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Growing Market for Herbal Medicine Business

Growing Market for Herbal Medicine Business

One of the major uses of herbal medicines is for health promotion and also therapy for chronic, as opposed to life-threatening, conditions. However, usage of traditional remedies upsurges when conventional medicine is ineffective in the treatment of diseases, such as in advanced cancer and the face of new infectious diseases. Consumers worldwide are now preferring herbal beauty products such as skin care products, hair care products, make-up products, and others. Since ancient times the herbal medicines are used for the treatment of different diseases. A herbal medicine business may involve the actual growing and selling of herbs used for medicinal use. The Indian medicine industry has seen a huge growth in the last 10 years, just by paying close attention to its shoppers’ needs. Below are the researched points by NPCS which you need to know before starting an Herbal Medicines business.

Related Projects: - Herbs and Herbal Based Products

Consider These Following Points Before Starting A Herbal Medicine Business.

Market Research – A herbal medicine business is just like any other business. The first imperative thing to do before starting a business is to conduct market research for it. You should know your target audience, the challenges, and the trend of this business. The success rate of your herbal medicine business. The global herbal medicine market is expected to reach a CAGR of 5.88 to reach USD 1, 29,689.3 million by 2023. Which is a great increasing rate.

Related Books: - Herbal Food, Drugs, Medicines, Ayurvedic And Unani Medicines

 

Knowledge about the Herbs– Before stepping into a herbal business, it is important to have a basic knowledge of herbal remedies and applications. You need to know about each herb and its uses which you are going to use. It is mandatory to check whether a herb is safe and effective and lastly you should also know the contradiction and possible interaction of the herbs you will be using.

Related Videos:- Herbs and Herbal Based Products

Business Cost– The cost of starting this business differs depending on the model but surely in this industry there is a place for people with almost any budget. If you want to start it at the cheapest cost then purchase the herbs through the wholesaler and then resell these herbs online. If you have a good capital to invest you should open a permanent store to sell medicinal herbs.

Related Books:- Herbal Products, Aromatic Plant Cultivation, Processing, Herb, Medicinal Plants, Herbs Cultivation, Processing

Location – Once you have done the research on your herbs set up a space for your herbal business. If you are planning to grow herbs, lease or buy a plot of land with fertilizers and seeds. If you plan on retailing herbs, you need to lease a storefront in that part of town where you have your targeted customers that can be an affluent area with yoga studios and natural food stores. Buy scoops, some jars and labels for bulk herbs, as well as packages of herbs.

Related Books: - Herbs Cultivation & Medicinal Uses (2nd Edition)

Marketing – If you want to grow your business, you can’t do it without following this step. There are numerous market strategies for you to use. Get in contact with the naturopaths and other holistic health practitioners who recommend herbal products to their clients. Do the marketing by advertising in venues that appeal to your target market. At last, it’s beneficial to have a website that is creative and informative which describes your products and services.   Licensing And Registering– Contact your city and revenue departments and get the license which is necessary to run a herbal business. You need to follow FDA labeling requirements for your herbal business. Get thorough research of the product which falls under the unsafe category, be careful to not sell them.

Related Books: - Handbook on Herbal Drugs and its Plant Sources

Conclusion

The market share for herbal medicines has increased considerably since the last few years and is expected to reach its peak by 2023-2025. So if you are thinking of starting an herbal medicine business, consider our book “Handbook of Herbal medicines” for all the great ideas and information which is required to venture into this field.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
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  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
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Market Study and Assessment
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Raw Material
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Personnel (Manpower) Requirements
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Plant and Machinery
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Manufacturing Process and Formulations
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Infrastructure and Utilities
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
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Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
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  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
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Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
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Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR