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Business Potential StudyAloe Vera Products

Presented By – Sudeep Nair

Overview of the Proposal

Aloe Vera products in huge demand for the past few years, worldwide.

Demand has fueled a production and supply chain of finished Aloe Vera products.

In 2009, The global Aloe Vera market was around 110 Billion and registering a growth percentage of 35% yearly.

Huge opportunity to tap market potential.

Proposing a business venture involving the cultivation,extraction and production of Aloe Vera Products.

Benefits of Aloe Vera

Aloe Vera (Aloe barbadensis Miller) is a perennial plant of liliacea family with turgid green leaves joined at the stem in a rosette pattern.

Aloe Vera is an amazing mixture of more than 200 constituents, including polysaccharides (a complex carbohydrate), enzymes, glycoproteins, amino acids, vitamins and minerals.

Health Benefits

Detoxifies BodyImproves DigestionEnhances Immune SupportReduces InflammationHealthy SkinRegulates Energy LevelsProvides Daily Dose of Vitamins & MineralsDental HealthDiabetes Fighter

Global Business Potential

Global Demand has risen exponentially.

USA,China,Korea,Japan,Australia and most parts of Europe has shown a considerable demand for finished Aloe Vera products.

Trade in finished products containing aloe ingredients, are estimated to be over $35 billion globally.

In India,Demand of aloe vera gel and powder is increasing by 10-15% per year.

Price of Premium Aloe Vera Powder Concentrate 200x in India ranges from 3500 to 5000 Rs per Kg whereas globally it is ranged from $125 to $300.

Manufacturing Potential in India

Vast areas of semi arid land,climatic conditions,soil composition,cheap labour and low manufacturing cost's suitable for Aloe Vera production in India.

The states of Rajasthan,Gujrat,Madhya Pradesh,Tamilnadu and Maharashtra are best suited for cultivation and production of Aloe Vera.

Easy availability of plant saplings, fertilizers, skilled labour,extraction and production machinery.

The National Medicinal Plant Board of India provides technical support and subsidies.

Easy availability of Financial support from banks at low interest rate.

Current Range of Products in Indian market

Current Range of Aloe Vera products is divided into two categories -

Oral Products

GelToothpasteHealth DrinksHealth Capsules

Topical Products

Skin Care products.Cosmetic productsAntiseptic and Anti Inflammatory creams and gels.Hair care products

Cultivation Procedure

Soil - Commercially grown in well drained loam to coarse sandy loam soils with moderate fertility, pH levels up to 8.5 are preferred.

Land preparation - Depending upon soil and agro-climatic conditions, 1-2 plough followed by leveling can be done, Field is divided into 10-15m x 3m suitably sized plots considering slope and source of irrigation.

Planting Time - Suckers or Saplings should be planted in the month of July to August, during the monsoon season for better yield.

Planting Material - Three to four month old suckers with 4-5 leaves about 20-25 cm in Height.

Varieties/Genotypes - IC 111271, IC 111280, IC 111269, IC 111273 are some of the Genotypes identified by National Bureau of Plant Genetic Resources for cultivation.

Planting and Spacing - Suckers are planed 15 cm deep and spaced 60 x 60 cm apart

Manuring - 10-15 tones of FYM is applied at the time of land preparation and in the following years.

Irrigation - 2-3 Times after planting, 4-6 times through out the year

Harvesting and Yield - 3-4 Times picking in a year, 15 - 35 ton yield per harvest

Yield and Parameters 

Yield Schedule Year One Year Two to Five

Leaves ( Ton/Hectare ) 360 480

Financial Parameters

Planting Material ( Per Sucker ) 0.50 Rs

Wage Rate ( Per Man-Day ) 120 Rs

Farm Yard Manure ( Per Ton ) 300 Rs

Fertilizers ( Per Kg )

Nitrate 10.50 Rs

Phosphoric Acid ( P205 ) 19.00 Rs

Potassium Oxide ( K2O ) 7.00 Rs

Sale price of Leaves ( Per Ton ) 2000 Rs

Cultivation Costing

Sr. No.

