1

AYURVEDIC MEDICINES

CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

Ayurvedic medicine are directly based upon natural products viz plants., animal extracts and minerals in various combinations. This is an age old system of medicine and has two major groups. One in which medicine are based upon plants called Kasth ausadhis and the other one in which drugs are mainly derived from metals and minerals. These plants and minerals are abundantly available in various parts of India. Product Ayurvedic medicines have 21 varieties of formulations of single drugs extract from plants, animal source and minerals. Out of the several medicines from the categories of Asavarishta, Rasyans, Churna, Aveleha, Bhasma etc. few selected are as follows. * Ashokarishta * Lakhibilas ras * Mritasanjivani sura * Sitopaladi churna * Bhaskar lavan * Chyavanprash aveleha * Gandhakadi malham

SECTION II

3

PRODUCT APPLICATIONS

Ayurvedic medicine treats people rather than diseases, causes rather than symptoms, individuals rather than stereotypes. Ayurvedic medicine uses medication and advice to support the patient’s own vital energy and self healing potential. It prescribes essentially non toxic herbal treatment derived from the whole plant and not from isolated or synthetic ingredients.

SECTION III

4

INDIAN MANUFACTURERS

There are large number of units involved the production of Ayurvedic medicine in small scale and unorganised sector as well as medium scale sector. The important producers include the following: * Dabur India Ltd. 3, Factory Road, Near Safdarjung Hospital, New Delhi-110 029 Dabur Pharmaceuticals Ltd. Kaushambi, 22, Site IV, Sahibabad, Ghaziabad-201 010. * The Himalaya Drug Co. (HDC) 22, Mahakali Road Andheri, Mumbai-400 093 * 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 2. Barrackpore Trunk Road,Panihati, 24-Parganas, West Bengal 3. 502,Veer Savarkar Marg,Bombay-400 025 * Bajaj and Company, (India) F-966 Road No.14 V K Area, Jaipur - 302 013

5

SECTION IV

IMPORT/EXPORT TRENDS 4.1. Imports of Ayurvedic and Unnai Medicines Period April 2001 to March 2002 Country Quantity in Kgs

Austria 1842 China P Rp 2040 Denmark 475 France 6226 German F REP 23704 Hong Kong 40 Italy 100 Japan 2100 Korea RP 1010 Malaysia 13690 Mayanmar 2 Nepal 2821885 Netherland 540 Saudi Arab 2 Singapore 1177 Spain 581 Switzerland 5531 U Arab Emts 400 UK 3027 USA 6201

Total 2890573

6

Exports of Ayurvedic and Unani Medicines Period April 2001 to March 2002 Country Quantity in Kgs Afghanistan 160 Algeria 260 Angola 920 Argentina 780 Australia 17856 Austria 850 Baharain IS 8784 Bangladesh 8176 Belgium 30522 Benin 10041 Bolivia 30 Botswana 150 Brazil 44571 Bulgaria 50 Burundi 500 Cambodia 5652 Cameroon 558 Canada 4270 Cape Verde IS 60 Chile 786 Chinese Taipei 4529 China P RP 15386 Colombia 11450 Congo P REP 19074 Croatia 100 Cuba 5 Cyprus 6390 Czech Republic 10261 Denmark 310 Dominica 450 Egypt A RP 4771 Ethiopia 3058 Finland 6000 Fiji IS 7182 France 13528 Georgia 6000 German F REP 91302 Ghana 4372

7

Greece 90 Guatemala 140 Guinea 943 Guyana 980 Haiti 22500 Hong Kong 13477 Hungary 2023 Iceland 375 Indonesia 905 Iran 36650 Ireland 2 Israel 5740 Italy 42846 Japan 34502 Jordan 15540 Kazakhstan 1330 Kenya 31206 Korea DP RP 350 Korea RP 10395 Kuwait 2883 Latvia 915 Liberia 910 Maceoernia 125 Malaysia 103600 Maldives 7021 Malta 600 Mauritious 4940 Mayanmar 6357 Mexico 3600 Moldvia 1550 Mozambique 300 Morocco 100 Nepal 581623 Netherland 24576 New Zealand 3755 Niger 4000 Nigeria 62989 Oman 23516 Pakistan 6722 Panama Republic 10 Papua N GNA 280 Peru 20450 Philippines 6667 Poland 1900 Qatar 107528

