PROJECT PROFILE MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE AT TPI, PUNALUR. Prepared by: INKEL LIMITED

Transcription

1 PROJECT PROFILE ON MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE AT TPI, PUNALUR Prepared by: INKEL LIMITED 2012 MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 1

2 PROJECT PROFILE FOR MEDICINAL PLANTATION & PROCESSING AT TPI, PUNALUR 1. INTRODUCTION 1.1 About INKEL INKEL Limited, a Public-Private Enterprise was formed by Government of Kerala (GoK), with 26% stake and 74% with private participation - general public, NRKs, institutional investors etc. Primary objectives of INKEL are to promote, set up, operate and deal with infrastructure facilities, projects and ventures across sectors including SEZs, industrial parks / estates, knowledge parks, roads, rail, port, airport and other facilities. INKEL also acts as a key link between GoK and private sector in facilitating and developing infrastructure, primarily in the State of Kerala. 1.2 Brief of the Project Centre of Excellence for Ayurvedic Medicines on a Hub and Spoke Model is proposed. An Ayurvedic hospital cum resort with Ayurvedic medicinal plantation, R&D /documentation /IPR /manufacturing /processing is proposed at Punalur as a Hub. A chain of Ayurvedic treatment/resort centres shall be attached as spokes in strategic locations across the state. The Hub at Punalur shall offer Disease based treatments, Wellness treatments and Panchkarma treatments, cultivate and manufacture branded medicines and supplies them to all its therapy centres. The Luxury, Economy and High end Therapy centres as spokes across Kerala shall also promote Allopathic medicines and treatment, offering a holistic medical solution making available integrated Ayurvedic Healthcare centres in the State. Expert consultation and time tested therapies of Kerala by experienced doctors and trained therapists. The project aims to provide its customers the most comprehensive Ayurveda and healthcare solutions at affordable prices. The chain of Ayurveda Therapy Centre and Herbal Cafe combined as a concept and offered as a Unique Selling Proposition (USP) has been developed to widen the appeal of Ayurveda and herbal remedies among all age groups. Ayurvedic Medicine & Food Supplement Processing Centre Processing facility proposed at Punalur, shall produce a wide range of classical and proprietary Ayurvedic medicines, including therapeutic formulations and Food supplements. Clinics, resorts and wellness centers shall offer a full range of Ayurvedic lifestyle products, including health supplements, skin and beauty care products, specialty foods, teas, spices, books and CDs. MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 2

3 Strategic location of processing facilities facilitates the easy procurement and timely utilization of fresh herbs. GMP (Good Manufacturing Practices) certified with all modern manufacturing facilities to manufacture all types of ayurvedic formulations, most hygienically and in strict adherence to the prescribed norms coupled with the meticulous selection of raw materials provides genuineness and efficacy to all products. The products proposed to be manufactured in INKEL Ayur Vaidyasala Ltd. are classified into three categories: INKEL Branded Classical Medicines These are formulations manufactured based on the Ayurvedic Formulations of India. This is developed from 3000 years old scriptures. In IAL we follow the traditional method for manufacturing these products. INKEL Branded Proprietary Medicines These medicines are manufactured based on the formulas developed by IAL R & D division. The products are clinically tested by Clinical Trial, Animal trial etc before launching in market. INKEL Branded Food Supplements 2. MARKET VIABILITY Kerala has been at the forefront of Ayurvedic revolution in the country, endowed with rich biodiversity because of its natural topography comprising of all three biomes hills, plateaus and coasts. The state government has established R&D and educational infrastructure for further developing the science of traditional medicine, and also took the lead in promoting health tourism which has been equally popular among Indian as well as foreign tourists. Government of Kerala offers subsidy and tax holidays to promote Ayurveda as a tourist crowd puller. As per World Health Organization (WHO) estimates, almost 80% of the population of developing countries relies on traditional medicines, mostly plant drugs, for their primary health care needs. In fact it is well known that even in developed countries, the use of traditional medicines is quite prevalent. Also, modern pharmacopoeia still contains at least 25% drugs derived from plants and many others which are synthetic analogues built on prototype compounds isolated from plants. Medicinal plants have been identified as one of the thrust areas by the Ministry and different programmes have been initiated for conservation of medicinal plants found in the forests and protected areas as well as cultivation of these plants in the degraded forest areas. 3. PROJECT PARAMETERS MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 3

