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PLANTATION AND EXTRACTION OF AMLA
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
INDIAN EXTRACTORS /FORMULATORS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
FOR AMLA OIL
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
PLANTATION AND EXTRACTION OF
ASHWAGANDHA
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE DETAILS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION

Family
Solanaceae
Common Names
Ashwagandha (Sanskrit) Winter cherry (English) Amukkirag (Tamil) Amukkiram (Malayalam) Asundha (Gujarat) Amangura (Kannada) Ashvagandha (Telugu) Asvagandha (Bengali)
Plant Extract

Specification
Total soluble solids Acid insoluble ash 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 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 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, 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) Bangalore-562 123 M.M. Herbo Global A-40, Subhash Nagar, Jaipur - 302 016 217/C, Shyam Kamal Opp. Lane to Srinivasa Theatre Markapur-523 316 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Import


Period:- April 2000 October 2001
Ginseng Extract including Powder Other Ginseng Roots Period:- April 2001 to March 2002 95078 kg per annum
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 SECTION V
PRICE DETAILS
Price of Aswagandha extract Taxes and duties Extra as applicable SECTION VI
INDIAN DEMAND
Driving Factor For Demand :
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
Revitalizer
Aswagandha improves Oxygen uptake. increased oxygen heightens cognitive functioning 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 Aswagandha is a proven Adaptogen and hence can substantially substitute the high priced Adaptogen in the market - Melatonin. 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 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 Saussurea lappa, Withania somnifera (Aswagandha) 300 mg. Asphaltum (Shilajit) 175 mg. Zinc (Yasad bhasm)25 mg. Corallium rubrum (Praval bhasm)15 mg. Withania somnifera Trichopus zeylanicus (Arogyappacha) Evolvalus alsinoides (Vishnukranthi) Indian demand for Aswagandha extract
Around 75 tonnes per annum Growth rate in demand
8 to 9% per annum 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
Plant and machinery equipment and suppliers
Kulkarni's Hafi Elektra Pvt. Ltd Post Box No.132, 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 Technical Products Engineers & Manufacturers 159 (O), Vidya Nagari Marg, Vidyanagari, Kalina SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Botanical Trait
Upto 1.5 m height Upto 10 cm long, ovate Pale green, small about 1 cm long bunched in axillary clusters. Six mm wide, globose, smooth red, enclosed in membranous calyx. Simple and round starch-grains Prevalence :
Madhya Pradesh - has cultivation on about 4000 hectares. Punjab, Rajasthan, Andhra Pradesh and Utaranchal also have significant cultivation. Popular commercial varieties
Jawahar Asgandh – 20, Jawahar Asgandh 134 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. Cultivation Practices
180 to 1700 m above mean sea level Grows well in well drained sandy, sandy loam or light textured red soils having Climatic Condition Semi arid tropical areas receiving 500 to 750 mm rain fall are suitable Requires dry season during its growing period Month of August 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. 1000 to 1200 kg per hectare 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 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 Raw material and utility requirement
Aswagandha Root Total installed Power SECTION IX
GLOBAL SCENARIO
Patent issue
US based Natreon Inc. has obtained the US patent in 2000 for the extract of 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. A few Overseas Players
Oxygen Research Institute 20 Sunnyside Ave. Suite A-164 Mill Valley, CA. 94941 Sabinsa Corporation USA Nutriscience Innovations Llc USA Gorkha Exim (P) Limited, Nepal SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 30 tonnes per annum of Aswagandha extract
Assessment of project cost
Cost of land of 0.50 acre at Rs.5.5 lakh per acre Cost of level ing, laying internal roads/fencing and Building
Factory building of area 100 sq.m. at Rs.3200/sq.m. Non-factory building of area 30 sq.m.at Rs.4500/sq.m. Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Steam boiler and auxil aries Water storage tank, borewel etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Diesel generator Effluent treatment Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E - C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Strength
Ready availability of raw material Weakness
Inadequate product standardisation Opportunity
Excellent demand potential Difficulty in penetrating export market due to competitive conditions SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

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. FAIRNESS CREAM
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
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 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. 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. Cleansing creams All purpose creams Emollient creams Skin Protective and hand creams Vanishing creams Foundation creams Sunscreen lotions Usage of Talcum powder for fairness purposes was prevalent in earlier days The companies generally sell their fairness products under the categories of sunscreen lotions, vanishing creams, cold creams etc.
Category

Examples of brand names in different category
Godrej ‘Fair Glow' and ‘Fairever Samara Fairness cream Lotus Fairness gel Avon VIP Fairness cream Oriflame Natural Northern Light Biotique Coconut Milk Oriflame Love A ‘Fair 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 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
Characteristics of skin creams
Functional Property Physico chemical Property Subjective Property Cleansing creams Medium to high oil content Oil in water or water in oil Difficult to "rub in" Low slip point oil phase Also popular as lotions May contain surfactants of suspension properties Moisturising creams Easily spreadable and "rub in" Usually oil in water Foundation creams Low slip point oil phase Vanishing creams Natural to slightly acidic PH Available as creams or lotions May contain emollients and special moisturising ingredients Hand and body protective Low to medium oil content Easily spreadable but do not Usually oil in water "rub in" with the ease of Medium slip point oil phase vanishing creams May have slightly alkaline or May contain protective factors especially silicones and lanolin All purpose creams Medium oil content Very often slightly oily but Oil in water or water in oil 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. 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 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. 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 Hindustan Lever Ltd. (HLL is the only listed company that has a visible presence across Fairness cream, Ponds cold cream, Cream, Lotion Chennai 600 044. SunScreen lotion, Lakme sunscreen cream, Cream, Lotion 1st Floor, Army Navy Building Mumbai-400 001. Emami Limited 6-A, R.N. Mukherjee Road Calcutta-700 001 Cavinkare Limited Formerly Beauty Cosmetics 130(New No.237), Chennai-600 086 Paras Godrej Consumer Products Ltd Eastern Express Highway Mumbai-400 079 Procter & Gamble Hygiene and Clearasil face cream Health Care Ltd., Dabur 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 Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Vale Exports (P) Ltd Vale Exports (P) Ltd Vale Exports (P) Ltd Vale Exports (P) Ltd Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Singapore MAY 2002 Cavinkare Private Limited Colombo MAY 2002 Cavinkare Private Limited Colombo MAY 2002 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. 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 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
6.2. Men/Women classification of consumers


6.3. Number of players


Number of fairness cream brands in the National 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 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)
6.5. Market share of major players
Market share in % Hindustan lever Ltd. Dream Fairness cream Some other marginal players
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
Growth trends

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 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 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 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. 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. 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 1304/A, GIDC V.U. Nagar-388 120, Packaging machinery C-30, Neeti Bagh, New Delhi-110 049 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Raw material requirement
Basis : 200 kgs per day of Fairness cream (Moisturising lotion) Installed power:
8.1.Formulations for night and massage creams
Skin food cream Liquid paraffin wax Biological cream Liquid paraffin wax Liquid paraffin wax 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
Acetylated lanolin Glycerolmonostearate (self emulsifying type) Iso propyl palmitate Propylene glycol Water (softened or distilled) Methyl parahydroxybenzoate Propyl parahydroxybenzoate Glyceryl monostearate Isopropyl myristate Polyethylene glycol 400 monostearate Sodium lauryl sulphate Propylene glycol Sorbitol (70%, solution) Methyl parahydroxybenzoate Propyl parahydroxybenzoate Isopropyl palmitate Propylene glycol monostearate Polyethylene glycol Propylene glycol Water (softened or distilled) Methyl parahydroxybenzoate Propyl parahydroxybenzoate
Lotion for hands, face or body
Woolwax alcohols Sorbitan sesquioleate Sorbitol (70% solution) Propylene glycol Water (softened or distilled) Methyl parahydroxybenzoate Propyl parahydroxybenzoate
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. Potassium hydroxide Diglyed stearate 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) Process of manufacturing 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
Potassium hydroxide Sodium hydroxide Potassium hydroxide Potassium hydroxide
8.3. Raw material availability
The raw material are required in small quantity and therefore can be procured from There is no constraint in the availability of raw material SECTION IX
GLOBAL SCENARIO
Global cosmetic market

Pattern of market (in Percentage)


Active ingredients
Speciality additives Flavours and fragrances Cleansers and foamers Emollients and moisturises
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. SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS

Economic capacity

Assessment of project cost

Cost of land of 0.5 acre at Rs.5.5 per acre Cost of levelling, laying internal roads/fencing and Building
Factory building of area 100 sq.m. at Rs.3200/sq.m. Non-factory building of area 20 sq.m.at Rs.4500/sq.m. Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Steam boiler and auxillaries Water storage tank, borewell etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Diesel generator Effluent treatment Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Rs.73 lakhs
Means of Finance
Promoter's contribution Term loan from financing institutions Total project cost Financial statements
Cost of production Variable cost
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production C (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover E
Net profit before tax (E-C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Strength
Growing market due to improving economic conditions Weakness
High cost of product Opportunity
Technical innovation Competition from multinational companies SECTION XII
FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND

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 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 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 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
Factors towards growth of Fairness Cream
Growing consumerism and the move towards personal grooming are the key to 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. 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. PLANTATION AND EXTRACTION OF
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION

Synonyms
Commiphora mukul Commiphora wightii (Arnott) Bhand. 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 %
Uniqueness
Has a superior hypolipidaemic activity. Guggul effectively lowers high triglycerides by 30% Used to treat obesity and other weight related problems. It is reported to be the most powerful cholesterol-lowering herb known.
Endangered plant

Specification
Total Guggulsterone Content : Alcohol Soluble Extractives : Lipid Contents min 20% max 5 % (2hrs@ 105°C) 100 % through 80 mesh Soluble in Alcohol 24 months unopened In cool dry place, away from heat and direct light. Yellow coloured powder Characteristic pleasant Characteristic pleasant Loss on Drying (at 105deg Activity ( BY HPLC) Total Plate Counts Negative /0 parts per g Negative / 0 parts per g Negative /<2 parts per g Negative / < parts per g SECTION II
PRODUCT APPLICATIONS
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 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. Guggul lipid's natural properties are also commonly compared to that of niacin and fish Guggul lipid decreases high blood pressure. It is used to strengthen the structural system and support the heart. 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 8, Pushpadeep Apt., Pushpakunj Society, Kankaria, Ahmedabad - 380 001 Sri Srinivasa Herblex (P) Ltd., Shed No.6, Phase III Autonagar, Vijayawada-520 007 2, E113/16th Cross St., Opp. SBI Besant nagar No.19/1 & 19/2, I Main, II Phase, Peenya Indl. Area Bangalore-560 058 SECTION IV
IMPORT/EXPORT LEVEL

4.2. Sample of Indian Exports

Quantity Value (Rs) Country Brussels Siris Impex Dry extracts Guggul Plant Lipids Ltd SECTION V


Basic price of Guggul powder extract
Taxes and duties Extra as applicable SECTION VI
INDIAN DEMAND

6.1. Sample of formulations


RUMOSH TAB.
An Anti Inflammatory & Anti Rheumatic Mahayograj Guggulu, Exts. Maharasnadi Quath,Shilajit, Parasik Yavani (STRIP 10*10T and Pla.Bott.100T)
CULOSH TAB.
Constituents: Hirabol, Lodhar, Shilajit, Guggul (STRIP 10*10T Pla. Bott.100T)
BUILDIM TAB.
Herbal an anti- bacterial Constituents: Guggulu, Exts. Maharasnadi quath,Manjishtha, Guduchi (STRIP 10*10T and Pla. Bott.50 T)
BUILDIM SYRUP Herbal an anti- bacterial
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 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 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. Around 90 tonnes per annum of Guggul extract powder Growth rate in demand 10 to 11% per annum 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
ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mil , Lower Parel (W) ELGI Equipments Ltd., Elgi Industrial Complex III, Singanal ur, Coimbatore-641 005 K.G. Khosla Compressors Ltd., 19.8 KMS, Delhi-Mathura Road, Faridabad-121 003, Haryana 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
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Botanical Trait

The mukul myrrh (Commiphora mukul) is a small, thorny shrub distributed throughout 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
Perennial crop, a desert plant 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
700 to 900 Kg per hectare of Guggul gum
Post harvest:

Gum is dried in shade and stored.
SECTION IX
GLOBAL SCENARIO
Guggul is predominently viewed as anticholesterol drug
World-wide sales of anticholesterol drugs
Sales in million US$ Patent expiry date of certain anticholesterol drugs
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

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 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 SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 30 tonnes per annum
Assessment of project cost
S.No. Description Cost of land of 75 acre at Rs.45000 lakh per acre Building
Building of area 75 sq.m. at Rs.3200/sq.m. Cost of Plant & Machinery
Miscel aneous machinery Packaging machinery Total cost of plant and Machinery Technical know-how fees
Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E-C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Large availability of plantations in India Lack of standardised product Poor quality agricultural and extraction SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
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. PROFILE ON HERBAL COSMETICS
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 23
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS
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 Aloevera (Ghee Kanvar) Amla(or IndianGooseberry) Dandelion (Kanphul) Apple Cider Vinegar Apricot(Khubani) Emulsifying wax B.P. Fuller's Earth(Multani Mitti) Beeswax(Madu Mom) Bicarbonate of Soda Brewers Yeast(Khamir) Oatmeal (jai Ka Atta) Orange flower water Sodium sesquicarbonate 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 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) Allo-Ayur Formulations Pvt. Ltd.
11, Tukoganj Main Road 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 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 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, 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
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 Om Ayurveda-Shop.Org
425/82 T. M. V. Colony, Saraswati Apts, Premsons Herbal Cosmetics Pvt. Ltd.,
11, Vijay Udyog Nagar, Pretty Ma'am Herbal Cosmetics
32/637, MKV Road, 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 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 - 400 053 617, 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 SECTION IV
IMPORT/EXPORT LEVEL
Negligible quantity
4.2. Exports

Sample of individual Exports of Fairness creams (In Chennai port)


Period 2002
Name of the exporters Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Vale Exports (P) Ltd Vale Exports (P) Ltd Vale Exports (P) Ltd Vale Exports (P) Ltd Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Cavinkare Private Limited Singapore MAY 2002 Cavinkare Private Limited Colombo MAY 2002 Cavinkare Private Limited Colombo MAY 2002 SECTION V

Price for Fairness cream
Rs.28/- for 25 gms Rs.50/- for 50 gms SECTION VI
INDIAN DEMAND

6.1. General details
Size of the cosmetic and perfumery market Around Rs. 12000 million per annum Colour cosmetics Ltd., 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 Zee (a new entrant) and others
6.2. Skin care creams/lotions - The market (in tonnes)


Cold/winter cream
Moisturising cream Speciality cream Cold/winter lotion Moisturising lotion Speciality lotion
Skin care creams/lotions - Market segmentation (in tonnes)
Anti wrinkle/ageing Bleaches/facepacks
Market for non durables
(Rs. in million)

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 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) Market share of major players
Market share in % Hindustan lever Ltd. Gold Turmeric and Dream Fairness cream Some other marginal players
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 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
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. 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 Lavender extract
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. Cucumber/carrot juice Extract of cornflower
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.
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 Leaves/stems of brook lime Distilled water
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
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
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
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. Tincture of benzoin
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 Distilled water
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 Rose petals/roots
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 Distilled water
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. Grated lemon peels Orange flower extract 2 tbsp Tincture of benzoin
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 Witch hazel extract Peppermint extract Tincture of benzoin
Sandalwood Astringent Lotion
Process: Mix all these ingredients well. Keep it under refrigeration so that you can preserve it for months. Sodium bicarbonate Orange flower extract 4 tbsp Honey
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
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. Witch hazel extract Tincture of benzoin
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 Grapefruit (ripe) 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 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 Witch hazel extract
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. 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. 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. Witch hazel extract 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 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 Bitter almond oil 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 Sweet almond oil 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.
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 1304/A, GIDC V.U. Nagar-388 120, Packaging machinery C-30, Neeti Bagh,Khel Gaon Marg, 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) Mineral oil or olive oil
Availability
The above raw materials are readily available in the retail market SECTION IX
DISCUSSIONS ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS
Economic Capacity 45 tonnes per annum
Assessment of project cost
Cost Rs. In lakhs 1.1. Cost of land of 0.5 acres at Rs.5.5 lakh per acre 1.2. Cost of levelling,laying internal roads/fencing and Building
Cost Rs. In lakhs 2.1. Factory building Rs.3200 per sq.m 2.2. Non-factory building at Rs.4500 per sq.m. Cost of Plant and Machinery
Cost Rs. In lakhs 3.1. Cost of basic plant and machinery 3.2. Instrumentation and control 3.3. Pipelines and valves 3.4. Structurals for erection 3.5. Octroi excise duty, sales tax, etc. at 12 3.6. Packaging and insurance charges(2%) 3.7. Transportation charges (2%) 3.8. Machinery stores and spares (2%) 3.9. Foundation charges (2%) 3.10. Installation charges (2%) Total cost of plant and machinery Technical know-how fees
Miscellaneous fixed assets
Cost Rs. Inlakhs 5.1. Electrificatiion 5.2. Steam boiler and auxillaries 5.3. Water storage tank, borewell etc 5.4. Fuel storage tank 5.5. Laboratory equipment 5.6. Machinery & equipment 5.7. Material handling equipment, packaging machinery, weigh balance etc. 5.8. Diesel generator 5.9. Effluent treatment Preliminary &Pre-operative expenses:
6.1. Preliminary expenses 6.2. Pre-operative expenses:- 6.2.1. Establishment 6.2.2. Rent rates and taxes 6.2.3. Travelling expenses 6.2.4. Interest and commitment charges on borrowing 6.2.5. Insurance during construction period 6.2.6. Other preoperative expenses and deposits 6.2.7. Interest on deferred payment Provision for contingency
Working capital margin
Total Project Cost
Means of Finance (Rs. in lakhs)

