8 Machinery stores and spares (2%) 0.37 3.9 Foundation charges (2%) 0.37 3.10 Installation charges (2%) 22.42 Total cost of plant and Machinery

24

4. Technical know-how fees Rs.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs




Rs.in lakhs


25

11. Financial statements Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 5.7 Spares and maintenance 1.35 Selling expenses 3 Total variable cost (A)

10.05

B Fixed cost

Salaries and wages 9 Interest on term loan and working capital loan 8.02 Depreciation 3.21 Administrative expenses 1.8 Total fixed cost (B)

22.03


32.08


2000


60


27.92


44%

26

SECTION XI

SWOT ANALYSIS

Strength Suitable conditions for growth of Jojoba

plantations

Weakness Absence of large scale cultivation in Jojoba

Opportunity Important applications and growing demand

Threat Inadequate technology development efforts for downstream products.

27

SECTION - XV

FACTORS INFLUENCNG THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS Current Jojoba production and market price require concentration in the pharmaceutical and cosmetic industry. The production level of Jojoba oil itself is well below the production and demand level for the product in the country. In the case of products such as Jojoba oil and its derivatives, the necessary conditions for growth in demand is the ready availability of the product in the market. The global production of Jojoba oil and derivative products are still very much below the potential demand level in the global market. This provides the strong case to increase the production level of Jojoba oil and its derivatives as early as possible. While considerable strides have been made in the international market in the production of Jojoba, India has been a recent entrant in the Jojoba sector. While significant achievements have been made in the field in recent times, India has still a long way to catch up with the global technology and demand levels. Jojoba oil represents an excellent investment opportunity

1

NANNARI HERBAL SYRUP

SECTION I


Latin name Hemidesmus indicus Sanskrit/Indian name Sveta sariva, Ananda mul, Nannari English name Indian sarsaparilla Nature of plant A slender, laticiferous, twining, sometimes prostrate or semi-erect shrub, the roots of which constitute the Indian Sarsaparilla Specification A certificate of approval for production of syrup has to be obtained from the Ayurvedic Medicinal Products Association. Nannari syrup cannot contain any flavours, colours and preservatives Packaging Generally, the syrup packed in bottles of 1 litre capacity

2

SECTION II


The air dried roots of Nannari yield essential oil containing p-methoxy salicylic aldehyde as the major constituent. The drug has long enjoyed a reputation as a tonic, alterative, demulcent, diaphoretic, diuretic acid blood purifier. It is employed in nutritional disorders, syphilis, chronic rheumatism and other urinary diseases and skin affections.

Nannari syrup is usually taken with lemon juice. It reduces body temperature and increase appetite. It also reduces blood pressure, burning of eyes It is considered as general health drink. The beverage acts as a body coolant.

3

SECTION III

INDIAN MANUFACTURERS Nannari syrup is produced by a number of organisations at tiny and cottage level. particularly in regions like Tamil Nadu. Indian producers include the following * Atma Singh Saroop Singh 7, R.B.Rattan Chand Road, The Mall, Amritsar - 143 006 * Aravindh Herbal Labs (P) Ltd.,

140 Mudangiar Road, 4th KM, Rajapalayam 626 117

* Dynamic Pharma 5-A, Ganapathy Gouder Lay Out K.K. Pudur, Coimbatore-38 * Everest Pharma 7, Amruta Nagar, Manik Baug, Sinhgad Road, Pune - 411 051 * Fadel International Trading 12/1019, Panayappilly Cochin Kerala * Glenn Marketing 113, Sangam Soc., Harni Road, Vadodara - 390 012 * Healthy Herbals Factory & Office : S. Duraisamypuram Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist.-628 902 Farm : Parambu, Keelamangalam Ottapidaram Taluk Thookthukudi District Tamil Nadu

4

* Himalayan Herbals Gramudyog Samiti 814, Sec-16, Panchkula - 160 019 * Ruby Food Products AS-2 Industrial Estate K.Pudur Madurai * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai-600 106.

5

SECTION IV

IMPORT/EXPORT LEVEL Herbal syrup Name of the exporter

Quantity Value in Rs. Country Date Port

Star International 38 box 1072 Port Kelang May 2002 Chennai There is no evidence of import of Nannari syrup

6

SECTION V

PRICE

Price of Nannari syrup Rs.37.50 paise for 750 ml

7

SECTION VI

INDIAN DEMAND

Nannari syrup is usually taken with lemon juice as a health drink Status of Indian Beverages/Soft Drinks Sector Production of Soft Drinks million bottles

Major soft drink players

5670

62306850

0

1000

2000

3000

4000

5000

6000

7000

(in m

illio

n bo

ttle

s)

1998

-199

9

1999

-200

0

2000

– 2

001

Period

Bengal Beverages Pvt. Ltd Coca-Cola India Ltd. J.D. Corporation, Gujarat Parle (Exports) Pvt.Ltd Pepsi Foods Ltd Pioma Industries Gujarat Pure Drinks (New Delhi) Ltd. Sri Sarvaraya Sugars Ltd., Hyderabad- Sri Vasavi Soft Drinks Pvt. Ltd.Karnataka

8

Powdered Soft Drink Concentrate

Indian Market Rs.250 crores Growth Rate 4 to 5% per annum

Details on Rasna (Pioma’s product) Claimed Market Share 60% in value terms

85% in volume terms Percapita Consumption 15 glasses Annual Turnover Rs.125 crores The Nannari syrup is largely used as syrup and health drinks and can be generally considered as a beverage. Nannari syrup is offered in several roadside shops Nannari syrup market is largely in unorganised sector. It is yet to gain importance as the competitive product along with other beverages and soft drinks available in the market. Considerable market promotional efforts are required to promote Nannari syrup as a herbal tonic and soft drink. Estimated growth rate in demand 7 to 8% per annum

Major Brands * Rasna (Pioma) * Sunfill (Cococola)

9

SECTION VII


Nannari syrup is extracted from nannari root and has medical value. Nannari syrup is prepared from extracts of the roots of Nannari herb. The syrup which has a sugar base is diluted with water in the ratio of 1:7 (syrup:water) and consumed. The roots of nannari is thoroughly cleaned to remove any adhering mud and other impurities. It is washed and dried. It is then ground to a fine powder before being used for extraction of its nutrients. Sugar is boiled separately and stored at a concentration of 70 degrees brix. A 10% extract in water is also made The extract is mixed in the sugar syrup and bottled. The bottle is placed in cartons and strapped prior to dispatch The process involved in the manufacturing of syrups are briefly mentioned below: • Bottles of required sizes are washed in rotary bottle washing machine and are fed

to bottle drier where they are dried. • The dried bottled are fed into a conveyor belt of Rotary Automatic Bottle Filling

Machine to be used after the mixed syrup would reach the filling machine. • All the ingredients are weighed as per the batch size and separately passed

through sieves. • A sucrose syrup is prepared separately in required quantity in DM water. The

syrup is passed through filter press. Then it is transferred to the process tank and preservative are added in syrup.

• A separate batch of required ingredients is prepared and transferred to process

tank where it is stirred. • After stirring the mixture for about 3 to 4 hours, samples are drawn for quality

check.

10

Source of technology * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai-600 106. Plant/machinery equipment and producers

Washing and drying facilities

Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem-636 004

Extraction equipment

Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem-636 004

Bottling facilities Shivsu Watek Private Ltd. No.14, Spurtank Road Chetpet, Chennai-600 031

11

SECTION VIII


Raw material requirements Basis: 75000 kg per annum of Nannari syrup Nannari roots

936 kg

Sugar 48000 kg Availability The above raw materials are readily available in the market

12

SECTION IX


Economic Capacity in Tonnes per annum 75.00 Project Cost in Rs. lakhs 38

Assessment of project cost Land

Description Cost Rs. In

lakhs 1.1. Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.65 1.2. Cost of levelling,laying internal roads/fencing and compound

wall 0.17

Subtotal 1.82 Building


2.1. Factory building at Rs.3200 per sq.m 3.84 2.2. Non-factory building at Rs.4500 per sq.m. 2.27

Subtotal 6.11 Cost of Plant and Machinery


lakhs 3.1. Cost of basic plant and machinery 10.00 3.2. Instrumentation and control 0.75 3.3. Pipelines and valves 1.00 3.4. Structurals for erection 0.50

Subtotal 12.25 3.5. Octroi excise duty, sales tax, etc. at 12 1.47 3.6. Packaging and insurance charges(2%) 0.25 3.7. Transportation charges (2%) 0.25 3.8. Machinery stores and spares (2%) 0.25 3.9. Foundation charges (2%) 0.25 3.10. Installation charges (2%) 0.25


