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JASMINE CONCRETE

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS 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

1.1. Jasmine concrete Appearance Wax like substance

Composition Contains natural perfumes, plant waxes,

albuminous and colouring matters.

Appearance: Waxy solid

Colour Yellowish brown

Odour Characteristics flowery odour

Specific gravity 0.8796 (0.886-0.898 at 55 deg.

Refractive index 1.468 at 50 deg. At 60 deg. (1.464-1.4658)

1.2. Jasmine absolute Appearance Viscous oily liquid

Preparation Absolute is prepared by removing the insoluble wax from the

concrete Colour Dark brown Odour Odour reminiscent of fresh flowers Specific gravity 0.9508 at 30 deg

0.929-0.955 at 60 deg. Refractive index 1.4882 at 30 deg.

(1.4822 to 1.4935 at 20 deg.)

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SECTION II

PRODUCT APPLICATIONS

Jasmine concrete is used in perfumery formulations.

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SECTION III

INDIAN MANUFACTURERS Indian manufacturers of Jasmine concrete include the following * Asean Aromatics Pvt. Ltd., Factory & Office : Plot 15-A, IIIrd Cross Street, Nehru Nagar, Kottivakkam,

Chennai-600 041 * Mas International Bodinayakanur,

Tamil Nadu * Encee Aromatics (P) Ltd., 2/98-A, Vellipalayam Road Mettupalayam-641 301 Tamil Nadu * Synthite Industrial Chemicals Ltd., Synthite Valley, Kadayiruppu, Ernakulam Dist., Kolencherry - 682 311. Kerala * Indian Flavours and Fragrances Ltd., Coimbatore

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SECTION IV

IMPORT/EXPORT LEVEL 4.1. Present import level Around 21000 kg per annum Countrywise Imports of Jasmin Concrete Period April 2001 to March 2002 Country Quantity in Kgs France 1500 Japan 50 Singapore 1213 Switzerland 18000 Unspecified 75 Sample of individual imports of Jasmin Concrete Period 2002 Name of the Importers Quantity in

tonnes Value in Rs. Country Date Port

Jasmine Concrete Exports

0.010 269785 Nice 13.01.2002 to 31.01.2002.

Chennai

Jasmine Concrete Exports

0.044 1092332 Nice 01.02.2002 to 15.02.2002

Chennai

Shiva Exports 0.001 28607 Taipei 13.03.2002 to 31.03.2002

Chennai

Jasmine Concrete Exports

0.061 1707618 Nice 01.04.2002 to 08.04.2002

Chennai

Jasmine Concrete Exports

0.020 286873 Nice 01.05.2002 to 15.05.2002

Chennai

Jasmine Concrete Exports

0.030 831714 Dubai 01.08.2002 to 13.08.2002

Chennai

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4.2. Present export level Around 11000 kg per annum Countrywise Exports of Jasmin Concrete Period April 2001 to March 2002 Country Quantity in Kgs Australia 5 Canada 9 Chinese Taipei 5 France 9214 German F REP 27 Italy 1 Japan 12 Nepal 84 Netherland 15 New Zealand 20 Oman 17 Qatar 100 Singapore 24 Spain 5 Sri Lanka 900 Switzerland 205 U Arab Emts 115 UK 45 USA 106

