Project report for Ayurvedic Medicines

Introduction

Ayurvedic medicines are being popular day by day because these medicines used in the treatment of all kinds of diseases.   Ayurvedic system of medicine is as old as the Vedic age. Nowadays people give preference to Ayurvedic medicines as the   Allopathic medicines are costlier and have side effects. Ayurvedic medicines are based on plants, animal extracts, and minerals both in single-ingredient drugs and compound formulations. Basic raw materials used in the formulation of ayurvedic machines are mainly planted origin hence consumption of ayurvedic medicine does not produce any major adverse effect on the body besides the use of allopathic medicines may cause harmful effect on kidney, liver, intestines, along with some allergic effect to the skin.  

Products Aristha, Awleha, Churna, chyanpras, and taila are the common drugs of the present era & these medicines may be used without a doctor's prescription. The Ayurvedic drugs are derived from vegetable sources from the various parts of the plant like root, steam. leaf, flower, fruit extract, or plant as a whole. There are about 21 varieties of compound formulations in which some of the single drugs of animal origin   ( 52 nos.), Mineral origin (55 Nos.), and plant origin (351 Nos.) are used. The details of the single drugs and other particulars can be had in the Ayurvedic Formulary of India, published by Govt. of India, Ministry of Health and Family Welfare.                                            

Product / Services & process

Ashokarishta, Lakhibilas, Lavan Bhaskar, Chyavan Prash, Gandhakadi Malham

1. Arishta & Asava: Asavas and Arishtas are made by soaking the herb either in powder form or in the form of decoction (Kasaya) in a solution of sugar or jaggery, as the case may be, for a specific period, during which it undergoes a process of fermentation generating alcohol and facilitate the extraction of the active ingredients contained in the drugs. The alcohol so generated, also act as a preservative.

a) Aristha : The drugs in the text are coarsely powdered and kasaya is prepared. The kasaya is strained and kept in a fermentation pot, sugar or honey according to the formula is dissolved, boiled, and added. Drugs mentioned as praksepa dravyas are finely powdered and added. In the end, dhataki puspa, if included in the formula, should properly clean and added. The mouth of the pot, vessel, or barrel is covered with an earthen lid and the edges sealed with clay smeared cloth in seven consecutive layers. The container is kept either in a special room, in an underground cellar, or a heap of paddy, to ensure that for the duration of fermentation, as far as possible, a constant temperature is maintained, since varying temperatures may impede or accelerate the fermentation. After the specified period, the lid is removed and the contents examined to ascertain whether the process of fermentation (sandhana) has been completed. The fluid is first decanted and then strained after two or three days. When the fine particles settle down, it is a strained and bottled.   

 b) Asava : The required quantity of water, to which jaggery or sugar as prescribed in the formula is added, is boiled and cooled. This is poured into the fermentation pot, vessel, or barrel. Fine powder of the drugs mentioned in the formula is added. The container is covered with a lid and the edges are sealed with clay smeared cloth wound in seven consecutive layers. The rest of the process is as in the case of Arista.

2. Rasayan Rasa or Rasa Yoga : Ayurvedic medicine containing mineral drugs as main ingredients are called Rasa Rasayan or Rasa-Yoga. They are in pill form or powder form. First minerals such as Abhraka. Drugs such as abhraka maksika, svarna, rajata, tamra, karmsya, etc. are used only in bhasma form in these preparations. Drugs such as gandhaka, manahisila etc. are used in purified from. Where rasa and gandhaka are drugs, kajjali (Mixture of equal amount of sulphar & mercury) is prepared first with these tow and then only other drugs are added in small quantities and ground in the khalva itself and mixed well.

3. Goggula:  Ayurvedic medicines prepared from and exudate (Niryasa) obtained from the plant commiphara mukul, are known as Goggula. There are five different varieties of goggula in Ayurvedic shastra. But usually two varieties, mahisakasa and kanaka are preferred for medical preparation. Exudate in small pieces are taken in a piece of cloth and boiled in gomutra or Dugdha or Triphala kasaya until the exudate passes into the fluid through the cloth to the maximum. The fluid after filtering is boiled till it forms a mass. After drying the mass is formed into a paste by adding ghee till it becomes waxy

4. Taila: Taila are prepared by boiling prescribed kasayas (decoction) and kalkas of drugs in oils according to the formula prescribed in Ayurvedic formulary. In normal practice taila oil is used as basic oil for the preparation of such Ayurvedic oils. There are generally three essential components for the preparation of sneha (ghrta or taila) viz: i) drava ( a liquid which may be one or more as kasava, svarasa, dugdha, mastu, etc.); ii) kaka ( a fine paste of the drugs(s); iii) sneha dravya (ghrta, taila, etc.).

