Project Profile - HERBAL PRODUCTS

INTRODUCTION:

         All human being have urge to look beautiful. It is because of this reason that they have been using different types of materials from time immemorial. In early period cosmetics were associated with religious practices. It is almost true for all old civilizations like Indian, Chinese, Egyptian & Greek. Ubtan with flour, turmeric and vegetables oil before marriage is still practiced in India. Kum Kum is still being applied by women. During the early period, all cosmetics items were made in the home. Natural materials like aromatic materials, spices, herbs, resins, dyes, fats, oils, and the natives of different counties used perfumes.
         Herbs as medicines are being used since Vedic age. Now-a-days people give preference to the herbal products, as the chemical products being used for cosmetics are costlier and have side effects. Herbal products are based o plants, natural minerals in single ingredient drugs and compound formulations.
         The Ayurvedic herbal products/ drugs are derived from vegetable sources from various parts of the plants like root, leaf, flower fruit extrude or plant as a whole.

MARKET:

         There is more recognition for herbal products in the country now than the past few decades. This herbal concept is gaining ground and attracting attention worldwide. There is more and more scientific research being conducted in our country for treatment of various skin and hair problems through herbal therapy which is not having side effects on skin, thus been recognized world over.
         Thus herbal products are becoming popular day-by-day and demand for its usage is increasing not only in the country but also world wide, the inherent quality of herbal treatment of having negligible side/ after effects has made great potential for its production. A large number of medicinal plants, herbs, shrubs etc. are available in our country in the hilly / forest regions.
         In order to boost the production of herbal products, Govt. of India has also set up a board namely Indian System of Medicine and Homeopathy to encourage production of herbal products especially in the regions where basic raw materials are available in plenty. As the side effects of cosmetics and other chemical based product is increasing day by day. It gives an indication that there are some harmful chemical based ingredients, which are harmful for our body. Therefore, to get remedy for all above problems only one solution is there and i.e using of herbal products instead of others. As the demand of herbal products is increasing day by day and you can sell your products in general market of the country including this these type of products can also be supplied to the Govt. Store Depot./canteen for further distribution among the employees of Defence, Railways and other Govt. Departments.

IMPLEMENTATION SCHEDULE:

1. Preparation of Project profile
One month
2. SSI Registration & approval from Director of Ayurveda
One month
3. Finance/Loan from Banker or Financial Institutions
Two months
4. Power connection / Building construction
Six months
5. Machinery procurement & Trial run.
Two months
6. Recruitment of Staff & Labour
One month
7. Actual commercial production.
One month
Total Period
Fourteen months

BASIS & PRESUMPTIONS:

         The project has been drafted taking into account of the following aspects:

1. No. of working shift in a day.
One
2. Duration of shift in term of time
8 hrs
3. Number of working days in a year
300
4. Working efficiency of the unit
75%
5. Construction of building ( built up are ) will be in accordance with the provision laid down by Director of Ayurveda.
 
6. The estimates are drawn from a production capacity generally considered techno-economically viable for a modern type of manufacturing unit.
 
7. G.M.P will be followed.
 
8. The wages of the Staff & Labour is taken as as per the prevailing Labour Wages Laws.
 
9., The entire expenditure will be borne by entrepreneur.
 
10. The rate of interest has been shown as applicable.
 
11. Plant & Machinery, Testing equipments & all other equipments used in manufacturing such type of products may also be employed in manufacturing all other similar type medicines..
 
12. Although the unit is free from pollution & effluent discharge but still provision of exhaust fan may ensure the fresh environment.
 

Quality Control & Standards:

         At present there is no pharma copeal standard on each of the active ingredients of Herbal products like chemical cosmetics for standardization and quality control of Herbal products various steps can be followed like physical description, physical tests, pharma cognized techniques etc. to ascertain the species of plant and their characters. For manufacture of cosmetic products related to herbs the approval from Directorate of Ayurveda is essential including this, it is advisable to the unit that he must have Govt. approved manufacturing Chemist and analytical chemist or owner must have degree of Ayurveda or cosmetic.
         Generally, quality of Herbal products is fully dependent on the quality of raw materials and process of manufacture.

