PLANTATION AND EXTRACTION OF

ASHWAGANDHA

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT LEVEL

SECTION V PRICE DETAILS

SECTION VI INDIAN DEMAND

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION IX GLOBAL SCENARIO

SECTION X 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

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 SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION

Family Solanaceae

Common Names Ashwagandha (Sanskrit)

Asgand (Hindi)
Indian ginseng
Winter cherry (English)
Amukkirag (Tamil)
Amukkiram (Malayalam)
Asundha (Gujarat)
Amangura (Kannada)
Ashvagandha (Telugu)
Asvagandha (Bengali)

Plant Extract

Withanolides Min 1.5% w/w

Alkaloids Min 1.0 %

Specification

pH of 5% w/v soln. 4 to 6.5

Loss of drying < 5% w/w
Total soluble solids < 90% w/w
Ash content < 15% w/w
Acid insoluble ash < 5% w/w
Bulk density 0.2 - 0.6 g/cc
Lead < 10ppm
Cadmium < 1ppm
Arsenic < 2ppm

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 SECTION II

PRODUCT APPLICATIONS

* Enhances the oxygen uptake in the blood and acts as stimulant Highly esteemed
for its rejuvenating capacity.

* Provides tranquility, calmness and adaptogenic activity

* Used for treatment of rheumatism, gout, hypertension

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 SECTION III

INDIAN MANUFACTURERS

Aswagandha is produced both as extract and as formulations by number of units in the

country mostly in the unorganised sector

The Indian producers and formulators include the following

* Healthy Herbals
S. Duraisamypuram
Sindalakarai Post
Ettayapuram Taluk
Thookthukudi Dist.-628 902

* Sri Srinivasa Herblex (P) Ltd.,

Shed No.6, Phase III
Autonagar, Vijayawada-520 007

* Dr.Jains Forest Herbals Pvt Ltd Mumbai

Ashoka Industrial Estate, Unit No. B-9, Golani Complex.
Vajreshwari Rd, Vasai (E) 401202

* 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

* Care & Cure Herbs Ltd.

787/2, Anna Salai,
T.N.E.B. Avenue,
Chennai-600 002

* 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.

* The Himalaya Drug Co. (HDC)

Makali,
Bangalore-562 123

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* M.M. Herbo Global
A-40, Subhash Nagar,
Jaipur - 302 016

* Pioma Chemicals
217/C, Shyam Kamal
Agarwal Market
Vile Parle (E),
Mumbai-400 057

* Siris Agritech
Opp. Lane to Srinivasa Theatre
Markapur-523 316
Prakasam Dist.
Andhra Pradesh

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 SECTION IV

IMPORT/EXPORT LEVEL

4.1. Import

Period:- April 2000 October 2001

Ginseng Extract including Powder

Total quanity 3012 kgs

Country Quantity in kgs

China PRP 500

Italy 2281
Japan 56
Korea RP 100
USA 75

Other Ginseng Roots

Period:- April 2001 to March 2002

Total quantity 95078 kg per annum

Country Quantity in kgs

Belgium 16943
Canada 300
China P RP 4497
German F Rep 344
Hong Kong 9135
Iran 26650
Japan 3000
Mexico 8000
Thailand 150
UAE 5000
UK 119
Uzbekstan 17940
Vanuatu Rep. 3000

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4.2. Export

Ginseng Extract including Powder

Period :- April - October 2001

Total Quantity : 1908 kg

USA
48%

German F
Rep
52%

Other Ginseng Roots

Period :- April 2001 to March 2002

Total quantity: 867799 kg per annum

Country Quantity in Kgs

Argentina 7000
Australia 100
Austria 4000
Belgium 1400
Brazil 14000
Bulgaria 2500
Canada 17900
China P RP 1000
Finland 2400
France 26882
Germany F Rep 43390
Greece 12300
Hong Kong 2330
Israel 6100
Italy 85430
Japan 28569

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Kazakhstan 6419
Malaysia 55626
Mexico 24000
Netherland 42200
Newzealand 1000
Poland 8000
Portugal 3000
Qatar 300
Russia 5940
Spain 55690
UAE 125
UK 35366
USA 374832

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 SECTION V

PRICE DETAILS

Price of Aswagandha extract Rs.500 per kg

Taxes and duties Extra as applicable

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 SECTION VI

INDIAN DEMAND

6.1 Driving Factor For Demand :

Tonic

Aswagandha is used in several formulations of feel-good TONIC AND revitalizers.

