NANNARI HERBAL SYRUP SECTION I PRODUCT CHARACTERISTICS

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Jade Audrey Arnold
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1 NANNARI HERBAL SYRUP SECTION I PRODUCT CHARACTERISTICS Latin name Sanskrit/Indian name English name Hemidesmus indicus 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 1

2 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. 2

3 SECTION III INDIAN MANUFACTURERS Nannari syrup is produced by a number of organisations at tiny and cottage level. particularly in regions like Tamil Nadu. Indian producers include the following * Atma Singh Saroop Singh 7, R.B.Rattan Chand Road, The Mall, Amritsar * Aravindh Herbal Labs (P) Ltd., 140 Mudangiar Road, 4 th KM, Rajapalayam * Dynamic Pharma 5-A, Ganapathy Gouder Lay Out K.K. Pudur, Coimbatore-38 * Everest Pharma 7, Amruta Nagar, Manik Baug, Sinhgad Road, Pune * Fadel International Trading 12/1019, Panayappilly Cochin Kerala * Glenn Marketing 113, Sangam Soc., Harni Road, Vadodara * Healthy Herbals Factory & Office : S. Duraisamypuram Sindalakarai Post Ettayapuram Taluk Thookthukudi Dist Farm : Parambu, Keelamangalam Ottapidaram Taluk Thookthukudi District Tamil Nadu 3

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

5 SECTION IV IMPORT/EXPORT LEVEL Herbal syrup Name of the Quantity Value in Rs. Country Date Port exporter Star International 38 box 1072 Port Kelang May 2002 Chennai There is no evidence of import of Nannari syrup 5

6 SECTION V PRICE Price of Nannari syrup Rs paise for 750 ml 6

7 SECTION VI INDIAN DEMAND Nannari syrup is usually taken with lemon juice as a health drink Status of Indian Beverages/Soft Drinks Sector Production of Soft Drinks million bottles (in million bottles) Period Major soft drink players Bengal Beverages Pvt. Ltd Coca-Cola India Ltd. J.D. Corporation, Gujarat Parle (Exports) Pvt.Ltd Pepsi Foods Ltd Pioma Industries Gujarat Pure Drinks (New Delhi) Ltd. Sri Sarvaraya Sugars Ltd., Hyderabad- Sri Vasavi Soft Drinks Pvt. Ltd.Karnataka 7

8 Powdered Soft Drink Concentrate Indian Market Growth Rate Rs.250 crores 4 to 5% per annum Major Brands * Rasna (Pioma) * Sunfill (Cococola) Details on Rasna (Pioma s product) Claimed Market Share Percapita Consumption Annual Turnover 60% in value terms 85% in volume terms 15 glasses Rs.125 crores The Nannari syrup is largely used as syrup and health drinks and can be generally considered as a beverage. Nannari syrup is offered in several roadside shops Nannari syrup market is largely in unorganised sector. It is yet to gain importance as the competitive product along with other beverages and soft drinks available in the market. Considerable market promotional efforts are required to promote Nannari syrup as a herbal tonic and soft drink. Estimated growth rate in demand 7 to 8% per annum 8

9 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) and consumed. The roots of nannari is thoroughly cleaned to remove any adhering mud and other impurities. It is washed and dried. It is then ground to a fine powder before being used for extraction of its nutrients. Sugar is boiled separately and stored at a concentration of 70 degrees brix. A 10% extract in water is also made The extract is mixed in the sugar syrup and bottled. The bottle is placed in cartons and strapped prior to dispatch The process involved in the manufacturing of syrups are briefly mentioned below: Bottles of required sizes are washed in rotary bottle washing machine and are fed to bottle drier where they are dried. The dried bottled are fed into a conveyor belt of Rotary Automatic Bottle Filling Machine to be used after the mixed syrup would reach the filling machine. All the ingredients are weighed as per the batch size and separately passed through sieves. A sucrose syrup is prepared separately in required quantity in DM water. The syrup is passed through filter press. Then it is transferred to the process tank and preservative are added in syrup. A separate batch of required ingredients is prepared and transferred to process tank where it is stirred. After stirring the mixture for about 3 to 4 hours, samples are drawn for quality check. 9

