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Product Development Action Research

On Essential Oils

A Report Submitted To
Asia Network for Sustainable Agriculture and
Bioresources (ANSAB)
Kathmandu, Nepal

Submitted By
Khilendra Gurung
Himalayan Bio Trade (P) Ltd
Kathmandu, Nepal
June, 2004
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Concept
Nepal is one of the richest countries in the world in terms of availability of
different species of medicinal and aromatic herbs. Despite the richness, we have
not been able to utilize them properly. If we go through government health
documents, each of them speaks on the promotion of alternative system of
medicine, but in reality it has not been developed. One of the strategies to
promote this system is to produce herbal formulations using modern technique
and make available in domestic and international market. Need for promotion of
agro forest based products have been reiterated in many government and non
government organization documents.
The basic objective of this product development action research as financially
supported by Asia Network for Sustainable Agriculture and Bioresources
(ANSAB) coordinated Public-Private Alliance (PPA) is to manufacture essential
oil based herbal products.

Prospects
Due to the risk of adverse effects and possible resistance of modern medicine,
the world is switching at a slow pace to the practice of herbs based medicine.
The herbs based medicine does not have side effects and there is no risk of drug
resistance. In Nepal some Chinese and Indian brands as over the counter
medicine, based on essential oils are very popular for a long time. Suicho and
Balm are the best examples among them. Millions of units used to be imported in
Nepal every year. However, these days due to invasion of sub standard products
in cheaper price, the quality brand has disappeared. But still the market exists.
At present various herbal companies are manufacturing and marketing similar
products as Sancho, Sanjivani, Bojo-mint, Sparsha, Achuk, etc. which has taken
a fragment of the total Nepalese market. There is still a big gap between the
demand and supply.

The pain relief product


The existing products based on essential oils are mainly meant for cold and
cough, stuffy nose and sore throat. Pain relief product based on essential oils are
lacking in the market. Some Indian brands as Moov, Iodex and the Himalayan
cream are available in the market in semi solid form. The proposed pain relief
product was designed for the relief of pains as rheumatism, sprain, gout,
migraine etc.

Inclusion of raw materials

Altogether eight (including liquid paraffin as a base) materials are blended to


perfection for the manufacture of proposed pain relief product. The included raw
materials are as follows:

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SN Raw Materials Resources
1 Wintergreen oil Gaultheria fragrantissima
2 Camphor extract Cinnamomum camphora
3 Eucalyptus oil Eucalyptus camaldulensis
4 Mint oil Mentha arvensis
5 Citronella oil Cymbopogon winterianus
6 Juniper berry oil Juniperus communis
7 Fir needle oil Abies spectabilis
8 Base Liquid paraffin

All the included essential oils possess similar therapeutic value related to
rheumatism, sciatica, arthritis, muscular aches and pains, sprains, fatigue,
headache, migraine and gout. They are usually non- toxic, non irritant and non-
sensitizing to skin. Juniper berry oil and Fir needle oil are the new inclusion in the
proposed products which are not yet used in any other similar products from
Nepal. The base is used for the dilution of oils since they have are in high
concentration and have more diffusive power.

Sample preparation for pain relief product

During trial of pain relief product, 10 different samples each with 200gm were
prepared with varying composition of essential oils. They were allowed for ageing
and were packed in bottles of 15ml capacity each. The prepared samples were
labeled and distributed to person with information on usage and indications for
related ailments. The samples were prepared in such a way from lower
concentration of essential oils towards higher concentration terminating in a pure
blend of oils.
The following are the lists of samples prepared for the approval of proposed pain
relief product:

Sample No.: 1
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 21
2 Camphor extract 19
3 Eucalyptus oil 15
4 Mint oil 12
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Base q.s.

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Remarks: The total estimated cost of essential oils is reasonable (Rs 6.44) for
15ml of product. However, it is mild in nature and takes time to show its effect
after application because of high percentage of base.

Sample No.: 2
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 21.5
2 Camphor extract 20
3 Eucalyptus oil 17
4 Mint oil 13
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Base q.s.

Remarks: The total estimated cost of ingredients amounts Rs 6.71 for 15ml of
the product. The percentage of base has been reduced to some extent.
However, it is still mild in nature.

