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NATURAL VANILLA
CONTENTS
SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II
PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV
IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND
SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW
MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE
POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS
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SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION Synthetic Vanillin
Appearance Colourless crystals Odour Sweet, balsamic, powdery,
vanilla-like Chemical formula C8H8O3 Specification Specifications
of Vanillin produced by Rhone Poulenc, France. Trade Name
RHOVANILTM Colour of Ethanolic solution 50 max, hazen Melting point
81.0 to 83.0 deg.C Assay 99.6 min, % Sulphated ash 0.05 max, %
Heavy metals (as lead) 0.0010 max %
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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.
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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
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SECTION IV
IMPORT/EXPORT LEVEL
4.1. Imports Period April 2001 to March 2002 Countrywise Imports
Vanilla Powder Country Quantity in Kgs
Singapore 56 Sample of individual imports Name of the
Importers
Quantity in tonnes
Value in Rs. Country Date Port
Weikfield Products Co.Ltd. (Vanila extracts)
0.010 44149 UK 24.03.2002 to 31.03.2002
Mumbai
Vinoram Pvt. Ltd.,(Vanilla extract)
10 kg 14765 SG Oct2002 Chennai
Dragoco India Ltd., (Vanilla cream)
175 kg 23305 SG Oct2002 Chennai
Teddy Exports (Vanilla fragrances scented beads
120 kg 13795 SG Oct2002 Chennai
Dragoco India Ltd.,(Vanilla cream)
125 kg 16309 SG Oct2002 Chennai
Godrej Sara lee Ltd.,(Vanilla perfume
33440 pcs 596546 MY Oct2002 Chennai
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4.2. Exports Period April 2001 to March 2002 Countrywise Exports
Vanila Bean Country Quantity in Kgs
Italy 50 Norway 20000 Uganda 120 U Arab Emts 15000 UK 800 USA
161725 197695 Countrywise Exports Vanilla Powder Country Quantity
in Kgs Nepal 150 Russia 140 Tanzania REP 2405 U Arab Emts 12968 UK
120 USA 9040 24823 Countrywise Exports Vanilla Oleoresin Country
Quantity in Kgs
Australia 15 Canada 1015 France 69 Tanzania REP 488 USA 8000
9587
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Sample of individual exports Name of the Exporters
Quantity in tonnes
Value in Rs. Country Date Port
Chemical Fragrance (Vanila extracts)
0.010 53354 Hong Kong 01.07.2002 to 15.07.2002
Mumbai
Bush Boake Allen (I) Ltd., (Vanilla beans)
100 kgs 7412 London Serp2002 Chennai
Novartis Consumer Health India Ltd.,(food supplement optifast
vanilla)
451000 unit 7619 Clombo Sep2002 Chennai
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SECTION V
PRICE
Basic price of natural vanilla Rs.370 per kg Taxes and duties
Extra as applicable Currently, the green beans fetch around Rs.300
to Rs.400 per kg and One kg of cured processed beans would weigh
250 to 300 gm,
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SECTION VI
INDIAN DEMAND
Demand for Synthetic Vanillin Indian demand 250 tonnes per annum
Indian consumption pattern of vanillin
Indian Demand Level for Natural vanilla Indian demand : Around
1000 tonnes of cured beans per annum The actual demand could be
more, if the product would be readily available in the market.
Estimated production of cured vanilla : 20 tonnes The main
constraint on popularising vanilla is the shortage of planting
material. As with other orchids, seed propagation is unsuitable and
only stem cuttings is feasible and better alternative.
MISCELLANEOUS1%ICE-CREAM
5%
PHARMACEUTICALS3%
BISCUITS12%
PERFUMERY/FLAVOURS
28%
AGARBATHI51%
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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.
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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 vanillin. It consists mainly of keeping the pods
warm and slowly drying for nearly six months until they become
pliable and deep brown, with a fine white crystalline coating of
vanillin Vanilla is cured with special care and some innovative
techniques using solar dryers. Green Vanilla beans are to be
processed to get the characteristic vanilla flavour and aroma.
There are different methods of curing but they all consists of more
or less four stages viz, Killing Sweating Slow drying and
Conditioning Mexican process, Bourbon process, Peruvian process and
Guiana process are the important methods of curing vanilla.
Properly cured vanilla beans contain about 2.5 % vanillin. Process
for Pure Vanilla Extract By percolating or macerating chopped
vanilla beans with ethyl alcohol and water. The process is usually
kept as cool as possible to keep flavour loss to a minimum, though
some manufactures feel that there must be heat to create the best
extraction. Most companies use a constituent blend of beans,
sometimes from several regions, to create their brand flavour. The
extraction process takes about 48 hours, after which the extracts
will mellow in the tanks with the beans from days to weeks,
depending on the processor, before being filtered into a holding
tank ,where the amber-coloured liquid extracts remains until being
bottled.
