PROJECT PROFILE ON MEDICINAL ... - Emerging Kerala

PROJECT PROFILE
ON
MEDICINAL PLANTATION & KNOWLEDGE CENTRE
AT TPI, PUNALUR
Prepared by:
INKEL LIMITED
2012
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PROJECT PROFILE FOR MEDICINAL PLANTATION & KNOWLEDGE CENTRE AT TPI,
PUNALUR
1. INTRODUCTION
1.1 About INKEL
INKEL Limited, a Public-Private Enterprise was formed by Government of Kerala (GoK), with 26%
stake and 74% with private participation - general public, NRKs, institutional investors etc. Primary
objectives of INKEL are to promote, set up, operate and deal with infrastructure facilities, projects and
ventures across sectors including SEZs, industrial parks / estates, knowledge parks, roads, rail, port,
airport and other facilities. INKEL also acts as a key link between GoK and private sector in facilitating
and developing infrastructure, primarily in the State of Kerala
1.2 Brief of the Project
Medicinal Plantation funded under Central Govt. Scheme is proposed as the main backward linkage in
the large land parcel with a backdrop of rich reserve forest at Punalur. Contract farming and Collection
from various sources including backyard of individual houses, forest land, Purampoke land owned by
Govt., No Development Zones (NDZ) funded under NREGS, promoted by Franchise across the state are
the various options proposed for medicinal plantation. This serves as a conservatory and nursery of herbs.
The rare and endangered species forms major part of collections. INKEL also plans to cultivate rare herbs
under organic farming and green house cultivation for the manufacture of medicines by promoting
entrepreneurship among farmers and other land owners.
Ayurvedic Medicine Cultivation and Nursery
Herbal garden, to double as a gene pool with more than 1200 species of rare and endangered
medicinal plants to serve as a conservatory and nursery of herbs.
Collection shall also include certain hitherto unexplored tribal pockets, which are treasure groves
of herbal wealth.
Rare and endangered species cultivated under organic farming for the manufacture of medicines.
Herbal Garden and a herbarium to serve as a centre of excellence and provide awareness to the
public about our rich herbal heritage.
The nursery attached to the herbal garden is a nodal agency, engaged in the propagation and
dissemination of quality planting materials to farmers with a buy back arrangement to inculcate
the habit of medicinal farming among them.
Medicinal Plantation shall be expanded under contract farming by encouraging houses, farmers,
BPL category under NREGS in NDZ and Purampoke land.
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District level Centres shall be encouraged to promote medicinal plant cultivation in the locality.
Saplings shall be supplied from centralized nursery at Punalur
Harvested plants taken back to the Hub for processing on a regular basis after post harvest
preservation at the local centres.
2. MARKET VIABILITY
Kerala has been at the forefront of Ayurvedic revolution in the country, endowed with rich biodiversity
because of its natural topography comprising of all three biomes – hills, plateaus and coasts. The state
government has established R&D and educational infrastructure for further developing the science of
traditional medicine, and also took the lead in promoting health tourism which has been equally popular
among Indian as well as foreign tourists.
Government of Kerala offers subsidy and tax holidays to promote Ayurveda as a tourist crowd puller.
Demand for medicinal plants is increasing in both developing and developed countries due to growing
recognition of natural products being non-narcotic, having no side-effects, easily available at affordable
prices and sometime the only source of health care available to the poor.
As per World Health Organization (WHO) estimates, almost 80% of the population of developing
countries relies on traditional medicines, mostly plant drugs, for their primary health care needs. In fact it
is well known that even in developed countries, the use of traditional medicines is quite prevalent. Also,
modern pharmacopoeia still contains at least 25% drugs derived from plants and many others which are
synthetic analogues built on prototype compounds isolated from plants.
Kerala has been at the forefront of ayurvedic revolution in the country, endowed with rich biodiversity
because of its natural topography comprising of all three biomes – hills, plateaus and coasts. The state
government has established R&D and educational infrastructure for further developing the science of
traditional medicine, and also took the lead in promoting health tourism which has been equally popular
among Indian as well as foreign tourists.
Medicinal plants have been identified as one of the thrust areas by the Ministry and different programmes
have been initiated for conservation of medicinal plants found in the forests and protected areas as well as
cultivation of these plants in the degraded forest areas.
Interest and support for the conservation and development of medicinal plants is increasing in all
parts of the world.
This is due, in part, to a growing recognition given to the role of medicinal plants in the provision
of culturally relevant and affordable health care in creating sustainable livelihoods and in the vital
conservation of biodiversity.
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This has also drawn the attention of the world community towards the need for creating
mechanisms to ensure sustained development of the sector and to allow sharing of information
between countries, organizations and agencies.
In India, Medicinal plants sector has traditionally occupied an important position in the socio
cultural, spiritual and medicinal arena of rural and tribal lives.