Sample No.: 3
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 27
2 Camphor extract 21
3 Eucalyptus oil 19
4 Mint oil 13
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Base q.s.

Remarks: The cost of ingredients amounts Rs 7.42 for the proposed 15ml of
product. The sample is sorted in preference on the basis of effectiveness and
aroma.

Sample No.: 4
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 27
2 Camphor extract 23
3 Eucalyptus oil 19

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4 Mint oil 13.5
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 7.77 for the proposed 15ml of
product. Fir needle oil is the new addition to this blend. The sample is sorted in
preference on the basis of effectiveness and aroma.

Sample No.: 5
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 29
2 Camphor extract 23
3 Eucalyptus oil 21
4 Mint oil 13.5
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 8.09 for the proposed 15ml of
product. The sample is listed in preference to the final product.

Sample No.: 6
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 31
2 Camphor extract 25
3 Eucalyptus oil 21
4 Mint oil 13.5
5 Citronella oil 1
6 Juniper berry oil 1
7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 8.46 for 15ml of product. The
sample is bit concentrated and not preferable for the final selection.

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Sample No.: 7
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 32.5
2 Camphor extract 25
3 Eucalyptus oil 23
4 Mint oil 13.5
5 Citronella oil 1.5
6 Juniper berry oil 1
7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 8.75 for 15ml of product. The
sample is concentrated and not in preference for the final selection.

Sample No.: 8
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 32.5
2 Camphor extract 25
3 Eucalyptus oil 23
4 Mint oil 13.5
5 Citronella oil 2
6 Juniper berry oil 1.5
7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 8.88 for 15ml of product. The
sample is concentrated and aroma of citronella dominates, hence not in
preference for the final listing.

Sample No.: 9
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 32
2 Camphor extract 26
3 Eucalyptus oil 23
4 Mint oil 13.5
5 Citronella oil 2.5
6 Juniper berry oil 1.5

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7 Fir needle oil 0.5
8 Base q.s.

Remarks: The cost of ingredients amounts Rs 8.88 for 15ml of product. The
sample is highly concentrated and aroma of citronella dominates, hence not in
preference for the final listing.

Sample No.: 10
Net Amount: 200gm
Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 31
2 Camphor extract 27
3 Eucalyptus oil 23
4 Mint oil 13.5
5 Citronella oil 3.5
6 Juniper berry oil 1.5
7 Fir needle oil 0.5

Remarks: The cost of ingredients amounts Rs 8.84 for 15ml of product. The
sample is pure blend of essential oils. However, it is highly concentrated and
aroma of citronella dominates, hence not in preference for the final listing.

Samples test and feedback


Altogether 10 samples were prepared based on the initial knowledge about the
product. The prepared samples were tested by HBTL staffs, consultant for
effectiveness, aroma, side effect and the expected cost. Based on the initial test,
3 preferred compositions (sample no. 3, sample no. 4 and sample no. 5) were
selected. Then 10 replicas of 3 sorted samples were prepared and distributed to
the potential consumer for feedback. A questionnaire was developed and
feedback from the selected person (who have the similar complaints), who had
used the product was received. After the individual level feedback, a focus group
discussion was held with the individual, who used the product and received
recommendation for further improvement.

Selection of sample after consumer's feedback

According to the users’ feedback on effectiveness, aroma, mode of action, side


effect, brand name etc, the sample no. 4 was selected for further improvement.
After improvement, finally the final composition of the pain relief product was
derived.

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Composition:
SN Ingredients Percentage (%)
1 Wintergreen oil 27
2 Camphor extract 23
3 Eucalyptus oil 19
4 Mint oil 13
5 Citronella oil 1
6 Juniper berry oil 0.5
7 Fir needle oil 0.5
8 Base q.s.

Selection of final product

The product with final composition was distributed to persons with similar
complaints, age group ranging between 15 - 65 years. It was found most
effective in rheumatism, arthritis, sprain, migraine and headache. Aroma was
sweet and mode of action was immediate. While using the product no side effect
was recorded. The cost of the product is expected to be lower as compare to the
other competitive products (Moov, Iodex and the Himalayan cream) in the
market. Therefore, consumers can be benefited with this product in terms of price
and its effectiveness. Also, it has the prospect to compete with other herbal care
products based on essential oils (Sancho, Sanjivani, Bojo-mint etc), since it can
be used in cold and cough and sore throat also.