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SECTION V

PRICE

Indian price Rs.15000 per kg

SECTION VI

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INDIAN DEMAND

6.1. General details Jasmine concentrate is prepared in the neighbourhood of the cultivations but the absolute may be made anywhere. Alcohol extraction yields jasmine absolute from concrete by a procedure that is practiced in France, though somewhat less in the other producing countries as the users very often make their own absolute. The high price of this oil has induced the manufacturers of synthetic products to imitate it but, although the major components have been known for some time, there was no synthetic jasmine available that could even partially replace the natural product. It was only with the advent of the newer analytical methods that it was possible to reconstitute the main fraction of jasmine sence, i.e. the volatile part of the concrete, thus making possible a reasonable reconstitution of the jasmine absolute. This main fraction is made up of jasmone, jasmone ester and jasmolactone. 6.2. Jasmine production in Madurai In Madurai in Tamil Nadu, where Jasmine is grown plentififully, arrivals would average 10 tonnes a day during the season and could halve after that. Typically, a third of the arrivals are earmarked for Mumbai, Chennai, Bangalore (airlifted) and Kerala markets. Another three tonnes are set aside for local consumption. The rest is procured by flower extraction units. Mumbai's requirement of Jasmine at its peak in January to March and June to November when the local production there wanes. Madurai production in 2002 during these months has declined too. With drought charring 10 to 25% of the plants, production is estimated to fall by about 50%. While drought played havoc in the first half, bursts of showers later ruined the farmers' meticulous planning with all tracts blooming at the same time. The markets were flooded and prices collapsed. The cargo itself devours Rs.22 a kg for Mumbai, Rs.16 for Chennai and Bangalore. Time is crucial. The flowers must reach the destination by 4.30 p.m. latest . The change in Indian Airlines timings in Madurai has forced them to turn to Coimbatore where the flight at noon gives them a two hour jump start. To avert a total loss, they often travel at break neck speeds to catch the noon flight.

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With all things `natural' these floral aromas are proving to be in demand with perfume companies even from Europe flocking to these units. Demand including export demand for Jasmine concrete Around 60 tonnes per annum Growth rate in demand 7 to 8% per annum

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. General details Step 1: Extraction of the freshly opened Jasmine flowers with a perfumery grade organic solvent Step 2: Removal of the solvent from the perfume material by evaporation Yield: 0.25 to 0.30% 7.2. Description of the process Jasmine concrete extracted from Pitchi (Jasminum grandiflorum) is a wax like substance containing natural perfume with waxes and colouring material. It is being used in cosmetic industries and it fetches very high price in the international and domestic market. The jasmine flowers contain 0.25% of the perfume in the form of volatile oil and it can be extracted by means of solvent extraction method in which the principle is that the odoriferous substance of the flower is allowed to be absorbed by a highly volatile solvent and then the solvent is extracted The fully opened flowers of jasmine should be picked in the early morning, which only contain high volatile content. Delay in picking beyond 9.30 A.M. leads to reduction in concrete yield due to increase in temperature and other climatic conditions. So it is essential to harvest the flowers in the early morning hours. While picking and transporting care should be taken not to damage the flowers. Since, the damaged flowers yield concrete with more percentage of unwanted wax and other plant materials. The harvested flowers are treated with the purified hexane at the rate of 1:2 ratio i.e for 1 kg of flowers require 2 kg of hexane. The purified hexane is a colourless solution with a boiling point ranging from 60 to 80 deg.C. The flowers are treated with hexane for about 30 minutes. To have the maximum content of concrete the treated flowers are rotated in a rotary type of extractor for about 20 minutes. The extractor contains four parts viz extractor, evaporator, condenser and vacuum distillation unit.

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After the complete extraction of perfume from flowers the solvent is filtered and concentrated by evaporation at a constant temperature at 75 deg.C. At this temperature, the solvent evaporate leaving the perfume and other plant waxes. The vapour of the solvent is condensed in to liquid for again for recycling. The concentrated liquid containing perfume wax pigments and solvent is distillation in a vacuum distillation unit. Where the complete removal of the solvent takes place, leaving the floral concrete in the form of molten wax. It involves two steps. * Dissolving the perfume material by treating the flowers with solvent. * Removal of the solvent from the perfume material by evaporation. Treating the flowers with solvent The fully opened flowers are treated with solvent by which the solvent penetrates into the flowers and dissolves the waxes, albumins and colouring materials. In solvent extraction process, the most important factor is the quality of the solvent used for this purpose, only the food grade hexane is used. Food grade hexane available in the market has to be purified before using it as a solvent by treating with liquid paraffin at 5% and distilled at 70 deg.C. The solvent would be slowly rotated for 25 minutes at the rate of 3 rotation per minute. After 5 minutes the flowers are allowed to stand in the solvent for another 20 minutes. During this process, the solvent absorbs the perfume of the flower. After mixing, solvent is drawn through the drain cock at the bottom of the extractor and filtered through a fine filter to remove the dust and unwanted materials. After that the solvent with perfume is removed and also the spent flowers are gently pressed to remove the remnant perfume with the flowers. However, it must be noted that the flowers should never be squeezed to remove the solvent completely. After that, the perfume laden solvent is lead into the evaporator. The evaporator is a wide mouthed circular bowel made in stainless steel with a capacity to hold 25 litres of solvent. It has an airtight lid with a hole at the centre for the outlet of the solvent vapour.