13

Technical know-how fees Rs.1.20 lakhs Miscellaneous fixed assets

Description

Cost Rs. Inlakhs

5.1. Electrificatiion 1.20 5.2. Steam boiler and auxillaries 2.40 5.3. Water storage tank, borewell etc 0.20 5.4. Fuel storage tank 0.20 5.5. Laboratory equipment 0.20 5.6. Office machinery & equipment 0.20 5.7. Material handling equipment, packaging machinery, weigh

balance etc. 0.20


Total 8.00 Preliminary &Pre-operative expenses: 6.1. Preliminary expenses 0.40 6.2. Pre-operative expenses:- 6.2.1. Establishment 0.30 6.2.2. Rent rates and taxes 0.40 6.2.3. Travelling expenses 0.20 6.2.4. Interest and commitment charges on borrowing 0.30 6.2.5. Insurance during construction period 0.20 6.2.6. Other preoperative expenses and deposits - 6.2.7. Interest on deferred payment -

Total 1.80 Provision for contingency Rs.1.95 lakhs Working capital margin Rs.2.60 lakhs Total Project Cost Rs.38 lakhs Means of finance (Rs. in lakhs) Promoters contribution 15 Term loan from financing institutions 23 Total project cost 38

14

Financial statements A. Variable cost

Rs. In lakhs


15.09

B. Fixed cost

Salaries and wages 4.80 Interest on term laon and working capital loan 5.55 Depreciation 2.31 Administrative expenses 1.13 Total Fixed cost

13.79

C. Total cost of production (A+B) 28.87 D. Selling price per litre. (In Rupees) 50.00 E. Annual sales turnover 37.50 F. Net profit before tax (E-C) 8.63 G. Breakeven point in % 62

15

SECTION X

SWOT ANALYSIS

Strength Growing demand for the product

since it is considered as a health tonic Weakness Lack of efforts for certification of the

product Opportunity To boost demand by innovative marketing

efforts Threat Substitution from synthetic product

16

SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATION Nannari syrup is an important health tonic and is considered to be a body coolant The major market outlets are the Ayurvedic pharmacies and super markets. It is also available at bus stands and railway stations as beverage. Adequate medical efforts to prove the efficacy of the product on scientific lines is still considered to be inadequate It is necessasry to carry out innovative market development efforts, to enlarge the demand base for the product in the country.

17

PROFILE ON HERBAL NANNARI SYRUP


UTILITY AND AVAILABILITY 11 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS 12 SECTION X SWOT ANALYSIS 15 SECTION XI FACTORS INFLUENCING THE POSITION


1

NATURAL VANILLA

CONTENTS



PROJECT COST AND PROFITABILITY PROJECTIONS



2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION Synthetic Vanillin Appearance Colourless crystals Odour Sweet, balsamic, powdery, vanilla-like Chemical formula C8H8O3 Specification Specifications of Vanillin produced by Rhone Poulenc, France. Trade Name RHOVANILTM Colour of Ethanolic solution 50 max, hazen Melting point 81.0 to 83.0 deg.C Assay 99.6 min, % Sulphated ash 0.05 max, % Heavy metals (as lead) 0.0010 max %

3

SECTION II

PRODUCT APPLICATON

As a constituent of perfumes Vanillin has become important as deodorant to mask the unpleasant odour of many manufactured goods, like wearing apparal, rubber goods, paper products and plastics etc. Until recently, about 85% of vanillin has been used as flavouring agent in ice creams, candies puddings, cake mixes, gelatine desserts and soft drinks etc. Rest is used in deodorants, perfumes and other fixatives and as chemical intermediates. Vanillin is now produced exclusively for flavour industry.

4

SECTION III

INDIAN MANUFACTURERS

Introduced in India, by the British, in a spice garden at Kurtallam in Tamil Nadu owned by the East India Co., More than 200 year ago, at Kallar Fruit Research Station, Nilgiris the crop has been under cultivation and processing was conducted at Aambalavayal, Kerala and at Kallar/Burliar Fruit Research Station. At present, Karnataka has the largest area under vanilla plantation. India has the ideal climatic conditions for growing vanilla. Vanilla producing states: Area under vanilla cultivation Around 1500 hectare Mostly cultivated in Karnataka, Kerala and Tamil Nadu ��Wynad and Idukki in Kerala ��Androth island in Lakshadweep ��Nilgiris in Tamil Nadu ��Mangalore and Mercara in Karnataka

5

SECTION IV

IMPORT/EXPORT LEVEL

4.1. Imports Period April 2001 to March 2002 Countrywise Imports Vanilla Powder Country Quantity in Kgs

Singapore 56 Sample of individual imports Name of the Importers

Quantity in tonnes

Value in Rs. Country Date Port

Weikfield Products Co.Ltd. (Vanila extracts)

0.010 44149 UK 24.03.2002 to 31.03.2002

Mumbai

Vinoram Pvt. Ltd.,(Vanilla extract)

10 kg 14765 SG Oct’2002 Chennai

Dragoco India Ltd., (Vanilla cream)


Teddy Exports (Vanilla fragrances scented beads


Dragoco India Ltd.,(Vanilla cream)


Godrej Sara lee Ltd.,(Vanilla perfume

33440 pcs 596546 MY Oct’2002 Chennai

6

4.2. Exports Period April 2001 to March 2002 Countrywise Exports Vanila Bean Country Quantity in Kgs

Italy 50 Norway 20000 Uganda 120 U Arab Emts 15000 UK 800 USA 161725 197695 Countrywise Exports Vanilla Powder Country Quantity in Kgs Nepal 150 Russia 140 Tanzania REP 2405 U Arab Emts 12968 UK 120 USA 9040 24823 Countrywise Exports Vanilla Oleoresin Country Quantity in Kgs

Australia 15 Canada 1015 France 69 Tanzania REP 488 USA 8000 9587

7

Sample of individual exports Name of the Exporters

Quantity in tonnes

Value in Rs. Country Date Port

Chemical Fragrance (Vanila extracts)

0.010 53354 Hong Kong 01.07.2002 to 15.07.2002

Mumbai

Bush Boake Allen (I) Ltd., (Vanilla beans)

100 kgs 7412 London Serp’2002 Chennai

Novartis Consumer Health India Ltd.,(food supplement optifast vanilla)

451000 unit 7619 Clombo Sep’2002 Chennai

8

SECTION V

PRICE

Basic price of natural vanilla Rs.370 per kg Taxes and duties Extra as applicable Currently, the green beans fetch around Rs.300 to Rs.400 per kg and One kg of cured processed beans would weigh 250 to 300 gm,

9

SECTION VI

INDIAN DEMAND

Demand for Synthetic Vanillin Indian demand 250 tonnes per annum Indian consumption pattern of vanillin

Indian Demand Level for Natural vanilla Indian demand : Around 1000 tonnes of cured beans per annum The actual demand could be more, if the product would be readily available in the market. Estimated production of cured vanilla : 20 tonnes The main constraint on popularising vanilla is the shortage of planting material. As with other orchids, seed propagation is unsuitable and only stem cuttings is feasible and better alternative.

MISCELLANEOUS1%ICE-CREAM

5%

PHARMACEUTICALS3%

BISCUITS12%

PERFUMERY/FLAVOURS

28%

AGARBATHI51%

10

Progressive farmers in Karnataka, Kerala and Tamil Nadu are to be offered several incentives and planting material to encourage vanilla cultivation, considered the ‘gold crop’ because of its high returns next only to that of saffron. Cardamom Research Centre of the Indian Institute of Spices Research, Madikeri, is also engaged in the research and propagation of vanilla in Karnataka in particular. The project envisages the supply and evaluation on a large scale. Nearly 150 ha are to be identified in a phased manner. The area is to be divided into smaller acreages of 0.25 to one ha each in Kerala (60 ha), Karnataka (60 ha) and Tamil Nadu (30 ha). There would be 140 such units each in Kerala and Karnataka and 70 in Tamil Nadu. Meanwhile, according to the Madikeri based institute, the entire Western Ghat region in Karnataka, comprising Kodagu, Uttar Kannada, parts of Hassan, Chimaglur and Dakshina Kannada are suitable. At the Madikeri Centre, efforts are being made to develop scientific culture packages to improve the quality and productivity of vanilla. A germ plasm collection of 30 of three specific varieties had been established., Ovule culture of vanilla has also been standardised. Indian Prospects The potential for vanilla cultivation in the country is tremendous as a result of a growing demand for Natural vanillin in place of the synthetic substitute following the shift towards natural products the world over. It is a very ideal, most economic orchid crop for organic cultivation having a tremendous potential for domestic consumption and exports given the growing demand for Natural vanillin in the global market.

