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8/17/2019 Neem Based Pesticide[1]
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NEEM BASED PESTICIDE
CONTENTS
SECTION I PRODUCT CHARACTERISTICS
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
NEW INDUSTRY AND RECOMMENDATIONS
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SECTION - I
PRODUCT CHARACTERISTICS
1.1. General details
Neem pesticides are systemic and do not induce pest resurgence unlike other syntheticinsecticides.
While, every part of Neem tree has pesticidal applications, the important Neem basedproduct, that can be used for pesticide applications are the following
Neem oilAzadirachtin (Active ingredient)
1.2. Neem oil :
General details
Appearance Non drying,bitter liquid.
Colour Greenish brown
Odour Garlic,repulsive
Refractive index at 40deg C 1.4617 to 1.4627
Specific gravity at 30deg C : 0.9087 to 0.9189
Iodine value 68 to 75.8
Saponification value 193 to 204
Unsaponification matter 0.8 to 2.4%
Composition
In composition, neem oil is much like other vegetable oils, composed primarily of
triglycerides of oleic, stearic, linoleic, and palmitic acids.
The neem seeds are reported to have 45% of oil content.
The neem seed kernel is rich in fatty acids, often up to 50 percent of the kernel's weight.
Neem seed oil is bitter with garlic/sulphur smell and contains vitamin E and other essentialamino acids.
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The composition percentages vary from sample to sample depending on place and time of
collection of the seeds.
Fatty acids Percentage
Myristic acid 0.2 to 2.6
Palmitic acid 1.6 to 16.2
Stearic acid 14.4 to 24.1
Oleic acid 49.1 to 61.9
Linoleic acid 2.3 to 15.8
Arachidic acid 0.8 to 3.4
Other lower fatty acid 23
1.3. Azadirachtin (Active ingredient)
Molecular formula C35H44O16
Classification Triterpeniod
Molecular weight 720
Melting point 155 to 185 deg.C
Appearance Microcrystalline pale yellow coloured crystals
Moisture 50% moisture in fresh
10 to 15% moisture in semi dried fruit
9% in well dried fruit
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SECTION - II
PRODUCT APPLICATIONS
2.1. Neem oil
General details
Oil extracted from the seeds goes into soaps, waxes, and lubricants, as well as into fuels
for lighting and heating.
The solid residue left after the oil is removed from the kernel is employed as fertilizer and
soil conditioner.
Application sector
Neem oil in the soap industry:
Generally, the crude oil is used to produce coarse laundry soaps. The non-edible oil gives
soap of unattractive brown colour, which retains its characteristic odour. This could be
rectified by a second boiling of the oil and then salting out of the soaps.
However, more expensive soaps are made by saponifying the crude oil and distilling the
resulting fatty acids before adding the lye. The resulting almost colourless and odourless
product is suitable for top-quality toilet and laundry soaps
* Pesticide
* For soap making
* Refined neem oil for herbal medicine
* Refined neem oil for massage oil
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Pesticide sector
Neem oil, extracted from whole seeds (with the hard shell in tact) by simple mechanical
crushing using country `ghani' is suitable as an insecticide.
Solvent extraction and expeller crushing damage the chemical structure of the bio-acitveprinciples in neem oil, according to experts.
Neem products are efficient against 105 insect species belonging to ten orders namely
Orthoptera, Dictyoptera, Lepidoptera, Hemiptera, Diptera, Coleoptera, Hymenoptera,
Isoptera, Thysanoptera and Siphonaptera.
Refined neem oil for Herbal medicine/Massage oil
Neem oil is found to be a strong spermicide and it is without side effects.
The antibacterial activity of neem oil has been tested and is comparable with activitiesthat of Malkalguni oil, Darudi oil and Karantee oil.
Neem oil has proved as cheaper substitute for pre-operative antiseptic solutions.
Neem oil displays a stimulative, antiseptic and alternative effect when used for massage of
the body.
It is an active remedy against boils, ulcers resulting from chronic syphills.. It is remarkably
effective in infections of ring worms. It is used in skin disease such as scrofula, as a
liniment in the case of rheumatism, in arthritis, diabetis and also to lower blood pressure.