10 Source of technology * Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL) (A Government of Tamil Nadu Undertaking) Arignar Anna Government Hospital of Indian Medicine Campus, Arumbakkam, Chennai Plant/machinery equipment and producers Washing and drying facilities Extraction equipment Bottling facilities Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem Spark Engineers Pvt. Ltd., Spark Enterprises 5/332, State Bank Colony II Salem Shivsu Watek Private Ltd. No.14, Spurtank Road Chetpet, Chennai

11 SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis: kg per annum of Nannari syrup Nannari roots Sugar 936 kg kg Availability The above raw materials are readily available in the market 11

12 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic Capacity in Tonnes per annum Project Cost in Rs. lakhs 38 Assessment of project cost Land Description Cost Rs. In lakhs 1.1. Cost of land of 0.3 acre at Rs.5.5 lakh per acre Cost of levelling,laying internal roads/fencing and compound 0.17 wall Subtotal 1.82 Building Description Cost Rs. In lakhs 2.1. Factory building at Rs.3200 per sq.m Non-factory building at Rs.4500 per sq.m Subtotal 6.11 Cost of Plant and Machinery Description Cost Rs. In lakhs 3.1. Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection 0.50 Subtotal Octroi excise duty, sales tax, etc. at Packaging and insurance charges(2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%) 0.25 Total cost of plant and machinery

13 Technical know-how fees Rs.1.20 lakhs Miscellaneous fixed assets Description Cost Rs. Inlakhs 5.1. Electrificatiion Steam boiler and auxillaries Water storage tank, borewell etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh 0.20 balance etc Diesel generator Effluent treatment 0.20 Total 8.00 Preliminary &Pre-operative expenses: 6.1. Preliminary expenses Pre-operative expenses: Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowing Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment - Total 1.80 Provision for contingency Working capital margin Total Project Cost Rs.1.95 lakhs Rs.38 lakhs Rs.2.60 lakhs Means of finance (Rs. in lakhs) Promoters contribution 15 Term loan from financing institutions 23 Total project cost 38 13

14 Financial statements A. Variable cost Rs. In lakhs Raw material and utilities Spares and maintenance 0.90 Selling expenses 1.88 Total variable cost B. Fixed cost Salaries and wages 4.80 Interest on term laon and working capital loan 5.55 Depreciation 2.31 Administrative expenses 1.13 Total Fixed cost 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) 8.63 G. Breakeven point in % 62 14

15 SECTION X SWOT ANALYSIS Strength Weakness Opportunity Threat Growing demand for the product since it is considered as a health tonic Lack of efforts for certification of the product To boost demand by innovative marketing efforts Substitution from synthetic product 15

16 SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION Nannari syrup is an important health tonic and is considered to be a body coolant The major market outlets are the Ayurvedic pharmacies and super markets. It is also available at bus stands and railway stations as beverage. Adequate medical efforts to prove the efficacy of the product on scientific lines is still considered to be inadequate It is necessasry to carry out innovative market development efforts, to enlarge the demand base for the product in the country. 16

17 PROFILE ON HERBAL NANNARI SYRUP CONTENTS PAGE NO. SECTION I PRODUCT CHARACTERISTICS 1 SECTION II PRODUCT APPLICATIONS 2 SECTION III INDIAN MANUFACTURERS 3 SECTION IV IMPORT/EXPORT LEVEL 5 SECTION V PRICE 6 SECTION VI INDIAN DEMAND 7 SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 9 SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY 11 SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS 12 SECTION X SWOT ANALYSIS 15 SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATIONS 16 17

PROFILE ON HERBAL VALLARAI TONIC

PROFILE ON HERBAL VALLARAI TONIC CONTENTS PAGE NO. SECTION I PRODUCT CHARACTERISTICS 1 SECTION II PRODUCT APPLICATIONS 2 SECTION III INDIAN MANUFACTURERS 4 SECTION IV IMPORT/EXPORT LEVEL 5 SECTION V PRICE