11

SECTION VII


Vanilla pods must be cured in order for the vanillin, which gives vanilla its distinctive flavour, to be produced. The curing method facilitates the enzymatic process that transforms glucovanillin into vanillin. It consists mainly of keeping the pods warm and slowly drying for nearly six months until they become pliable and deep brown, with a fine white crystalline coating of vanillin Vanilla is cured with special care and some innovative techniques using solar dryers. Green Vanilla beans are to be processed to get the characteristic vanilla flavour and aroma. There are different methods of curing but they all consists of more or less four stages viz, ��Killing ��Sweating ��Slow drying and ��Conditioning Mexican process, Bourbon process, Peruvian process and Guiana process are the important methods of curing vanilla. Properly cured vanilla beans contain about 2.5 % vanillin. Process for Pure Vanilla Extract By percolating or macerating chopped vanilla beans with ethyl alcohol and water. The process is usually kept as cool as possible to keep flavour loss to a minimum, though some manufactures feel that there must be heat to create the best extraction. Most companies use a constituent blend of beans, sometimes from several regions, to create their brand flavour. The extraction process takes about 48 hours, after which the extracts will mellow in the tanks with the beans from days to weeks, depending on the processor, before being filtered into a holding tank ,where the amber-coloured liquid extracts remains until being bottled.

12

Technology A scientific package of practices is now available for large scale growing of the crop. Vanilla flowers need hand pollination for bean set, in view of the absence of pollinator bees in India. ��In the private sector, tissue cultured vanilla plantlets are available with ��IAHS (Bangalore) ��SPIC (Coimbatore) ��AVT(Cochin) ��H and M Ltd (Cochin) ��Bush Boake Allen (Madras) and ��Synthetics India Ltd (Kollencherry) Among Government outlets, plantlets are available at ��Spices Board, Cochin and ��Indian Institute of Spices Research, Calicut. Technology development Vanilla from Ricebran Oil Ricebran oil is subjected to molecular distillation to isolate a fraction which is 95 % rich in oryzanol content. This fraction can further be processed to recover ferulic acid in pure condition. From this stage, vanilla can be produced directly from ferulic acid. Of the synthetic method of making vanilla from procursors as eugenol guiacol and ferulic acid it is claimed that ferulic acid, is a better alternative. Source of technology Oil Technological Research Institute, Anantapur, Andhra Pradesh

13

Plant and machinery and suppliers Extractor Kulkarni's Hafi Elektra Pvt. Ltd

Post Box No.132, Thane 400 602

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

Refrigeration section

Voltas Ltd., Chennai

14

SECTION VIII


Raw material requirements The report of the national committee on Vanilla published by the Spices Board, Cochin predicts a production of 1000 tonnes from 3500 hectares of land at the rate of 300 kg per hectare. While the recovery rate of vanillin is 2.5% and above. The Current prices are, therefore, very attractive. Natural Vanilla Vanilla pods are the fruit of the vanilla orchid, Vanilla plantfolta, a large, green stemmed, climbing perennial plant with a fleshy, succulent stem, smooth, thick, bright green leaves and numerous twining aerial roots by which it clings to trees in its wild state. It may grow up to 30 m, It is a climbing orchid The pods, commercially called beans, have no flavour when picked, as the flavour develops during the curing process. The beans are very dark brown and contain tiny black seeds. Constituent Having well over 250 organic components, creating its unique flavour and aroma Even the same species of vanilla beans grown in different parts of the world will vary in flavour and aroma due to climate and soil differences. While some beans are higher in Natural vanillin content than others, this is not the only indicator of flavour or quality. Varieties There are about 150 varieties of vanilla, though only two are used commercially in significant quantities • Bourbon • Tahitian • Species

15

There are three cultivated specise of Vanilla namely ��Vanilla planifolia ��Vanilla fragrans ��Vanilla pomponc and V.tahitensis Cultivation practices Soil: Rich in humus and good in drainage Climatic condition: Humid tropical climate upto 1500m above mean sea level. Temperature: Ranging from 21 to 32 deg°C is ideal for vanilla. Annual Rain fall: 200 t0 300 cm Propagation: By stem cutting of 60 to 120 cm length Standards: Planted six month in advance Spacing: 1.5 to 2 m with in rows and 2.5 to 3 m between rows. Planting period: September to November in shallow pits filled with humus and mulch Planting material required: 1600 to 2000 standards per hectare. General cutivation practicess: The vanilla plants should be allowed to trail horizentally on poles/ trellis tied to standards after trailing to a height of 1.5 to 2m or coiled around the branches of the standards(looping) to facilitate polination and harvesting. Polination: The flowers are pollinated by hand in early morning just when the flower opens. If the pollination is successful, the flower withers but it still remains attached to the ovary. If it is unsuccessful, the flower drops off the next day. The success rate is 85% to near 100%. In the case of successful pollination, the size of ovary increases rapidly and the pods start maturing. An experienced hand can pollianate 1000 to 1500 flowers in a day. On maturing and ready for harvest, the pod resembles a dark brown string bean 12 to 25 cm long with a circumference ranging between 2 cm to 5 cm. The physical changes in colour and size and development of flavour occur during curing.

16

Yield Flowering starts in the third year of planting Peak flowering occurs during 7 to 8th year Period Yield per hectare Third year (beginning) 60 kg Fourth year 150 kg Fifth year to the tenth year 300 kg A good vanillery yeilds about 300 to 600 kg cured beans per hectare per year. About 6 kg green beans produce 1 kg cured beans. Intercrop Can be raised as an intercrop with coffee, coconut, arecanut, pepper.

17

SECTION IX

GLOBAL SCENARIO

World demand for Synthetic vanillin 3500 tonnes per annum Origin Vanilla is native to the tropical rainforest of South-Eastern Mexico and Central America International trade in Natural Vanilla Around Rs.300 crores Global Production of Cured Vanilla Around 6000 tonnes Total area of Vanilla cultivation 38500 hectares Global growth rate 4 to 5% per annum The Bourbon Vanilla from Madagascar commands a premium price Major Producing Countries ��Madagascar ��Indonesia (cultivated in Java and Bali Islands) ��Comoro ��Mexico, (grown in Vanuatu ) ��Reunion Islands ��Tonga ��Malaysia ��Sri Lanka ��Jamaica ��Qudeloupe ��Uganda and Tonga Major world suppliers 70% of world supply is from Madagascar and Indonesia

18

Importers of Natural vanilla ��USA ��Germany ��France ��Canada ��Japan ��UK ��Italy ��Australia ��Singapore Global Outlook Only 1 to 2 % of the total market is met by extraction of vanilla beans. The remaining vanillin produced is of synthetic origin Even if 5% of the demand for synthetic vanillin is substituted by Natural vanilla bean, there would be an additional demand for 70000 tonnes of vanilla beans by the year 2003. To produce this quantity, 2.38 lakh hectares have to be brought under vanilla. If the current growth rate (annually) continues, the global demand for vanillin is likely to touch 4000 tonnes by the year 2005. The USA is the single largest importer, accounting for consumption of half of the world’s production. The curing process for vanilla beans is labour intensive and the vanilla plant only grows in a few territories over the world, making synthetically produced vanillin far cheaper than Natural vanillin With the increasing interest in natural products, alternative methods are being developed to produce Natural vanillin from sources other than vanilla planifolia Cell cultures, microorganisms, and isolated enzymes are the potentially alternative sources for the production of vanillin from natural feedstock.