Cosmetics
Purified neem oil is used in nail polish and other cosmetics.
Lubricants
Neem oil is nondrying and it resists degradation better than most vegetable oils.
In rural India, it is commonly used to grease cart wheels. It could find many similar
lubrication applications in other locations, especially in village settings in the warmer parts
of the world where neem can be grown.
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Birth control formulations
The Defence Institute of Physiology and Allied Sciences (DIPAS) has done research
studies on the birth control properties of neem oil isolates.
These studies conducted on rats, rabbits, monkeys as well as human volunteers reveal thatneem oil can be ideal birth control.
2.2. Azadirachtin
Azadirachtin technical is used for preparing ready to use formulations for agricultural,
textile, domestic, veterinary pest management.
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SECTION - III
INDIAN MANUFACTURERS
Neem oil is produced by a number of small and unorganised units and the important
manufacturers of Neem oil include the following.
* Aazadirachtin Pvt. Limited
Block 94 Sanjay Place,
Agra - 282 002
Product : Cold pressed Neem oil, neem cake, neem bio insecticide, azadirachtin, urea-
coating etc.
* A.P. Products
26, Madhu Estate,
P.B.Marg, Worli, Mumbai - 400 013
Product : Neem tree products like Neem oil, neem extracts
* Bangur Agro Tex Pvt. Ltd.
205, Saraswati, S. V. P. Road,
Borivli (W), Mumbai - 400 003
Product : Herbs, Neem Products like Neem Oil, Neem Cake, Neem Extract
* Cheminova Agro Tech
Gate No. 352, Mohida Turfe Shahada,
Nandurbar - 425 409
Product : Neem oil, neem oil cake, neem kernel oil, neem kernel cake etc.
* Disel & Auto Spares (India)301 Shanti House,
Off C G Road, Ahmedabad - 380 009
Product : Neem oil
* Dr. Jains Forest Herbals Pvt. Ltd.
A-10 Raj Industrial Complex,
Unit No.A-10, 2nd Floor, Military Road Marol,
Andheri East, Mumbai - 400 059
Product : Neem oil
* D.M.R. International/Deluxe International
No.10, Kuya Street,Sriperumbudur - 602 105
Phone: +(91)-(4111)-32709/32067/32518/32244
Fax: +(91)-(44)-5341022/5342211
Azadirachta Indica - Neem - cake
Azadirachta Indica - Neem - Leaves
Azadirachta Indica - Neem - Oil
Azadirachta Indica - Neem - Powder
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* Gayathri Oil Mill
41/545, Kotha Pet,
Kurnool - 518 001
Product : Neem oil, neem cake
* J.D. Corporation
203 Yogeshwar, 135/139 Kazi Sayed Street,
Masjid Bunder, Mumbai - 400 003
Product : Neem oil,
* Lalitha Neem Pvt. Ltd.
PSK Road, Rajapalayam - 626 117
Products: Neem oil and Neem cakes
* Maruthi Sastha Associates
1020, 80 Feet Road, Ist Block,
Koramangala, Bangalore - 560 034
Products: Neem oil and Neem cake
* Nectar Biotech Limited
66 Karpagam Avenue, R A Puram,
Chennai - 600 028
Products: Neem Based products :Neem oil. Neem extracts neem cakes.
* Olympic Exporter
21, Muthamil Nagar, Adiyanuthu (P.O),
Dindigul - 624 003
Products: Neem oil and Neem cake.
* Palakshree Packaging Pvt.LtdB-304, Ganesh Plaza Nr Navrangpura Bus Stop,
Ahmedabad - 380 009
Products: Neem oil and Herbal Products
* Pioneer Enterprise (Mumbai)
101, Raudat Tahera Street,
Mumbai - 400 003
Phone: +(91)-(22)- 23472534
Fax: +(91)-(22)- 23472325
Products: Natural products for Organic Farming like Herbal Extracts, Botanical Herbs,
Natural Colours, Azadirachtin, Allium Sativum, Neem products.
