AYURVEDIC MEDICINES

CONTENTS
SECTION

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

SECTION

II

PRODUCT APPLICATIONS

SECTION

III

INDIAN MANUFACTURERS

SECTION

IV

IMPORT/EXPORT TRENDS

SECTION

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

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

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
2

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 patients 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
3

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

SECTION IV
IMPORT/EXPORT TRENDS
4.1.

Imports of Ayurvedic and Unnai Medicines

Period April 2001 to March 2002

Country

Quantity in Kgs

Austria
China P Rp
Denmark
France
German F REP
Hong Kong
Italy
Japan
Korea RP
Malaysia
Mayanmar
Nepal
Netherland
Saudi Arab
Singapore
Spain
Switzerland
U Arab Emts
UK
USA
Total

1842
2040
475
6226
23704
40
100
2100
1010
13690
2
2821885
540
2
1177
581
5531
400
3027
6201
2890573

Exports of Ayurvedic and Unani Medicines

Period April 2001 to March 2002
Country
Afghanistan
Algeria
Angola
Argentina
Australia
Austria
Baharain IS
Bangladesh
Belgium
Benin
Bolivia
Botswana
Brazil
Bulgaria
Burundi
Cambodia
Cameroon
Canada
Cape Verde IS
Chile
Chinese Taipei
China P RP
Colombia
Congo P REP
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Dominica
Egypt A RP
Ethiopia
Finland
Fiji IS
France
Georgia
German F REP
Ghana

Quantity in Kgs
160
260
920
780
17856
850
8784
8176
30522
10041
30
150
44571
50
500
5652
558
4270
60
786
4529
15386
11450
19074
100
5
6390
10261
310
450
4771
3058
6000
7182
13528
6000
91302
4372
6

Greece
Guatemala
Guinea
Guyana
Haiti
Hong Kong
Hungary
Iceland
Indonesia
Iran
Ireland
Israel
Italy
Japan
Jordan
Kazakhstan
Kenya
Korea DP RP
Korea RP
Kuwait
Latvia
Liberia
Maceoernia
Malaysia
Maldives
Malta
Mauritious
Mayanmar
Mexico
Moldvia
Mozambique
Morocco
Nepal
Netherland
New Zealand
Niger
Nigeria
Oman
Pakistan
Panama Republic
Papua N GNA
Peru
Philippines
Poland
Qatar

90
140
943
980
22500
13477
2023
375
905
36650
2
5740
42846
34502
15540
1330
31206
350
10395
2883
915
910
125
103600
7021
600
4940
6357
3600
1550
300
100
581623
24576
3755
4000
62989
23516
6722
10
280
20450
6667
1900
107528
7

Romania
Russia
Rwanda
Saudi Arab
Seychelles
Singapore
South Africa
Spain
Sri Lanka
Sudan
Switzerland
Sweden
Syria
Tanzania REP
Thailand
Trinidad
Turkey
Uganda
U Arab Emts
UK
Ukraine
USA
Uruguay
Uzbekistan
Vietnam SOC REP
Yemen Republc
Zaire REP
Zambia
Zimbabwe
Unspecified
Total

1290
235649
800
19026
323
70253
7620
11341
108904
12026
67211
267
600
4507
13449
402
320
27939
223143
65233
29172
166411
670
2000
21908
1535
11350
3613
10580
4510
2450405

SECTION V
PRICE TRENDS
Present price level for Ayurvedic (Rs. per kg)
Arishtam/Asavar in litre
Churnam in kg
Oil and ghee preparation in kg
Lehiams in kg
Tablets per 25 numbers

63
250
110
125
25

Taxes and duties : Extra as applicable

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

10

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.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Arishta & Asava

Rasa Rasayan
Lauha
Vati
Churna
Avaleha
Ghrita
Parpati
Taila
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.

11

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

12

Major plant and machinery suppliers

Name of the equipment
Mixer

Name of the supplier

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

13

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

14

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
liquorice
Kunni(M)Konnai(T)
Reti (H)
Gurugina(Tel)

Worms

Acacia Arabica
Babul
Karuvelam(M&T)
Barbaramu(Tel)

Diarrhoea, dysentery(tender)
leaves;bark)
Spongy gums(bk)
Prolapse anni (bk)

Respiratory system:
1.
2.
3.

Dry cough (leaf-juice, root)

Cough (tender leaves) sore throat (tender leaves)
Bronchitis and asthma (juice) Pneumonia

15

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.

16

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, Indias 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 Indias share is
a partly 5%.

17

SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
Suggested capacity :
a. Arishtam/Asavar in litre
b. Churnam in kg
c. Oil and ghee preparation in kg
d. Lehiams in kg
e. Tablets in lakh numbers

150 KL
3000 kg
15000 kg
3500 kg
150

Project cost

Rs.95 lakhs

Assessment of project cost

1.

Land

S.No.

Description

1.1

Cost of land of one acre at Rs.5.5 lakh per acre

1.2

Cost of levelling, laying internal roads/fencing and

compound wall
Subtotal

2.

Cost
Rs.in lakhs
5.5
0.55
6.05

Building

S.No.

Description

2.1

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

Cost
Rs.in lakhs
5.44

2.2

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

2.25

Subtotal

7.69

18

3.

Cost of Plant & Machinery

S.No.

Description

3.1
3.2
3.3
3.4

Cost of basic plant and machinery

Instrumentation and control
Pipelines and valves
Structurals for erection

Cost
Rs.in lakhs
32
2.4
3.2
1.6

3.5
3.6
3.7
3.8
3.9
3.10

Subtotal
Octroi, excise duty, sales tax, etc.at 12%
Packaging and insurance charges (2%)
Transportation charges (2%)
Machinery stores and spares (2%)
Foundation charges (2%)
Installation charges (2%)
Total cost of plant and Machinery

39.2
4.71
0.78
0.78
0.78
0.78
0.78
47.81

4.

Technical know-how fees

5.

Miscellaneous fixed assets

Rs.3.2 lakhs

S.No.

Description

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.

Electrification
Steam boiler and auxillaries
Water storage tank, borewell etc.
Fuel storage tank
Laboratory equipment
Office machinery & equipment
Material handling equipment, packaging machinery,
weigh balance, etc.
Diesel generator
Effluent treatment
Total

5.8.
5.9.

19

Cost
Rs.in lakhs
3.50
3.50
0.70
0.70
0.70
1.30
1.30
4.5
1.80
18

6.

Preliminary & Pre-operative expenses:

S.No.

Description

6.1.
6.2.
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7

Preliminary expenses
Pre-operative expenses:Establishment
Rent rates and taxes
Travelling expenses
Interest and commitment charges on borrowings
Insurance during construction period
Other preoperative expenses and deposits
Interest on deferred payment
Total

Cost
Rs.in lakhs
0.8
0
1.0
1.0
1.0
7.0
1.80
0
0
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
Term loan from financing institutions
Total project cost

Rs.45.6 lakhs
Rs.68.4 lakhs
Rs.114 lakhs

20

11.

Financial statements (Rs. in lakhs)

Variable Cost

Rs.in lakhs

Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost

92
3
8
103

Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost
C
Total cost of production (A+B)

9
17.95
6.59
4.8
38.34
141.34

Fixed cost

Selling price per kg. (in Rupees)

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

21

63
250
110
125
25
160
18.66
67%

SECTION XI
SWOT ANALYSIS
Strength

Significant and proven traditional

knowledge
Lack of certification systems
Export market and substitution for
allopathy in Indian market
Lack of entry barrier and consequent
mushroom growth

Weakness
Opportunity
Threat

22

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.

23

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