Promoters contribution
Term loan from financing institutions Total project cost Financial statements
Raw material and utilities Spares and maintenance Selling expenses Total variable cost Salaries and wages Interest on term laon and working capital loan Administrative expenses Total Fixed cost Total cost of production (A+B) Selling price per kgs( in Rupees) Annual sales turnover Net profit before tax (E-C) Breakeven point in % 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 Opportuntiy
Competition from synthetic products 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. PROFILE ON HERBAL EXTRACT
PRODUCT CHARACTERISTICS PRODUCT APPLICATIONS INDIAN MANUFACTURERS IMPORT/EXPORT LEVEL BROAD OUTLINE OF MANUFACTURING PROCESS 13 VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS 22 FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS SECTION I
PRODUCT CHARACTERISTICS

1.1. General details
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 IS 326-1986 Methods of sampling and test for natural and synthetic perfumery IS 6774:1972 Classifications of essential oil bearing aromatic plants. Specifications of Selected Herbal Extracts

1.3.1. Amla
Flavour and Taste Characteristics of amla Total soluble solids Acidity%(as Citric acid)
1.3.2. Aloe Vera gel
Slight vegetable like odour Specific gravity Less Than 0.001% Store in sealed, light resistant containers at cool, dark, dry place
1.3.3. Guggul

Total Guggulsterone content Alcohol soluble extractives Lipid contents min 20% Max 5 % (2hrs@ 105°C) 100 % through 80 mesh Soluble in alcohol 24 months unopened In cool dry place, away from heat and direct light.
1.3.4. Vetiver
Colour and appearance Light to reddish brown, Light to reddish brown, sometime greenish viscous sometime greenish viscous Characteristic & persistent Characteristic & persistent aroma with pleasant woody aroma with pleasant woody Specific gravity 30/30 deg.C Refrative index 30 deg.C SECTION II
PRODUCT APPLICATIONS
Application Sector Anti-inflammatory SECTION III
INDIAN MANUFACTURERS
There are a number of Herbal extract producers all over India. Important producers include the following Asean Aromatics Pvt. Ltd.,
Factory & Office : Plot 15-A, IIIrd Cross Street, Nehru Nagar, Kottivakkam, Cigma Herbo Tech. P. Ltd.,
910/1-A, Thimmampalayam Karamadai-641 104 Dhawan International
B-134, G.F.(Front), Malviya Nagar, New Delhi - 110 017 Lotus Herbals Ltd.
Noida-201 301, Uttar Pradesh Dabur Ayurvet Ltd.,
6th Floor, Sagar Plaza, Laxmi Nagar, Vikas Marg, 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, Flavours & Essences Pvt. Ltd.,
10th Km. Hunsur Road, Belevadi Global Herbs
Pune Satara Road, 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 PSSJ Suthanthira Enterprises
121, North Cotton Road, Tuticorin 628 001, Tamil Nadu Pharmed Medicare (P) Ltd.
Pharmed Gardens, 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 Sami Chemicals and Extracts (P) Ltd.
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: 4.1. Aloe vera

4.1.1. Imports
4.1.2. Sample of Individual Exports
Period 2001
Name of the Exporters 1500 Kgs. Port Kelang Sarathi International Agarbathies Aloes box
Period 2002

Name of the Exporters
Packiam Botanicals Vegetable Extract Sarathi International Packiam Botanicals Vegetable Extract Packiam Botanicals Vegetable Extract Packiam Botanicals Vegetable Extract Arathi International Inc. Indian Incense
4.2. Guggul

4.2.1. Imports

4.2.2. Export details

4.2.2.1.Sample of Indian Exports

Description
Quantity Value (Rs) Country Brussels Siris Impex Dry extracts Guggul Plant Lipids Ltd Dry extracts
4.3. Amla

4.3.1. Present import level
Around 8000 kg per annum
April 2001 to March 2002
Countrywise import level 7820 kg per annum from Pakistan

Present export level
Around 40 tonnes per annum Countrywise exports April 2001 to March 2002
4.4. Vetiver

4.4.1. Imports

4.4.2. Exports of Vetiver Oil

Export level
Around 500 kg per annum
4.4.2.2.

Sample of individual Exports Chennai Port
Name of the Name of the Exporters Value in Country Padmini Products Fi Kone Elevator India 4 Pcs SECTION V
Basic Price details of selected herbal extract products are given below: Herbal Extract Basic price
Guggul Powder Rs.750 per kg Vetiver oil 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 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 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 Market for Indian System of Medicines in India
Market size (Million Rs.) Number of products >600 products > 100 products > 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 In addition Herbal extracts are also used considerably in cosmetic products
Likely Growth rate in demand for Herbal Extracts
9 to 10% per annum SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS

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
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. 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. 7.2.8. Tests:
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
7.2.9. Standardisation
Standardisation and purification are ongoing debates especially in the developed 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. 7.2.10. Distillation
Hydro-distillation. Steam distillation Water-steam distillation CO2 Supercritical Extraction 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 GC-MS profiling gives accurate chemical information of the constituents. It can be used to determine: Origin, adulteration, degradation and the complete list of 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 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. 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.
7.5. Plant and machinery equipment and suppliers
Falling Film Evaporator Solvent Extractor with Stripping Condenser and Rectifier 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. Magnetic Separator Dust Collection Equipment Extraction equipment
Filtration
Enclosed filter press Solvent Recovery
Drying of extracts
Utilities Equipment
Coal fired boiler Light diesel/Furnace oil fired babay boiler
Cooling Tower

Natural draft cooling tower Forced/Induced draft cooling tower Refrigeration Plant
Air Compressor

Supplier of plant and machinery
Cethar Vessels Ltd., No.4, Dindigul High Road, Refrigeration plant ELGI Equipments Ltd., Elgi Industrial Complex III, Singanal ur, Coimbatore-641 005 K.G. Khosla Compressors Ltd., 19.8 KMS, Delhi-Mathura Road, Faridabad-121 003, Haryana Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Val uvar Kottam Nungambakkam, Chennai-600 034 645, Anna Salai, Fluid Control Equipments 77/574, Mount Road, Chennai-600 006 Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITYAND AVAILABILITY

Raw material requirements for selected herbal extracts are given below
Raw material and utility requirement

8.3.1 Amla


Basis : one tonne of Amla oil


Amla Fruit

Total Installed power

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 Guggul is cultivated in Gujarat, Karnataka and Rajasthan.
8.4. Vetiver
For 1.5 kg of Vetiver oil Raw material availability
The herbs are grown all over India in different climatic and seasonal conditions. SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic Capacity 30 tonnes per annum Project Cost in Rs. lakhs
Assessment of project cost
Cost Rs.in Lakhs Cost of land of 0.5 acre at Rs.5.5 lakh per per acre Cost of level ing,laying internal 0.28 roads/fencing and compound Building
Cost Rs.in Lakhs Factory building at Non-factory building at Cost of Plant and Machinery
Cost Rs. In lakhs 3.1. Cost of basic plant and machinery 3.2. Instrumentation and control 33. Pipelines and valves 3.4. Structurals for erection 3.5. Octroi excise duty, sales tax, etc. at 12% 3.6. Packaging and insurance charges(2%) 3.7 Transportation charges (2%) 3.8 Machinery stores and spares (2%) 3.9. Foundation charges (2%) 3.1. Instal ation charges (2%) Total cost of plant and machinery Technical know-how fees