* Plasma Power Private Limited
New B23, "B" Block
2nd Avenue, Anna Nagar
Chennai - 600 102
Products: High purity Neem oil, neem cake
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* P.S.K.Shanmugarajan & Sons (P) Ltd.
21/63-C, West Colony,
Komarapalayam - 638 183
Products: Neem oil, neem herbal extract for termite control,
* Quest Marketing Company
G-2, Sector-C, Awho Colony,
Hyderabad - 500 016
Products: Neem Products like Neem oil, Neem cake, Neem Kernels, Neem Leaf Powder.
* Sahayata
166, Jodhpur Park,
Kolkata - 700 068,
Products: All types of Neem Products like Neem based herbal toilet soap, Pure Neem Oil.
* Shri Ambica Oil Cake Industries
Khatraj Chokdi, Mahemadabad, Kheda - 387 130
Phone: +(91)-(2694)-44661
Fax: +(91)-(2694)-44860
Products: Neem (azadirachta indica), biopesticides of neem
* T.Stanes & Company Limited
8/23-24, Race Course Road
Coimbatore-641 018
Phone : 0422-211514, 213515 to 213518
Fax : 091-0422-217432
Product : Neem based pesticide - Nimbicidine (Azadirachtin)
* Viprama Industries
A-30 M.I.D.C. Dasarkhed,Malkapur - 443 101
Products: Neem Oil, Neem Cake, Neemseed Powder Etc.
* Vinamra Oils & Herbs
41, Anupam Nagar Extn.,
Gwalior - 474 003,
Products: Neem Oil,
* Welcome Trading Corporation
153, Portugese Church Street,
Chennai - 600 001
Products: Neem oil and neem cake
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SECTION IV
IMPORT/EXPORT LEVEL
4.1. Imports Nil
4.2. Present exports level of Neem oil Around 260 tonnes per annum
4.2.1. Countrywise exports of Neem oil
Period: April 2001 to March 2002
Country Quantity in kg
Australia 9943
Austria 1000
Baharain IS 1015Brazil 20990
Canada 8061
Chinese Taipei 2000
China P RP 2010
Colombia 100
Denmark 2648
Egypt A RP 812
Fiji IS 90
France 980
German F Rep 2720Ghana 300
Greece 800
Israel 300
Italy 3700
Japan 15297
Korea RP 4082
Malaysia 18108
Mexico 8780
Netherland 2761
Philippines 1000
Sierra Leone 100
Singapore 5690
South Africa 5928
Spain 26040
Sri Lanka 4075
Switzerland 900
Thailand 985
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UAE 865
UK 2892
USA 102575
Zimbabwe 2320
Sample of Export Details of Neem Oil from Chennai port
Period 2002
Name of the exporters Country Quantity Date Port
Plasma Power Pvt.Ltd. Vancouver 600 Ltr Jan 2002 Chennai
M/S.Commercial Services Singapore 190 Kgs Jan 2002 Chennai
Afsan Exports Singapore 90 Kgs Jan 2002 Chennai
Plasma Power Pvt.Ltd. Los Angeles 1000 Ltr Feb 2002 Chennai
Plasma Power Pvt.Ltd. Pusan 1000 Kgs Feb 2002 Chennai
Southern Petrochemical Ind. Stockholm 6000 Ltr Feb 2002 ChennaiPlasma Power Pvt.Ltd. Vancouver 1000 Ltr Feb 2002 Chennai
Plasma Power Pvt.Ltd. Kawaihae 600 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Chicago 1040.88 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Port Tampa 832.70 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Livorno 1200.00 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Kahoma City 1000 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Chicago 1100 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Chicago 2000 Ltr Mar 2002 Chennai
Plasma Power Pvt.Ltd. Jakarta 400 Ltr Mar 2002 Chennai
E.I.D. Parry
( India ) Ltd.