A large number of general purpose tonics are being formulated and used in the domestic
market.

Revitalizer

Aswagandha improves Oxygen uptake. increased oxygen heightens cognitive functioning

naturally.

The brain uses 25% of the body'

s oxygen intake!

When deprived of oxygen, brain functioning is impaired.

Use of Aswagandha helps improve concentration, increase alertness, enhance perceptual

abilities and fight brain fatigue.

Adaptogenic refers to the system of coming back to normalcy. for example after a long
flight by jet.

Aswagandha is a proven Adaptogen and hence can substantially substitute the high
priced Adaptogen in the market - Melatonin.

6.2 Traditional Formulations involving Aswagandha

Immunomodulator/Rasayan Drug, General Tonic in Arthritis.

Ashwagandhadi Churna
Ashwagandha Rasayana
Ashwagandha Ghrit
Ashwagandharishta

Revitalizers Containing:
Aswagandha, Schizandra, Gotu Kola, Pau D'
arco And Ginger

In addition to large internal consumption, the above formulations are also exported to
some extent.

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6.3 A few Complementary Herbs

Combination with Shilajith

Aswajith is a combination of extracts of Aswagandha and Asphaltum (Shilajith), a safe

and inert excipients,

Osogold cap.rejuventive & for sexual debility Swarnabhasma, Makardhwarj shilajit,

Keshar, W.Musali, Ashwagandha, Kuchala, Kaunchablister (strip 10*10c)

Himani boroplus
Marigold,
Daruharidra,
Aswagandha,
Chandan,
Saussurea lappa,
Tulsi,
Karpur
Kachari,
Koravir,
Jasad bhasma,
Guduchi salva,
Tankan amla,
Jatamanshi,
Surasar
Sankha churna.
La-vital
Withania somnifera (Aswagandha) 300 mg.
Asphaltum (Shilajit) 175 mg.
Zinc (Yasad bhasm)25 mg.
Corallium rubrum (Praval bhasm)15 mg.
Jeevani
Withania somnifera
Trichopus zeylanicus (Arogyappacha)
Evolvalus alsinoides (Vishnukranthi)

6.4 Indian demand for Aswagandha extract Around 75 tonnes per annum

6.5 Growth rate in demand 8 to 9% per annum

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 SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Withaferin A

Organ used: roots of Aswagandha.

Withaferin a is the most important of the Withanolides isolated so far, to which the
curative properties of the leaves are attributed.

For its separation, the leaves are extracted with cold alcohol; the extract is purified and
dried, and finally crystallized from aqueous alcohol (yield, 0.18% air-dry basis).

Withaferin A can also be obtained from the leaves by methanolic extraction, fractionation
and chromatographic separation.

The powdered drug is greyish with pungent odour and acid taste.

It is characterized by the presence of a large number of starch-grains, cork-cells, cortical

and xylem-parenchyma, tracheids, and woodfibres.

