Konark Herbals and Healthcare is a medium sized company established in 2004. The company is into fabricating and merchandising of semi finished herbal merchandises. These merchandises include soft and dry herb tea infusions, in both solid and liquid signifier. The infusions are sold in a standardised signifier as the components in it are the ANI ( Active Neutraceutical Ingredient ) . The company is besides associated with the Konark Research Foundation which carries out all the quality confidence and proving to guarantee quality and standardized merchandises as this is the most important parametric quantity. Konark manufactures over 300 herb teas infusions, though its flagship merchandise is curcumin and its derived functions.
Traditional Medicine has ever had its popularity worldwide. In add-on over the last few old ages at that place has been increase in the usage of herbal medical specialties along with an emerging section of nutraceuticals in many developed states. The last 15 old ages have seen an addition in the popularity of works based medical specialties and addendums in the western universe. Therefore the safety and quality of the herbal medical specialties have become really of import concerns for the wellness governments every bit good as the populace. Several traditional medical specialty patterns have been developed over the centuries in different civilizations – but without a parallel progress of international criterions and utilizing inappropriate methods for measuring traditional medical specialty. Therefore rigorous guidelines and policies for herbal medical specialties are critical to the continued being of quality merchandises.
Although Ayurveda and herbal medical specialties have been an built-in impart of India, it has non yet gained a commercial value. As opposed to that, Europe has been the hub of herbal merchandises and the nutraceuticals market. Harmonizing to Euromonitor more than 60 % of the Europeans and greater than 80 % of Germans ( Figure 1 ) have used herbal merchandises at some point of clip in their life. Herbal redresss which were earlier sold in little particular stores, frequently without any licence, have now become mainstream drugs manufactured by transnational companies and sold in pharmaceuticss throughout Europe.
It is due to this high use of merchandises that the European Union has become an country of involvement to many companies and exporters including Konark Herbals & A ; HealthCare. Hence, to come in the European market, understanding the regulative guidelines, disease profiles and major markets is of import. Therefore a complete secondary Research was done to scrutinize the market and derive an in-depth apprehension of the European Union. . A primary research was besides done to understand the demands of the European purchasers. Understanding the market gave rise to several chances for the company to aim and make its topographic point in the market.
1.1 Problem Statement
Up until 2010 the company ‘s chief focal point was the domestic market. The merchandises were marketed and sold either for domestic usage or to other Indian companies for export intents. But there were several jobs faced by the company by merely concentrating on the domestic market which were hard to undertake. Wherein the biggest job being developing regulative guidelines in India. There is a heavy via media on quality to cut down monetary values giving unregistered and unqualified makers to take up the market. Another job is that the Indian consumers do non believe in buying Neutraceuticals and herbal medical specialties. Companies have tried for old ages to capture the “ grandma ‘s formula ” emotion within consumers but most have failed since consumers have been of the sentiment that these are merchandises which can be prepared at place. Consumers are easy shifting towards the natural and herbal merchandises in India as the consciousness of healthy life is increasing which will increase the purchase of infusions. But every bit long as the regulative guidelines do non develop the company will hold to concentrate on exports. After a thorough survey of the domestic market the company started to switch its focal point to a market where the herbal merchandises are non merely widely used but at backed by strong regulative guidelines and since Europe is the chief market for herbal merchandises the company chose to come in the European market.
Restriction of the undertaking was that the country targeted was the European Union and non the full continent. This is was because the guidelines for the European Union are unified throughout the 27 states. There are extra guidelines for each state but they all adhere to the minimal regulative guidelines put away by the EU. While all other states within the continent have their ain ordinances. Another major restriction was that the undertaking relied extremely on market studies and secondary research. Face to confront communicating with the European representatives would hold given a better apprehension of the market.
Secondary Research: European Union
The undertaking invovled an extended sum of secondary research on the bing European market conditions, the guidelines which impact the same every bit good, predominating diseases and the tendencies which have prevailed late.
Overall Market Size
The member provinces of the European Union represent the largest individual commercial market for herbal drugs and medicative workss in the universe. The European market for herbal addendums along with herbal medical specialties is presently at $ 7.4billion. An analysis based on the information from IMS wellness placed the planetary European over the counter ( OTC ) market for herbal medical specialties at about $ 5billion.
The EU is responsible for about one tierce of one-year planetary imports. Almost 2,000 species are used commercially for medicative intents. Including significant local production, industrial demand for MAPs is expected to be really big. In 2007, demand for medicative infusions amounted to around a‚¬ 70 million, and is expected to increase to a‚¬ 110 million. France is expected to be Europe ‘s 2nd largest market, followed by Italy with demand amounting to a‚¬ 100- 120 million yearly, and the UK. These markets demand similar infusions.