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Technology A scientific package of practices is now available
for large scale growing of the crop. Vanilla flowers need hand
pollination for bean set, in view of the absence of pollinator bees
in India. In the private sector, tissue cultured vanilla plantlets
are available with IAHS (Bangalore) SPIC (Coimbatore) AVT(Cochin) H
and M Ltd (Cochin) Bush Boake Allen (Madras) and Synthetics India
Ltd (Kollencherry) Among Government outlets, plantlets are
available at Spices Board, Cochin and Indian Institute of Spices
Research, Calicut. Technology development Vanilla from Ricebran Oil
Ricebran oil is subjected to molecular distillation to isolate a
fraction which is 95 % rich in oryzanol content. This fraction can
further be processed to recover ferulic acid in pure condition.
From this stage, vanilla can be produced directly from ferulic
acid. Of the synthetic method of making vanilla from procursors as
eugenol guiacol and ferulic acid it is claimed that ferulic acid,
is a better alternative. Source of technology Oil Technological
Research Institute, Anantapur, Andhra Pradesh
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Plant and machinery and suppliers Extractor Kulkarni's Hafi
Elektra Pvt. Ltd
Post Box No.132, Thane 400 602
Dryer The Anup Engineering Ltd., Behind 66 KV Electric Sub
Station Odhav Road, Ahmedabad-382 415 ATRE Thermal Products Pvt.
Ltd., Pushpa Heights, 1st Floor, Bibwewadi Corner, Pune-411 037
Refrigeration section
Voltas Ltd., Chennai
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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 hectare. While the recovery rate of vanillin is 2.5% and
above. The Current prices are, therefore, very attractive. Natural
Vanilla Vanilla pods are the fruit of the vanilla orchid, Vanilla
plantfolta, a large, green stemmed, climbing perennial plant with a
fleshy, succulent stem, smooth, thick, bright green leaves and
numerous twining aerial roots by which it clings to trees in its
wild state. It may grow up to 30 m, It is a climbing orchid The
pods, commercially called beans, have no flavour when picked, as
the flavour develops during the curing process. The beans are very
dark brown and contain tiny black seeds. Constituent Having well
over 250 organic components, creating its unique flavour and aroma
Even the same species of vanilla beans grown in different parts of
the world will vary in flavour and aroma due to climate and soil
differences. While some beans are higher in Natural vanillin
content than others, this is not the only indicator of flavour or
quality. Varieties There are about 150 varieties of vanilla, though
only two are used commercially in significant quantities Bourbon
Tahitian Species
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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 degC is ideal for
vanilla. Annual Rain fall: 200 t0 300 cm Propagation: By stem
cutting of 60 to 120 cm length Standards: Planted six month in
advance Spacing: 1.5 to 2 m with in rows and 2.5 to 3 m between
rows. Planting period: September to November in shallow pits filled
with humus and mulch Planting material required: 1600 to 2000
standards per hectare. General cutivation practicess: The vanilla
plants should be allowed to trail horizentally on poles/ trellis
tied to standards after trailing to a height of 1.5 to 2m or coiled
around the branches of the standards(looping) to facilitate
polination and harvesting. Polination: The flowers are pollinated
by hand in early morning just when the flower opens. If the
pollination is successful, the flower withers but it still remains
attached to the ovary. If it is unsuccessful, the flower drops off
the next day. The success rate is 85% to near 100%. In the case of
successful pollination, the size of ovary increases rapidly and the
pods start maturing. An experienced hand can pollianate 1000 to
1500 flowers in a day. On maturing and ready for harvest, the pod
resembles a dark brown string bean 12 to 25 cm long with a
circumference ranging between 2 cm to 5 cm. The physical changes in
colour and size and development of flavour occur during curing.
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Yield Flowering starts in the third year of planting Peak
flowering occurs during 7 to 8th year Period Yield per hectare
Third year (beginning) 60 kg Fourth year 150 kg Fifth year to the
tenth year 300 kg A good vanillery yeilds about 300 to 600 kg cured
beans per hectare per year. About 6 kg green beans produce 1 kg
cured beans. Intercrop Can be raised as an intercrop with coffee,
coconut, arecanut, pepper.