Miscellaneous fixed assets

Cost Rs. Inlakhs 5.1. Electrificati on 5.2. Steam boiler and auxil aries 5.3. Water storage tank, borewel etc 5.4. Fuel storage tank 5.5. Laboratory equipment 5.6. Office machinery & equipment 5.7. Material handling equipment, packaging machinery, weigh balance etc. 5.8. Diesel generator 5.9. Effluent treatment
Preliminary &Pre-operative expenses:
6.1 Preliminary expenses 6.2. Pre-operative expenses:- 6.2.1. Establishment 6.2.2. Rent rates and taxes 6.2.3. Travel ing expenses 6.2.4. Interest and commitment charges on borrowing 6.2.5. Insurance during construction period 6.2.6. Other preoperative expenses and deposits 6.2.7. Interest on deferred payment Provision for contigency Working capital margin Total Project Cost
Means of Finance (Rs. in lakhs)
Promoters contribution Term loan from financing institutions Total project cost Financial statements
Variable cost
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost B Fixed cost
Salaries and wages Interest on term laon and working capital loan Administrative expenses Total Fixed cost Total cost of production (A+B) Sel ing price per kg. (In Rupees) Annual sales turnover Net profit before tax (E-C) Breakeven point in % SECTION X
SWOT ANALYSIS
Strength
Largely grown in India Weakness
Inadequate R & D efforts to conclusively prove the efficacy and superiority of the Opportuntiy
Other countries developing the cultivation of the plant in a big way SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY
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 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. PROFILE ON HERBAL HAIR OIL
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 20
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS
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 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. SECTION II
PRODUCT APPLICATIONS
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. 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 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, 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
Race Course Park, Airport Road, Rajkot - 360 001 Aravindh Herbals
75/11, North Vadambokki Street (Near Zam Zam Sweets) Shanmuga, Kallekulengara Palakkad-678 009 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.
Thiruvananthapuram ABI Herbal Products
Vettukattu Valasu Erode-638 058, Tamil Nadu Bakson Drugs & Pharmaceuticals Pvt. Ltd.
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
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 Grow-On Exports (India) Limited
19/5 IIIrd Floor, New Delhi - 110 007 Hindustan Lever Ltd.,
Hindustan Lever House, 165/166, Backbay Reclamation, No.50 & 51, SIPCOT Indl. Complex 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 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 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)
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. 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
Improved herbal hair tonic 100 ml and 200 ml 100 ml and 200 ml Classic herbal hair tonic 100 ml and 250 ml 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 National Trading Co. Castroline National Trading Co. Castroline Brami Amla 60 Pcs India Exports and Dabur Amla 60 Pac India Exports and Dabur Amla 120 Pac India Exports and Dabur India Exports and Dabur India Exports and Dabur India Exports and Dabur February Chennai February Chennai February Chennai February Chennai Sambavi Enterprices Delux Export and Herbal Hair 200 Ltrs Aswini Hair 5 CTN Kesavarthini 4 CTN Amla hair 800 Doz Traders Amla hair 5 CTN SECTION V
Price of 144 packs and each pack of size Rs.3083 Price of 72 packs and each pack of size Rs.3547 Taxes and duties extra as applicable SECTION VI
INDIAN DEMAND


6.1. Size of Indian Hair Oil Industry

Size of Indian Hair Oil Industry Indian production level of Hair oil Around 1000 Kilo litre per annum 6.2. Market Share of the Hair oils of various types
Coconut based oils Parachute Herbal) 2% (Brylcream, Cinic Active, Vaseline Hair Cooling hair oils (Himtaj, Banphool, Heavy hair oils(Dabur Amla,Dabur Jasmin, Bajaj Brahmi Amla) Light hair oils (Keo Special, Hair & Care)
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 Estimated Indian market for Herbal hair oil 75 to 100 kilo litre per annum Estimated growth rate in demand 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: Emblica Offcienalis Phyllanthus emblica Mandukaparni Centella asiatica Ecliptica alba/eracta Herb 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. Fruits are rich in tannins; Fixed oil berries strengthen and promote growth of hair. 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 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
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
Supplier of plant and machinery
Spark Engineers Pvt. Ltd Spark Enterprises 5/332, State Bank Colony II SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1. Formulation Details

Formulation-I
Refined Coconut or Sesamum oil
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
Refined Seasamum Oil Oil Lavender(English) Oil Rose Geranium
Process outline
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

English lavender
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
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


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. Coconut or Castor Oil Oil of Bitter Almons Oil of Ambergris
Process outline
The balsam peru is first of all digested for 14 days in the oil, shaking the vessel 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

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. SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity
15 Kilo litress per annum
Project cost


Assessment of project cost

Cost of land of 0.3 acre at Rs.5.5 lakh per acre Cost of level ing, laying internal roads/fencing and Building
Factory building at Rs.3200 per sq.m. Non-factory building at Rs.4500 per sq.m. Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Water storage tank, borewel etc. Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Provision for contingency
Working capital margin
Total project cost
Means of finance
Promoter's contribution Term loan from financing institutions Total project cost
Financial statements (Rs. in lakhs)

Cost of production

Variable Cost
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost
B
Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost Total cost of production A + B
Selling price per kg. (in Rupees)
Annual sales turnover (Rs.in lakhs)
Net profit before tax (Rs.in lakhs)(E-C))
Breakeven point in %
SECTION X
SWOT ANALYSIS
Strength
Growing demand due to increasing per Weakness
Higher price compared to synthetic hair oil Opportuntiy
Export opportunity Mushroom growth and competitive market SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY
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. PROFILE ON HERBAL SHAMPOO
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 14
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS

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 Liquid dry shampoos Aerosol shampoos SECTION II
PRODUCT APPLICATIONS
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 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, Vaniyambadi - 635 751 The Ayur Beauty Care
Bakson Drugs & Pharmaceuticals Pvt. Ltd.
Works : Parwancoo, Himachal Pradesh Brihans Natural Products
Fourth Floor, Rajeev Apartments Kale Path, Off Bhandarkar Road A-5, Blue Bird Hsg. Society, 1046, Shivajinagar, Pune - 411 016 CavinKare Pvt. Limited,
(Formerly Beauty Cosmetics Limited,) 130 (New No.237), Peters Road, 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 Herbal Cosmetics Pvt. Ltd.,
Cochin 25, Kerala Hindustan Lever Ltd.,
Hindustan Lever House, 165/166, Backbay Reclamation, H V Homeopaths (P) Ltd.
Malviya Road, Sitabuldi, Nagpur - 440 012 Mas International
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 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 - 110 028 617, Surveyor Colony, Madurai - 625 007 Sky International
24, "Arunoday", Sudarshan Nagar 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
Wella Ayurvedic
Om', 25, Ulkanagar, Aurangabad - 431 005 Wonder Herbs
604-L, Model Town, Panipat - 132103 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Sample of individual imports
J.N.Exports and Personal J.N.Exports and Personal 110400 Pcs 2164079 104724 Pcs 1025191 Pro-V Anti 32400 Nos 662414
4.2. Sample of individual exports
Import Co. KR & CO. Pvt.Ltd. Kipling & Arts Pvt.ltd. Arhandicraft Aloe vera Arhandicraft Aloe vera SECTION V
Price of herbal shampoo – 1000 ml Rs.240 SECTION VI
INDIAN DEMAND
6.1. Indian market size for Shampoo
Size of the Indian Shampoo market Around Rs.400 crores (Both synthetic and herbal)
6.2. Major players
Procter & Gamble Head and Shoulders Hindustan Lever Ltd. Ayush antidandruff Clinic All Clear Organics Anti dandruff Colgate Palmolive
6.3. Market share of Hindustan Lever
Market Share of Hindustan Lever Market Share of Clinic brand of Hindustan 25% Market Share of Pantene
6.4. Herbal Shampoo market
Size of Indian herbal Shampoo market Around Rs.40 crores Synthetic shampoo 15%
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 The other important Shampoo brands are Clinic Plus and Sunsilk which have largest and the second largest shampoo market in the country. 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
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