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The evaporator is heated over a water bath at a constant temperature of 75 deg.C. The water bath is heated electrically by two 2000 watt heating elements and the temperature is kept at 75 deg.C by thermostatic control. Temperature control is essential as high temperature and prolonged heat in at atmospheric pressure will spoil the quality and appearance of the concrete. The evaporator should never be directly heated. it should be heated either over a water bath or by steam circulation. As the temperature rises in the evaporator, the hexane evaporates and the vapour escaped through the hole in the lid which is lead into the condenser through a stainless steel pipe. The condenser is also made of stainless steel and it contains several (12) small pipes fitted parallel through which solvent vapour is passed. By circulating cold water in the condenser continuously the solvent vapour is condensed and it is collected for recycling. The heating of the evaporator is continued till about 90% of the solvent is recovered by condensation which may take about 30 hours. The remaining 10% of the solvent containing all the aromatic oil and waxy material is transferred to vacuum distillation unit where the complete removal of the solvent is effected and the concrete is left in the still in the form of molten wax Here also the still should not be heated directly. The heating should be done on a water bath. Since vacuum has been created into the still, the solvent evaporates quickly at lower temperature which is condensed in the condenser and collected for recycling. The heating should be continued till the last traces of hexane vapour in the condenser. After the complete removal of the solvent, a semi solid like brown substance is left in the still, which is the jasmine concrete of commerce. When the material is hot it has to be transferred to the container in which it is to be stored. When cooled, it solidifies and transfer to other containers may be difficult. The concrete can be stored in glass or aluminium containers.

7.3. Technology source * Central Institute of Medicinal and Aromatic Plants, (Council of Scientific & Industrial Research) Kukrail Picnic Spot Road P.O. CIMAP, Lucknow 226 015

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Plant and machinery equipment and suppliers

Extractor Adam Fabriwerk Pvt. Ltd. 203, Rajguru Apartments New Nagardas Road Andher (E), Mumbai-400 069

Storage tank Agarwal Associates, 255, Kalpana Society Waghodia Road, Baroda-390 019

Steam boiler Energy Machine C1, B/423 GIDC IV Phase, Vithal Udyognagar-388 121 Dist. Anand, Gujarat

Dryer Bhuvaneswari & Co. Old Trunk Road Chennai-600 043 Dynamic Furnaces Pvt. Ltd. 65, Universal Industrial Estate I.B. Patel Road, Goregaon (E), Mumbai-400 063

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY 8.1. Raw material requirement For 1 kg of jasmine concrete to be produced nearly 800 kg of flowers have to be pressed. 8.2. Utility Basis: One tonne of jasmine concrete Installed power: 80 H.P. 8.3. General details Price of Jasmine could quote at a measly Rs.5 a kg during maximum arrivals and jump to Rs.30 during the off season or when a festival is round the corner. Madurai and its surrounding areas boast of around 3000 dedicated Jasmine growers. The jasmine shrubs are distributed widely in the tropical, sub-tropical and warm temperate parts of the world like south and eastern parts of Asia, Africa, Europe, etc,. Mostly they are native of southern Europe and Asia. Jasmines are fairly hardy, drought resistant plants thriving well under both tropical and temperate conditions. Common jasmines Jasminum grandiflorum l. (Spanish Jasmine). Commercially cultivated for flowers and perfumery cultivars diploid and triploid. The whole plant is used as anthelmintic and diuretic in ayurveda. Jasminum humile l. (yellow jasmine) Seen throughout subtropical regions, especially in Himalayas, flowers yield essential oil used in perfumery. An yellow dye is extracted from the roots. Roots used against ringworms and for the treatment of feet sores and in chronic sinuses. The plant is also used for making hedges. Jasminum sambac l. (Arabian jasmine) Growing throughout India, commercially cultivated for exquisitely fragrant flowers and for essential oil used in perfume industry.

