Download - GUGGUL - editn.in
GUGGUL INTRODUCTION
The medicinal properties of Guggul are chiefly attributed to the steroid
compound Guggulsterone present in the resin. Guggul extract is believed
to play an important role in controlling atherosclerosis. Guggul reduces
the low density lipoproteins (LDL) in the bloodstream.
Atherosclerosis, which is a condition where the blood vessels become
thickened, occurs due to the accumulation of fat or cholesterol in the
vessels. Cholesterol, which is insoluble in water, is naturally transported
through the blood by the LDL. Excess intake of fat leads the LDL to react
with the oxygen free radicals present in the blood. This damages the
artery walls, triggering a series of immune reactions by the body. The
body subsequently responds to the damage in the arteries by releasing
white blood cells to absorb the oxidized LDL.
White blood cells and platelets are generally incapable of absorbing these
LDL molecules, so they expand and burst, depositing more cholesterol on
the artery walls. This deposition of cholesterol inside the arteries leads to
the narrowing of blood vessels and can result in high blood pressure.
This is considered as a major cause of stroke, heart attack, and most
cardiovascular diseases.
Guggul extract is believed to bring down the platelet stickiness
considerably by reducing the amount of cholesterol deposits in the body.
This is done by converting the cholesterol into bile acids and allowing it
to be excreted from the body. Guggul extract blocks the activity of a
protein, FXR that inhibits the conversion of cholesterol in the liver to
bile. Blocking of the FXR leads to the rapid conversion of cholesterol to
bile.
PRODUCT CHARACTERISTICS AND SPECIFICATION
Synonyms
Commiphora mukul
Commiphora wightii (Arnott) Bhand.
Guggulu
Indian Bedellium
Constituents
Guggul is the mixture of ketonic steroids from the gummy yellowish
oleoresin of the plant extract from India. Mainly resin, volatile oils, and
gum
E & Z Guggulusterones 2 to 5 %
Guggul sterols
Diterpenoids
Terpene
Cambrene
Myrcene
Dimyrcene
Polymyrcene
Uniqueness Has a superior hypolipidaemic activity. Guggul effectively lowers high triglycerides by 30%
Used to treat obesity and other weight related problems. It is reported to be the most powerful cholesterol-lowering herb known.
Endangered plant
Specification
Total Guggulsterone Content : 2.5%, 5 % & 10 %
Alcohol Soluble Extractives : Min: 50 %
Others : Lipid Contents min 20%
Loss On Drying : max 5 % (2hrs@ 105°C)
Extract Ratio : 7:1
Particle Size : 100 % through 80 mesh
Solubility : Soluble in Alcohol
Shelf Life : 24 months unopened
Storage : In cool dry place, away from heat
and direct light.
Actives 2.5% 5%
Appearance Yellow coloured powder Brown coloured viscous
liquid.
Aroma Characteristic pleasant Characteristic pleasant
Taste Bitter aromatic Bitter aromatic
Loss on Drying (at
105deg C)
Ash Content Max 8 % Max 8 %
Heavy metals Max 10 % Max 10 %
Activity ( BY HPLC) Max 10ppm Max 10ppm
Microbial Min. 2.5% Min.5%
Total Plate Counts Max 10,000/g Max 10,000/G
E.Coli Negative /0 parts per g Negative / 0 parts per g
Salmonella Negative /<2 parts per g Negative / < parts per g
Yeast /mold Negative /g Negative /g
PRODUCT APPLICATIONS
Cholesterol
Guggul significantly lowers serum triglycerides and cholesterol as well as
LDL and VLDL cholesterols (the bad cholesterols).
At the same time, it raises levels of HDL (the good cholesterol)
It does this by increasing the liver’s metabolism of LDL-cholesterol, thus
limiting its accumulation in the blood stream.
As antioxidants, Guggulsterone keep LDL cholesterol from oxidising, an
action which protects against atherosclerosis.
Guggul has also been shown to reduce the stickiness of platelets, as it
clears cholesterol from arteries and veins, lowers triglycerides and breaks
up hardening and stagnation -yet another effect that lowers the risk of
coronary artery disease.
Guggul extract is similar to the drug Clofibrate for lowering cholesterol
levels.
Anti-inflammatory
A direct anti-inflammatory effect has been observed for Guggulsterones.
It thus improves inflamed joints in rhumatism (arthritis)
In Ayurvedic medicine, it is used to remove deposits of waste or toxic material in the body, including mucus and mineral deposits in the joints,
thus reducing a possible cause of sluggishness, inflamed joints, and many other conditions.
It compares favorably to tetracycline in the treatment of cystic acne.
It has Carminative, Antispasmodic and Diaphoretic effect
Weight Loss
It may also increase thermogenesis through stimulation of the thyroid, potentially resulting in weight loss.