Marseille 950 Kgs Mar 2002 Chennai
Plasma Power Pvt.Ltd., Chicago 30.00 Ltr April 2002 Chennai
Plasma Power Pvt.Ltd. San Diego 600.00 Ltr May 2002 Chennai
Plasma Power Pvt.Ltd. Chicago 1600.00 Ltr May 2002 Chennai
Plasma Power. Los Angeles 2000.00 Ltr May 2002 Chennai
Plasma Power Oklahoma City 1000.00 Ltr May 2002 Chennai
Plasma Power Los AngeleS 2498.10 Ltr May 2002 Chennai
E.I.D. Parry
(India )
Avivil Tel 5.00 Ltr May 2002 Chennai
Plasma Power London 25 Ltr May 2002 Chennai
Plasma Power London 25 Ltr May 2002 Chennai
E.I.D. Parry ( NICE 420 Kgs May 2002 Chennai
Plasma Power Mexico City 1600 Ltr May 2002 Chennai
K. Sivaram Seoul 50 Kgs May 2002 Chennai
Southern Manila 800 Lts May 2002 Chennai
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4.2.2. Countrywise exports of Neem extracts
Period April 2001 to March 2002
Country Qunatity in Kgs
Austria 50
Japan 763
Kenya 5000
Malaysia 90
Mauritious 530
Netherland 1000
Spain 200
Sweden 6000
U Arab Emts 300
UK 525
USA 31503
Zimbabwe 2208
48169
4.2.3. Sample of individual exports of Neem based pesticide
Period 2002
Name of the Exporters Quantity in
tonnes
Value in Rs. Country Date Port
E.I.D.Parry (I) Ltd., 0.400 148200 Kobe 21.06.2002 to
10.07.2002
Chennai
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SECTION - V
PRICE DETAILS
Price of Neem extracts Rs.370 per kg
Price of Neem pesticide formulation Rs.460 per kg
Taxes and duties Extra as applicable
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SECTION -VI
INDIAN DEMAND
Indian Azadirachtin potential
Under the optimistic assumption of an azadirachtin content of 5g per kg of driedkernels,there is already in existence reservoir of about 150 tonnes of azadirachtin peryear in India.This quantity can be tapped for commercial exploitation.
Export opportunities
There has been a positive feedback from the United States and Europe for Neempesticides. However, the registration process for pesticides is highly complicated inthese markets. It takes five to six years for a new product to be evaluated and registeredfor field use, besides costing millions of rupees. This is the primary reason why theexpected export turnover has not materialised.
In the US, Neem pesticides are permitted on certain greenhouse and ornamental cropsand tests are continuing with other crops. The American market is monopolised by asingle company Thermal Trilogy which has joint venture partner in India. A few moreIndian companies are likely to get their products registered soon. By 1999-2000, Neempesticides are likely to have a significant market in the US and Europe. Following the USexample, countries in Europe, the Far East and Australia are also expected to approveregistration.
The marketing problems were not anticipated by a number of units in India which startedproducing Azadirachtin powder as a technical grade pesticide during the last two years.Currently, a gram of pure Azadirachtin is valued at $1 in the international market. Theexport turnover cannot be significant unless the market outlets are developed to facilitategreater use of the products in the US. It would, therefore, be wise to concentrate on theIndian market by making CIB-approved formulations.
Marketing problem
In the case of Neem, there are the problems of aflatoxin and lead contamination. TheNeem seed in India is collected during the rainy season and processed in an unhygenicmanner, which can result in fungal growth and aflatoxin production. Fruit collected onroads gets contaminated with lead due to auto exhaust. The organic farmingassociations in Europe have come out against importing from India those agro products,where aflatoxin contaminated neem oil is used as pesticide. The future demand forneem products in organic farming would depend on how effectively these problems aretackled. Quality maintenance is,therefore, crucial for the steady growth in the usage ofneem pesticides.
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Use of Neem oil in pesticide sector
Plant products recommended for pests and diseases
Product Target crop Insect pest disease Dose
Neem seed kernel
Neem oil
Coconut
Rice
Redgram
Green gram
Powdery
Coconut
Cotton
Bengalgram
Gingelly
Rhinocerous beetle
BPH
Sheath rot
Shealth blight
Pod borers
Mildew
Termite
Mealy bug
Whitefly
Pod borer
Shoot webber and Pod
borer
With sand 1:2 ratio
3% FS
15 lt/ha FS
(to be followed after neem
cake soil applications)
2% FS
3% FS
5% spray on the base upto
2m Ht.