8

Romania 1290 Russia 235649 Rwanda 800 Saudi Arab 19026 Seychelles 323 Singapore 70253 South Africa 7620 Spain 11341 Sri Lanka 108904 Sudan 12026 Switzerland 67211 Sweden 267 Syria 600 Tanzania REP 4507 Thailand 13449 Trinidad 402 Turkey 320 Uganda 27939 U Arab Emts 223143 UK 65233 Ukraine 29172 USA 166411 Uruguay 670 Uzbekistan 2000 Vietnam SOC REP 21908 Yemen Republc 1535 Zaire REP 11350 Zambia 3613 Zimbabwe 10580 Unspecified 4510

Total 2450405

9

SECTION V

PRICE TRENDS

Present price level for Ayurvedic (Rs. per kg) Arishtam/Asavar in litre 63 Churnam in kg 250 Oil and ghee preparation in kg 110 Lehiams in kg 125 Tablets per 25 numbers 25 Taxes and duties : Extra as applicable

10

SECTION VI

INDIAN DEMAND

Ayurveda originated much before allopathy and the latter certainly has its origin in the former. Eeven today more than 40% of drugs in Allopathy have their origin from plants. Keeping this significant contribution in mind there is a need to understand the original system of medicine and stop calling them as "“alternative systems"” Today the world'’ pharmaceutical industry is plagued by increasing cost of new drugs development. This high cost coupled with low success rate and short life span of the drugs led allopathy to take leads from Ayurveda. Due to the advantage of cheaper prices and negligible side effects. Ayurvedic medicines are preferred over allopathic medicines. With the general trend towards natural and herbal types of medicines and tonics, the demand for various ayurvedic formulations is increasing at very fast rate. Due to easy availability of raw materials locally, Ayurvedic medicines are becoming more and more popular among formulators as well as consumers. In recent times, the demand for Ayurvedic medicine preparations are steadily going up in the country in view of the favourable cost factors as well as the faith of the common men in the ayurvedic system of treatment. 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 Growth rate in demand 7 to 8% per annum

11

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Ayurvedic medicines are available in the form of powder, tablets, pills, liquid and semi-solid which are classified into following different categories. 1. Arishta & Asava 2. Rasa Rasayan 3. Lauha 4. Vati 5. Churna 6. Avaleha 7. Ghrita 8. Parpati 9. Taila 10. Goggulu Methods of Preparation Different products are produced by different methods described in brief as under: Arishta & Asava For Ashokarishta and Mritasanjivani sura type and fermented to generate alcohol extract of active ingredients. The fermented and extracted products are distilled and bottled. Rasayans For Lakhi Bilas Ras the minerals life abraka (mica), swarna (gold), rajat (silver), tamra (copper), gandhak (sulphur) etc. are heated in earthen pot to convert into form of bhasma and either powdered in disintegrated or converted in the form of pill, in tablet making machine. Churna For Sitopaladi Churna or Lavan bhasker churna, the herbs and active ingredient are cleaned, dried and powdered by micropulveriser to fine mesh size. Aveleh For chyavanprash type products are made by decoction of herbs, like amla (Indian gooseberry) are mixed and boiled with jaggery, sugar, or sugar candy and other herbal extracts. After cooling, honey is added resulting in semisolid product.