A combination of Guggul, phosphate salts, hydroxycitrate and tyrosine
coupled with exercise is prescribed for weight loss.
Others
Guggul lipid's natural properties are also commonly compared to that of niacin and fish oil.
Guggul lipid decreases high blood pressure.
It is used to strengthen the structural system and support the heart.
MARKET POTENTIAL
GLOBAL SCENARIO
Guggul is predominantly viewed as anticholesterol drug
World-wide sales of anticholesterol drugs
Brand name Marketer Therapy Sales in million
US$
Zocor Merck Cholesterol 2800
Mevacor Merck Cholesterol 1255
Pravacor BMS Cholesterol 1075
Patent expiry date of certain anticholesterol drugs
Brand name Marketer Therapy Patent expiry
Zocor Merck Cholesterol 2005
Mevacor Merck Cholesterol 2001
Pravacor BMS Cholesterol 2005
Research work on Anti Cholesterol properties of Guggul
David D. Moore, a molecular Biologist at the Baylor School of Medicine in
Houston has studied and proved the anti cholesterol property of
Guggul..
The sap from a Guggul tree contains a compound that blocks the action
of a cell receptor, called FXR, that helps regulate the level of cholesterol
in the body
Scientist said that this mechanism is completely different from the action
of statin drugs, which are taken by millions of Americans to control
cholesterol
Results suggest that other compounds that could affect FXR could also
control cholesterol.
INSTALLED CAPACITY
The proposed installed capacity of the unit is 30 Tonnes of Guggul
extract per annum.
PLANT AND MACHINERY
The following items of plant and machinery are required.
The total cost of machinery is estimated at Rs.8.00 lakhs
MANUFACTURING PROCESS
The Guggul tree secretes aromatic oleoresins which are collected, when
dry after exuding from cuts in the bark.
Guggul, the resin from Commiphora mukul, is made into a powder in
this form; it has been used for centuries by tribals in Rajasthan, Gujarat
and Karnataka.
Today, the powder is obtained and compressed into pills in a more
scientific set up.
The standardized powder extract contains a mixture of Z and E
Guggulsterones.
Indian R & D Efforts
Cipla Laboratories Ltd, Bombay have conducted R & D on Guggul,
Air compressor
Granulator
Pulveriser
resulting in manufacture hypolipidaemic drug “Guglip”
The National Chemical Laboratory (Pune) in collaboration with the
pharmacology team of the Central Drug Research Institute (Lucknow)
have isolated and chemically characterized the hypolipidemic compounds
of the oleogum resin.
Source of technology
* Central Institute of Medicinal and Aromatic Plants,
(Council of Scientific and Industrial Research)
Kukrail Picnic Spot Road,
P O CIMAP, Lucknow - 226015
RAW MATERIAL REQUIREMENTS, UTILITY AND
AVAILABILITY
Calculation of Raw Materials
Unit
Qty
Rate- Rs
Rs.lakhs
Guggul Gum 1.50 MTs 45 850000 382.50
Botanical Trait
The mukul myrrh (Commiphora mukul) is a small, thorny shrub
distributed throughout India.
The short shrub prefers arid regions.
Guggul and Gum Guggul are the names given to a yellowish resin
produced from the stem of the plant.
Cultivation
Habit : Perennial crop, a desert plant
Propagation : Stem cuttings
Habitat : Gujarat, Rajastan and Karnataka
Harvesting : Harvesting can be done when the plant attain 5 to 8 years
of age.
Gum is tapped by shallow incision on the bark with sharp chisel and
small quantity of Guggul gum with Ethereal enhances the gum secretion
Harvesting Period: December to March
Yield
700 to 900 Kg per hectare of Guggul gum
Post harvest:
Gum is dried in shade and stored.
LOCATION, LAND AND BUILIDING
Land area 1 acre
Cost assumed Rs per acre 15.00
Built up area-Sq.ft 1300
Rate per sq.ft-Rs 800.00
Building cost s lakhs 10.40
UTILITIES
Power 20 HP
I.e 14.92
No. Of Working hours 8
Per day 119 Kw hrs
Per annum 35700 Kw hrs
Rate per unit Rs.5.5
Power charge per annum Rs.1.97 lakhs
Fuel required per MT 20 litres
Total 600
Rate Rs.42.00
Fuel per annum-Furnace oil 0.25
Total Power & Fuel 2.21
MANPOWER
Category
Nos. Monthly
Total monthly
Salary Salary
Chemist 1 12000 12000
Supervisor 1 9000 9000
Accountant 1 6000 6000
Substaff 2 5000 10000
Machine operators
2
7000
14000
Skilled workers
3
7000
21000
Total 10 72000
Add Benefits 0.20 14400 86400
Annually Rs.lakhs 10.37
SCHEDULE OF IMPLEMENTATION
If the financing arrangements are finalised the project can be
implemented in three months time.