The EU is besides the largest importer of Crude medicative workss and herbal infusions with imports approximated at around 100,000 metric ton. This is about dual the measure imported by the USA ( IMS study ) .
European Union imports amounted to a‚¬ 500 million in the twelvemonth 2010. The taking importers are Germany, with 29 % of entire imports, followed by France, the UK, the Netherlands, Italy, Spain and Belgium. Apart from the Netherlands, where imports are increasing fast both in value and volume, merely Germany and Belgium stand out among the chief importers as states with import growing in value and volume. Other chief importers show increasing value but diminishing volumes, except for Italy and Spain, which show diminishing values and volumes. Still, sing their significant imports, all these states offer chances to DC exporters. It is interesting to observe that states such as the Netherlands and Belgium are of import re-exporters of infusions. They re export the merchandises chiefly to Germany and France, which are major participants that procedure extracts into concluding consumer goods. Imports from developing states now account for 41 % in value and 51 % in volume of imports and are increasing fast in overall value. Germany is the chief point of entry for infusions followed by France and the UK. Many DCs export infusions to the EU. Leading DC providers are China ( 5.7 % ) , Kenya ( 5.3 % ) , India ( 4.8, ) , Egypt ( 3.8 % ) , Morocco ( 2.8 % ) and Turkey ( 2.4 % ) . All of them saw their one-year exports between 2006 and 2010 grow, except for Morocco. ( Beginning: Euromonitor )
Europe consists of 50 states. And each state has its ain regulative guidelines and policies. It is of import to cognize that out of the 50 states merely 27 states autumn under the European Union. Legislation in the European Union is set at the EU degree, but there may be ( extra ) legal demands which may be state specific. Although maximal synchronism is aimed it is non ever achieved because of dialogues, arguments and national involvement. The European Medical bureau along with the THMPD ( Therapeutic Herbal Medical Product Directive ) are the two many regulative organic structures within the European Union. Each of the two organic structures has a set of guidelines which has to be followed by non merely the companies within Europe but besides the companies that want to come in the European market for concern chances. It includes policies from cultivation right up to selling of the merchandise in Europe. Understanding these guidelines is necessary for Indian companies such as Konark Herbals & A ; Health Care because in order to come in the European markets, they need to stay by them.
The commission on Herbal Medicinal merchandises ( HMPC )
HMPC, a portion of the European Medical Agency, is responsible for fixing the bureau ‘s sentiments on herbal medical specialties. In 2004 it replaced the proprietary medicinal merchandises working party on herb tea merchandises which introduced a simplified enrollment process for herbal drugs in EU member provinces. The commission has the duty to fix monographs of good established herb tea medical specialties which is based on rating of available scientific information or on its traditional usage in the European community. The monograph includes utilizations, safety information and information on unwanted effects.
Traditional Herbal Medicinal Product Directive ( once The Directive 2004/24/EC )
The THMPD was established in 2004 to supply a simplified regulative blessing procedure for traditional herbal medical specialties in the EU. Under this ordinance all herbal medicative merchandises are required to obtain an mandate to market within the EU. As per the THMPD all merchandises marketed before this statute law came into force can market their merchandise till 30 April, 2011. Once this bound expires they must derive market mandate.
These guidelines are of great importance particularly during the audits done by the European companies. As a compulsory process, all European companies conduct a thorough audit of the fabrication installations of the providers to look into them for GMP conformity. The audit even cheques for Good Agricultural patterns ( GAP ) complied by the husbandmans providing the petroleum workss to the provider. GAP includes assorted paperss and certifications that the provider must hold from the husbandmans. In instance any of the guidelines are non met with, the provider is non merely rejected but is blacklisted by the company for future intents until such clip that the provider has proven to be GMP and GAP compliant. Therefore the providers can non afford to do any errors
Examples of EU statute laws relevant for herbal merchandises:
Directing 2001/83/EC on selling mandate for medicative merchandises for human usage, including homeopathic merchandises and herbal medical specialties.
Directing 2003/94/EC on the rules and guidelines of GMP for medicative merchandises for human usage
Phytosanitary steps. – Directing 2000/29/EC
Regulation 338/97 on the protection of endangered species in trade, CITES
Preventive steps on beings harmful to workss – Directive 2000/29/EC
Other than the legal demands put down by the EU, there are a set of demands which differ company wise. These are besides called not legal demands, since the EU can interfere with issues refering merely to the selling of the merchandise within the EU whilst every state can hold its ain labor Torahs. Basically the extra demands are of two types viz. ; societal demands and environmental demands. There is an increasing involvement of such demands by the European companies. Some of which are:
Conformity with the national environments ordinances of the state of beginning.
