NANNARI HERBAL SYRUP

SECTION I

PRODUCT CHARACTERISTICS

Latin name Hemidesmus indicus

Sanskrit/Indian name Sveta sariva, Ananda mul, Nannari
English name 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
 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.

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 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 - 143 006

* Aravindh Herbal Labs (P) Ltd.,

140 Mudangiar Road, 4th KM,
Rajapalayam 626 117

* Dynamic Pharma
5-A, Ganapathy Gouder Lay Out
K.K. Pudur, Coimbatore-38

* Everest Pharma
7, Amruta Nagar, Manik Baug,
Sinhgad Road, Pune - 411 051

* Fadel International Trading

12/1019, Panayappilly
Cochin
Kerala

* Glenn Marketing
113, Sangam Soc.,
Harni Road, Vadodara - 390 012

* Healthy Herbals
Factory & Office :
S. Duraisamypuram
Sindalakarai Post
Ettayapuram Taluk
Thookthukudi Dist.-628 902

Farm : Parambu, Keelamangalam

Ottapidaram Taluk
Thookthukudi District
Tamil Nadu

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* Himalayan Herbals Gramudyog Samiti
814, Sec-16, Panchkula - 160 019

* 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-600 106.

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 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

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 SECTION V

PRICE

Price of Nannari syrup Rs.37.50 paise for 750 ml

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 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

6850
6230
7000
5670

6000

5000
(in million bottles)

4000

3000

2000

1000

0
1998-1999

1999-2000

2000 2001

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
7 Pvt. Ltd.Karnataka
Powdered Soft Drink Concentrate

Indian Market Rs.250 crores

Growth Rate 4 to 5% per annum

* Rasna (Pioma)
Major Brands
* Sunfill (Cococola)

Details on Rasna (Piomas product)

Claimed Market Share 60% in value terms

85% in volume terms
Percapita Consumption 15 glasses
Annual Turnover 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

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 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.

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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-600 106.

Plant/machinery equipment and producers

Washing and drying facilities Spark Engineers Pvt. Ltd.,

Spark Enterprises
5/332, State Bank Colony II
Salem-636 004

Extraction equipment Spark Engineers Pvt. Ltd.,

Spark Enterprises
5/332, State Bank Colony II
Salem-636 004

Bottling facilities Shivsu Watek Private Ltd.

No.14, Spurtank Road
Chetpet,
Chennai-600 031

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 SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirements

Basis: 75000 kg per annum of Nannari syrup

Nannari roots 936 kg

Sugar 48000 kg

Availability

The above raw materials are readily available in the market

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 SECTION IX

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTIONS

Economic Capacity in Tonnes per annum 75.00

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 1.65
1.2. 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 3.84
2.2. Non-factory building at Rs.4500 per sq.m. 2.27
Subtotal 6.11

Cost of Plant and Machinery

Description Cost Rs. In

lakhs
3.1. Cost of basic plant and machinery 10.00
3.2. Instrumentation and control 0.75
3.3. Pipelines and valves 1.00
3.4. Structurals for erection 0.50
Subtotal 12.25
3.5. Octroi excise duty, sales tax, etc. at 12 1.47
3.6. Packaging and insurance charges(2%) 0.25
3.7. Transportation charges (2%) 0.25
3.8. Machinery stores and spares (2%) 0.25
3.9. Foundation charges (2%) 0.25
3.10. Installation charges (2%) 0.25
Total cost of plant and machinery 14.95

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Technical know-how fees Rs.1.20 lakhs

Miscellaneous fixed assets

Description Cost Rs. Inlakhs

5.1. Electrificatiion 1.20

5.2. Steam boiler and auxillaries 2.40
5.3. Water storage tank, borewell etc 0.20
5.4. Fuel storage tank 0.20
5.5. Laboratory equipment 0.20
5.6. Office machinery & equipment 0.20
5.7. Material handling equipment, packaging machinery, weigh 0.20
balance etc.
5.8. Diesel generator 3.20
5.9. Effluent treatment 0.20
Total 8.00

Preliminary &Pre-operative expenses:

6.1. Preliminary expenses 0.40

6.2. Pre-operative expenses:-
6.2.1. Establishment 0.30
6.2.2. Rent rates and taxes 0.40
6.2.3. Travelling expenses 0.20
6.2.4. Interest and commitment charges on borrowing 0.30
6.2.5. Insurance during construction period 0.20
6.2.6. Other preoperative expenses and deposits -
6.2.7. Interest on deferred payment -
Total 1.80

Provision for contingency Rs.1.95 lakhs

Working capital margin Rs.2.60 lakhs

Total Project Cost Rs.38 lakhs

Means of finance (Rs. in lakhs)

Promoters contribution 15
Term loan from financing institutions 23
Total project cost 38

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Financial statements

A. Variable cost Rs. In lakhs

Raw material and utilities 12.32

Spares and maintenance 0.90
Selling expenses 1.88
Total variable cost 15.09

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 13.79

C. Total cost of production (A+B) 28.87

D. Selling price per litre. (In Rupees) 50.00
E. Annual sales turnover 37.50
F. Net profit before tax (E-C) 8.63
G. Breakeven point in % 62

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 SECTION X

SWOT ANALYSIS

Strength Growing demand for the product

since it is considered as a health tonic
Weakness Lack of efforts for certification of the
product
Opportunity To boost demand by innovative marketing
efforts
Threat Substitution from synthetic product

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 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.

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 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

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