COST OF PRODUCTION AND PROFITABILITY
A cost and profitability statement projected for the first 3 years of
operations is given in Annexure. The profitability is based on the
following assumptions.
Assumptions
Installed capacity 30 MTs of Guggul Extract per annum
Capacity utilisation Year-1-60%
Year-2- 70%
Year-3-80%
Selling price Rs.1900000 per MT.
Raw materials As per the details given above
PLANT AND MACHINERY AND SUPPLIERS
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
Packing materials As per details given above
Power and fuel Rs.2.21 lakhs per annum at 100%
Wages and salaries Rs. 10.37 lakhs with increase 5% every
year.
Repairs and Maintenance Rs.1.20 lakhs per annum
Depreciation Written down value method -15 % on
machinery
Selling general and
administrative expenses
Rs.4.80 lakhs per annum
Interest on Term loan 14% per annum
Interest on working capital 14 % per annum
Income tax 34 % on profits
Air compressor ELGI Equipments Ltd.,
Elgi Industrial Complex
III, Trichy Road,
Singanallur, Coimbatore-641 005
K.G. Khosla Compressors Ltd.,
19.8 KMS, Delhi-Mathura
Road, Faridabad-121 003,
Haryana
Granulator The Bombay Engineering
Works 1, Navyug Industrial
Estate, Opposite Swan Mills
185, Tokersey Jivraj
Road, Sewree, Mumbai-
400 015
Cadmach Machinery Co. Ltd
H.O. and Factory
Plot No.3604 and
3605 GIDC Industrial
Estate
Phase IV, Vatva, Ahmedabad-382
445
FINANCIAL ASPECTS
1. COST OF PROJECT
[Rs.lakhs]
Land 0.00
Building 1.50
Plant & Machinery 10.00
Other Misc. assets 1.00
Pre-Operative expenses 2.00
Margin for WC 10.69
------
25.19
------
2. MEANS OF FINANCE
Capital 16.57
Term Loan
8.63
------
25.19
------
3. COST OF PRODUCTION & PROFITABILITY STATEMENTS
Years 1 2 3
Installed Capacity MTs per annum 30 30 30
Utilisation 60% 70% 80%
Production/Sales Mts per annum 18 21 24
Selling Price Rs.1,900,000 MT
Sales Value 342.00 399.00 456.00
Sales Value 342.00 399.00 456.00
Raw Materials 229.86 268.17 306.48
Power 1.33 1.55 1.77
Wages & Salaries 10.37 10.89 11.43
Repairs & Maintenance 1.20 1.26 1.32
Depreciation 2.03 1.74 1.49
Cost of Production
244.79
283.61
322.49
Admin, & General expenses 4.80 5.04 5.29
Interest on Term Loan 1.21 1.06 0.75
Interest on Working Capital 6.67 6.67 6.67
Total 257.47 296.38 335.20
Profit Before Tax 84.53 102.62 120.80
Provision for tax 28.74 34.89 41.07
Profit After Tax 55.79 67.73 79.73
Add: Depreciation 2.03 1.74 1.49
Cash Accruals 57.82 69.47 81.22
4. WORKING CAPITAL:
Months Values % Margin Bank
Consumptions Amount Finance
Raw Materials 1.00 19.16 25% 4.79 14.37
Finished goods 0.50 10.20 25% 2.55 7.65
Debtors 1.00 28.50 10% 2.85 25.65
Expenses 1.00 0.50 100% 0.50 0.00
58.36
10.69 47.67
Say-> - Rs.47.64 lakhs
5. PROFITABILITY RATIOS BASED ON 80% UTILISATION
Profit after Tax 79.73 - 17%
Sales 456.00
Profit before Interest and Tax 128.22 - 176%
Total Investment 72.83
Profit after Tax 79.73 - 481%
Promoters Capital 16.57
5. BREAK EVEN LEVEL
Fixed Cost (FC):
[Rs.lakhs]
Wages & Salaries 11.43
Repairs & maintenance 1.32
Depreciation 1.49
Admin. & General expenses 5.29
Interest on TL 0.75
20.28
Profit Before Tax (P) 120.80
FC x 100 20.28 0.80
BEL =
141.08
12% of installed
capacity
FC +P
6. BREAK EVEN LEVEL
Fixed Cost (FC):
[Rs.lakhs]
Wages & Salaries 11.43
Repairs & maintenance 1.32
Depreciation 1.49
Admin. & General expenses 5.29
Interest on TL 0.75
20.28
Profit Before Tax (P) 120.80
FC x 100 20.28 0.80
BEL =
141.08
12% of installed
capacity
FC +P