Manufacturing Process:

         There are so many types of herbal creams and other herbal body care products are available in the market. The manufacturing process of each product is different. However, for the manufacture of creams and body lotion the general process of manufacture of cream and lotion is involved i.e. saponification of oil with mild alkali e.g. Bee-Wax. Paraffins, oils in alkali type material is heated at appropriate temperature to form creamy base. The base so formed can be added aloevera some emulsifying preservative color perfume and other stabilizing agent can be added in the last of manufacturing process. For preparation of herbal scrub all the herbs can be grinded into fine powder with the help of pulveriser and it can be diluted with the help of fuller earth/ masoor ki dal and other ingredients. All the ingredients are mixed together in a mixer and packed in desired size packs.

FINANCIAL ASPECTS:

Fixed Capital Investment:

Land & Building:

Land:

         500 sq. meter @ Rs. 2000/- per sq. mtr.

         = 10.00 lac.

Building:

         Manufacturing Shed                   2 Nos.
         Size                                           10x10 sq.m.          = 100 sq. mtr.
         size                                            15x10 sq.m.          = 150 sq.mtr.
         Raw material Storage
         room size                                   8x8                       = 64
         Finished Goods storage Room   8x8                       = 64
         Laboratory                               =4x4                      = 16
         Office                                     = 5x4                       = 20
         Utilities                                    = 2x4                      = 8

Total covered area                                                       = 422 sq.mtr.

         Rest area may be used for future planning and greenery

         Cost of construction for 422 sq.m. @ 1000/- per.sq.mtr.

         = 4.22 lacks

Total Cost of Land & Building = Rs. 10.0 + 4.22

         = 14.22 lacs

PLANT & MACHINERY:

Sl.No.
Name of Machinery
Qty.
Price
Total Cost
1
M.S. Vat 1000 kg capacity
2
15,000
30,000
2
Trey Drier Cap 96 Trey fitted with exhaust fan & Heating cost
1
80,000
80,000
3
Pulverizer capacity 100 kg fine powder of 400 mesh per shift
1
75,000
75,000
4
Sieves of different mesh sizes
5
5,000
25,000
5
Distillation apparatus
1
50,000
50,000
6
Bottle sealing m/c
2
25,000
50,000
7
S.S. Mixing vessel with motor
1
20,000
20,000
8
Water Treatment plant 100 lts. Cap.
1
20,000
20,000
9
Filtering unit
1
5,000
5,000
10
Muffal furnace
1
5,000
5,000
11
Weighing scale
1
5,000
5,000
12
Bottle washing m/c
1
5,000
5,000
13
Bottle Drier
1
10,000
10,000
14
S.S. Containers
5
200
1,000
15
Laboratory Equipments
-
15,000
15,000
16
Fire fighting equipment
-
5,000
5,000
17
Electrification & Installation
-
10,000
10,000
18
Furniture & office equipments
-
25,000
25,000
19
Pre-operative expenses
-
-
10,000
Total
25,00,000

        

         Total fixed capital investment

         = Rs. 10.0 + 4.22 + 4.0 lac

         = 18.22 lacs

RECURRING EXPENSES:

i) Raw Material (p.m.)

         Different type of herbs, preservatives, emulsifying & = Rs.1.75 lacs. Stabilizing agent chemicals, packaging material          etc

2) Staff & Labour (p.m.)

Personnel
Nos.
Salary (Rs.)
Total (Rs.)
Manager cum Mfg. Chemist
1
5,000
5,000
Analytical chemist
1
4,000
4,000
Sales man cum store keeper
1
2,500
2,500
Clerk cum Accountant
1
2,000
2,000
Skilled Worker
2
3,000
6,000
Unskilled Worker
3
1,800
5,400
Peon cum chowkidar
1
1,500
1,500
Total
26,400
Perquisites @ 15%
3,960
Total
30,360
Say
30,000

Other Expenses: (PM)

Electricity / fuel
2,500
Water
500
Postage & Stationery
250
Advt. & Publicity
250
Maintenance and Repairing
300
Transportrtion
2,000
Insurance
200
Telephone
500
Misc. exp.
500
Total
7,000

        

         Working capital per month:

         = Rs. 1.75 lakh + 30000 + 7000

         = 2.12. lac.

