Project Report – Herbal Processing Plant Sector: Forest, Environment and Herbal Project Title: Processing Plant for Wild Medicinal and Aromatic Plants Project Description Associated side effects and high cost of allopathic medicines are key reasons, herbal medications are being increasingly preferred over their synthetic counterpart. Around the world herbal industry is growing faster than the traditional pharmaceutical industry. India has a thriving herbal industry and there is a high potential for Indian herbal medicines and Ayurvedic formulations in the international market.
Madhya Pradesh (MP) is the forest capital of India with a rich base of Medicinal and Aromatic plants (MAPs) and wild flora with potential medicinal properties. To leverage the State’s inherent treasure, the Government of Madhya Pradesh proposes to establish a high-end herbal processing plant. Equipped with Stateof-the-art facilities, it would employ modern processing technology for collection, drying, extraction, formulation, preservation and storage of the herbs and other active principals from MAPs.
The plant would be set up on 2 acres of land and apart from the basic processing of raw herbs would have following specialized functional units: 1. Extraction unit for Neem and other non-volatile oils 2. Aloe Vera gel and powder unit 3. Volatile oil extraction unit 4. Herbal extraction plant
The facility would be a cGMP (current Good Manufacturing Practices) compliant processing unit. The quality control laboratory of the plant would facilitate standardization of active ingredients and formulations and would monitor their compliance with stringent international quality, efficacy and potency standards imperative for exports. The key Target Markets would be: 1. Domestic herbal formulation industry 2. Herbal cosmetics industry 3. Exports
Project Report – Herbal Processing Plant Project Rationale The inherent herbal treasure of Madhya Pradesh provides ample opportunities to position it as key herbal processing center of the Country. Presently the herbal traders in the State are primarily engaged in cultivation and collection of raw herbs and supply them as raw material to the herbal formulation units across the Country.
A modern processing plant with State-of-the-art analytical, standardization and quality control functions would enable processing of raw herbs into value added products and formulations and would assist the State in realizing high value margins in the domestic and international market.
Market Potential and Demand Dynamics As per the World Health Organization (WHO) estimates 80% of the world population depends on herbal medicine for their primary healthcare needs. In 2004 the global trade in herbal medicine was estimated around USD 60bn increasing with an annual growth rate of 15%. The industry is expected to attain a value of USD 5 trillion by 2050. The demand for herbal medicine is especially high in European Union (EU) and United States (US). These two markets are the key driver of global herbal trade. Global Demand of Medicinal Plant
USD 5 Tn
USD 60 bn
Source: WHO Estimates
Presently, India contributes less than 1% Break up of Ayurvedic Export Market to the global herbal market however it is fast emerging as a key supplier of Crude herbs Finished 60% Products medicinal plants across the globe. The 30% present value of the entire ayurvedic production in India is estimated around USD 1 bn while annual exports are Partially Prepared pegged at USD 100 mn. Of the total 10% exports 60% is crude herbs, 30% is finished product shipped abroad for direct sales to consumers, and the remaining 10% is partially prepared products to be finished in the foreign countries. Apart from the traditional herbal formulations, cosmetics and neutraceuticals are two upcoming opportunity segments which are expected to be the future growth drivers of the herbal industry.
Project Report – Herbal Processing Plant...
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