19

Technology Development Enzymatic production of Natural vanillin and optically pure alcohols:- The principal component of red pepper,capsaicium, proved to be a promising candidate to produce Natural vanillin using a bi enzyme system, consisting of VAO (Vanillyl alcohol oxidase) and a hydrolase. By combining these two enzymes a one port conversion from capsacin to vanillin can be realised This enzymatic production has in general, environmental advantages compared to the traditional synthetic vanillin production. Producer Venui Vanilla Co Ltd Product Vanilla Beans and Powder, Extract (Essence) and Paste Grown and Processed in Vanuatu Retail Supplies Wholesale Sales Within Australia World Wide KAS Distribution 86 Henry Street Eltham VIC 3095 E-mail : [email protected] Phone 03 9431 3496 Fax 03 9444 0496 Venui Vanilla Co. PO Box 162 Santo, Vanuatu E-mail : [email protected] World Wide http://www.4-u-veges.com/vanilla_shop.html

20

SECTION X


PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity : 30 tonnes per annum Project cost : Rs.78 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs


56.25

Subtotal 2. Building S.No. Description Cost

Rs.in lakhs


2.40

Subtotal 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Miscellaneous machinery 4 3.2 Packaging machinery 4 Total cost of plant and Machinery 8 4. Technical know-how fees Rs.1.00 lakh

21


Rs.in lakhs


22


Rs. in lakhs

Raw material and utilities 46.19

Spares and maintenance 0.48

Selling expenses 5.55

Total variable cost (A)

52.22

B Fixed cost

Salaries and wages 9.00

Interest on term loan and working capital loan 12.74

Depreciation 1.00

Administrative expenses 3.33

Total fixed cost (B) 26.07


78.28


370


110


32.72


44%

23

SECTION XI

SWOT ANALYSIS Strength Growing demand for the product

Weakness Inadequate plant materials

Opportunity Substitution possibilities for Synthetic vanilla

Threat Lack of standardisation

24

SECTION XII


RECOMMENDATION The initial investment estimated by NABARD was Rs.50000 per hectare. Besides, this could be cultivated as an inter crop in the coconut, pepper and arecanut gardens. Growing vanilla as an inter crop in the coconut gardens is the most ideal as vanilla plants require some regular sunshine. Natural vanilla is an excellent investment opportunity and the product has high level of relevance and importance. The demand is bound to go up in the coming years

1

PERIWINKLE

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL 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


2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION Family: Apocynaceae Pronunciation: cath-ar-AN-thus ROW-zee-us Common Indian Names ��Ainskati ��Billaganneru (Telugu) ��Nayantra ��Nityakalyani(Tamil) ��Periwinkle (English) ��Rattanjot ��Sada bahar ��Sadaphul ��Ushamanjairi Botanical description Family : APOCYNACEAE Pronunciation: cath-ar-AN-thus ROW-zee-us An errect bushy perennial herb An evergreen shrub, it grows to a height of 1m with a spread of 1m. Flowers are soft pink, tinged with red, Five petals appearing in spring and autumn. This species was formerly known as Vinca rosea and has the alternative common name of Vinca. (Should not be confused with the perennial groundcover Vinca minor.) Origin and distribution This periwinkle is native to Madagascar. It is grown commercially for its medicinal uses in Australia, Africa, India and southern Europe.

3

It prefers rich, well drained, moist soils in a protected, sunny position and is drought and frost tender. It is cultivated as an ornamental plant almost throughout the tropical and subtropical world. It is abudantly naturalized in many regions, particularly in arid coastal locations.

SECTION II

4

PRODUCT APPLICATION

Periwinkle contains more than 70 alkaloids mostly of the indole type The rootbark contains the alkaloid Alstonine which has been used traditionally for its calming effect and its ability to reduce blood pressure. Pharmaceutical Activities ��Animal repellent activity ��Anithyperglycemic activity ��Antiascariasis activity ��Antibacterial ��Antidiuretic ��Antifungal ��Antifertility ��Antihypercholesterolemic ��Antihyperglycemic ��Antihypertensive ��Anti-inflamatory ��Antimalarial ��Antimitotic ��Antimutagenic ��Antispasmodic ��Antispermatogenic ��Antitumor ��Antiviral ��Cardiotonic ��CNS depresant ��Cytotoxic ��Hyperglycemic ��Hypoglycemic ��Hypotensive ��Inotropic ��Insect feeding deterent ��Insect sterility induction ��Insecticidal ��Insulin ��Larvicidal ��Leukopenic ��Smooth muscle relaxant ��Spasmogenic ��Uterine relaxation effect ��Uterine Stimulant effect

5

More recently, extracts from Madagascar Periwinkle have been shown to be effective in the treatment of various kinds of leukemia, skin cancer, lymph cancer, breast cancer and Hodgkin's disease. Indeed, Madagascar Periwinkle is a modern day success story in the search for naturally occurring anticancer drugs. Traditional Medicinal Uses Country Medicinal uses Australia Diabetes Brazil Diabetes China Menstrual regulator Cook Islands Diabetes, Hypertension, Cancer Dominica Diabetes,Combat primary inertia

in child birth England Diabetes Europe Diabetes France Antigalactagogue French Guiana Cholagogue India Diabetes, Cancer, Hodgkin’s disease,

Menorrhagia Jamaica Diabetes Kenya Stomach problem Mexico Cancer Mozambique Diabetes, Rhehumatism, Hypotensive and

Febrifuse North Vietnam Menstrual regulator Pakistan Diabetes Peru Cancer, Leishmaniasis Philipines Emmenagogue, Diabetes, Amenorrhea,

Menorrhagia South Africa Menorrhagia, Diabetes South Vietnam Antigalactagogue Taiwan Diabetes Thailand Diabetes USA Euphoriant Venda Venereal Disease West Indies Diabetes, High Blood Pressure

6

SECTION III

INDIAN MANUFACTURERS The Indian extractors/formulators of Periwinkle produce Vincristine, Vinblastine, Vincamine, Vindoline,Vindosine from Periwinkle or buy and formulate Vincristine, Vinblastine, Vincamine, Vindoline,Vindosine. Such organisations include the following. * Biddle Sawyer Ltd 25,Dalal Street,

Mumbai-400 023 * Cipla Ltd. Factory: Lamieda Bhai Shastri Marg, Vikhroli,

Mumbai-400 083. * Khandelwal Laboratories Pvt Ltd Plot No.B-1/90,Wagle Indl Estate,

Thane-400 604, * Biochem Pharmaceutical Industries. Factories : 1. Biochem House, L.B.S. Marg, Vikhroli (W), Mumbai-400 083. * Southern Herbals Ltd.,

64, Jigani Indl. Area,Jigani-562 106. Anekal Taluk, Bangalore District. * Vintec Pharmaceuticals Pvt. Ltd. Plot B2, Phase II, Madras Export Processing Zone, Tambaram, Madras-600 045. * Amrutanjan Ltd., Fine Chemicals Division, Old Mahabalipuram Road Egattur Village,Via Kelambakkam Padur P.O.-603 103, Kanchipuarm Dist. Total Indian processing capacity:-Around 20 Kgs per annum of Crude Periwinkle

7

SECTION IV

IMPORT/EXPORT LEVEL 4.1. Imports Nil 4.2. Exports Countrywise Export of Vinca Rosea Alkaloidsvincritine, Vinbla Sline, Vincisterine Period April 2001 to March 2002 Country Quantity in Kgs

Australia 25 Kenya 94 Mexico 30 Peru 200 Zambia 35 384

8

SECTION V

PRICE Basic price of Dry plant material Rs.65 per kg Taxes and duties Extra as applicable

9

SECTION VI

INDIAN DEMAND The important downstream product of Periwinkle is Vincristine, which is an anti cancer drug Vincristine (Oncovin) Vincristine is one of the older chemotherapy drugs which has been around for many years. Vincristine, anticancer drug is produced from Catharanthus roseus It is given by intravenous route only. It is most commonly used in treatment of the following cancers: ��Lymphomas ��Hodgkin's Disease ��Breast cancer ��Acute Lymphocytic Leukemia ��Soft tissue sarcomas ��Multiple Myeloma ��Neuroblastoma Pharmacology of Vinblastine, Vincristine, Vindesine and Vinorelbine Vinblastine and vincristine are alkaloids found in Catharanthus roseus They are all administered intravenously in their sulfate form once a week; these solutions are fatal if they're administered any other way and can cause a lot of tissue irritation if they leak out of the vein. Although these three compounds are very similar in structure and have the same basic action, they have distinctly different effects on the body. Yield One tonne of Vinca rosea leaves yield 50 grams of Vincristine sulphate in crude form. On further purification, 40 grams of Vincristine is obtained Vincristine is presently produced by a few units in the country. Estimated demand for Periwinkle leaves for production of Vincristine in crude form is around 400 to 500 tonnes per annum Growth rate in demand 6 to 7% per annum

10

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS Cultivation Practices Climate and Soil * No specific climatic requirements but mostly Tropical and Sub-tropical area * Rainfall of 100 cm or more is considered ideal for raising it as a commercial crop under rainfed conditions * Light requirements: Full Sun * Any type of soil except those which are highly alkaline or water-logged. * Light sandy soils rich in humus are preferred for large scale cultivation of the plant * It grows wild in coastal area Periwinkle prefers full sun and takes a long time to flower when started from seed. The brittle stems break easily. The plant tolerates heat and drought and can be relied on to flower in the hottest weather. Grow Periwinkle in sun or shade. Soil must be moist but well-drained as too much moisture could lead to bacterial fungus or stem rot. Propagation Propagation Through Seeds Seeds required per hectare 2 to 3 kg Seeding period March to April Seed germination period About 10 days time Planting material( 607cm) Within two months Seed spacing 45 cm x 30 cm or 45 cm x 45 cm For nursery sowing and transplanting, about 500 gram of seed, sown in 200 m2 bed is required for producing seedings for one hectare When the plants grow up they are thinned out, leaving a distance of 25 - 30 cm between the plants.

11

Harvesting Ready for harvest of Root after one year The crop is cut about 7.5 cm above the ground and dried for stems, leaves and seeds. Then the whole field is copiously irrigated and ploughed and the roots are collected. The roots are washed well and dried in shade and latter made into boundless for marketing Yield Under rainfed conditions(All dry basis) per hectare Roots 0.75 tonne Stems 1 tonne Leaves 2 tonnes Under irrigated conditions (per hectare) Roots 1.5 tonne Stems 1.5 tonne Leaves 3 tonnes Seed Companies (Breeding, Production and Sales) Technisem France Unicorn Agrotech Ltd. India Environmental Seed Producers USA Sakata Seed America USA Resellers Stokes Seeds Ltd. Canada

12

Source of technology for agri practices * Central Institute of Medicinal and Aromatic Plants, (Council of Scientific and Industrial Research) Kukrail Picnic Spot Road, P O CIMAP,Lucknow - 226015 Source of Technology for extraction of Vincristine * National Chemical Laboratory (NCL),

Pune

13

SECTON VIII

RAW MATERIAL AVAILABILITY

Area of Commercial Cultivation in India- Around 3000 hectare Cultivated mainly in Tamil Nadu, Karnataka and to a small extent in Gujarat and Madhya Pradesh Varieties Three Local types based on the colour of the flower Alba with white flowers Roseus with pink rose coloured flowers Ocillata with white flowers having rose-purple spot in the centre

14

SECTION IX

GLOBAL SCENARIO

International players including the following * Eli Lilly, USA Product Brand name Vinblastine Velban Vindesine Eldisine and Fildesin * Glaxo Wellcome, Inc, USA Vinorelbine is currently in Phase II clinical trials as a treatment for ovarian cancer. It will be marketed as Navelbine by Glaxo Wellcome, Inc., if the trials are successful and the FDA approves the drug. Thus far, Vinorelbine seems to have a wider range of antitumor activity than the other vinca alkaloids

15

SECTION X



Economic capacity 30 tonnes per annum of Periwinkle dried leaves Project cost : Rs.25 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs


12.50


Rs.in lakhs


1.60

Sub total 1.60 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs


16


Rs.in lakhs


17


Rs. in lakhs





4.36

B Fixed cost



Depreciation 0.80


Total fixed cost (B)

10.78


15.14

D. Selling price of Dried leaves per kg. (in Rupees)

65


19.5

F. Net profit before tax (E+C)

4.36


71

18

SECTION XI

SWOT ANALYSIS

Strength

Ideal tropical conditions for plant growth

Weakness Lack of production of downstream product in large way in India

Opportunity Exports

Threat Lack of standardisation

19

SECTION XII


Periwinkle is extensively grown in India for the last several centuries and exported to developed countries. Most of the exports take place from Tuticorin port in Tamil Nadu. While Periwinkle is exported as herb, the value addition does not take place substantially in the country. With the introduction of the concept of organic cultivation, there is need to introduce better methods of organised and organic cultivation for Periwinkle in Tamil Nadu. This would further improve the export prospects for the product.

1

PLANTATION AND EXTRACTION OF SAFED MUSALI

CONTENTS





2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION 1. Family: Liliaceae 2. Common Names ♦ Safed musli (Hindi ) ♦ Velwadi (Kannada ) ♦ Milaytali (Telugu ) ♦ Tanirvitang (Tamil ) 3. Prevalent Species Species

Distribution

C. Arundinaceum Baker All districts of Chota Nagpur, Vindhya, Satpura and Aravali Hills, parts of Central India. Taria region of N-E Himalayas in Assam. West Bengal and Bihar.

C. Attenuatum Baker Western Ghats, southwards to Comibatore, West Peninsula.

C. Borivilianum Dangs Forests (Gujarat). Aravali Hills C. Laxum R.Br. Katki Hills, Belgaum, Dharwar, North and South

Kanara, Deccan peninsula in India. C.TUBEROSUM (Rox B.)Baker Parts of Konkan to Travancore IIn Kerala, Eastern

Himalaya, Bihar and West Bengal. C. Hreviscapum Sikkim Himalaya, Belgaum and South Peninsula. 4. Constituents Carbohydrates 39.10% to 42% Galactose 0.73% Glucose 0.76% Protein 5 to 9 % Saponin 2% to 4 % Root Fiber 3% to 5%

3

SECTION II


Used as an integral part of herbal drug formulations for the following applications * General Health Tonic * To cure general debility. * Aphrodisiac(Sexual desire) * Physical weakness * Increase lactation and * Dietary supplement

4

SECTION III


There are number of producers of Safed Musali and its formulations in India, mostly in small scale sector. Such producers include the following. * Magan Industries Ltd. Regd. Office : Magan House, 5/49, Vallabhnagar Flats Nr. Bapunagar Char Rasta Ahmedabad-380 024 * Universal Herbs And Medicinals Usha Colony, Near Govt Hospital, Dabra, Dist-Gwalior, Dabra, Dabra (Bhopal) - 462 001, * Jain Agrotech Raj Nagar Katol Road, Nagpur - 440 013 * Arya Vaidya Sala Kottakal Kerala

5

SECTION IV

IMPORT/EXPORT LEVEL Import/export Small quantity

6

SECTION V

PRICE Basic price of Dried Safed Musali (High saponin) Rs.500 per kg Taxes and duties Extra as applicable In domestic market, the emphasis is on white appearance which fetch higher price.

7

SECTION VI

INDIAN DEMAND

Safed Musali is mainly consumed in herbal based pharmaceutical industries. It has large and consistent market demand in the country Driving factor for demand 'Shortage' Initially the major source of Musali was forests but now the availability of this plant is decreasing in forests. Many farmers have started its commercial cultivation in India but it is not enough to fulfill the demand. There is a shortage of planting material This trend is expected to go upto next 5 years Sample of formulations for rejuventive benefits Osogold cap. Swarnabhasma, makardhwarj shilajit, keshar,w.musali, ashwagandha, kuchala, kaunchablister Multani paurushi gold capsules • Swarna bhasma (aurum) • Makardwaj (red sulphide of mercury) • Kaunch beej (mucuna pruriens) • Trivang bhasm (lead, zinc, tin reduced) • Akarkara (anacylus pyrethrum) • Shudh kuchla (detoxicated nux vomica) • Talmakhana (hygrophilia spinosa) • Ashwagandha (withania somnifera) • Musali safed (chlorophytum arundinaceum) • Kesar (crocus sativus) • Shilajeet shudh (asphaltum purificata) • Javitri (myristica fragrans) Current estimated demand : Around 200 to 300 Tonnes per annum. Safed Musli with high Saponin content have good potential demand in International market

8

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS Harvested roots are spread in the shade for about 4 to 7 days. Later, fleshy roots separated from the bunches. Slight pressure exerted by thumb and finger on the skin of root, so that they get separated and milky white root come out. It should be cleaned and dried for 7 to10 days. Sprouting percentage and storability are also increased when separated with a major portion of stem disc. Sprouting percentage and storability are also increased when separated with a major portion of stem disc.