         Working capital for 3 months:

         = 2.12x3

         = 6.36 lac

         Total capital investment = 3 months working capital + Total fixed capital investment
         Rs. 6.36 + 18.22

         = 24.58 lacs.

Cost of Production (Per annum):

Description
Value (Rs.)
Recurring Expenses
25.44
Depreciation on Building @ 5%
0.21
Depreciation on plant & machinery @ 10%
0.40
Depreciation on furniture @ 20%
0.05
Interest on T.C.I. @ 10%
2.45
Total
28.55

        Turn over by sale of

        1.5 lacs. Of Herbal Cream/ lotion @ 20/- per piece         = 30.00lac

        75000 pcs. Of Herbal Scrub @ 18/- per piece                = 13.50 lacs


        Total = 43.50 lacs

        Less 10.2 % sales Tax = 4.40

        = 39.10%

        Less 15% Discount to Whole seller, Stockiest etc. = 39.10 - 5.85

        = 33.25

        Net Profit = 33.25 – 28.55

        = 4.7 lac

        %age Profit on Sale

        =4.7 x 100 / 33.25

        = 14.10%

        %age profit on Total Capital Investment

        = 4.7 x 100 / 24.58

        = 19.12%

FIXED COST

         40% staff & Labour                           = 1.44 lac
         40% of other expenses                       = 0.33
         Total Depreciation on building plant    = 0.66
         and machinery and furniture

         Interest on Total Capital Investment   = 2.45

         Total                                                 = 4.89 lacs

B.E.P.

         =Fixed cost x 100 / Fixed Cost + Profit

         = 4.89 x 100 / 4.89 + 3.75

         = 50%

Addresses of Machinery Manufacturers:

         1.      M/s Ajay Engineering,
                  L-52, GIDC, Odhav,
                  Ahmedabad-382415 (Guj.)

         2.      M/s Burman Plant & Machinery Pvt. Ltd.,
                  36, Sarjar Lane,
                  Calcutta-700007.

         3.      M/s Amkay Engineering Works,
                  B-33, DDA Shed, Okhla,
                  Industrial Area II,
                  New Delhi-20.

         4.      M/s Famach Machinery Co.,
                  6, Gurjar Ind. Estate,
                  Ajod Dairy Road, Rakhial,
                  Ahmedabad-380023.

         5.      M/s Frederick Herbert,
                  10, Second Pasta Lane, Colaba,
                  Mumbai-400005.

         6.      M/s Ganesh Engineering Works,
                  1507, Ganesh Pura Main Market, Tri Nagar,
                  Delhi-110035.

         7.      M/s Indo German Phamachem Equipments,
                  Kothari House, Plot No,. A-13, Off Cross Road,
                  Steet Nio. 5, MIDC,
                  Andheri (E)
                  Mumbai400093.

         8.      M/s K. Mahadev & Co. Pvt. Ltd.,
                  Dutta Mandir Road,
                  Bhandup,
                  Mumbai-400078.

Suppliers of Raw Materials:
Raw materials can be purchased related to Herbal products is easily available at Khari Bawli, New Delhi. However, addresses of some other raw material suppliers are also given below:


         1.      M/s Amritlal Bhurabhai,
                  Princess Street, Mombay-2.

         2.      M/s R. Suresh Chander & CO.,
                  48, Princess Street,
                  Bombay-2.

         3.      M/s Haribhai Jesbhai,
                  Princess Street, Bombay-2.

         4.      M/s Chemical Market,
                  Tilak Bazar, Fatehpuri,
                  Delhi-6.

         5.      M/s Veena Perfumery,
                  Fatehpuri Delhi-6.