Application
The product can be applied for the relief of rheumatism, sciatica, arthritis,
muscular aches and pains, sprains, fatigue, headache, migraine and gout.

Production process

A simple production technology is required in the manufacturing process. All the


ingredients as given in the composition will undergo for analysis first and blended
in an order in closed vessels and made up to the volume with the base. The
preparation is filtered twice and then filled in the bottles with the help of syringe
and capped. Once again the finished product is analyzed.

Sources of raw materials

Most of the raw materials were purchased from domestic sources, where the
resources are sustainably managed by community and promoted by community
based essential oil producers. However, few essential oils were purchased from
local stockiest and bottles and liquid paraffin were purchased from India. Most of
the essential oils (Wintergreen oil, Juniper oil and Fir needle oil) used in the
product were purchased from HBTL and they are available as per requirement.

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Remaining oils were purchased from Herbs Production and Processing Co. Ltd.
and other private traders (Mahavir Shree International and Nepal Mentha
Products), where these oils are stocked throughout year.
HBTL can promote community based essential oil producers to manufacture
those oils in a sustainable way.

Strategy of HBTL

HBTL has thought a plan to bring its maiden herbal care pain relief product
aiming to provide feasible medication for all. The following are some of the future
strategies of HBTL regarding pain relief product.

Registration and trademark

Prior to production, registration of company and manufacturing license of the


product in Department of Drug Administration (DDA) is necessary following the
prevailing rules and regulation of the department. Then only Department of
Industry (DoI) will provide the trademark certificate to the product.

Production and market plan


HBTL will carry out the feasibility study and will prepare the marketing strategies
for the pain relief product. HBTL has targeted to produce 1, 20,000 bottles
containing 15ml each of the product during fiscal year 2004/2005. In an average,
10,000 bottles will be manufactured and sold per month. The distribution will be
carried out through responsible marketing and with the aid of other community
based partner organizations throughout Nepal. The marketing strategy will be as
follows:
Distributor → Wholesaler → Retailer → Consumer

Requirement of raw materials

The raw materials for the manufacture of 1, 20,000 bottles containing 15 ml of


the product require as follows:
SN Description Quantity (Kg)
1 Wintergreen oil 486
2 Camphor extract 414
3 Eucalyptus oil 342
4 Mint oil 234
5 Citronella oil 18
6 Juniper berry oil 9
7 Fir needle oil 9
8 Base 288
Total 1800

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Packaging materials

For the manufactured of 1, 20,000 bottles of the product required the following
packaging materials:

SN Description Number
1 Bottles with caps (15ml capacity) 1,25,000
2 Packing box 1,25,000
3 Stickers 1,25,000
4 Corrugated carton (small) 5,000
5 Corrugated carton (large) 420

Manpower
HBTL staffs will be recruited and an herb expert/pharmacist will be hired for the
proposed Product.

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Annex 1

Questionnaire

1. Personal background:
a. Name:
b. Age:
c. Sex:

2. Physical complaints:
a. Rheumatism
b. Migraine
c. Arthritis
d. Sprain
e. Neuralgia
f. Gout
g. Headache

3. Effectiveness of product:
a. Fair
b. Good
c. Excellent
d. Not effective
e. Don’t know

4. Aroma of product:
a. Unpleasant
b. Sweet
c. Irritating
d. No – response

5. Mode of action:
a. Immediate
b. After few minutes
c. After half an hour
d. No effect even after an hour

6. Suggestions:

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Annex 2

Sample distribution and feedback

• Age group - 15 years to 65 years


• Total sample distributed – 140 no.
• Total response received - 69

• Most effective in:


Rheumatism > arthritis > sprain > cold and cough

• Aroma:
Sweet > unpleasant > no response

• Mode of action:
Immediate > after few minutes > after half an hour

• Suggestions:
• Launch in market with good packaging and in cheaper price
• Use of sprayer would be better
• Try in semi solid form

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