4 3.1 Capacity/Area.Ayurveda Manufacture Industry Structure There are three types of Ayurveda manufactures: 1. Truly traditional, in terms of systems, practices and products. These are largely self-regulated entities, growing on the basis of track record and credibility and do not consider it necessary to scientifically validate their product and systems. Such units can grow only up to a point, beyond which they require modern methods of manufacture, distribution and R&D. 2. Companies adapted to meet modern life styles, manufacturing and marketing methods. These companies draw upon traditional knowledge and also have the ability to grow, by accepting modern technology. Nonetheless, their products are neither wholly traditional nor entirely modern and need scientific rationale. 3. Companies that use traditional systems as leads to news drug either as standardized extracts or as pure isolated active ingredients, which have been scientifically validated. These companies combine the essence of both systems to achieve global presence. However, they face regulatory problems, have relatively longer gestation and are more expensive. They also face the constraints in them of having to validate traditional system based products by modern methods. Manufacture of Ayurvedic medicine in its modern incarnation is over a century old in India. Major players in the Ayurveda sector are Kottakkal Arya Vaidya Sala, Kerala Ayurveda Pharmacy, Aluva and Nagarjuna. Overall, however, the Ayurveda industry in India and indeed in Kerala is highly unorganized and comprises mostly of the cottage/small-scale sector. Processing units Two types of processing units are envisaged. The first level of processing will be carried out at Collection Centres/Pack Houses. Once the produce is collected at the farms or from wild sources, the same must be properly handled prior to being taken to well equipped processing centres, or for direct exports. Such centres will be equipped with facilities for cleaning, drying under controlled conditions, sizing, grading and sorting, packaging (including consumer packs) and storage. These units will also be suitably linked with adequate storage and arrangements for transport to move the packaged produce for further processing or export. It is proposed to set up at least 5 such processing unit in each district attached to the local Ayurvedic Therapy centres. The total cost of setting up 5 such processing units is estimated at Rs. 15 lakh, of which an assistance of Rs. 2.5 lakh is available availed under the existing scheme of APEDA/MFPI. The balance MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 4

5 amount of Rs lakh is to be arranged by farmers/private entrepreneurs, of which soft loan assistance up to Rs. 5 lakh can be availed from the state financial institutions (KSIDC/KFC). Processing units for value added products As there is a growing potential for exports of extracts and concentrates of medicinal plants, it is proposed to set three such processing units, for processing the medicinal plants to produce extracts and concentrates meeting the international standards of quality and hygiene. These units will have facilities for multipurpose facilities for grinding, crushing, solvent extraction, distillation, and anti microbial treatment etc. The cost of setting up of such processing unit is estimated at Rs. 1 Crore of which subsidy available under the existing scheme of APEDA/MFPI and soft loan could be availed. Quality system implementation It is also important that the processing units (dry as well as value added products), to be set up adopt and implement the quality systems as per international standards like Codex, PFA etc., so as to compete with other developed countries. An expenditure of Rs. 2 lakh per collection centre and Rs. 4 lakh per processing unit has been envisaged for implementation of quality systems for which 50% can be contributed by APEDA and balance should be paid by the respective units. Medicine Manufacture of Herbal oils, Ayurveda medicines and patented products in GMP (Good Manufacturing Practices) certified units to cater to the following Market Segments: Herbal products can be classified into five strategic areas as under: Phyto-Pharmaceuticals: These are drugs containing isolated pure active compounds derived from medicinal plants for treatment of a large number of diseases. Medicinal Botanicals / Botanical Extracts /Herbal or Dietary Supplements: These are whole plants or plant part extracts used for maintenance of health. Europe and North America together accounting for 63% of the world market. Nutraceuticals: These are foods containing supplements from natural (botanical) sources that deliver a specific health benefit, including prevention and treatment of diseases. These are gaining popularity in USA and West Europe. Cosmeceuticals: These are cosmetic products containing biologically active ingredients. Herbal raw material: This is a very large market but no estimates are available. The Medicinal Preservation & Processing Centre is proposed in 5 Acres of land with the following project components: MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 5