12

Important plant and machinery

M.S. vat, 1500 kg capacity M.S. Vat, 750 kg capacity Wooden vessels with lid for fermentation 500 litre capacity Earthern pots with lid for bhasma a capacity 2 kgs Disintegrator with 7.5 H.P. size.22” with sieve of different mesh sizes Micropulveriser with 5 HP and 2.5 HP motor Tablet making machine Bottle filling machine Bottle sealing machine M.S. pestle and motor S.S. mixing vessel with stirrer 200 litre capacity Distilling unit 500 litre cap. Electrically heated fitted with pipeline made of stainless steel AISI316:12 KW Water treatment plant 100 litres capacity Filtering unit fitted with paper and cloth Earthen vet Weighing scale 100 kg capacity Weighing scale 10 kg capacity Cane bamboo basket big size with covers Glass jars with stopper 25 litres capacity Glass jars with lid 2 kg capacity S.S. vessel covered caps. 100 litres Air dryer with 12 trays with 6.5 HP motor Bottle washing machine Bottle dryer Aluminium container for storage of powder etc. Testing equipments

13

Major plant and machinery suppliers

Name of the equipment

Name of the supplier

Mixer ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Drycon Systems F-14, IInd Main Road, Anna Nagar East Chennai-600 102

Blender ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Febchem Engineering Works Plot No.A/2, Sector-A, Sanwer Road, Industrial Area Indore-452 003

Centrifuge

Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad-500 037 Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II Salem-636 004

14

Dryers

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

Pulveriser

ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai-400 013

15

SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY

Various Ayurvedic medicines for ailments such as the following. Fever Respiratory ailments Digestive system Skin problems Genital system-female Genital system-male Urinary system Eyes Ear, nose and throat Circulatory system Nervous system Accidents Bites and stings General Sample of a few of the medicinal compositions and along with the applications such as follows. Name of the medicine Digestive system Abrus precatorius Worms liquorice Kunni(M)Konnai(T) Reti (H) Gurugina(Tel) Acacia Arabica Diarrhoea, dysentery(tender) Babul leaves;bark) Karuvelam(M&T) Spongy gums(bk) Barbaramu(Tel) Prolapse anni (bk) Respiratory system: 1. Dry cough (leaf-juice, root) 2. Cough (tender leaves) sore throat (tender leaves) 3. Bronchitis and asthma (juice) Pneumonia

16

Genital (Male and Female):- Contraceptive,Aphrodisiac Hastens labour pains Urinary system:- Dry cough - Cough Cystitis Eyes:- Dry cough - Cough Sore eyes (leaves poultice) T.B. diphtheria Asthma, cough bronchitis (leaf juiceor decoction) Conjunctivitis Several of the herbs are available in Indian plantations

Raw materials The raw materials required for various formulations are different parts of plant viz. Root, stem, leaf, flowers and fruit etc. animal origin items, minerals, sugar, honey etc. in different quantities. Utilities The unit will require a total connected load of 20 kva and a maximum demand of 15 kva. The requirement of water is about 3000 kl per annum.

17

SECTION IX

GLOBAL SCENARIO

According to estimate made by the World Health Organisation (WHO), the use of herbal medicines exceeds that of modern drugs by two or three times. This is the case despite the existence, since the beginning of 20th century, of a world wide and influential pharmaceutical industry. Ayurveda, India’s ancient science of natural and herbal holistic healing, which was developed thousands of years ago by the spiritually elite is now finally manifesting in the western world. Ayurveda is the fastest growing system of alternative medicine and contributes about $60 billion of the annual estimated $120 billion global herbal market. The global market is estimated to grow to Rs.2,50,000 crore by 2010 and India’s share is a partly 5%.

18

SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS Suggested capacity : a. Arishtam/Asavar in litre 150 KL b. Churnam in kg 3000 kg c. Oil and ghee preparation in kg 15000 kg d. Lehiams in kg 3500 kg e. Tablets in lakh numbers 150 Project cost Rs.95 lakhs

Assessment of project cost 1. Land S.No. Description Cost

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

5.5

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

0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 170 sq.m. at Rs.3200/sq.m.

5.44

2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m.