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Commonly cultivated in warm temperate, subtropical and tropical regions for the fragrant flowers and for essential oil. Jasminum pubescence willid (star jasminum) Growing throughout india, highly ornamental. Roots used as an antidote for cobra venom; flowers slightly fragrant. Jasminum fluminense vell Native of tropical Africa, Naturalised in Florida and in West Indies. Widely cultivated in the tropics especially the Caribbean regions. Varieties of jasmine J-sambac: Native of Arabia, Grown in India. Emit a most delightful fragrance. J.trifoliatum Known in India as Kuddamulla. J.odoratissimum Native of Madeira Yellow flowers, Retain their perfume when dry. Known as “shueli flowers”, Used for perfuming tea. J.azonicum White flowers Native of Madeira. It is sometime grown in england. J.paniculatum White flowers, Native of China Used for scenting tea. J.hirsutum White flowers Native of China Also grown in India. Exceptional fragrance

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J.nudiflorum and j.revolutum Native of China Also found in mountains of Nepal Also cultivated in India Manufacture of perfumes J.auriculatum.j.gracillimum White flowers J.grandiflorum Native of the East Indies Known as the spanish or Catalonian jasmin Grafted in the south of France. Used in perfumer J.grandiflorum Grown in Tunis Preparation of perfume J.gardeniodourm Highly odourous white flowers Native of Togoland Used in perfumers J.primulinum and j.polyanthum Grown in Yunnan Highly odoriferous. J.stephanense Hybrid obtained by crossing j.officinale var, grandiflorum with j.besianum. The plant is interesting on account of its having rose coloured petals. 8.4. JASMINE CULTIVATION CULTIVATION PRACTICES Jasmines generally grow in all types of soils. However, they are better adapted to rich loamy or dry sandy and irrigated soil. In soil with more clay, the vegetative growth is vigorous but flower production is minimum, while in soil with gravel, the plants exhibit stunted growth. Water logging or excessive watering is detrimental to the plants. Hybridisation, clonal selection, mutation and ploidy breeding have been attempted as plant improvement methods Flower. Yield, quality of fresh flowers and essential oil content are important in commercial jasmines.

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Many jasmines are reported to have pollen and seed sterility. In certain species, fruit setting occurs. However, seed germination is seldom seen. Interspecific hybridisation is not successful in jasmines. Propagation in jasmine * Seed propagation * Vegetative propagation layering cutting grafting and budding micro propagation AREA UNDER CULTIVATION At present, about 10000 hectares of land is utilised for the cultivation of jasmine in the country especially in Tamil Nadu, Karnataka and Andhra pradesh. 80% of Indian production of jasmine is realised from Tamil Nadu. 8.5. INDIAN RESEARCH EFFORTS Tamil Nadu Agricultural University (TNAU) TNAU under an Indian Council of Agricultural Research adhoc scheme has taken up various research works relating to extension of bud life of gundumalli (jasmine). To evolve technologies to extend the shelf life of flowers. The Tropical Botanical Garden and Research Institute (TBGRI) The Tropical Botanical Garden and Research Institute near Trivandrum has launched a project to assemble different species and varieties of Jasminiums for display and conservation as botanical specimens and for scientific research. The Institute, is assembling different special varieties of jasmines for further scientific study to enable economic utilisation. The gene pool of jasmines maintained at TBGRI have immense scope in related fields (biodiversity high significance in medicine, perfumes/essential oil and in floriculture) of research and development JNTU OIL & Technological Research Institute JNTU Oil & Technological Research Institute, Anantapur, Andhra Pradesh has developed a sound technology for extraction of concrete and absolutes from freshly harvested jasmine flowers.