Recognizing its importance, the Government of India established the Department of Indian
System of Medicine and Homoeopathy, and more recently the Medicinal Plants Board to develop,
promote and regulate the sector for maximizing the benefits to the people as well as to ensure
sustainable growth.
Herbs and plants have been used for medicinal purposes for thousands of year. Even with the revolution
in antibiotics and other synthetic medicines in the twentieth century. China and India are the largest
consumers of traditional and herbal medicines. Sales of herbal and homeopathic remedies are increasing
rapidly in most major markets and drugs companies are investing huge sums to develop tropical plant
species into sources for the drugs of tomorrow. Herbs content specific alkaloids which are destroyed by
keeping it is the room temperature for more than three days. India is richly endowed with a wide range of
plant species. Many of these plants possess tremendous medicinal values and being used extensively for
such purposes. There is bright scope of medicinal herbs plants.
The prime objectives behind setting up of a Centre of Excellence for Ayurvedic Medicines as a Hub is
with the intent of attracting a multi-purpose niche of visitors to an area and, as such, are marketed based
on their ability to generate economic activity and thus leading to project viability.
3. PROJECT PARAMETERS
3.1 Capacity/Area
Centre of Excellence for Ayurvedic Medicines on a Hub and Spoke Model is proposed. An Ayurvedic
hospital cum resort with Ayurvedic medicinal plantation, R&D /documentation /IPR /manufacturing
/processing is proposed at Punalur as a Hub. A chain of Ayurvedic treatment/resort centres shall be
attached as spokes in strategic locations across the state. The Hub at Punalur shall offer Disease based
treatments, Wellness treatments and Panchkarma treatments, cultivate and manufacture branded
medicines and supplies them to all its therapy centres. The Luxury, Economy and High end Therapy
centres as spokes across Kerala shall also promote Allopathic medicines and treatment, offering a holistic
medical solution making available integrated Ayurvedic Healthcare centres in the State. Expert
consultation and time tested therapies of Kerala by experienced doctors and trained therapists.
The project aims to provide its customers the most comprehensive Ayurveda and healthcare solutions at
affordable prices. The chain of Ayurveda Therapy Centre and Herbal Cafe combined as a concept and
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offered as a “Unique Selling Proposition (USP)” has been developed to widen the appeal of Ayurveda and
herbal remedies among all age groups.
Medicinal Plantation & Knowledge Centre is proposed in 10.5 Acres of land at Punalur with the
following project components:
o Medicinal Plantation & Nursery
o Green House Farming of Medicinal Plants/Herbs
o R&D in Tissue Culture & Medicine Formulation
o Data Centre & Pharmacopeia
o Technology & Business Incubation Centre (Product Launch)
Medicinal Plantation funded under Central Govt. Scheme is proposed as the main backward linkage in
the large land parcel with a backdrop of rich reserve forest at Punalur. Contract farming and Collection
from various sources including backyard of individual houses, forest land, Purampoke land owned by
Govt., No Development Zones (NDZ) funded under NREGS, promoted by Franchise across the state are
the various options proposed for medicinal plantation. This serves as a conservatory and nursery of herbs.
The rare and endangered species forms major part of collections. INKEL also plans to cultivate rare herbs
under organic farming and green house cultivation for the manufacture of medicines by promoting
entrepreneurship among farmers and other land owners.
R & D wing plays a vital role in Production, Formulation, Standardization, Monitoring quality of
Products etc, apart from the active role in agricultural field. Standardization of treatment and therapies are
managed by clinical R & D, in which experts in various disciplines are engaged.
Area expansion under cultivation and Extension services
Training & Demonstration to farmers on pre and post harvest management practices for medicinal plant
crops, which would include a full recommended package of practices. NMPB provides financial
assistance @ 50% for small farms, 40% for medium farms and 30% for large farms.
Provision of planting material: It is proposed that in the initial years planting material should be
provided to farmers free of cost.
Nursery Centres: To ensure quality of medicine and to meet the growing demand for quality planting
material, it is proposed to set up Nursery Centres, which would be attached to each Herbal Garden. The
infrastructure required for the nursery centres, such as land development, tissue culture, fungicide
treatment, shade nets, mist chamber, pots/poly bags and irrigation systems will be provided at a cost of
Rs. 1.25 lakhs in the first year. Besides, Rs. 0.40 Lakh would be available for maintenance for the first
two years. These centres would be set up by the second year of the establishment of the herbal gardens
and will be self supporting from the third year onwards with the revenue generated from the sale of the
planting material produced.
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In addition to the nursery centres, each farmer would also be encouraged to earmark an area of 0.05 ha for
seed production. Each such farmer will be eligible for an incentive of 50% of the cost of the vital inputs
up to Rs. 1500 per plot. These plot owners are expected to make available maximum quantity of planting
materials for distribution to the neighbouring farmers at a reasonable cost.