It is insoluble in water and is administered in the form of suspension

Technology

Agro Technology

Central Institute of Medicinal and Aromatic Plants ( CIMAP ) - Lucknow

Process Technology

* Regional Research Laboratory - Jammu

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Plant and machinery equipment and suppliers

Extractor Kulkarni'
s Hafi Elektra Pvt. Ltd
Post Box No.132,
Thane 400 602

Crystalliser Aristo Engineers

J-3, Vikas Udyog Nagar,
Behind Kasturi Tiwer
Phatak-Goddeo Road,
Bhayander (E), Thane-401 105

Febchem Engineering Works

Plot No.A/2, Sector-A,
Sanwer Road, Industrial Area
Indore-452 003

Dryer Technical Products

Engineers & Manufacturers
159 (O), Vidya Nagari Marg,
Vidyanagari, Kalina
Bombay-400 098

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 SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1 Botanical Trait

Shrub Upto 1.5 m height

Leaves Upto 10 cm long, ovate
Flowers Pale green, small about 1 cm long bunched in
axillary clusters.
Fruit Six mm wide, globose, smooth red, enclosed in
membranous calyx.
Roots Simple and round starch-grains

8.2 Prevalence :

Madhya Pradesh - has cultivation on about 4000 hectares.

Punjab, Rajasthan, Andhra Pradesh and Utaranchal also have significant cultivation.

8.3 Popular commercial varieties

WS-20, WS-22,
Jawahar Asgandh 20,
Jawahar Asgandh 134
Rakshita
Poshita
WSR

The Jawahar variety gives superior yield and in less humid soil.
This has roots 10 cm long and about 2 cm thick. they are woody and bright.

The cultivated variety normally contains more Withanolides though it looks thinner.

Bright, brittle and thick varieties are still preferred in the market.

* Recent research has discovered another species called Nagouri Ashwagandha of

the same family, which is only found in the Nagaur region of Rajasthan.

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8.4 Cultivation Practices

Elevation:

180 to 1700 m above mean sea level

Soil

Grows well in well drained sandy, sandy loam or light textured red soils having
pH 7.5 to 8.

Climatic Condition

Semi arid tropical areas receiving 500 to 750 mm rain fall are suitable
Requires dry season during its growing period

Sowing Period

Month of August

Seeding

Generally sown by broadcasting the seeds(10 to 12 kg per hectare) mixed with sand 10
times the weight of seed.
Seeds germinate in 6 to 10 days after sowing

Harvesting Period

240 to 250 days after planting.

The maturity of the crop is judged by drying out of leaves and reddening of berries.

8.5 Yield

Dried Roots : 1000 to 1200 kg per hectare

Seeds: 75 to 100 kg per hectare

Improved Variety from CIMAP

Poshita Variety

Poshita has a maturity period of 180 to 210 days and yields 1400 kg per hectare of roots
and 3 to 5 kg per hectare of Withanolide

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8.6 Post Harvesting

The entire plant is pulled out

Cut the stem 1 to 2 cm above the crown
Separate the roots
Roots are cleaned and cut into 7 to 10 cm long pieces
Dried as a whole in the sun and stored.

Grading Of Roots -

A grade Root pieces Upto 7 cm in length,1 -1.5 cm dia, solid cylindrical with smooth
external surface and pure white from inside.
B grade Root pieces Upto 5 cm in length,1 cm dia, solid brittle and white from inside.
C grade Solid root pieces 3 to 4 cm in length,1 cm or less dia
D grade Solid root pieces ,semi solid or hollow, very thin, yellowish inside and less than
1 cm in dia.

8.7 Raw material and utility requirement

Raw material

Aswagandha Root 1.88 tonnes

Utility

Total installed Power 60 HP

Fule oil 80 litres

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 SECTION IX

GLOBAL SCENARIO

9.1 Patent issue

US based Natreon Inc. has obtained the US patent in 2000 for the extract of
Aswagandha.

The US patent office has granted a dozen patents in the last five years on Aswagandha
centered findings.

In most cases, a majority of investicators are either Indians or people of Indian origin.