Harvested Roots

Shed

(About 4 to 7 days)

Fleshy roots separated from the bunches

Slight pressure exerted by thumb and finger on the skin of root to separate the milky white root

Cleaned and Dried

For 7 to 10 days

9

Source of technology * National Research Centre for Medicinal and Aromatic Plants (Indian Countil of Agricultural Research) Boriavi-387 310, Taluk Anand, Gujarat Plant and machinery & suppliers Collection tank Techno Filters Pvt. Ltd.,

5, Business Plaza, Opp. Hotel Rosewood Tulsiwadi, Tardeo, Bombay-400 034

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

10

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Uniqueness The roots are widely used as a natural aphrosidiac and is an integral part of more than 100 herbal drug formulations It also cures general debility. Currently, major requirements of the food and pharmaceutical industries is fulfilled through collection from the forest, thus it is becoming threatened species in India. It is classified under endangered plant. Botanical trait More than 175 species of chlorophytum have been reported in the world. Small tuberous plant measuring 1 to 2 feet having life span of 8 months. Grows wild in forests ( elevation >1000m). It surfaces during monsoon and withers away. Saponins are thought to be highest in roots of forest origin. Native of southern Rajasthan, Western m.p and north Gujarat Thirteen species of chlorophytum have been been reported in India. All these species differ in appearance. Native species are sold as Safed musali in the Indian drug market. Prevalent species Species Distribution C. Arundinaceum baker all districts of chota nagpur,

vindhya, satpura and aravali hills, parts of central india. Taria region of n-e himalayas in assam. West bengal and bihar.

C. Attenuatum baker western ghats, southwards to

comibatore, west peninsula.

11

C. Borivilianum dangs forests (gujarat). Aravali hills C. Laxum r.br. Katki hills, belgaum, dharwar, north

and south kanara, deccan peninsula in India. C.tuberosum (rox b.) baker parts of konkan to travancore i in

Kerala, Eastern Himalaya, Bihar and West Bengal. C. Hreviscapum Sikkim, Himalaya, Belgaum and South Peninsula. Chem analysis Carbohydrates 39.10% to 42% Galactose 0.73% Glucose 0.76% Protein 5 to 9 % Saponin 2% to 4 % Root fiber 3% to 5% Cultivation Sandy loam soil is best Chemical analysis of soil for suitability imperative. Soil factors are one of the most influential towards the quality of this plant. The crop is grown in kharif season in places having warm and humid climatic conditions, bright sunlight and adequate soil moisture throughout the crop growth. Propagation: By tuberous roots and (rarely by seeds), 90 to 110 days during onset of monsoon. Crop duration Irrigation: First irrigation immediately after planting. If there is no rainfall, then irrigation may be done after 10 to 15 days interval Varieties available: Selections viz. Rc-2, rc-16, rc-36, rc-20, rc-23. Rc-37 have been collected and maintained at rau, udaipur Fleshy roots at 2.5 to 3.0 q per ha are planted in ridges at 30 cm row to row and 15 cm plant to plant distance. Paired fleshy roots used for planting recorded high degree of sprouting and survival in comparison to single root planting. High density planting of 3.33 lakh per ha to 4.4 lakh per ha plant population was found the best in increasing root yield.

12

Fresh root inflorescence (detopping) improves the bulking of fleshy roots and increases root yield significantly. Separation of Safed musli fleshy roots in the month of April could reduce the fleshy root damage as compared to march and February period. Diseases and control Infection of aspergillus sps and fusarium sps. Control : treatment with thiram and captan at 4 g per kg of roots can reduce rotting during storage. This may be due to iron deficiency. However, there is strong opinion that use of any chemicals Like weedicides in musali field may increase the yield at the cost of quality. The use of chemicals can reduce the alkaloid content of musali. Indian farmers have experienced such deterioration in fields. Ecofriendly biological control of weeds is advisable , in tamil nadu, mostly cultivated in hilly terrain above 1000 m height. Trial cultivations using simulated conditions attempted in plateau. Scope to improve saponin content The organic content of the soil is critical. The water holding capacity is increased by using green manure and proper irrigation methods. By adopting imroved and organic cultivation practice, one can enhance the saponin content of musali. Good hybrids of tubers are planted 1 m apart. Each plant can yield between 2 to more than 100 tubers. Leaves wilt much before the harvest time, which is after 180 days. Yield Tuberous roots: 1000 kg per ha

13

SECTION IX

GLOBAL SCENARIO Estimated Global demand Global demand has been estimated as 700 to 800 tonnes annually, a quantity that Indian forests cannot sustain. This has created a pressure on Indian forests and if steps for timely conservation are not taken, the Indian forests will lose this valuable plant At present, the availability of chlorophytum is decreasing and obnoxious weeds like parthenium hysterophons and Lantana are taking its place

14

SECTION X



Economic capacity : 30 tonnes per annum Project cost : Rs.53 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs


27

Subtotal 27 2. Building S.No. Description Cost

Rs.in lakhs


3.20

Sub total 3.20 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs


15


Rs.in lakhs


16

10. Financial statements Cost of production

A Variable cost

Rs. in lakhs





72.77

B Fixed cost



Depreciation 1.03


Total fixed cost (B)

35.02


107.79


500


150


42.21


45

17

SECTION XI

SWOT ANALYSIS Strength Adequate availability of plantation

Weakness Lack of product standardisation

Opportunity Export market

Threat Considered to be an endangered species

18

SECTION XII


RECOMMENDATION Mainly consumed in herbal based pharmaceutical industries. It has large and consistent market demand in the country Safed musali with high saponin have good demand in international market. Musali from forest is rich in saponin. By adopting improved and organic cultivation practice, one can improve the saponin content of musali. Industries may have to start investment in the cultivation of medicinal plants such as musali, since they face difficulties with regard to increasing supply gaps as well as in some cases adulterated materials from the wild. Innovative Indian farmers have initiated commercial cultivation of Safed Musali. Many musali farms have started selection of cultivars. There is now good demand of organically grown Safed Musali with high saponin content in national and international drug market.

1

CALCIUM SENNOSIDE

CONTENTS


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


2

SECITON I

PRODUCT CHARACTERISTICS AND SPECIFICATION

General details Appearance : Yellowish brown to Brown powder. Constituent : The major constituent of the sennoside is emodin

(1,3,8 trihydroxy-6-methyl-anthroquinone). Solubility : Soluble in water and in dilute alcohol but insoluble in absolute alcohol. Grades : Sennoside content 5% 7% 15% 20% 25% 40% 60% free sennosides 80% Storage : Store in a cool and dry area in sealed containers Process conditions for Sennosides Part of plant used Leaves Solvent Methanol/water 60% (v/v) Ratio of botanical to native extract 7 to 10:1 Carrier Maltodextrin Residues of pesticides, radioactivity and aflatoxins

The raw material to be extracted should meet the limits of controlled substances.

3

Specification of Senna Leaves Powdered Extract (>5% Sennosides) Appearance /Odour Brownish to brown extract with characteristic odour Mesh size Not less than 95% thru 80 mesh Identification by TLC Method

Complies to standard Corresponding to DAB 10 to 2. Suppl.

Purity tests Residual solvent (by GC) Less than 0.05% methanol Loss on drying (2 h at 105 Deg C) Not more than 5% Microbiological Purity Aerobic Bacteria : Not more than 500 cfu/g

(Total plate count) Molds and Yeasts : Not more than 100 cfu/g

(Total plate count) Pseudomonas aeruginosa/Presence : None detected Staphylococcus aures/ Presence : None detected in 1 g Escherichia coli/Presence : None detected in 1 g Salmonella Spp/ Presence : None detected in 1 g Assay (Photometric) Method Not less than the stipulated Sennosides content US-

Method.

4

SECTION II


Senna as Purgative Drug Senna is valued in medicine for its cathartic properties, especially in habitual constipation. Senna appears to have been used since the ninth or tenth century. Indications and dosage Indications Atonic constipation. Bowel evacuation for radiological examination. Contra-indications Intestinal obstruction, spastic constipation, electrolyte imbalance, lactation. Side effects Nausea, vomiting, skin rashes, fixed drug eruption, Regular use (4 to 12 months) causes colonic atony and mucosal pigmentation (melanosis)

5

SECTION III


* Glaxo India, Mumbai * Cipla Ltd., Mumbai * Mehta Pharmaceutical Pvt. Ltd., Punjab * Kothari Phyto Chemicals International , Tamil Nadu * Hindustan Pharmaceuticals, Punjab * Alchem International Ltd.,New Delhi. * Shashi Phytochemical Industries, Rajasthan. Indian installed capacity Around 100 tonnes per annum

6

SECTION IV

IMPORT/EXPORT LEVEL 4.1. Imports Nil 4.2. Present export level 150 tonnes per annum PERIOD APRIL 2001 TO MARCH 2002 Country

Quantity in kgs

Argentina 160 Australia 3650 Brazil 200 Canada 3450 Chile 20 Chinese Taipei 120 China P RP 4 Colombia 10 Cyprus 300 Egypt A RP 190 France 60 German F Rep 150 Hong Kong 100 Israel 2 Italy 274 Japan 8206 Malaysia 20 Mexico 7004 Netherland 10 Russia 6040 South Africa 108 Spain 125 Switzerland 6206 UAE 75050 UK 2135 Ukraine 5000 USA 34385

7

SECTION V

PRICE DETAILS Basic price Content 10%) Rs. 750/- per kg. Content 15%) Rs. 1050/- per kg. Taxes and duties Extra as applicable

8

SECTION VI

INDIAN DEMAND

Indian formulators of Senna extract include the following Name of the company

Name of the formulation

Use

Allenburys Glaxenna Total sennosides (calcium salts) Calculated as Sennocide B 11.5 mg

Alembic Laxatin Sennosides A&B (as calcium salts) 12 m, dioctyl sod. sulphosuccinate 50mg.