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 Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Val uvar Kottam Nungambakkam, Chennai-600 034 645, Anna Salai, Chennai-600 006 Fluid Control Equipments 77/574, Mount Road, Chennai-600 006 Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 Packaging machinery E.C. Packaging Pvt. Ltd., 14/7, Mile Stone, Mathura Road, Faridabad-93, Haryana SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1. The formulations for Amla based shampoo

8.2. Formulation for Coconut oil shampoo

Ingredients
Potassium hydroxide Potassium Carbonate The raw materials are readily available in the market. .
8.3. Hair Shampoo (dry)

Availability of raw material
The raw material are readily available in the market SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic Capacity 75.00 kilo litres per annum Assessment of project cost
Cost of land of 0.5 acre at Rs.5.5 lakh per acre Cost of level ing,laying internal roads/fencing and compound wal Building
Factory building at Rs.3200 per sq.m Non-factory building at Rs.4500 per sq.m. Cost of Plant and Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi excise duty, sales tax, etc. at 12 Packaging and insurance charges(2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and machinery Technical know-how fees (Rs. In lakhs)
Rs. 1.50 lakhs
Miscellaneous fixed assets
Cost Rs. Inlakhs Electrificati on Steam boiler and auxil aries Water storage tank, borewel etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance etc. Diesel generator Effluent treatment Preliminary &Pre-operative expenses:
Preliminary expenses Pre-operative expenses:- Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowing Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contigency
Rs. 4.74 lakhs
Working capital margin
Total Project Cost
Rs.88 lakhs
Means of Finance (Rs. in lakhs)
Promoters contribution Term loan from financing institutions Total project cost Financial statements

A Variable cost
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost
B Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total Fixed cost C. Total cost of production (A+B)
D. Selling price per litre. (In Rupees)
E. Annual sales turnover
F. Net profit before tax (E-C)
G. Breakeven point in %
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 Opportuntiy
Export opportunity Competition from synthetic products SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY
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. 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
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 Kutaja(Holarrhena antidysentrica) Coolant, prevents excessive sweating Krishnajeeraka(Nigella sativa) Chitraka(Plumbago rosea) Excellent antifungal, acts against, antidandruff, also useful in many skin problems Bakuchi(Psoralea corylifolia) 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 SECTION II
PRODUCT APPLICATIONS
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 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) 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, No.50 & 51, SIPCOT Indl. Complex Healthy Herbals
Factory & Office : S. Duraisamypuram, Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist.-628 902 H V Homeopaths (P) Ltd.
Malviya Road, Sitabuldi, Nagpur - 440 012 203 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 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 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Sample of individual Imports
Name of the Importer Brand name Quantity Roshan Commercial DXN Sunshine Enterprises
4.2. Sample of individual exports
Impex Petmosol soap A.T. India exports Chandrika soap Markets Ayurvedi toilet 10000 Nos Sri Ruthra Exports Sri Ruthra Exports Market Medimix soap Kumar Tulsi Soap Market Medimix soap SECTION V

Price of Herbal soap
Rs.11 for herbal soap of weight 75 gms SECTION VI
INDIAN DEMAND

6.1. Production trends for soaps and detergents(synthetic)
in Lakh tonnes

The ratio of powder to bar is 60:40

Growth rate in demand
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 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
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. Five million boxes of Persil Aloe Vera are targeted to be produced by the end of the April SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS

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, 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 Val uvar Kottam Nungambakkam, Chennai-600 034 645, Anna Salai, Chennai-600 006 E.C. Packaging Pvt. Ltd., 14/7, Mile Stone, Mathura Road, Faridabad-93, Haryana SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirements in the Herbal soap formulation
Common name Applications Quantity in mgms Vetivera zianioides Anti prickly heat 3 Berberis aristata Plumbago zeylanica Cyamopsis tetragonolob Kothavarai Emblica officianalis Hair conditioner Phyllanthus amarus Zinziber officianale Azadirachta indica
Availability
The above raw materials are readily available in the country. SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity in number of soap pieces per annum


Project cost

Assessment of project cost Cost of land of 0.25 acre at Rs.5.5 lakh per acre Cost of level ing, laying internal roads/fencing and Building
Factory building at Rs.3200 per sq.m. Non-factory building at Rs.4500 per sq.m. Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Steam boiler and auxil aries Water storage tank, borewel etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Diesel generator Effluent treatment Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance
Promoter's contribution Term loan from financing institutions Total project cost
Financial statements (Rs. in lakhs)


Variable Cost
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost
B
Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost Total cost of production A + B
Selling price per kg. (in Rupees)
Annual sales turnover (Rs.in lakhs)
Net profit before tax (Rs.in lakhs)(E-C))
Breakeven point in %
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 Competition from synthetic product SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY
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. PROFILE ON HERBAL SOAP
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 12
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
HERBAL SHIKKAI
SECTION I
PRODUCT CHARACTERISTICS
Herbal shikkai powder is made from powders of shikkai, soapnut, hibiscus, tulsi, amla It is commonly used in all households today. 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. SECTION III
INDIAN MANUFACTURERS
There are number of producers herbal shikkai in India is mostly in unorganised sector. The Ayur Beauty Care
Bharat Herbal Products
CavinKare Pvt. Limited,
(Formerly Beauty Cosmetics Limited,) 130 (New No.237), Peters Road, 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 SECTION IV
IMPORT/EXPORT LEVEL

Export details
Meera Shikkai 1 CTN Hong Kong Chennai Traders Pvt.Ltd. Powder There is no evidence of import of Shikkai powder SECTION V
PRICE TRENDS
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 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 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

ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony, Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 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 137/1, Kulle Gowda Industrial Estate, Kamakshipalya, Near Bridge, Magadi Road, Bangalore-560 079 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Sample of formulations for Shikkai powder


Methi Shikakai

Lavender Shampoo


Methi Shikakai Shampoo


Process:Crush all the ingredients into powdery form to make dry shampoo.

Sandalwood shampoo

Neem shampoo
Sandalwood powder Neem leaves powder
Availability
The above raw materials are generally available in the retail market readily SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS

Economic Capacity in tonnes per annum
Project Cost in Rs. lakhs
Assessment of project cost
Cost of land of 0.25 acre at Rs.5.5 lakh per acre Cost of level ing,laying internal roads/fencing and compound wal
Building
Factory building at Rs.3200 per sq.m Non-factory building at Rs.4500 per sq.m.
Cost of Plant and Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi excise duty, sales tax, etc. at 12 Packaging and insurance charges(2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and machinery
Technical know-how fees

Miscellaneous fixed assets
Cost Rs. Inlakhs Electrificati on Water storage tank, borewel etc Laboratory equipment Material handling equipment, packaging machinery, weigh balance etc. Diesel generator Effluent treatment
Preliminary &Pre-operative expenses
Preliminary expenses Pre-operative expenses:- Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowing Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment
Provision for contingency

Working capital margin

Total Project Cost

Means of Finance (Rs. in lakhs)
Promoters contribution Term loan from financing institutions Total project cost
Financial statements
A Variable cost Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost Salaries and wages Interest on term laon and working capital loan Administrative expenses Total Fixed cost C. Total cost of production (A+B) D. Sel ing price per kgs( in Rupees) E. Annual sales turnover F. Net profit before tax (E-C) G. Breakeven point in % SECTION X
SWOT ANALYSIS
Strength
Popular product and likely to have steady Weakness
Lack of marketing thrust to expand the Opportuntiy
Competition from synthetic product 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 PROFILE ON HERBAL SHIKKAI
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 10
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
JOJOBA OIL
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION - I
PRODUCT CHARACTERISTICS AND SPECIFICATION

1.1. General details
Botanical name Simmondsia chinensis 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. Pronounced ho-ho'-bah Native of the Sonaran desert of Mexico, California and Arizona. 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 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. 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,

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.
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 pH requirement of the soil ranges from 5 to 8 indicating its tolerance to acidity as well as alkalinity. Can tolerate extreme temperature ranging from ♦ 500 mm of rainfall is sufficient to support productive stands of Jojoba Responds more to poor quality water like brackish water. This desert shrub is hardy and can withstand dry conditions. Grows well in the areas of low rainfall and low soil Area of cultivation Thrives well on mountain tops down to sea level and Indian subtropic coastal belt is better suited for 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