5. Parpati: The first kajjali is prepared with purified Mercury and Sulphur. Other drugs mentioned in the formula are added one by one and filtered by trituration in khslbs. The powder was put in an iron vessel and kept over a fire in the sikatayantra. A shallow pit in fresh cow dung is made and a kadali leaf or an Aranda leaf is spread over the pit. When the medicine melts and becomes liquid it is poured on the lead carefully. Another leaf is covered over it and fresh cow dung is spread and gently pressed. After it is allowed to cool the flakes of the medicine are removed and powdered. The other drugs as per the Ayurvedic formulary are added and mixed well in the grinder.

6. Lauha: Lauha kapas are preparations of Loha Bhasma as the main ingredient with other drugs. The other active ingredients are made into a fine powder and mixed with Loha Bhasma. The drugs are reduced to a fine powder and mixed with loha bhasma. Bhavana is given with prescribed liquids if mentioned.

7Vati or Gutika: Ghrita is preparations in which ghee is boiled with prescribed kasayas (Decoction) and kalkas of drugs according to the formulation as per Ayurvedic formulary.

8. Avaleha Modak Paak:- Avaleha or Lehya is a semi-solid preparation of drugs. These are prepared by the addition of jaggery sugar or sugar candy and boiled with prescribed drug juices decoction. Honey, if required, is added when the preparation is cold kand mixed well. These preparations generally have (1) kasaya or other liquids, (2) jaggery, sugar or sugar candy, (3) powders or pulps of certain drugs; and (4) ghee, of oil and honey, Jaggery, sugar or sugar candy is dissolved in the liquid and strained to remove the foreign particles. This solution is boiled over a moderate fire. When the paka (Phanita) is thready (tantumat) when pressed between two fingers of when if sinks in water without getting easily dissolved, it should be removed from the fire. Fine powders of drugs are then added in small quantities and stirred continuously and vigorously to form a homogenous mixture well. Honey, if mentioned is added when the preparation is cool and mixed well.

9. Churna: Churna is a fine powder form of drugs. All the herbs and other active ingredients are cleaned, dried, and powdered together by mechanical means, to the fineness of at least 80 mechs. Drugs mentioned in the Yoga are cleaned and dried properly. They are finely powdered and sieved. Where there are several drugs in yoga, the drugs are separately powdered and sieved. Each one of them (powder) is weighed separately, and well mixed. As some of the drugs contain more fibrous matter than others, this method of powdering and weighing them separately, according to the yoga and then mixing them, is preferred separately, according to the yoga and then mixing them, is preferred.

Raw materials / Consumables

All the raw materials such as herbs, minerals, etc. for the preparation of Ayurvedic medicines are available in India abundantly, particularly in N.E. Region and Himalayan Range as a whole.

Market potential & Strategy

There are more than 500 Pharmaceuticals Industries are working in the state of Haryana. Approximately  200 out of 500 units are engaged in manufacturing Ayurvedic medicine. Since ancient times India is a preacher for Ayurvedic medicines and their use for mankind. Earlier their use was only confined to the rural area, but due to increasing side effects of allopathic medicines use of such type medicines increasing both in rural and urban areas and demand for Ayurvedic medicines is increasing to date. The rural areas are still using Ayurvedic medicines for the treatment of their sickness and only in chronic disease cases use to take allopathic medicines. 

There are some Ayurvedic units known by this office & are engaged in manufacturing various types of ayurvedic drugs. These units are selling their products in the adjoining states. The states like Himachal Pradesh, Western U.P. hills, Jammu & Kashmir, Jharkhand, Western ghats, etc have abundant raw materials used in the manufacturing of Ayurvedic medicines. Hence, by seeking the demand of Ayurvedic medicines and in the overseas market, installing Ayurvedic medicines manufacturing units is the demand of the hour.           