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SECTION IX
GLOBAL SCENARIO
World demand for Synthetic vanillin 3500 tonnes per annum Origin
Vanilla is native to the tropical rainforest of South-Eastern
Mexico and Central America International trade in Natural Vanilla
Around Rs.300 crores Global Production of Cured Vanilla Around 6000
tonnes Total area of Vanilla cultivation 38500 hectares Global
growth rate 4 to 5% per annum The Bourbon Vanilla from Madagascar
commands a premium price Major Producing Countries Madagascar
Indonesia (cultivated in Java and Bali Islands) Comoro Mexico,
(grown in Vanuatu ) Reunion Islands Tonga Malaysia Sri Lanka
Jamaica Qudeloupe Uganda and Tonga Major world suppliers 70% of
world supply is from Madagascar and Indonesia
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Importers of Natural vanilla USA Germany France Canada Japan UK
Italy Australia Singapore Global Outlook Only 1 to 2 % of the total
market is met by extraction of vanilla beans. The remaining
vanillin produced is of synthetic origin Even if 5% of the demand
for synthetic vanillin is substituted by Natural vanilla bean,
there would be an additional demand for 70000 tonnes of vanilla
beans by the year 2003. To produce this quantity, 2.38 lakh
hectares have to be brought under vanilla. If the current growth
rate (annually) continues, the global demand for vanillin is likely
to touch 4000 tonnes by the year 2005. The USA is the single
largest importer, accounting for consumption of half of the worlds
production. The curing process for vanilla beans is labour
intensive and the vanilla plant only grows in a few territories
over the world, making synthetically produced vanillin far cheaper
than Natural vanillin With the increasing interest in natural
products, alternative methods are being developed to produce
Natural vanillin from sources other than vanilla planifolia Cell
cultures, microorganisms, and isolated enzymes are the potentially
alternative sources for the production of vanillin from natural
feedstock.
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Technology Development Enzymatic production of Natural vanillin
and optically pure alcohols:- The principal component of red
pepper,capsaicium, proved to be a promising candidate to produce
Natural vanillin using a bi enzyme system, consisting of VAO
(Vanillyl alcohol oxidase) and a hydrolase. By combining these two
enzymes a one port conversion from capsacin to vanillin can be
realised This enzymatic production has in general, environmental
advantages compared to the traditional synthetic vanillin
production. Producer Venui Vanilla Co Ltd Product Vanilla Beans and
Powder, Extract (Essence) and Paste Grown and Processed in Vanuatu
Retail Supplies Wholesale Sales Within Australia World Wide KAS
Distribution 86 Henry Street Eltham VIC 3095 E-mail :
[email protected] Phone 03 9431 3496 Fax 03 9444 0496
Venui Vanilla Co. PO Box 162 Santo, Vanuatu E-mail :
[email protected] World Wide
http://www.4-u-veges.com/vanilla_shop.html
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SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity :
30 tonnes per annum Project cost : Rs.78 lakhs Assessment of
project cost 1. Land S.No. Description Cost
Rs.in lakhs
1.1 Cost of land of 125 acre at Rs.45000 lakh per acre
56.25
Subtotal 2. Building S.No. Description Cost
Rs.in lakhs
2.1 Building of area 75 sq.m. at Rs.3200/sq.m.
2.40
Subtotal 3. Cost of Plant & Machinery S.No. Description
Cost
Rs.in lakhs
3.1 Miscellaneous machinery 4 3.2 Packaging machinery 4 Total
cost of plant and Machinery 8 4. Technical know-how fees Rs.1.00
lakh
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5. Preliminary & Pre-operative expenses: S.No. Description
Cost
Rs.in lakhs
5.1. Preliminary expenses 0.20 5.2. Pre-operative expenses:-
5.2.1 Establishment 0.20 5.2.2 Rent rates and taxes 0.20 5.2.3
Travelling expenses 0.20 5.2.4 Interest and commitment charges on
borrowings 1.20 5.2.5 Insurance during construction period 0.20
5.2.6 Other preoperative expenses and deposits - 5.2.7 Interest on
deferred payment - Total 2.20 6. Provision for contingency Rs.0.68
lakhs 7. Working capital margin Rs.7.90 lakhs 8. Total project cost
Rs.78 lakhs 9. Means of finance (Rs. in lakhs) Promoter's
contribution 31 Term loan from financing institutions 47 Total
project cost 78
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10. Financial statements Cost of production A Variable cost
Rs. in lakhs
Raw material and utilities 46.19 Spares and maintenance 0.48
Selling expenses 5.55 Total variable cost (A)
52.22
B Fixed cost
Salaries and wages 9.00 Interest on term loan and working
capital loan 12.74 Depreciation 1.00 Administrative expenses 3.33
Total fixed cost (B) 26.07 C. Total cost of production (A+B)
78.28
D. Selling price per kg. (in Rupees)
370
E. Annual sales turnover
110
F. Net profit before tax (E-C)
32.72
G. Breakeven point in %
44%
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SECTION XI
SWOT ANALYSIS Strength Growing demand for the product
Weakness Inadequate plant materials
Opportunity Substitution possibilities for Synthetic vanilla
Threat Lack of standardisation
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SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
RECOMMENDATION The initial investment estimated by NABARD was
Rs.50000 per hectare. Besides, this could be cultivated as an inter
crop in the coconut, pepper and arecanut gardens. Growing vanilla
as an inter crop in the coconut gardens is the most ideal as
vanilla plants require some regular sunshine. Natural vanilla is an
excellent investment opportunity and the product has high level of
relevance and importance. The demand is bound to go up in the
coming years