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. 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 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
Advantages
Unsaturated liquid wax Has high viscosity index Good miscibility in mineral oil base stocks Good compatibility with other additives
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 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 UNITS/SPECIFICATION Specific Gravity Refractive Index, Iodine Value, g/100g Saponification Value, 88-96 Triglyceride Content, 1 max. Color, Gardner units Color, Lovibond units 1 Red, 3 5 Red, 75 AOCS Cc 13e-92 Yellow max Yellow max. Contamination CFU zero allowed CTFA M-2 Composition, Area % Gas Chromatography (optional - typical property only)JEC02 SECTION – II
PRODUCT APPLICATIONS
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 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) 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 Other applications SECTION III
INDIAN MANUFACTURERS

3.1. General details


The cultivation of Jojoba and production of Jojoba oil have commenced in India only in

Profile of Indian producer

LOTUS HERBALS LTD
B-9, Sector 58, Noida 201301
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.
Important product range of the company

LOT BRIGHT-O: Jojoba moisturising lotion Key Ingredients :
(for oily skin). JOJOBA OIL: Nourishing, helps prevent Natural Extracts of - CUCUMBER : Softening, toning. DUDAL: Astringent, helps balance oil Actions: Helps normalise sebaceous secretions. Helps maintain moisture level of skin. Leaves skin soft and supple. LOT BRIGHT-D: Cocoa Butter Moisturising Key Ingredients : Lotion (for normal to dry skin). COCOA BUTTER : Nourishing, improves skin 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). SECTION– IV
IMPORT EXPORT LEVEL

4.1. Imports of Jojoba oil and its fractions

Countrywise Imports

Period April 2001 to March 2002


4.2. Exports of Jojoba Seed

Countrywise exports


Period April 2001 to March 2002

SECTION - V
PRICE TRENDS

Jojoba oil - Global price trends
Jojoba oil is riding high from strong demand coupled with tight supplies caused by poor 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 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 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
AJORP Jojoba oil Analysis Report :
Observed Value
Specific Gravity 250 / 250 Kinematics Viscosity cSt Av. molecular weight Acid value mg / g KOHASTM D - 974 –975 Iodine value g / 100g Peroxide Value meq / kg ASTM D - 1832 – 99 Saponification value mg / KOHASTM D - 94 –93 Unsaponifiable matter(%) Bacteria - total plate count Standard Microbiological test Approximate boiling point oC ASTM D - 5307 Technology source

Association of Rajasthan Jojoba Plantation and Research Project,(AJORP)

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.
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
Production level
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
Adam Fabriwerk Pvt. Ltd. 203, Rajguru Apartments New Nagardas Road Andher (E), Mumbai-400 069 Agarwal Associates, 255, Kalpana Society Waghodia Road, C1, B/423 GIDC IV Phase, Vithal Udyognagar-388 121 Dist. Anand, Gujarat Bhuvaneswari & Co. Dynamic Furnaces Pvt. Ltd. 65, Universal Industrial Estate I.B. Patel Road, Goregaon (E), SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirement

One kg of Jojoba oil
Jojoba seeds 2.5 kg

Raw material availability


Association of Rajasthan Jojoba Plantation and Research Project,(AJORP)
Pant Krishi Bhawan, Jaipur -302 005(Rajasthan) 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 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
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 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. Estimated actual demand 150 tonnes per annum 800 tonnes per annum Estimated to be 1500 to 1600 tonnes per
Worldwide Jojoba Production
Worldwide Jojoba Cultivation by Country - As of 1 November, 2000
Worldwide Jojoba Seed Production by Country - (Metric Tonnes)

Global market for Jojoba
The product is often in short supply in the global market due to weather failures and increasing demand. Primary area of application –

Cosmetics
Major producing countries
USA: Largest producers in the world
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 Arizona 85251-3900 1-480-545-7000 x115 SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 3 tonnes per annum
Assessment of project cost
Cost of land of 0.5 acre at Rs.5.5 lakh per acre Cost of level ing, laying internal roads/fencing and Building
Factory building of area 100 sq.m. at Rs.3200/sq.m. Non-factory building of area 30 sq.m.at Rs.4500/sq.m. Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Steam boiler and auxil aries Water storage tank, borewel etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 0.5 weigh balance, etc. Diesel generator Effluent treatment Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E-C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Suitable conditions for growth of Jojoba Absence of large scale cultivation in Jojoba Important applications and growing Inadequate technology development efforts for downstream products. SECTION - XV
FACTORS INFLUENCNG THE POSITION FOR A NEW INDUSTRY AND
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 NANNARI HERBAL SYRUP
SECTION I
PRODUCT CHARACTERISTICS
Hemidesmus indicus Sanskrit/Indian name Sveta sariva, Ananda mul, Nannari 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 SECTION II
PRODUCT APPLICATIONS
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. 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 7, Amruta Nagar, Manik Baug, Sinhgad Road, Pune - 411 051 Fadel International Trading
12/1019, Panayappilly 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 Himalayan Herbals Gramudyog Samiti
814, Sec-16, Panchkula - 160 019 Ruby Food Products
AS-2 Industrial Estate 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. SECTION IV
IMPORT/EXPORT LEVEL


Herbal syrup
Value in Rs. Country Star International 38 box Port Kelang May 2002 There is no evidence of import of Nannari syrup SECTION V
Price of Nannari syrup Rs.37.50 paise for 750 ml 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
Bengal Beverages Pvt. Ltd Coca-Cola India Ltd. J.D. Corporation, Gujarat Parle (Exports) Pvt.Ltd Pioma Industries Gujarat Pure Drinks (New Delhi) Ltd. Sri Sarvaraya Sugars Ltd., Hyderabad- Sri Vasavi Soft Dri7nks Pvt. Ltd.Karnataka
Powdered Soft Drink Concentrate
4 to 5% per annum Major Brands
Sunfill (Cococola)
Details on Rasna (Pioma's product)


Claimed Market Share
60% in value terms 85% in volume terms Percapita Consumption 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 SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS
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) 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 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 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 Extraction equipment Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Bottling facilities Shivsu Watek Private Ltd. No.14, Spurtank Road SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirements

Basis: 75000 kg per annum of Nannari syrup
Availability
The above raw materials are readily available in the market SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS
Economic Capacity in Tonnes per annum Project Cost in Rs. lakhs
Assessment of project cost
1.1. Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.2. Cost of level ing,laying internal roads/fencing and compound
Building
2.1. Factory building at Rs.3200 per sq.m 2.2. Non-factory building at Rs.4500 per sq.m.
Cost of Plant and Machinery
3.1. Cost of basic plant and machinery 3.2. Instrumentation and control 3.3. Pipelines and valves 3.4. Structurals for erection 3.5. Octroi excise duty, sales tax, etc. at 12 3.6. Packaging and insurance charges(2%) 3.7. Transportation charges (2%) 3.8. Machinery stores and spares (2%) 3.9. Foundation charges (2%) 3.10. Instal ation charges (2%) Total cost of plant and machinery
Technical know-how fees

Miscellaneous fixed assets
Cost Rs. Inlakhs 5.1. Electrificati on 5.2. Steam boiler and auxil aries 5.3. Water storage tank, borewel etc 5.4. Fuel storage tank 5.5. Laboratory equipment 5.6. Office machinery & equipment 5.7. Material handling equipment, packaging machinery, weigh 5.8. Diesel generator 5.9. Effluent treatment
Preliminary &Pre-operative expenses:
6.1. Preliminary expenses 6.2. Pre-operative expenses:- 6.2.1. Establishment 6.2.2. Rent rates and taxes 6.2.3. Travel ing expenses 6.2.4. Interest and commitment charges on borrowing 6.2.5. Insurance during construction period 6.2.6. Other preoperative expenses and deposits 6.2.7. Interest on deferred payment Provision for contingency Working capital margin Total Project Cost
Means of finance (Rs. in lakhs)
Promoters contribution Term loan from financing institutions Total project cost
Financial statements
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost Salaries and wages Interest on term laon and working capital loan Administrative expenses Total Fixed cost Total cost of production (A+B) Sel ing price per litre. (In Rupees) Annual sales turnover Net profit before tax (E-C) Breakeven point in % SECTION X
SWOT ANALYSIS
Growing demand for the product since it is considered as a health tonic Lack of efforts for certification of the To boost demand by innovative marketing Substitution from synthetic product SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
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. PROFILE ON HERBAL NANNARI SYRUP
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 12
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
NATURAL VANILLA
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION

Synthetic Vanillin
Colourless crystals Sweet, balsamic, powdery, vanilla-like Chemical formula
Specification
Specifications of Vanillin produced by Rhone Poulenc, France. Colour of Ethanolic solution 81.0 to 83.0 deg.C Heavy metals (as lead) 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. 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 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Imports


Period April 2001 to March 2002


Countrywise Imports Vanilla Powder


Sample of individual imports

Name of the
Weikfield Products 24.03.2002 to Mumbai Ltd.,(Vanilla extract) Dragoco India Ltd., (Vanilla fragrances Ltd.,(Vanilla cream)
4.2. Exports

Period April 2001 to March 2002


Countrywise Exports Vanila Bean


Countrywise Exports Vanilla Powder

Countrywise Exports Vanilla Oleoresin

Sample of individual exports

Name of the
01.07.2002 to Mumbai Fragrance (Vanila Bush Boake Allen 100 kgs India Ltd.,(food optifast vanilla) SECTION V

Basic price of natural vanilla
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, SECTION VI
INDIAN DEMAND

Demand for Synthetic Vanillin
250 tonnes per annum Indian consumption pattern of vanillin
Indian Demand Level for Natural vanilla
Around 1000 tonnes of cured beans per annum The actual demand could be more, if the product would be readily available in the Estimated production of cured vanilla 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. 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. SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS

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 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 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 There are different methods of curing but they all consists of more or less four stages viz, 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
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 In the private sector, tissue cultured vanilla plantlets are available with IAHS (Bangalore) SPIC (Coimbatore) 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 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,
Plant and machinery and suppliers
Kulkarni's Hafi Elektra Pvt. Ltd Post Box No.132, 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 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

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 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 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 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. Flowering starts in the third year of planting Peak flowering occurs during 7 to 8th year Yield per hectare Third year (beginning) Fifth year to the tenth year 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. Can be raised as an intercrop with coffee, coconut, arecanut, pepper. SECTION IX
GLOBAL SCENARIO
World demand for Synthetic vanillin 3500 tonnes per annum 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 Global growth rate 4 to 5% per annum The Bourbon Vanilla from Madagascar commands a premium price
Major Producing Countries
Indonesia (cultivated in Java and Bali Islands) Mexico, (grown in Vanuatu ) Uganda and Tonga Major world suppliers 70% of world supply is from Madagascar and Indonesia Importers of Natural vanilla 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 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. 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 This enzymatic production has in general, environmental advantages compared to the traditional synthetic vanillin production. Venui Vanilla Co Ltd Vanilla Beans and Powder, Extract (Essence) and Paste Grown and Processed in Vanuatu
Retail Supplies
Wholesale Sales
Within Australia KAS Distribution E-mail : kasorganics@optusnet.com.au Phone 03 9431 3496 Fax 03 9444 0496 Venui Vanilla Co. E-mail : anilla@vanuatu.com.vu SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 30 tonnes per annum
Assessment of project cost
S.No. Description Cost of land of 125 acre at Rs.45000 lakh per acre Building
Building of area 75 sq.m. at Rs.3200/sq.m. Cost of Plant & Machinery
Miscel aneous machinery Packaging machinery Total cost of plant and Machinery Technical know-how fees
Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E-C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS

Strength

Growing demand for the product Weakness
Inadequate plant materials Opportunity
Substitution possibilities for Synthetic vanilla Lack of standardisation SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

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 PERIWINKLE
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION

Pronunciation: cath-ar-AN-thus ROW-zee-us

Common Indian Names
Billaganneru (Telugu) Nityakalyani(Tamil) Periwinkle (English)
Botanical description
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 It prefers rich, well drained, moist soils in a protected, sunny position and is drought and
It is cultivated as an ornamental plant almost throughout the tropical and subtropical
It is abudantly naturalized in many regions, particularly in arid coastal locations. SECTION II
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 Antihyperglycemic Antihypertensive Anti-inflamatory Antispermatogenic Insect feeding deterent Insect sterility induction Smooth muscle relaxant Uterine relaxation effect Uterine Stimulant effect 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
Menstrual regulator Diabetes, Hypertension, Cancer Diabetes,Combat primary inertia Antigalactagogue Diabetes, Cancer, Hodgkin's disease, Diabetes, Rhehumatism, Hypotensive and Menstrual regulator Cancer, Leishmaniasis Emmenagogue, Diabetes, Amenorrhea, Menorrhagia, Diabetes Antigalactagogue Venereal Disease Diabetes, High Blood Pressure 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, Factory: Lamieda Bhai Shastri Marg, Khandelwal Laboratories Pvt Ltd Plot No.B-1/90,Wagle Indl Estate, 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 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Imports

4.2. Exports


Countrywise Export of Vinca Rosea Alkaloidsvincritine, Vinbla Sline, Vincisterine


Period April 2001 to March 2002
SECTION V
Basic price of Dry plant material Taxes and duties Extra as applicable 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 Hodgkin's Disease Acute Lymphocytic Leukemia Soft tissue sarcomas Multiple Myeloma 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 Although these three compounds are very similar in structure and have the same basic action, they have distinctly different effects on the body. 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 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 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
Propagation
Seeds required per hectare Seed germination period About 10 days time Planting material( 607cm) Within two months 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
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 Under rainfed conditions(All dry basis) per hectare Under irrigated conditions (per hectare)
Seed Companies (Breeding, Production and Sales)
Unicorn Agrotech Ltd. Environmental Seed Producers Sakata Seed America Stokes Seeds Ltd. 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), 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
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 SECTION IX
GLOBAL SCENARIO

International players including the following
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 SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 30 tonnes per annum of Periwinkle dried leaves
Assessment of project cost
S.No. Description Cost of land of 50 acre at Rs.25000 lakh per acre Building
Building of area 50 sq.m. at Rs.3200/sq.m. Cost of Plant & Machinery
Miscel aneous machinery Packaging machinery Total cost of plant and Machinery Technical know-how fees
Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price of Dried leaves per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E+C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Ideal tropical conditions for plant growth Lack of production of downstream product in large way in India Lack of standardisation SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
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 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. PLANTATION AND EXTRACTION OF
SAFED MUSALI
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION
Family: Liliaceae
Common Names
♦ Safed musli (Hindi ) ♦ Velwadi (Kannada ) ♦ Milaytali (Telugu ) ♦ Tanirvitang (Tamil ) Prevalent Species
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 C. Attenuatum Baker Western Ghats, southwards to Comibatore, West 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. SECTION II
PRODUCT APPLICATIONS
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 SECTION III
INDIAN MANUFACTURERS
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, Raj Nagar Katol Road, Nagpur - 440 013 Arya Vaidya Sala SECTION IV
IMPORT/EXPORT LEVEL

Import/export
SECTION V

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. 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 Many farmers have started its commercial cultivation in India but it is not enough to fulfill the There is a shortage of planting material This trend is expected to go upto next 5 years
Sample of formulations for rejuventive benefits
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 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 (About 4 to 7 days) Fleshy roots separated from the Slight pressure exerted by thumb and finger on the skin of root to separate the milky white root Cleaned and Dried Sprouting percentage and storability are also increased when separated with a major portion of stem disc. 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, 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 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
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 i in Kerala, Eastern Himalaya, Bihar and West Bengal. C. Hreviscapum Sikkim, Himalaya, Belgaum and South Peninsula.
Chem analysis