3% FS
5% FS
0.01% combined with
Endosulfan 0.07%
0.01% FS
Neem cake Rice
Coconut
Sheath blight
Tanjore wilt
150 kg/ha soil application
5 kg/tree
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Advantages
* Neem Emulsifiable Concentrate (EC) acts as an ovipositional deterrent. Insects do not lay
eggs on treated crop.
* It is an insect growth regulator. Malformed adults emerge which eventually suffer
mortality without damaging the crop.
* Neem EC works as an antifeedant and repellent.
* Neem EC does not affect the health of human beings, live stock, poultry and fish.
* It is selective in action against insects. Neem does not kill plant friendly predators and
parasites.
* It has been observed that crops when sprayed with neem oil EC are pest-free and growvigorously.
Presently available neem kernel all over India is 4,18,000 tonnes
Indian demand for Neem oil: Around 1.5 lakh tonnes per annum
NEEM CAKE
Neem cake is produced as byproduct in the production of Neem oil
Neem has demonstrated considerable potential as a fertilizer..
The residue left after the oil has been removed varies widely in composition. However, the
broad ranges in composition of Neem cake are:
Crude protein 13-35 percent
Carbohydrate 26-50 percent
crude fiber 8-26 percent
Fat 2-13 percent
Ash 5-18 percentAcid-insoluble ash 1-17 percent
The neem cake has considerable local potential. Although too bitter for animal feed, it
seems to have unique promise as a fertilizer. It contains more Nitrogen, Phosphorus,
Potassium, Calcium, and Magnesium than farmyard manure or sewage sludge.
It is widely used in India to Fertilise cash crops, particularly sugarcane and vegetables.
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Plowed into the soil, it protects plant roots from nematodes and white ants, probably due
to its content of the residual limonoids.
Neem cake sometimes seems to make soil more fertile than calculations predict. This is
apparently due to an ingredient that blocks soil bacteria from converting nitrogenouscompounds into nitrogen gas. When mixed with Urea, for example, neem cake cuts down
on the amount of Urea converted to nitrogen gas in the soil. So far, this finding, which
might prove to be a major breakthrough, has not been pursued beyond the laboratory. If it
proves real in everyday practice, it might boost the effectiveness of fertilizers everywhere,
restoring to the soil that part of their power now lost by bacterial action.
Size of the industry
The size of the Indian Neem industry is currently only Rs.40 to Rs.50 crore of which exports
accounted for about 50%.
Growth rate in demand 5 to 6% per annum
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SECTION -VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Drying of the seeds
Drying of the seeds is carried out by guadrant method. In this process, the space (mostlyit is the godown as the season coincides with monsoon) is divided into four guadrants.
The stock is piled in three of them to a height of two feet. Each of the lot is shifted to thenext quadrant every two or three days. The stock gets heated due to auto oxidation. Theheat is used for expediting the drying on one hand and on the other, during agitation, theextra heat is ventilated to avoid burning up or deterioration of the seed.
Drying can also be carried out in sun. The foreign matter is separated from the seeds byusing sieves of different sizes, before storing the seeds in gunny bags.
Storing of the seeds
The seeds are stored for 1 to 2 months during which they achieve maturation in oilcontent. Storing is necessary to get optimum yield of oil.
Decortification and Winnowing
The seed or fruit is decorticated in stone chakki or decorticator.
The husk is separated with winnowing fan.
The decorticator gives 70% shell and 25% kernel, when dried fruits are used. It gives45% shell and 50% Kernel when depulped seeds are used. The windege loss is 4 to 5%.
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Neem based products
Neem Kernel Extract
50 gm of Neem kernel is required for use in 1 litre of water. The Neem kernel ispounded gently. It should be pounded in such a way that no oil comes out. The outercoat is removed before pounding. This is used as a manure.