Alpine Laxsena (Senna extract) Tab. 12 mg Forte Tab. 18 mg.

Novartis Pursennid-in

(with D.O.S.) Purified senna ext. (as calcium salt) 18 mg dioctyl sodium Sulphosuccinate 50 mg

Wander Sofsena Purified Senna Extract (as calcium salt) 12 mg)

Cipla Senade Standarised senna ext. (sennosides A&B as Calcium salts) 13.5 mg.

Franco India Evacuol Karaya gum 3.1 g, sennosides A&B (as calcium salts), 15 mg per 5g, granules.

9

Growth rate and Assessment of demand Growth rate Assessment of Indian demand

Driving Factors

As Calcium Sennoside is plant based drug and phyto pharmaceutical and it is a traditional drug (used since 9th or 10th century) and it is produced in selected areas in the world, including India, the product has been traditionally exported from India.

Production level 155 tonnes per annum

Domestic Indian consumption level - 5 tonnes per annum

Export level 150 tonnes per annum

Factors influencing the growth in demand

Traditional drug

Exports

Annual growth rate in percentage - 5%.

Annual growth rate in percentage 5 to 6%

10

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS Process conditions Part of plant used

leaves

Solvent methanol/water 60% (v/v) Ratio of botanical to native extract 7 to 10:1 Residues of pesticides, radioactivity and Aflatoxins

the raw material to be extracted should meet the limits of controlled substances

Source of technology * Central Drug Research Institute, (Council of Scientific & Industrial Research) Chattar Manzil Palace, Mahatma Gandhi Marg, Post Box No. 173,Lucknow-226 001. Plant and machinery equipment and suppliers Reactor Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu


Dryer Richard Engineering (Bombay) Pvt. Ltd.

11

42, IIF, Veerabadran Street Near Valluvar Kottam Nungambakkam, Chennai-600 034 Ganson Ltd. 645, Anna Salai, Chennai-600 006

Steam boiler Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68

12

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis: One tonne of Calcium sennoside Senna leaves 25 tonnes Oxalic acid 0.5 tonnes Citric acid 0.5 tonnes Calcium chloride 1.5 tonnes Conc HCl 1.8 tonnes Methanol 8.5 tonnes Utility Installed power 50 H.P. Fuel 80 litres Raw material availability Senna plantations are extensively cultivated in Tamil Nadu and are readily available

13

SECTION IX

GLOBAL SCENARIO Calcium sennoside is a traditional product used as laxative In recent times, Calcium sennoside is reported to be using its market share to natural fibre based products, which are considered to have less side effects. Global supplier include the following • Interchem Corp., USA • Alcon-Couvreur NV, Belgium • Conforma, NV, Belgium • Jenssempharma A/S, Denmark • Brandeis Intestl France SA, France • Sunkyong USA Inc., USA • PMC Specialities Group, USA

14

SECTION X


Economic capacity : 9 tonnes Project cost : Rs.76 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.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 and

compound wall 0.55


Rs.in lakhs

2.1 Factory building of area 210 sq.m. at Rs.3200/sq.m. 6.72 2.2 Non-factory building of area 100 sq.m.at Rs.4500/sq.m. 4.5 Subtotal 11.22 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 20 3.2 Instrumentation and control 1.50 3.3 Pipelines and valves 2.00 3.4 Structurals for erection 1.00 Subtotal 24.5 3.5 Octroi, excise duty, sales tax, etc.at 12% 2.94 3.6 Packaging and insurance charges (2%) 0.49 3.7 Transportation charges (2%) 0.49 3.8 Machinery stores and spares (2%) 0.49 3.9 Foundation charges (2%) 0.49 3.10 Installation charges (2%) 0.49 Total cost of plant and Machinery 29.89

15

4. Technical know-how fees Rs.2.50 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs




Rs.in lakhs

6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.6 6.2.2 Rent rates and taxes 0.8 6.2.3 Travelling expenses 0.8 6.2.4 Interest and commitment charges on borrowings 3.0 6.2.5 Insurance during construction period 1.0 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 7.00 7. Provision for contingency Rs.3.75 lakhs 8. Working capital margin Rs.4.91 lakhs 9. Total project cost Rs.76 lakhs 10. Means of finance (Rs. in lakhs) Promoter's contribution 30 Term loan from financing institutions 46 Total project cost 76 11. Financial statements

16

Cost of production A Variable cost

Rs. in lakhs


24.97

B Fixed cost

Salaries and wages 6 Interest on term loan and working capital loan 10.85 Depreciation 4.3 Administrative expenses 2.16 Total fixed cost (B)

23.31


48.28


800


72

F. Net profit before tax (E - C)

23.72


50%

17

SECTION XI

SWOT ANALYSIS

Strength Ready availability of raw material

Weakness Low indigenous demand

Opportunity Export

Threat Substitution possibility

18

SECTION XII


RECOMMENDATION Medical practitioners are generally of the view that anthraquinone laxatives should be considered as treatment for constipation as last resort. Senna is a such powerful laxative that it can cause cramping and abdominal distress if not used with caution. Senna tastes awful. Even the herbal medical practioners generally discourage using Senna as a recommended over the counter drug. Senna is certainly an effective laxative but most medical practioners consider two other anthraquinone laxatives namely buckthorn and cascara sagrada to be more gentler and therefore more preferable. Larger doses of Senna can cause diarrhea, nausea and severe abdominal cramping and possibly dehydration. Senna’s powerful action means that it should not be used in chronic gastrointestional conditions, such as ulcers, colitis or hemorrhoids. The nursing women should not take Senna. And Senna should never be used for more than two weeks, because over the time, it can cause what is known as lazy bowel and inability to move stool without chemical stimulation. Calcium sennoside essentially represents an export oriented project

1

PROFILE ON HERBAL VALLARAI TONIC




2

SECTION I

PRODUCT CHARACTERISTICS Family Umbelliferae Latin name Centella asiatica Alternate name Hydrocotyle asiatica Tamil name Vallarai Vernacular name Sanskrit - Mandukaparni-

Hindi - Brahmamanduki - Gotu Kola English - Indian Pennywort Unani - Khulakudi Bengali - Tholkuri Malayalam - Muttil Gujarati - Karbrahmi Japanese - Tsubokura Tibetan - Sin-mnar

Vallarai is a creeping herb with leaves that are kidney shaped. It grows in damp soils or adjacent to ponds and lakes where the soil is perineally wet. It is also grown in paddy fields and is propogated by cuttings. Vallarai should not be confused with Brahmi (Bacopa monieri) Vallarai has been studied extensively and most of the properties have been borne out by research. The plant grows naturally on the banks of streams and ponds and near rice fields. The herb can be propagated by cutting the new shoots which have roots attached to them and transplanting them in a new pot. Duration of crop

Perannial crop : 3 months

It can be grown without much effort at home. Plantlets can be planted in the garden or in a large pot that is placed in the shade. The plant requires profuse watering. It gives off tender creeper like shoots, which will soon cover the pot. The leaves can be harvested within three months Specifications Minimum percentage of Vallarai extract in final product - 10% The product should be free from fermented odour (The manufacturers must obtain a FPO license for manufacture of the product)

3

SECTION II

PRODUCT APPLICATIONS 2.1. General details There is some confusion with regard to the two plants mandukaparni (Centella asiatica) and brahmi (Bacopa monniera) which have similar appearance, properties, synoymns and lack of textual descriptions. Careful study of the texts clearly indicate that they are two different palnts. Charaka recognises both as being promoters of mental faculities but assigns brahmi a more specific role in treating mental diseases like insanity, anxiety, depression and epllepsy while mandukaparni improves mental function through its more general rasayana effect. In addition to its intellect prom oting and anxiolytic effects, the plant is also used in chronic cough, eczema, psoriasis and boils. It is in preparations given for anemia, dyspnea, amaciation, splenic enlargement, rheumatic joint pain, amenorrhea and blood toxicity. Indications: Anxiety, minor memory loss, mental fatigue, eczema Formualtions and dosage: Infustion 2 to 4 oz. Bid Leaf juice 10 to 15 ml. Bid Powder 1 to 3 g bid 2.2. Application details Vallarai belongs to the group of herbs that help maintain youthful vigour and strength. Vallarai herbs is used in the treatment of syphilltic skin diseases and leprosy, diseases or nerves and blood. It improves the mind's receptive capacity. It is capable of improving a person's memory power, physical strength, voice, complexion and digestive power. The herb can be made into different chutneys and eaten by diabetics and those who suffer from anaemia. Extracts of the plant are being used in the commercial production of face creams and anti wrinkle creams.