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. By tuberous roots and (rarely by seeds), 90 to 110 days during onset of monsoon. Crop duration 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. Fresh root inflorescence (detopping) improves the bulking of fleshy roots and increases root yield 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 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 Good hybrids of tubers are planted 1 m apart. Each plant can yield between 2 to more than 100 Leaves wilt much before the harvest time, which is after 180 days. Tuberous roots: 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 SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity 30 tonnes per annum
Assessment of project cost
S.No. Description Cost of land of 60 acre at Rs.45000 lakh per acre Building
Building of area 100 sq.m. at Rs.3200/sq.m. Cost of Plant & Machinery
Miscel aneous machinery Packaging machinery Total cost of plant and Machinery Technical know-how fees
Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E-C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Adequate availability of plantation Lack of product standardisation Considered to be an endangered species SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
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 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. CALCIUM SENNOSIDE
CONTENTS
PRODUCT CHARACTERISTICS AND SPECIFICATION
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
PRICE TRENDS
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
GLOBAL SCENARIO
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
SECITON I
PRODUCT CHARACTERISTICS AND SPECIFICATION
General details
Yellowish brown to Brown powder. The major constituent of the sennoside is emodin (1,3,8 trihydroxy-6-methyl-anthroquinone). Soluble in water and in dilute alcohol but insoluble in absolute alcohol. Sennoside content free sennosides 80% Store in a cool and dry area in sealed containers
Process conditions for Sennosides
Part of plant used Methanol/water 60% (v/v) Ratio of botanical to native extract Residues of pesticides, radioactivity and The raw material to be extracted should meet the limits of controlled substances. Specification of Senna Leaves Powdered Extract (>5% Sennosides)
Appearance /Odour Brownish to brown extract with characteristic odour Not less than 95% thru 80 mesh Complies to standard Corresponding to DAB 10 to 2. Suppl. 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- SECTION II
PRODUCT APPLICATIONS

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 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) SECTION III
INDIAN MANUFACTURERS
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 SECTION IV
IMPORT/EXPORT LEVEL

4.1. Imports


4.2. Present export level

150 tonnes per annum
PERIOD APRIL 2001 TO MARCH 2002






SECTION V
PRICE DETAILS

Basic price
Rs. 750/- per kg. Rs. 1050/- per kg. Taxes and duties Extra as applicable SECTION VI
INDIAN DEMAND

Indian formulators of Senna extract include the following

the Name of the Use Total sennosides (calcium salts) Calculated as Sennocide B 11.5 mg Sennosides A&B (as calcium salts) 12 m, dioctyl sod. sulphosuccinate 50mg. (with D.O.S.) Purified senna ext. (as calcium salt) 18 mg dioctyl sodium Sulphosuccinate 50 mg Purified Senna Extract (as calcium salt) 12 mg) Standarised senna ext. (sennosides A&B as Calcium Karaya gum 3.1 g, sennosides A&B (as calcium salts), 15 mg per 5g, granules. Growth rate and Assessment of demand

Growth rate
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.
Assessment of Indian demand
Production level 155 tonnes per annum Domestic Indian consumption level - 5 tonnes per annum 150 tonnes per annum Factors influencing the growth in demand Traditional drug Annual growth rate in Annual growth rate in percentage percentage - 5%. SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS

Process conditions

Part of plant used methanol/water 60% (v/v) Ratio of botanical to native extract Residues of pesticides, radioactivity and 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

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 Fluid Control Equipments 77/574, Mount Road, Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Valluvar Kottam 645, Anna Salai, 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 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirements

One tonne of Calcium sennoside
Senna leaves
Calcium chloride
Installed power

Raw material availability


Senna plantations are extensively cultivated in Tamil Nadu and are readily available
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 SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic capacity
Assessment of project cost
Cost of land of one acre at Rs.5.5 lakh per acre Cost of level ing, laying internal roads/fencing and Building
Factory building of area 210 sq.m. at Rs.3200/sq.m. Non-factory building of area 100 sq.m.at Rs.4500/sq.m. 4.5 Cost of Plant & Machinery
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Instal ation charges (2%) Total cost of plant and Machinery Technical know-how fees
Miscellaneous fixed assets
Steam boiler and auxil aries Water storage tank, borewel etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 0.6 weigh balance, etc. Diesel generator Effluent treatment Preliminary & Pre-operative expenses:
Preliminary expenses Pre-operative expenses:-
Rent rates and taxes Travel ing expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Provision for contingency
Working capital margin
Total project cost
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions Total project cost Financial statements

Cost of production
Variable cost
Rs. in lakhs
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A) Fixed cost
Salaries and wages Interest on term loan and working capital loan Administrative expenses Total fixed cost (B) Total cost of production (A+B)
Selling price per kg. (in Rupees)
Annual sales turnover
Net profit before tax (E - C)
Breakeven point in %
SECTION XI
SWOT ANALYSIS
Strength
Ready availability of raw material Weakness
Low indigenous demand Opportunity
Substitution possibility SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
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 PROFILE ON HERBAL VALLARAI TONIC
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 11
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS
Centella asiatica Hydrocotyle asiatica Hindi - Brahmamanduki - Gotu Kola Indian Pennywort Malayalam - Muttil 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) 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 Indications: Anxiety, minor memory loss, mental fatigue, eczema Formualtions and dosage: 10 to 15 ml. 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 Extracts of the plant are being used in the commercial production of face creams and anti 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. 5 to 10 candies per day 10s in refill packing, 200s in refill/pet jar packging SECTION III
INDIAN MANUFACTURERS
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. SECTION IV
IMPORT/EXPORT LEVEL

Sample of individual exports
PTC Herbals and Vallarai PTC Herbals and Vallarai There is no evidence of import of Vallarai herbal products SECTION V
PRICE TRENDS
Rs.130 per litre 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 The product finds placement in all departmental stores, self service counters and ayurvedic pharmacy shops. SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS

The plant of Vallarai is first rinsed in water and cleaned thoroughly to remove adhering
Take 2.5 kilo grams of the cleaned portion of the entire plant and shred it in a shredder to 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 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. 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
Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Steam jacketed kettle Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Bottle washing machine Shivsu Watek Private Ltd. No.14, Spurtank Road Chetpet, Chennai-600 031 Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Baby boiler and accessories Heatcon Projects (I) Pvt. Ltd. A-5, Bharat Compound, W.E. Highway, Kashimira, Mira Road (E), Thane-401 104 SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
60 KL per annum of Vallarai tonic
Availability
The raw material are readily available in the market SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Economic Capacity in Kilo litres per annum Project Cost in Rs. lakhs
Assessment of project cost
1.1. Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.2. Cost of level ing,laying internal roads/fencing and compound
Building
2.1. Factory building at Rs.3200 per sq.m 2.2. Non-factory building at Rs.4500 per sq.m.
Cost of Plant and Machinery
3.1. Cost of basic plant and machinery 3.2. Instrumentation and control 3.3. Pipelines and valves 3.4. Structurals for erection 3.5. Octroi excise duty, sales tax, etc. at 12 3.6. Packaging and insurance charges(2%) 3.7. Transportation charges (2%) 3.8. Machinery stores and spares (2%) 3.9. Foundation charges (2%) 3.10. Instal ation charges (2%) Total cost of plant and machinery
Technical know-how fees

Miscellaneous fixed assets
Cost Rs. Inlakhs 5.1. Electrification 5.2. Steam boiler and auxil aries 5.3. Water storage tank, borewel etc 5.4. Fuel storage tank 5.5. Laboratory equipment 5.6. Office machinery & equipment 5.7. Material handling equipment, packaging machinery, weigh 5.8. Diesel generator 5.9. Effluent treatment
Preliminary &Pre-operative expenses:
6.1. Preliminary expenses 6.2. Pre-operative expenses:- 6.2.1. Establishment 6.2.2. Rent rates and taxes 6.2.3. Travel ing expenses 6.2.4. Interest and commitment charges on borrowing 6.2.5. Insurance during construction period 6.2.6. Other preoperative expenses and deposits 6.2.7. Interest on deferred payment Provision for contingency Working capital margin Total Project Cost
Means of finance (Rs. in lakhs)
Promoters contribution Term loan from financing institutions Total project cost
Financial statements
Raw material and utilities Spares and maintenance Sel ing expenses Total variable cost Salaries and wages Interest on term laon and working capital loan Administrative expenses Total Fixed cost Total cost of production (A+B) Sel ing price per litre. (In Rupees) Annual sales turnover Net profit before tax (E-C) Breakeven point in % 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 Competition from synthetic product 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 PROFILE ON HERBAL VALLARAI TONIC
CONTENTS
PRODUCT CHARACTERISTICS
PRODUCT APPLICATIONS
INDIAN MANUFACTURERS
IMPORT/EXPORT LEVEL
INDIAN DEMAND
BROAD OUTLINE OF MANUFACTURING PROCESS
VIII RAW MATERIAL REQUIREMENTS,
UTILITY AND AVAILABILITY
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS 11
SWOT ANALYSIS
FACTORS INFLUENCING THE POSITION
FOR A NEW INDUSTRYAND RECOMMENDATIONS

Source: http://guntur.nic.in/statistics/herbal.pdf

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