The seeds that are used for preparation of Neem kernel extract should be atleast 3months old and should not be used after 8 to 10 months. Before 3 months or after 8months, the azadirachtin contents is quite low in the seeds and hence it cannot beefficiently used for pest control.
The pounced Neem kernel powder is gathered in a muslin pouch and this is soakedovernight in the water. The pouch is squeezed and the extract is filtered. To the filtrate,an emulsifier like tween 80, sandovit, soap oil, nirma or soap cake powder is added. One
ml of emulsifier is added to one litre of water. The emulsifier helps the extract to stickwell to the leaf surface.
The kernel extract should be milky white in colour and not brownish.
Neem leaf Extract
For 5 litres of water, 1 kilogram of green leaf is required. Since the quantity of leavesrequired for preparation of this extract is quite high(nearly 80 kilograms are required forhectare), this can be used for nursery and kitchen gardens. The leaves are ground andthe extract is filtered. The extract is beneficial against leaf eating caterpillars, grubs,locusts and grasshoppers. To the extract, emulsifier is added as mentioned for kernel
extract.
There is no need to boil the extract. Boiling reduces the azadirachtin content. Hence thecold extract is more effective. Some farmers prefer to soak the leaves for about oneweek. However, this creates a foul smell.
Neem Cake Extract
100 gms of Neem cake is required for 1 litre of water. The Neem cake is put in a muslinpouch and soaked in water. It is soaked overnight before use in the morning. It is thenfiltered and emulsifier is added at the rate of1 ml for 1 litre of water. It is now ready forspraying.
Neem Oil Spray
30 ml Neem oil is added to 1 litre of water and stirred well. Only then will the oil andwater mix well. To this emulsifier is added (1 ml/1 litre). It is very essential to add theemulsifier and mix properly. It should be used immediately. Otherwise oil droplets startfloating. A knapsack sprayer is better for Neem oil spraying in preference to a handsprayer.
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Neem as Fertiliser
Neem has shown great promise as a potential fertilizer. Neem cakes and Neem leavescan be used for this purpose. They widely used in India to fertilise cash crops. When it
is ploughed into the soil, it also protects plant roots from nematodes and white ants. Theleaves are also used as fertiliser.
AZADIRACHIN
Yield of Azadirachtin
The yield of azadirachtin per kilo of Neem seeds collected from various sources has beenestimated as follows:
Source Yield of azadirachtin (g/kg)
Commercial Indian 0.75,0.2Kenya 1.00Nigeria 2.00Ghana 3.5
Extraction of Neem oil
The neem oil which is extrated from the neem fruit is a very valuable medicine andinsecticide.
The neem oil extraction process includes collection of the fruits, drying, storage,decortification, winnowing and finally crushing in expellers.
Collection : The neem fruits are swept together or handpicked. They are depulped byrubbing with soil or ash and then trampling on them.
The fruits are sold either as fresh or dried ones or depulped seed or even as kernels.
The moisture content in commercial neem fruit is 6 to 9.6% and after drying the moisturecontent in 5%.
Extraction process
Extraction is carried out in Ghani expeller. 30-40% oil is obtained when Kernels are
crushed. Ghani gives about 5% less oil. The fruits give 4-6% and depulped seeds give14-15% oil in expellers. 7-9% residual oil in cake is recovered by deoiling in solventextraction plant.
Maximum oil yield is obtained after 2 to 5 months fruit collection.
The refining process for oil is patented. The refining can be carried out with silica gel.
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Oil yield
Crushing in Whole fruit Depulped seed KernelGhani - - 25-30%
Expeller 406% 12-16% 30-40%
Neem extract as pesticide
The most important active ingredient is Azadirachtin, extracted from the neem seedkernels. It basically acts as an antifeedent and phogorepellant.
The amount of Azadirachtin neem seed kernels is influenced by a number of factors suchas humidity, climatic exposure to sunlight, seed drying, pH and method of extraction.Although, Azadirachtin is one of the many constituents of the seed kernel, it is thecompound found in the highest concentration and may therefore, serve as a subrepresentative of the biological activity.