4

The leaves can be dried and powdered. A quarter teaspoon can be taken daily as a general tonic by adults. Chutneys can be prepared by sauteing two or three handfuls with a little oil and grinding it with a teaspoon of roasted urad dhal roasted sambar . They can be cut and added to wheat flour while making chapattis. The leaves are slightly bitter. 2.3. Vallarai candy For improving memory and general health. Usage 5 to 10 candies per day Packaging 10s in refill packing, 200s in refill/pet jar packging

5

SECTION III


There are a number of manufacturers of Vallarai tonic. The important producers include the following: * Aravindh Herbal Labs (P) Ltd.,

140 Mudangiar Road, 4th KM, Rajapalayam 626 117

* Overseas Enterprise 53/5, Kalaria Chemicals Compound, Nr. Odhav Fire, Ahmedabad - 382 415 * PTC Herbals & Cosmetics Pvt. Ltd. 10/16, Spartan Avenue Mugappair, Chennai-600 050 * Sri Srinivasa Herblex (P) Ltd., Admn. Office : Shed No.6, Phase III Autonagar, Vijayawada-520 007 Factory : Survey No.218/2A, Gannavaram Road Punadipadu-521 151 Kankipadu Mandal, Andhra Pradesh * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai-600 106.

6

SECTION IV

IMPORT/EXPORT LEVEL

Sample of individual exports Name of the exporter

Brand name Quantity Value Country Date Port

PTC Herbals and Cosmetics

Vallarai Powder

1976 Nos 9168 Port Kelang

January 2002

Chennai

PTC Herbals and Cosmetics

Vallarai Chocolate

4000 Nos 1878 Port Kelang

January 2002

Chennai

There is no evidence of import of Vallarai herbal products

7

SECTION V

PRICE TRENDS

Basic price Rs.130 per litre

8

SECTION VI

INDIAN DEMAND

General details Vallarai keerai is very famous in Tamil Nadu. The keerai is consumed by many people as a dish. It is useful in the treatment of urinary infections, throat infections and skin diseases. It also increases the red blood cell count in the circulatory system. It is also found to improve the memory power among children. Vallarai tonic is prepared by mixing the concentrated aqueous extractes with honey and sugar. The tonic needs no terminal processing except addition of milk to a tablespoon or two of the tonic. It then forms a ready to consume beverage. The beverage is consumed mainly because of its medicinal properties in improving memory power. Market: The product finds placement in all departmental stores, self service counters and ayurvedic pharmacy shops.

9

SECTION VII


The plant of Vallarai is first rinsed in water and cleaned thoroughly to remove adhering mud. Take 2.5 kilo grams of the cleaned portion of the entire plant and shred it in a shredder to small pieces. Take the pieces in a steam jacketed kettle and add 5 to 6 litres of water. Boil in the presence of steam till extraction is complete. Filter the solution to separate the liquid(filtrate) and solid (residue). Take the residue to a juice extractor and extract the remaining juice. After full extracction discard the residue. Take the filtrate back to the steam jacketed kettle and concentrate the solution to two hundred ml.volume. Take 1 kilogram of refined crystalline sugar and melt in the steam jacketed kettle to around 85 to 90 degress brix. Prevent crystallisation by addition of pinch of citric acid. Add the vallarai extract to the sugar tonic and concentrate by gently boiling the mixture till a solution of 75 degrees brix is obtained. The volume should be approximately 1200 ml of pure Agmark grade honey and make the volune to 2 litres. Measure the sugar strength on the brix meter. Maintain the reading at around 75 degrees brix to prevent spoilage. Pack in bottles of 200 ml. Capacity. The yield shall be 10 bottles per batch. No chemical preservatives such as bisulphites are to be added.

10

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 Plant and machinery equipment Washing tank * Spark Engineers Pvt. Ltd.,

Spark Enterprises 5/332, State Bank Colony II Salem-636 004

Steam jacketed kettle * Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem-636 004

Bottle washing machine * Shivsu Watek Private Ltd. No.14, Spurtank Road Chetpet, Chennai-600 031

Juice extractor * Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem-636 004

Baby boiler and accessories * Heatcon Projects (I) Pvt. Ltd. A-5, Bharat Compound, W.E. Highway, Kashimira, Mira Road (E), Thane-401 104

11

SECTION VIII


Basis: 60 KL per annum of Vallarai tonic Vallarai 75 tonnes Sugar 30 tonnes Honey 24 tonnes Availability The raw material are readily available in the market

12

SECTION IX



Economic Capacity in Kilo litres per annum 60 Project Cost in Rs. lakhs 40

Assessment of project cost Land


lakhs 1.1. Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.65 1.2. Cost of levelling,laying internal roads/fencing and compound

wall 0.17

Subtotal 1.82 Building


2.1. Factory building at Rs.3200 per sq.m 2.40 2.2. Non-factory building at Rs.4500 per sq.m. 0.91

Subtotal 3.31 Cost of Plant and Machinery


lakhs 3.1. Cost of basic plant and machinery 7.5 3.2. Instrumentation and control 0.56 3.3. Pipelines and valves 0.75 3.4. Structurals for erection 0.38

Subtotal 9.19 3.5. Octroi excise duty, sales tax, etc. at 12 1.10 3.6. Packaging and insurance charges(2%) 0.18 3.7. Transportation charges (2%) 0.18 3.8. Machinery stores and spares (2%) 0.18 3.9. Foundation charges (2%) 0.18 3.10. Installation charges (2%) 0.18


13

Technical know-how fees Rs.1.20 lakhs Miscellaneous fixed assets

Description

Cost Rs. Inlakhs

5.1. Electrification 1.2 5.2. Steam boiler and auxillaries 2.2 5.3. Water storage tank, borewell etc 0.2 5.4. Fuel storage tank 0.3 5.5. Laboratory equipment 0.4 5.6. Office machinery & equipment 0.4 5.7. Material handling equipment, packaging machinery, weigh

balance etc. 0.3


Total 8.8 Preliminary &Pre-operative expenses: 6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 6.2.1. Establishment 0.5 6.2.2. Rent rates and taxes 0.4 6.2.3. Travelling expenses 0.3 6.2.4. Interest and commitment charges on borrowing 2.4 6.2.5. Insurance during construction period 1.2 6.2.6. Other preoperative expenses and deposits - 6.2.7. Interest on deferred payment -

Total 5.6 Provision for contingency Rs.2.01 lakhs Working capital margin Rs.5.81 lakhs Total Project Cost Rs.40 lakhs Means of finance (Rs. in lakhs) Promoters contribution 16 Term loan from financing institutions 24 Total project cost 40

14

Financial statements A. Variable cost

Rs. In lakhs


49.51

B. Fixed cost

Salaries and wages 6 Interest on term laon and working capital loan 7.43 Depreciation 1.83 Administrative expenses 2.34 Total Fixed cost

17.60

C. Total cost of production (A+B) 67.12 D. Selling price per litre. (In Rupees) 130 E. Annual sales turnover 78 F. Net profit before tax (E-C) 10.88 G. Breakeven point in % 62

15

SECTION X

SWOT ANALYSIS

Strength Considered as medical tonic, general used

for health improvement Very popular with growing demand trends

Weakness Inadequate marketing efforts

Opportuntiy Promotion of the product as general health tonic

Threat Competition from synthetic product

16

SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS

Vallarai is a traditionally well known product, used as alternative tonic and diuretic Vallarai is said to have no side effects and therefore safe for use While it is a popular product, adequate efforts have not been putforth to spread information about the efficacy of the product and subject it to certification and testing procedures adequately. The export market for Vallarai tonic can be particularly exploited, if adequate product promotional efforts in the overseas market can be launched

17

PROFILE ON HERBAL VALLARAI TONIC




plantation and extraction of amla

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