INDIAN AYURVEDIC MEDICINE IN INTERNATIONAL MARKET

Presented By:-

Himanshu Bh. BagBiswajit PandaBibekana. Mishra

THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies.

It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.).

The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine.

The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.).

CONT… Most of the larger Ayurvedic medicine

suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries.

The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest:

Dabur India Ltd.

It is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG.

It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly non-medicine items such as foods and cosmetics.

Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88% share. Other major products are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).

Sri Baidyanath Ayurvedic Bhawan Ltd.

(Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo.

Baidyanath has a sales volume of about 350 million dollars, but most of the product sales are in the cosmetic range.

The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Included items are herbal teas, patent medicines, massage oils, and chyawanprash.

Zandu Pharmaceutical Works

was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic.

The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later).

However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars.

One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business level of

about 500 million dollars and has a U.S. distribution division (Himalaya USA).

It is known in the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first marketed in India in 1955.

Charak Pharmaceuticals

was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies.

It has gained a large advantage with its new product Evanova, a preparation containing 33 herbs and minerals and non-hormonal active ingredients used as a menopause treatment alternative to HRT. Soya is one of the main ingredients in this product.

The product also contains Ayurvedic herbs that act like selective estrogen receptor modulators as well as asparagus root (shatavari), which reduces the frequency and intensity of hot flashes.

Vicco Laboratories was established in 1958. It mainly produces topical therapies

based on Ayurveda and is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.

The Emami Group

, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.

Aimil Pharmaceuticals Ltd. incorporated in 1984 and engaged in

manufacturing and sale of both generic and proprietary Ayurvedic medicines, with a business level of about 20 million dollars annually.

Its wide range of Ayurvedic herbal formulations, covering most therapeutic segments, was honored by the Indian government's National Award for Quality Herbal Preparations and National Award for R & D in the year 2002.

It is known for its proprietary formulas for hepatitis, diabetes, menstrual disorders, digestive disorders, and urinary diseases.

GLOBAL OPPORTUNITIES India is called “Botanical Garden of the world” as it is

the largest producer of medicinal herbs. Out of more than 25000 plants of medicinal value, only 10 % are used for their medicinal value. Around 1800 species are systematically documented in the codified Indian systems of medicine.

The opportunities are enormous in India the only constraint is this system is not recognized in most parts of the world legally as a system of medicine /health care, allowing qualified doctors to practice the profession, advise & prescribe Ayurvedic & Herbal medicines & neutraceuticals.

Whatever is happening in few countries is due to individual efforts in personal capacity & success stories heard some time. A new model & statutory clearances for facing this challenge is now required. Recent developments in Italy and U.K. with Lord Walton Committee, the coming up European law on traditional medicines are all putting more challenges & requirements to be met.

Global Market Total global herbal market1 is of size 62.0 billion dollars, in this

India’s contribution is only one billion dollars. The table in annexure 5 explains the position of India in the global market. European union is the biggest market with the share 45% of total herbal market. North America accounts for 11%, Japan 16%, ASEAN countries 19% and rest of European Union 4.1%. Countries like Japan and China have successfully marketed their traditional medicines abroad.

India has 16 Agro-climatic zones, 10 vegetative zones, 15 biotic provinces, 426 biomes, 45000 different plant species and 15000 medicinal plants that include 7000 ayurveda, 700 in Unani medicine, 600 in Siddha medicine and 30 in modern medicine.

This makes India one among 12 mega biodiverse countries of the world, which despite having only 2.5 % total land area, accounting for over 8 % of the recorded species of the world. The forecast is that the global market for herbal products is expected to be $5 Trillion by 2050. Herbal remedies would become increasingly important especially in developing countries. India, with its biodiversity has a tremendous potential and advantage in this emerging area.

Global Herbal Market• The exports of Ayurvedic and Unani medicines put up for retail

sale to other countries have increased from Rs. 17 crores in 1992-93 to 98 crores in 1998-99.