Laboratories for Quality testing
The quality and yield depends on condition of soil, nutrient availability and extent of infestation with
pests/diseases etc. In order to take timely corrective measures in case of undesirable changes, the
proposed CEAM will have a laboratory with facilities for testing soil, water and plant tissues, as well as
GLC and HPLC. These laboratories will also serve as disease forecasting units. The total cost for
establishing laboratory would be around Rs. 60.00 lakh, of which a sum of Rs. 17.5 Lakh will be provided
as financial assistance under the NHB scheme.
Development of Data Bank and Information Centre
Managing and dissemination of market information is very critical for success of the export promotion
initiative. Hence, it is proposed to set up a state of art Data Bank and Information Centre, to be
maintained by the Extension Department of the state Government. The centre will maintain detailed
records on medicinal plants production and development in Kerala and India as a whole. The centre also
provide information on various international practices/researches on growing, harvesting, transportation
etc and latest R & D initiatives will be made available to farmers, pack houses and exporters.
The cost of setting and maintaining such a centre is estimated at Rs. 25 lakhs. In addition to setting up the
centre, initial one-time studies are required for compiling the base data on all aspects, which will entail a
cost of about Rs. 50 lakhs.
Financial assistance is available for these activities under schemes of Ministry of Agriculture and NMPB.
3.2 Land
The project is proposed in 43.5 acres of land where Travancore Plywood Industries (TPI) factory was
functioning earlier located Piravanthur Village, Pathanapuram Taluk, Punalur, Kollam District. The site
presently has old and new factory buildings, office and staff quarters.
Punalur is a hilly town and a municipality in Kollam district in the southern state of Kerala, India. It is the
second largest town in Kollam and is one of the industrial towns in Kerala. It is situated 45 km north-east
of Kollam and 75 km north of Thiruvananthapuram. Punalur is the head quarters of Pathanapuram Taluk.
This place is the gateway to Western Ghats and it is connected to the towns of Tamil Nadu like Tenkasi.
The Project (Hub) location is at the eastern side of Kollam district which is mostly agriculture dominated.
This will help the agricultural production in that area. The site presently has old and new factory
buildings, office and staff quarters; with a back drop of reserve forest is ideally suited for the project.
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Medicinal plants have been identified as one of the thrust areas by the Ministry and different programmes
have been initiated for conservation of medicinal plants found in the forests and protected areas as well as
cultivation of these plants in the degraded forest areas.
3.3 Utilities & Facilities
This would include Utilities like water, power, etc. basic infrastructure like internal roads, Parking area,
Security, Sewage Treatment Plant (STP), landscaping, pedestrian streets and other services required for
the complex.
3.4 Cost of the Project
The estimated project cost for the development of proposed Centre of Excellence at Punalur would be Rs.
100 Crore. The Medicinal Plantation & Knowledge Centre is proposed to be set up for a cost of Rs. 1
Crore in phases.
3.5 Mode of Implementation & Schedule
The land will be taken over by INKEL on long term lease from KINFRA with sublease and mortgage
rights.
The Medicinal Plantation conservation of rare species, R&D, Nursery shall be maintained and post
harvest preservation and processing facility shall be set up under Central Government Funding by a
Project specific SPV partnering with reputed players in the field.
The Project is expected to be completed in 3 years, from the date of obtaining all the clearances and
approvals, in a phased manner. The project will be ready for occupation by 2014.
3.6 Project Viability
The Medicinal Plantation as backward integration in the Hub at Punalur ensures synergy and enhances the
marketability of the project. All these factors related to the project ensure a return of more than 25% to
investor or to the operators of the project.
4. CONCLUSION
4.1 Investment Opportunity
• Equity investment in the project
• Long term loan for the project
• Short term loan for the project
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• Long Term Lease of Land Parcels for development and operation of Medicinal Plantation &
Knowledge Centre under Developer Agreement for a specific period
• Investment & Management Contract as a package for the Medicinal Plantation & Knowledge
Centre
• Operations & Management of the Medicinal Plantation & Knowledge Centre on Management
Contract by reputed agencies
4.2 Role of INKEL
INKEL would provide end to end solution from conceptualization to commissioning including obtaining
statutory clearance and approvals required for the project, PMC, O&M, etc on a predetermined fixed fee.
Also INKEL can implement and operate the entire project on behalf of the investor based on mutually
agreeable terms. In this case, investor needs to only bring in the capital.
Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through
primary and secondary research, which is only indicative and may not reflect the realities of an actual
project. Reference herein to any specific commercial product, process, service by trade name, trademark,
manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring
by INKEL or any entities thereof.
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