The concentration varies from source to source and the percentage ranges from 1.5% to7%. On average, the Indian seed kernel contain about 3.5% of Azadirachtin.
Source of technology
* SPIC Science Foundation, Chennai
Major plant and machinery details
Name of the equipment Name of the suppliers
Dryer The Anup Engineering Ltd.,
Behind 66 KV Electric Sub Station
Odhav Road, Ahmedabad-382 415
ATRE Thermal Products Pvt. Ltd.,
Pushpa Heights, 1st Floor,
Bibwewadi Corner, Pune-411 037
Extractor Bangalore Pollution Control Systems Pvt. Ltd.,
2, IInd Floor, 5th Phase, Ist Stage
Bangalore-560 044
The EIMCO-K.C.P. Ltd.,
183, Anna Salai,
Chennai-600 006
Wet grinder K.B. Engineering
B/58, Kiran Estate, M.G.Road,
Goregaon (W), Mumbai-400 062
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Netzsch India Pvt. Ltd.
P.O. Box No.7314,Plot No.1961-B,
Asidad Colony,
Chennai-600 101
Pulveriser ACE Pack Machines
23, V.N. Industrial Estate
Bharathi Colony,Near Athiparasakthi Temple
Peelamedu, Coimbatore-641 004
Frigmaires Engineers
PO Box 16353, 8, Janata Industrial Estate
Senapati Bapat Marg
Opp Phoenix Mill, Lower Parel (W)
Mumbai-400 013
Boiler Cethar Vessels Ltd.,
No.4, Dindigul High Road,
Trichy
Firetech Boilers Pvt. Ltd.
No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68
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SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Raw material requirement
Basis: One tonne
Deoiled neem cake 2.61 tonneSpices, vegetables and other chemicals
Utilities:-
Fuel 480 litresPower 100HP
Raw material availability:
Neem seeds constitute the basic raw material for Neem pesticides. Some 25 yearsback,the Khadi and Village Industries Commission (KVIC) estimated seed production atfive lakh tonnes.However,recent estimates indicate the quantity may be many timesmore.Nearly 100 oi mills and 40 bio pesticide units consume more than five lakh tonnesof seed annually.
Fruit collection and marketing has become an organised business in Tamil Nadu,AndhraPradesh,Maharashtra and Uttar Pradesh.Adequate quantity of seed is available for thenext four to five years,but in the long run,a shortage of Neem seeds is likely.This gap hasto be filled by new Neem plantations.
Production level of Neem seeds : 1,85,000 tonnes per annum
The domestic demand is likely to gallop as increasing applications are found for neemseeds, ranging from pesticidal to fungicidal, as a contraceptive and anti-diabeticpreparations, for skin care, in soaps and shampoos, and for toothpaste and mouth-washes. The present surplus in supply over demand (both domestic and export) of neemseeds couls turn into a deficit in a few years. The solution is commercialisation of neemplantations.
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Neem cultivation can be viable, if intercropped with the jaffra plant which produces theannato-coloure (orange) natural dye. On one acre, 80 neem trees intercropped with 90
jaffra plants is not expected to yield returns on an operational cost of about Rs.6,000 inthe first year and Rs.2,000 in the second. The jaffras are expected to generate a returnof about Rs.5,000 in the second year.
Alternately, neem can be intercropped with indigo. Some corporates have already startedgetting into the commercialisation of neem.
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SECTION IX
GLOBAL SCENARIO
Global suppliers
* International Sourcing Inc.
