PLANTATION AND EXTRACTION OF ASHWAGANDHAkrishna.nic.in/PDFfiles/MSME/Herbal/ASHWAGANDHA[1].pdf · SECTION IV IMPORT/EXPORT LEVEL ... UAE 5000 UK 119 Uzbekstan ... Schizandra, Gotu

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PLANTATION AND EXTRACTION OF ASHWAGANDHA

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

AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

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

A NEW INDUSTRY AND RECOMMENDATIONS

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SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION Family Solanaceae

Common Names

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

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

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SECTION II

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

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SECTION III

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

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

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

Bangalore-562 123

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

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SECTION IV

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

Quantity in kgs

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

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

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

Quantity in Kgs

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

German F Rep52%

USA48%

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

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SECTION V

PRICE DETAILS

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

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SECTION VI

INDIAN DEMAND

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

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

6.5 Growth rate in demand 8 to 9% per annum

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

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

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

Post Box No.132, Thane 400 602

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

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

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

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

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

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

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

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SECTION IX

GLOBAL SCENARIO

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

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

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

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

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

Rs.in lakhs

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

2.75

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

0.28

Subtotal 3.03 2. Building S.No. Description Cost

Rs.in lakhs

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

3.20

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

1.35

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

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

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

Rs.in lakhs

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

weigh balance, etc. 0.80

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

Rs.in lakhs

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

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11. Financial statements A Variable cost

Rs. in lakhs

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

51.67

B Fixed cost

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

35.42

C. Total cost of production (A+B)

87.09

D. Selling price per kg. (in Rupees)

500.00

E. Annual sales turnover

150.00

F. Net profit before tax (E - C)

62.91

G. Breakeven point in %

36

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SECTION XI

SWOT ANALYSIS

Strength Ready availability of raw material

Weakness Inadequate product standardisation

Opportunity Excellent demand potential

Threat Difficulty in penetrating export market due to competitive conditions

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION

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