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SECTION IX

GLOBAL SCENARIO

Jasmine concrete is produced in Morocco, France, Italy, Egypt, Guinea, the Comoro Islands, India, Lebanon, China, Taiwan and Japan. Global demand level for Jasmine concrete Around 500 tonnes per annum Major global buyers USA, UK, France, Japan, Russia and Holland

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTIONS Economic capacity : 3 tonnes per annum Project cost : Rs.303 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of1.0 acre at Rs.5.5 lakh per acre 5.5 1.2 Cost of levelling, laying internal roads/fencing and

compound wall 0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 250sq.m. at Rs.3200/sq.m. 8.0 2.2 Non-factory building of area 100 sq.m.at Rs.4500/sq.m. 4.5 Subtotal 12.5 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 135.00 3.2 Instrumentation and control 10.13 3.3 Pipelines and valves 13.50 3.4 Structurals for erection 6.75 Subtotal 165.38 3.5 Octroi, excise duty, sales tax, etc.at 12% 19.85 3.6 Packaging and insurance charges (2%) 3.31 3.7 Transportation charges (2%) 3.31 3.8 Machinery stores and spares (2%) 3.31 3.9 Foundation charges (2%) 3.31 3.10 Installation charges (2%) 3.31 Total cost of plant and Machinery 201.76

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4. Technical know-how fees Rs.1.00 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 1.20 5.2. Steam boiler and auxillaries 5.3. Water storage tank, borewell etc. 2.50 5.4. Fuel storage tank 5.5. Laboratory equipment 2.50 5.6. Office machinery & equipment 4.00 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 2.50

5.8. Diesel generator 5.9. Effluent treatment 2.50 Total 15.20 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 2.50 6.2. Pre-operative expenses:- 6.2.1 Establishment 2.00 6.2.2 Rent rates and taxes 2.50 6.2.3 Travelling expenses 3.00 6.2.4 Interest and commitment charges on borrowings 4.50 6.2.5 Insurance during construction period 3.50 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 18.00 7. Provision for contingency Rs.17.7 lakhs 8. Working capital margin Rs. 30.51 lakhs 9. Total project cost Rs.303 lakhs 10. Means of finance (Rs. in lakhs) Promoter's contribution 121 Term loan from financing institutions 182 Total project cost 03

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11. Financial statements Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 114.37 Spares and maintenance 12.11 Selling expenses 22.50 Total variable cost (A)

148.98

B Fixed cost

Salaries and wages 15.00 Interest on term loan and working capital loan 36.81 Depreciation 24.46 Administrative expenses 13.50 Total fixed cost (B)

89.77

C. Total cost of production (A+B)

238.75

D. Selling price per kg. (in Rupees)

15000

E. Annual sales turnover

450

F. Net profit before tax (E-C)

211.25

G. Breakeven point in %

30

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SECTION XI

SWOT ANALYSIS

Strength Huge demand potential for the product

Weakness Lack of export marketing network

Opportunity Tropical conditions favourable for the

project in India Export potential should be exploited

Threat Uneconomic capacity and lack of technology inputs could cause problems

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

Jasmine concrete is the very important project with excellent export potentials. The project has to be necessarily operated with high technology inputs and at optimum standards to get the best of yield and quality. Such yield and quality standards are necessary to compete in the global market. Close association of the Jasmine concrete unit with the Jasmine cultivation is very necessary and the Jasmine concrete unit should be necessarily located near the plantation area. It would be advisable to have a firm Research and Development backup for the project, that would enable the unit to forgeahead and realise the full potentials.