779 Susquehanna Ave.
Franklin Lakes, NJ 07417, USA
Contact: Larry Smith
Vice President
Tel:(201)560-0111
Fax: (201)560-1156
E-mail : [email protected]
Activity : Trading house
* Pokonobe Industries,
PO Box 1756
Santa Monica, CA90406, USA
Contact: Robert Grebler
General Manager
Tel:(310)392-1259
Fax:(310)392-3659
E-mail : [email protected]
Activity : Trading house
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SECTION X
ECONOMIC CAPACITY AND PROJECT COST
Economic capacity 15 tonnes per annum of Natural extracts100 tonnes per annum of Neem formulation
Project cost Rs.171 lakhs
Assessment of project cost
1. Land
S.No. Description CostRs.in lakhs
1.1 Cost of land of one acre at Rs.5.5 lakh per acre 5.5
1.2 Cost of levelling, laying internal roads/fencing andcompound wall 0.55
Subtotal 6.05
2. Building
S.No. Description CostRs.in lakhs
2.1 Factory building of area 320 sq.m. at Rs.3200/sq.m. 10.242.2 Non-factory building of area 70 sq.m.at Rs.4500/sq.m. 3.15
Subtotal 13.39
3. Cost of Plant & Machinery
S.No. Description CostRs.in lakhs
3.1 Cost of basic plant and machinery 453.2 Instrumentation and control 3.383.3 Pipelines and valves 4.53.4 Structurals for erection 2.25
Subtotal 55.133.5 Octroi, excise duty, sales tax, etc.at 12%
6.623.6 Packaging and insurance charges (2%) 1.13.7 Transportation charges (2%) 1.13.8 Machinery stores and spares (2%) 1.13.9 Foundation charges (2%) 1.13.10 Installation charges (2%) 1.1
Total cost of plant and Machinery 67.25
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4. Technical know-how fees Rs.2.00 lakhs
5. Miscellaneous fixed assets
S.No. Description CostRs.in lakhs
5.1. Electrification 4.55.2. Steam boiler and auxillaries 4.55.3. Water storage tank, borewell etc. 0.85.4. Fuel storage tank 1.25.5. Laboratory equipment 0.85.6. Office machinery & equipment 1.65.7. Material handling equipment, packaging machinery,
weigh balance, etc.1.3
5.8. Diesel generator 4.45.9. Effluent treatment 1.3
Total 20.4
6. Preliminary & Pre-operative expenses:
S.No. Description CostRs.in lakhs
6.1. Preliminary expenses 1.36.2. Pre-operative expenses:-
6.2.1 Establishment 1.36.2.2 Rent rates and taxes 1.66.2.3 Travelling expenses 0.86.2.4 Interest and commitment charges on borrowings 86.2.5 Insurance during construction period 1.76.2.6 Other preoperative expenses and deposits -6.2.7 Interest on deferred payment -
Total 14.7
7. Provision for contingency Rs.7.83 lakhs
8. Working capital margin Rs.39.32 lakhs
9. Total project cost Rs.171 lakhs
10. Means of Finance
Promoter's contribution Rs.68 lakhsTerm loan from financing institutions Rs.103 lakhsTotal project cost Rs.171 lakhs
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11. Financial statements
Cost of production
A Variable cost Rs. in lakhs
Raw material and utilities 340.98
Spares and maintenance 4.04
Selling expenses 25.78
Total variable cost (A) 370.79
B Fixed cost
Salaries and wages 9
Interest on term loan and working capital loan 39.7
Depreciation 9.1
Administrative expenses 15.47
Total fixed cost (B) 73.26
C. Total cost of production (A+B) 444.05
D. Selling price per kg. (in Rupees)
Neem extract
Neem formulation
370
460
E. Annual sales turnover 515
F. Net profit before tax (E-C) 71.45
G. Breakeven point in % 51%
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SECTION XI
SWOT ANALYSIS
Strength Large availability of Neem plantation
Weakness Lack of consolidation of the industry
Opportunity Eco friendly product and exports
Threat Poor product quality due to mushroomgrowth
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SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATION
Neem is one of the widely discussed subjects in India today. The advocates of use of
natural pesticides, the green campaigners and those who believe in appropriate resources
based development are propagating at every available forum about the tremendous
relevance of Neem for India. The fact the Neem trees are grown in large quantities in India
have made many people in India think that the Indian neem trees represent great
opportunity for the country in several ways.
Neem pesticides represents an excellent investment opportunity, in view of the eco-
friendly nature of the product, its use in highly relevant and growth oriented sector such as
pesticides, export prospects and reasonable return.