Name & Address of Unit

Ayurvedic Medicines

Address

Details of unit
Email : [email protected]
Phone : 0000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 0000000
Designation : Proprietor
E-mail : [email protected]
Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33
Net profit Sales %
Quick ratio
Revenue v/s Expense
Expense Splitup
Sl. no Item Amount Rs
1 Building advance *******
2 Other equipments *******
3 Testing equipments *******
4 Water treatment/Distillation plant *******
5 M.S. pastle & Motor *******
6 S.S. mixing Vessel with stirrer Cap. 200 ltrs. *******
7 Bottle Sealing Machine *******
8 Bottle filling machine *******
9 Tableting machine *******
10 Earthen Pots with lid for bhasma production cap. 2 kg. *******
11 M.S. Vat cap. 750 kg *******
12 Wooden vessel for fermentation with lid, Cap. 50 ltrs *******
13 Wooden vessel for fermentation with lid, Cap. 50 ltrs *******
14 Disintegrator with 7.5 Hp size with sieve of different mesh size *******
15 Pulveriser with 7.5 Hp and 2.5 HP motor *******
16 Computer, CCTV, Printer *******
17 Computer tables and furnitures *******
18 Electrification *******
19 Preliminary expenses *******
20 Working Capital *******
Total *******

 

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Sl. no Item Rate Quantity Unit Total Rs
1 Arishta ******* X 21600 Metre *******
2 chyavanaprash ******* X 18000 Metre *******
3 Tablets ******* X 93600 Metre *******
Total *******

Sl. no Item Amount Rs
1 Rent *******
2 Salary *******
3 Repairs & Maintanance *******
4 Electricity *******
5 Office expense & utilities *******
6 Raw material purchase *******
7 Marketing/Advertisement *******
Total *******
Sl. no Item Subsidy % No. Rate Amount Rs
1 Building advance ******* 1 ******* *******
2 Other equipments ******* 1 ******* *******
3 Testing equipments ******* 1 ******* *******
4 Water treatment/Distillation plant ******* 1 ******* *******
5 M.S. pastle & Motor ******* 1 ******* *******
6 S.S. mixing Vessel with stirrer Cap. 200 ltrs. ******* 1 ******* *******
7 Bottle Sealing Machine ******* 1 ******* *******
8 Bottle filling machine ******* 1 ******* *******
9 Tableting machine ******* 1 ******* *******
10 Earthen Pots with lid for bhasma production cap. 2 kg. ******* 12 ******* *******
11 M.S. Vat cap. 750 kg ******* 1 ******* *******
12 Wooden vessel for fermentation with lid, Cap. 50 ltrs ******* 25 ******* *******
13 Wooden vessel for fermentation with lid, Cap. 50 ltrs ******* 1 ******* *******
14 Disintegrator with 7.5 Hp size with sieve of different mesh size ******* 1 ******* *******
15 Pulveriser with 7.5 Hp and 2.5 HP motor ******* 1 ******* *******
16 Computer, CCTV, Printer ******* 1 ******* *******
17 Computer tables and furnitures ******* 1 ******* *******
18 Electrification ******* 1 ******* *******
19 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******
Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Less :
Opening stock ***** ***** ***** ***** *****
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****
Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 ***** ***** ***** ***** *****
Subsidy ***** ***** ***** ***** ***** *****
Termloan ***** ***** ***** ***** ***** *****
Profit before tax with interest ***** ***** ***** ***** ***** *****
Increase in WC loan ***** ***** ***** ***** ***** *****
Depreciation ***** ***** ***** ***** ***** *****
Increase in Current liability ***** ***** ***** ***** ***** *****
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing ***** ***** ***** ***** ***** *****
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow ***** ***** ***** ***** ***** *****
Closing balance ***** ***** ***** ***** ***** *****
Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus ***** ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan ***** ***** ***** ***** ***** *****
Account payable ***** ***** ***** ***** *****
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory ***** ***** ***** ***** ***** *****
Trade receivables ***** ***** ***** ***** ***** *****
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****
Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit ***** ***** ***** ***** *****
b).Depreciation ***** ***** ***** ***** 0.30
c).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Repayments
a).Loan Principal ***** ***** ***** ***** *****
b).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
DSCR ***** ***** ***** ***** *****
Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building ***** ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Computers/ Printers /Photocopier/Electronic gadget 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Furniture & fixtures 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Racks & storage/Interior works 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new item 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Air-conditioning 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Other investments 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Total less depreciation ***** ***** ***** ***** *****
Total written down value ***** ***** ***** ***** *****

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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