9.2 A few Overseas Players

* Oxygen Research Institute

20 Sunnyside Ave. Suite A-164
Mill Valley, CA. 94941
USA

* Sabinsa Corporation USA

* Nutriscience Innovations Llc USA

* Gorkha Exim (P) Limited, Nepal

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 SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 30 tonnes per annum of Aswagandha extract

Project cost : Rs.77 lakhs

Assessment of project cost

1. Land

S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 0.50 acre at Rs.5.5 lakh per acre 2.75

1.2 Cost of levelling, laying internal roads/fencing and 0.28

compound wall

Subtotal 3.03

2. Building

S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 100 sq.m. at Rs.3200/sq.m. 3.20

2.2 Non-factory building of area 30 sq.m.at Rs.4500/sq.m. 1.35

Subtotal 4.55

3. Cost of Plant & Machinery

S.No. Description Cost

Rs.in lakhs
3.1 Cost of basic plant and machinery 25.00
3.2 Instrumentation and control 1.88
3.3 Pipelines and valves 2.50
3.4 Structurals for erection 1.25
Subtotal 30.63
3.5 Octroi, excise duty, sales tax, etc.at 12% 3.68
3.6 Packaging and insurance charges (2%) 0.61
3.7 Transportation charges (2%) 0.61
3.8 Machinery stores and spares (2%) 0.61
3.9 Foundation charges (2%) 0.61
3.10 Installation charges (2%) 0.61
Total cost of plant and Machinery 37.36

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4. Technical know-how fees Rs.2 lakhs

5. Miscellaneous fixed assets

S.No. Description Cost

Rs.in lakhs

5.1. Electrification 0.80

5.2. Steam boiler and auxillaries 1.50
5.3. Water storage tank, borewell etc. 0.60
5.4. Fuel storage tank 0.60
5.5. Laboratory equipment 0.60
5.6. Office machinery & equipment 0.80
5.7. Material handling equipment, packaging machinery, 0.80
weigh balance, etc.
5.8. Diesel generator 4.40
5.9. Effluent treatment 1.20
Total 11.30

6. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.80

6.2. Pre-operative expenses:-
6.2.1 Establishment 0.80
6.2.2 Rent rates and taxes 0.80
6.2.3 Travelling expenses 0.60
6.2.4 Interest and commitment charges on borrowings 2.00
6.2.5 Insurance during construction period 0.60
6.2.6 Other preoperative expenses and deposits -
6.2.7 Interest on deferred payment -
Total 5.60

7. Provision for contingency Rs.4.14 lakhs

8. Working capital margin Rs.10.25 lakhs

9. Total project cost Rs.77 lakhs

10. Means of finance (Rs. in lakhs)

Promoter's contribution 31
Term loan from financing institutions 46
Total project cost 77

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11. Financial statements

A Variable cost Rs. in lakhs

Raw material and utilities 41.93

Spares and maintenance 2.24
Selling expenses 7.50
Total variable cost (A) 51.67

B Fixed cost

Salaries and wages 12.00

Interest on term loan and working capital loan 13.88
Depreciation 5.04
Administrative expenses 4.50
Total fixed cost (B) 35.42

C. Total cost of production (A+B) 87.09

D. Selling price per kg. (in Rupees) 500.00

E. Annual sales turnover 150.00

F. Net profit before tax (E - C) 62.91

G. Breakeven point in % 36

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 SECTION XI

SWOT ANALYSIS

Strength Ready availability of raw material

Weakness Inadequate product standardisation

Opportunity Excellent demand potential

Threat Difficulty in penetrating export market due

to competitive conditions

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 SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATION

There are several plants that have Adoptegenic characteristics such as the following.

American Ginseng (Panax Quinquefolius)

Korean and Chinese Ginseng (Panax Ginseng, C.A.Meyer)

Devil'
s Bush (Eleuthrococcus Senticosus) so-called "Siberian Ginseng"

Aswagandha (Withania Somnifera) Indian Ginseng

Aswagandha taking its due share in the general tonic market depends on market
innovative approach of the application developers of the herbal industry. Demand for the
formulated products, efficacy being the same, depends only upon the concept promotion
and experts'backing.

The Ayurvedic Rejuvenative formula Chyavanaprasa contains large amounts of

Ashwaganda and Amla which are the main tonic herbs.

Adaptogenics industry is rapidly growing.

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