PLANTATION AND EXTRACTION OF

GUGGUL

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

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

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Total Guggulsterone Content : 2.5%, 5 % & 10 %
Alcohol Soluble Extractives : Min: 50 %
Others : Lipid Contents min 20%
Loss On Drying : max 5 % (2hrs@ 105C)
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

SECTION II
3
 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 livers metabolism of LDL-cholesterol, thus limiting its
accumulation in the blood stream.

As antioxidants, Guggulsterones 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 favourably 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

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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.

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 SECTION III

INDIAN MANUFACTURERS

There are number of units involved in the production of Guggul extract and formulations.

Such units include the following

* Alchem International Ltd.,

201, Empire Plaza, Mehrauli-Gurgaon Road,
Sultanpur, New Delhi-110 030

* Indfrag Biosciences Ltd./Indfrag Ltd.,

1320, 12th Cross, Indiranagar 2nd Stage,
Bangalore-560 038

* Poojan Texspun
8, Pushpadeep Apt., Pushpakunj Society, Kankaria,
Ahmedabad - 380 001

* Sri Srinivasa Herblex (P) Ltd.,

Shed No.6, Phase III
Autonagar, Vijayawada-520 007

* Spectromed
2, E113/16th Cross St.,
Opp. SBI Besant nagar
Chennai 600 090

* Sami Labs. Ltd.

No.19/1 & 19/2, I Main, II Phase, Peenya Indl. Area
Bangalore-560 058

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 SECTION IV

IMPORT/EXPORT LEVEL

4.1. Imports Nil

4.2. Sample of Indian Exports

Description Quantity Value (Rs) Country Company

Guggul 50 Kgs 58662 Brussels Siris Impex

Dry extracts
Guggul 5 Kgs 6311 Milan Plant Lipids Ltd
Dry extracts

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 SECTION V

PRICE

Basic price of Guggul powder extract Rs.750 per kg

Taxes and duties Extra as applicable

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 SECTION VI

INDIAN DEMAND

6.1. Sample of formulations

RUMOSH TAB. An Anti Inflammatory & Anti Rheumatic

Constituents:

Mahayograj Guggulu, Exts. Maharasnadi Quath,Shilajit, Parasik Yavani

(STRIP 10*10T and Pla.Bott.100T)

CULOSH TAB. For Leucorrhoea

Constituents: Hirabol, Lodhar, Shilajit, Guggul

(STRIP 10*10T Pla. Bott.100T)

BUILDIM TAB. Herbal an anti- bacterial

Constituents: Guggulu, Exts. Maharasnadi quath,Manjishtha, Guduchi

(STRIP 10*10T and Pla. Bott.50 T)

BUILDIM SYRUP Herbal an anti- bacterial

Guggulu, Exts. Maharasnadi quath,Manjishtha, Guduchi, Shankh Bhasma

(Bottle 100ML and Bottle 200ML)

Nature'
s Sunshine Guggul Lipid

Contains 500 mg of Guggul lipid standardized to contain 25 mg of Guggulsterones per

gramme.

Enzymatic Therapy Guggul Plus

(It is a maximum strength Guggul lipid extract.)

OSIM CAP For Slimming

Medohar Guggul, Tryusnadi Loh,Triphala Guggul, Cow Mutra Exract

Pla.Bott. 50Cap. And Pla.Bott 100Cap

Caution

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In clinical trials of standardized Guggul extract, no significant side effects other than
occasional mild gastrointestinal distress have been seen.

Guggul may be used with caution by people with liver disease and in cases of
inflammatory bowel disease and diarrhea.

6.2. Driving Factor for Demand

Guggulsterones are the active substances in the Ayurvedic formulations

Its claim to cardio health fame is its ability to lower elevated LDL Cholesterol levels.

6.3. Indian demand Around 90 tonnes per annum of Guggul extract powder

Growth rate in demand 10 to 11% per annum

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 SECTION VII

BROAD OUTLINE OF 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, 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

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

Air compressor ELGI Equipments Ltd.,

Elgi Industrial Complex III,
11
 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

SECTION VIII
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 RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Botanical Trait

The mukul myrrh (Commiphora mukul) is a small, thorny shrub distributed throughout
India.

The short shrub prefers arid regions.

Guggul and Gum Guggulu 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
Guggal gum with Etheral 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.

SECTION IX

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 GLOBAL SCENARIO

Guggul is predominently 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

New Drug for Cholesterol

Raloxifene, a new safer drug, may replace estrogen, a hormone which many
postmenopausal women take to reduce the risk of osteoporosis and heart disease.

The disadvantage of estrogen is that it increases the risk of cancer, especially breast
cancer.

The new drug reduces bone loss, lowers cholesterol and cuts down on the risk of
endometrial cancer because it does not stimulate the uterus like estrogen.

Preliminary studies have shown that the drug appears to reduce the risk of breast cancer

The clinical trials, which are going on, have included 10000 women worldwide. If all
goes according to the plan raloifence is expected to hit the market in the next 6 to 12
months.

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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.

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 SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 30 tonnes per annum

Project cost : Rs.65 lakhs

Assessment of project cost

1. Land

S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 75 acre at Rs.45000 lakh per acre 33.75

Subtotal 33.75

2. Building

S.No. Description Cost

Rs.in lakhs

2.1 Building of area 75 sq.m. at Rs.3200/sq.m. 2.4

Subtotal 2.4

3. Cost of Plant & Machinery

S.No. Description Cost

Rs.in lakhs

3.1 Miscellaneous machinery 4.5

3.2 Packaging machinery 4.0
Total cost of plant and Machinery 8.5

4. Technical know-how fees Rs.1.00 lakhs

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5. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs

5.1. Preliminary expenses 0.2

5.2. Pre-operative expenses:-
5.2.1 Establishment 0.2
5.2.2 Rent rates and taxes 0.2
5.2.3 Travelling expenses 0.2
5.2.4 Interest and commitment charges on borrowings 1.2
5.2.5 Insurance during construction period 0.2
5.2.6 Other preoperative expenses and deposits -
5.2.7 Interest on deferred payment -
Total 2.2

6. Provision for contingency Rs.0.71

7. Working capital margin Rs.16.69

8. Total project cost Rs.65

9. Means of finance (Rs. in lakhs)

Promoter's contribution 26
Term loan from financing institutions 39
Total project cost 65

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10. Financial statements

Cost of production

A Variable cost Rs. in lakhs

Raw material and utilities 126.19

Spares and maintenance 0.51
Selling expenses 11.25
Total variable cost (A) 137.95

B Fixed cost

Salaries and wages 18.00

Interest on term loan and working capital loan 16.06
Depreciation 1.06
Administrative expenses 6.75
Total fixed cost (B) 41.87

C. Total cost of production (A+B) 179.82

D. Selling price per kg. (in Rupees) 750

E. Annual sales turnover 225

F. Net profit before tax (E-C) 45.18

G. Breakeven point in % 48

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 SECTION XI

SWOT ANALYSIS

Strength Large availability of plantations in India

Weakness Lack of standardised product

Opportunity Export

Threat Poor quality agricultural and extraction

practices

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 SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATION

Guggul is the traditional plantation in India which has been known to treat various
ailments such as Cholesterol, inflammation and others.

Guggul is almost an entirely Indian product, with tremendous export potential.

If adequate efforts would be made in developing the market for the product in India an
abroad, Guggul would be an exciting investment prospect.

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