Item Year

Land Cost ( Land Acquired ) Area Of 12 Hectares

Area Assumed – Bhilwara, Pali

15,00,000 ( Included in Year 1 Total )

I MATERIALS 1 2 3 Onwards

1 Planting materials 3,30,000 0 0

2 FYM 54,000 54,000 54,000

3 Fertilizers 22,200 22,200 22,200

4 Irrigation 14,400 14,400 14,400

5 Plant protection chemicals 14,400 14,400 14,400

Sub Total - I 4,35,000 1,05,000 1,05,000

Cultivation Costing

II LABOUR 1 2 3 Onwards

1 Land preparation 54,000 0 0

2 Preparation of ridges and furrows and planting 54,000 0 0

3 Application of manures and fertilizers 7,200 7,200 7,200

4 Spraying of plant protection chemicals 7,200 7,200 7,200

5 Irrigation 10,800 10,800 10,800

6 Harvesting 0 36,000 36,000

7 Packing, loading etc. 0 18,000 36,000

Sub Total - II 1,33,200 79,200 97,200

GRAND TOTAL 20,68,200 1,84,200 2,02,200

Extraction and Production Technique

Cleaning Of Leaves

Extraction of Juice

Filtration-Cum-Homogenizing

Addition of preservatives( Sodiumbenzoate and Potassium sorbate )

Extraction and Production Technique

Juice cooled to 0.-5 C

Storage

Packed and Sold as Gel

Concentration and Drying

Freeze Dried powder packedUnder Nitrogen

200x powder packaged and sold

Manufacturing Machinery

Leaf Extractor and JuicerLeaf Washing Unit

Storage Tank Homogenizer–Gel Making Machine

Manufacturing Machinery

Extraction Unit Bottling UnitAloe Vera Shampoo Maker

FFE for Powder Production Gel Filling Machine Spray Drier for Powder

Manufacturing Costing for Gel ALOE VERA LIQUID GEL PROCESS PLANT

(1000Kgs leaves Processing Plant in 8 Hours)

PRICE1). Bubbling System: Rs. 60,000/-To arrange in out size civil tank of size 6x8 Feetto create air bubbles. The bubbling system ismade with S.S. 304 pipes and S.S.(304) mesh.Compressor line is required to this bubbling System.

2). Cutting Table & Tub: Rs. 2,00,000/-a).To cut the leaf on table size 4X8 Feet

b). To wash Alion from leaves after cuttingin warm water under air bubbles. The tube size is 6X4X2 feet, made withS.S.304. Provision for Hot and cold waterinlet and drain and also bubbling system.Compressor line is required for this.

3). Main Process Plant Cost: Rs.12,50,000/-

a). Pulp Extractor:

. Will have seven S.S.304 rollers, with Fabric Fabric belts. Run with 1.5 HPGeared Motor. S.S. & Nylon chain conveyor to separate Pulp and waste leaf (SAP). Total body made out of S.S.304. Provision is made to connect hot water line and compressor line.

b). Colloidal Mill:

To grind the pulp to 100-5 Microns,Run with 5HPMotor at 5000 rpm. All contact parts in S.S.304 and mounting frame in M.S.

Manufacturing Costing for Gel 

c). Filtration System:

Will have preservative Mixing tanks, Vacuum tanks, Bag filters(100/40/50Microns) & Activated carbon-Filter System with 1.0HP vacuum pump and 0.5 HP (2Nos)Positivepumps. All contact parts are in S.S.304

d). Pasteurization:

Consists of Plate Heat Exchanger, Refrigeration System (2.0 Ton). Provision to connect hot water & cold water supply lines.

4). Hot water Boiler (Fire wood): Rs 80,000/-

5). Storage Tank: ( 2 Nos) Rs.1,20,000/-500 Ltr capacity Tanks with S.S.304

6). SAP Conveyor: ( 1 No.)

Of 24 Feet length with with 1.0 HP Geared Motor Rs.1,50,000/-drive. Trough is made with S.S.304.

7) Bucket Conveyor Rs. 1,00,000/--------------------

Rs.19,60,000/-8) Erection & Commissioning Rs. 70,000/-

-------------------Total Cost including Taxes & Transportation Rs.20,20,000/-

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5P Strategy

Marketing Strategy Based on 5P'sProduct

Natural Health productZero Side AffectsMedical ApplicationsCosmetic ApplicationsBio-Diesel

Pricing

Gel – Range's from 160 Rs to 1000 Rs in India, Globally it ranges from $17 to $35 Powder ( 200X Concentrate ) - Ranges from 3500 to 5000 Rs in India, Globally it ranges from $125 to

$300.

People

Semi – Skilled Labour HorticulturistsPharmacist's Management StaffOperations StaffDistributors and Dealers

5P Strategy

Marketing Strategy Based on 5P'sPlacement

Action Plan

Channel of distributors and dealersNetwork sales chainPrompt supply chain management structureCustomer support and feedback

Promotion

Print Media Product Display Television Networking

Magazine Advertisements Display in Stores Television Advertisements

Promoting through a network chain of people

Newspaper AdvertisementsDisplay in Trade Fairs,

Community Events EtcAdvertisements on Home Shopping Network

Providing a good incentive structure

Catalogue's

Thank You