6 Medicine Processing Plant Post Harvest Preservation Farmer Training Centre Collection & Distribution Centre Market Development Centre Processing Plant capacity of 1000 TPA is proposed at Punalur. 3.2 Land The project is proposed in 43.5 acres of land where Travancore Plywood Industries (TPI) factory was functioning earlier located Piravanthur Village, Pathanapuram Taluk, Punalur, Kollam District. The site presently has old and new factory buildings, office and staff quarters. Punalur is a hilly town and a municipality in Kollam district in the southern state of Kerala, India. It is the second largest town in Kollam and is one of the industrial towns in Kerala. It is situated 45 km north-east of Kollam and 75 km north of Thiruvananthapuram. Punalur is the head quarters of Pathanapuram Taluk. This place is the gateway to Western Ghats and it is connected to the towns of Tamil Nadu like Tenkasi. The Project (Hub) location is at the eastern side of Kollam district which is mostly agriculture dominated. This will help the agricultural production in that area. The site presently has old and new factory buildings, office and staff quarters; with a back drop of reserve forest is ideally suited for the project. Medicinal plants have been identified as one of the thrust areas by the Ministry and different programmes have been initiated for conservation of medicinal plants found in the forests and protected areas as well as cultivation of these plants in the degraded forest areas. 3.3 Utilities & Facilities This would include Utilities like water, power, etc. basic infrastructure like internal roads, Parking area, Security, Sewage Treatment Plant (STP), landscaping, pedestrian streets and other services required for the complex. 3.4 Cost of the Project The estimated project cost for the development of proposed Centre of Excellence at Punalur would be Rs. 100 Crore. The estimated project cost the processing plant at Punalur is Rs. 7 Crore. Cost break up is as follows: MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 6

7 Plant & machinery: Other Facilities: Rs. 5 Crore Rs. 2 Crore 3.5 Mode of Implementation & Schedule The land will be taken over by INKEL on long term lease from KINFRA with mortgage and sublease rights. Medicinal Plant post harvest preservation and processing facility shall be set up under Central Government Funding by a Project specific SPV partnering with reputed players in the field. The Project is expected to be completed in 2 years, from the date of obtaining all the clearances and approvals, in a phased manner. The project will be ready for occupation by Project Viability Demand for medicinal plants is increasing in both developing and developed countries due to growing recognition of natural products being non-narcotic, having no side-effects, easily available at affordable prices and sometime the only source of health care available to the poor. Medicinal Plant Preservation & Processing in the Hub at Punalur ensures synergy and enhances the marketability of the project. All these factors related to the project may fetch a return of more than 25% to investor or to the operators of the project. 4. CONCLUSION 4.1 Investment Opportunity Equity investment in the project Long term loan for the project Short term loan for the project Long Term Lease of Land Parcels for development and operation of medicinal plant preservation & processing under Developer Agreement for a specific period Long Term Lease of Built up space as an investment opportunity as the property rates at Punalur would appreciate manifold in near future which will in turn fetch more return to the investor. Commercial Space on long Term Lease for setting up of Ayurvedic Medicinal plant preservation & processing facility with right to sublease and mortgage. Investment & Management Contract as a package for the Ayurvedic Medicinal Plant preservation & processing facility MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 7

8 Operations & Management of Ayurvedic Medicinal Plant preservation & processing facility on Management Contract by reputed agencies 4.2 Role of INKEL INKEL would provide end to end solution from conceptualization to commissioning including obtaining statutory clearance and approvals required for the project, PMC, O&M, etc on a predetermined fixed fee. Also INKEL can implement and operate the entire project on behalf of the investor based on mutually agreeable terms. In this case, investor needs to only bring in the capital. Disclaimer: The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is only indicative and may not reflect the realities of an actual project. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by INKEL or any entities thereof. Please contact INKEL for further details: MEDICINAL PLANT PRESERVATION & PROCESSING CENTRE, TPI Page 8