• In USA our exports have increased from Rs.47 lakhs in 1992-93 to 8 crores in put up for retail sale. USA has stringent rules for the imported products that are used for consumption.

• These medicines are not exported under the category of medicines but find their way in US market as food supplements and herbal products. Similarly in UK the Indian exports of these products have increased from mere 5 lakhs of rupees to above one crore from the year 1992-93 to 1998-99.

• European Union is the biggest market in global herbal products. Indian products to other countries like Germany, France, Italy and Netherland have also increased.

• In 1992-93 Germany was the biggest importer of the ayurvedic and unani medicines followed by Nigeria but their importance decreased drastically in terms of share of the exports of Indian Ayurvedic & Unani products.

• Russia was the biggest importer and destination market for Ayurvedic and Unani products in 1996-97. Russia is one of the most important partners for India in the exports of Ayurvedic and Unani finished products. The exports for Ayurvedic and Unani medicines have been increasing but nothing can be predicted from the yearly exports because that has been fluctuating.

Retail sales of food supplements 1995

vitamins; 55%

garlic; 15%

herbal ex-tracts; 15%

spirulin; 5%

ginseng; 5%

other; 5%

Global Herbal Market

Market Size(US $ Bill.)

Percentage(%)

European Union 28 45

Rest EU 2.4 4

ASEAN 10.8 19

Japan 9.8 16

N. America 6.9 11

Others 4.1 7

Total 62 100

Global Herbal Market

EU; 43%

Rest EU; 4%

ASEAN; 19%

Japan; 16%

N. America; 11%

Others; 7%

Ayurvedic and Unani medicines put up for retail sale (in RS) Rs.)Countrie

s92-93 95-95 96-97 97-98 98-99

Total exports

176292928

424214474

985250139

1187745520

988464125

USA 4766571 64606806 89087644 57041075 80938318

Germany 28346637 3888107 26861438 36783776 21337041

France 2952406 13290884 4097484 9454601 10935001

Indonesia 3633328 267946 326231 343024 212122

Malaysia 2283376 490054 4090953 16142395 26275355

Nepal 8914101 14424140 196148983

195891565

135830649

Afghanistan

269405 119651394

10845568 1556984 37367553

Nigeria 17112390 396296 21658317 33441277 42769017

Russia 33681914 283099310

321222322

91459600

UAE 3464164 56160925 15013379 6045456 24163108

Sri lanka 2799840 7777763 11421384 9066244 7200747

UK 561454 7397701 19230117 80074433 14138195

Relative position of the countries in Ayurvedic &Unani exports in different years92-93 94-95 96-97 97-98 98-99

Germany Nepal Russia Russia Nepal

Nigeria USA Nepal Nepal Russia

Nepal Russia USA UK USA

USA Nigeria Germany USA Nigeria

Indonesia Malaysia Nigeria Germany Afghanistan

UAE Germany UK Nigeria Malaysia

France UAE UAE Malaysia UAE

Sri Lanka Sri Lanka Sri Lanka France Germany

Malaysia UK Afghanistan Sri Lanka UK

UK Indonesia France UAE France

Afghanistan Afghanistan Malaysia Afghanistan Sri Lanka

Russia France Indonesia Indonesia Indonesia

61%19%

3% 5%

12%

Use of Herbal Sup-plements

NeverOccasionallyMonthlyWeeklyDaily

7%3%

23%

18%

49%

Use of Vitamin and Mineral Supplements:

NeverOccasionallyMonthlyWeeklyDaily

Glucosamine

Co-Enzyme Q10

Grape Seed Extract

0 50 100 150 200 250 300 350 400392

325239

185160

148129

121115114109

9172

Series2Type Sales in Millions of dollars/Year

SALES OF DIETARY SUPPLEMENTS IN US

19941995

19961997

19981990

2000

0

2

4

6

8

10

12

14

16

8.6 9.8 11.2 12.6 13.9 14.9 16

BILLION OF DOLLARS

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