2.25

Subtotal 7.69

19

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

Rs.in lakhs 3.1 Cost of basic plant and machinery 32 3.2 Instrumentation and control 2.4 3.3 Pipelines and valves 3.2 3.4 Structurals for erection 1.6 Subtotal 39.2 3.5 Octroi, excise duty, sales tax, etc.at 12%� 4.71 3.6 Packaging and insurance charges (2%) 0.78 3.7 Transportation charges (2%) 0.78 3.8 Machinery stores and spares (2%) 0.78 3.9 Foundation charges (2%) 0.78 3.10 Installation charges (2%) 0.78 Total cost of plant and Machinery 47.81 4. Technical know-how fees Rs.3.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1. Electrification 3.50 5.2. Steam boiler and auxillaries 3.50 5.3. Water storage tank, borewell etc. 0.70 5.4. Fuel storage tank 0.70 5.5. Laboratory equipment 0.70 5.6. Office machinery & equipment 1.30 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 1.30

5.8. Diesel generator 4.5 5.9. Effluent treatment 1.80 Total 18

20

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

Rs.in lakhs 6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 0 6.2.1 Establishment 1.0 6.2.2 Rent rates and taxes 1.0 6.2.3 Travelling expenses 1.0 6.2.4 Interest and commitment charges on borrowings 7.0 6.2.5 Insurance during construction period 1.80 6.2.6 Other preoperative expenses and deposits 0 6.2.7 Interest on deferred payment 0 Total 12.6 7. Provision for contingency Rs.5.5 lakhs 8. Working capital margin Rs. 11.92 lakhs 9. Total project cost Rs.113.32 lakhs Say Rs.114 lakhs 10. Means of Finance Promoter's contribution Rs.45.6 lakhs Term loan from financing institutions Rs.68.4 lakhs Total project cost Rs.114 lakhs

21

11. Financial statements (Rs. in lakhs) A Variable Cost

Rs.in lakhs

Raw material and utilities 92 Spares and maintenance 3 Selling expenses 8 Total variable cost 103 B Fixed cost

Salaries and wages 9 Interest on term loan and working capital loan 17.95 Depreciation 6.59 Administrative expenses 4.8 Total fixed cost 38.34 C Total cost of production (A+B)

141.34

D Selling price per kg. (in Rupees)

Arishtam/Asavar in litre 63 Churnam in kg 250 Oil and ghee preparation in kg 110 Lehiams in kg 125 Tablets per 25 numbers 25 E Annual sales turnover (Rs.in lakhs) 160 F Net profit before tax (Rs.in lakhs) (E-C) 18.66 G Breakeven point in %

67%

22

SECTION XI

SWOT ANALYSIS

Strength Significant and proven traditional

knowledge Weakness Lack of certification systems Opportunity Export market and substitution for

allopathy in Indian market Threat Lack of entry barrier and consequent

mushroom growth

23

SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS 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. The plant resources for drugs in India are so vast that it can be said without hesitation that the country could supply the whole of the civilised world with medicinal herbs. Most of the drugs of established therapeutic value used in the pharmacopoeias of different countries grow in the great abundance and often in a state of nature in many parts of India. As per an estimate, India has about 4000 species of herbal plants. Over 9% of them are available in wild state. Only 20% of these industrially useful herbs have so far been under commercial cultivation. Herbal drug industries in India are gaining steadily. Some local entrepreneurs in Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Kerala and Gujarat etc. are in the meantime taking to this field with good results. They have been able to sell their products even outside India. The response in the North East Region, which houses nearly 70% of the countries total herbal plants, is however still poor. Some large Ayurvedic establishments, viz., Vaidyanath, Dabur, Zandu, Hamdard are reported to have produced 500 to 700 numbers of different herbal medicines, tonics and lotions etc. with extensive business to the tune of 100 to 150 crores of rupees per annum +y each. Moreover, 25% of the medicines presently in use for allopathic treatment in India are known to have been extracted from herbal sources. Some more classic examples of drugs derived from natural constituents in higher plants are: Local anesthetics, opioid analgesics, cough suppressant (dextropmethorphan), aspirin, neuromuscular blocking agents, sodium cromoglycate and mettormin. Etc. Ayurveda industry has great future, if it can be provided adequate research and development inputs and marketing efforts.

24