Out of the 27 states belonging to the European Union few states such as Germany, UK and France are the major markets for herbal merchandises. As mentioned earlier EU statute laws are set at the EU degree, but there may be state specific ( extra ) legal demands. Understanding the guidelines for each of the states is important because it is through these states that Indian companies will do their entryway into the European Herbal Markets.
Germany by far is the most of import consumer of works based medical specialties in Europe which accounts for more than 50 % of all European licensed herbal merchandise gross revenues. It is besides the largest manufacturers of herbal phytomedicines. Cultivation in Germany has declined massively over the old ages, which has lead companies to import herbal infusions from other states such as India and China. This proves advantageous for Indian companies. It is besides of import to detect that even though Germany does hold domestic cultivation, merely 5 % – 10 % of the entire demand is covered by the domestic production. Germany is by far the largest importer of medicative workss and infusions with imports of around 50,000 metric tons on a annual footing. The footing of market mandate in Germany has been laid out in the Second Medicines Act which was formed in conformity with the EU legislative model. It required a reappraisal of the safety and quality of 300 workss. This was done by a squad of experts known as the Commission E who published more than 235 medicative workss.
Germany is one of the really few states that consider herbal merchandises as medical specialties thereby supplying complete reimbursement of such merchandises. The herbal drugs are reimbursable by the wellness insurance system unless particular standards for their exclusions apply. These exclusions are due to negative appraisal by committee E. There are 380 monographs presented in the American Botanical Council’sA ” The Complete German Commission E Monographs, Therapeutic Guide to Herbal Medicines ” , which has late been translated into English The monographs include lists of sanctioned and unapproved herbs, uses, indicants, side effects, interactions of herbs with conventional drugs and continuance of disposal
A national pharmacopoeia, the Deutsches Arneibuch and the European Pharmacopoeia are used, both of which are considered to be lawfully adhering. A figure of extra monographs have besides being issued such as the Deutcher Arzneimittel Codex but are non lawfully adhering. Regulatory Requirement for the industry of herbal medical specialties include attachment to the information in the pharmacopoeias. In the absence of pharmacopoeias, monographs, the GMP regulations for conventional pharmaceutical, German Medicines Act and the Eudralex. Conformity with these demands is ensured through review. Herbal medical specialties are sold in Germany in pharmaceuticss as OTC and prescription medical specialties in particular mercantile establishments and supermarkets.
Advantages for an Indian Company to provide to German companies:
Not more than 10 % of the entire demand is covered by domestic market
Merely a smattering of herbal workss are cultivated in Germany as compared to India.
As per the adapted from BAH ( Figure 2 ) more than a 100 Indian medicative workss can provide to these curative classs.
Many Indian workss such as curcumin, Amla, Ashwagandha or on the positive list of committee E.
Several curcumin merchandises are reimbursed by the wellness insurance system.
France is both a major manufacturer and consumer of medicative workss. It is the 2nd largest market in Europe after Germany. It has more than 4000 hectares under cultivation of which over 30 % is dedicated to workss such as thyme fennel camomile and Mentha piperita. Southern France is a major market for indispensable oils and aromatherapy. France imports around 30,000 metric tons of medicative workss and infusions from states such as India and China. France is besides an exporter of medicative workss which is about 8000 metric tons on a annual footing. Most exports are merely intra – European cargos frequently within same company.
Gallic ordinances make it hard to sell unaccredited herbal redresss. Around 527 medicative workss are listed in the Gallic Pharmacopoeia of which 454 workss are contained in list A ( positive benefit /risk ratio ) . These include workss such as acacia. Curcumin, Aloe Vera etc. Plants such as baccy and Thuja autumn under list B that has a negative benefit/risk ratio.
Despite all this, herbal medical specialties are classified as medical specialties in France and are capable to market mandate under the Health ministry.
The Gallic Republic does non hold any national policy, Torahs, adept commission or national research institute on traditional medical specialties. Herbal medical specialties are regulated as OTC medical specialties and by jurisprudence claims may be made about them. The same GMP regulations for industry are applicable for herbal medical specialties as for the conventional medical specialties. Conformity with the demands is ensured through reviews. Safety demands are the same as that for conventional drugs. Out of 787 medical specialties registered none, are listed on national indispensable drug list.
Advantages for Indian companies to aim France:
France is the Hub for indispensable oils and aromatherapy merchandises. Therefore many Indian companies can provide oils such as cinnamon oil, turmeric oil etc.
Out of the workss listed in List A of the Gallic Pharmacopoeia more than 250 workss are available in copiousness in India.
Although the authorities is coming up with newer policies, cultivation in France is merely for a minor group of medicative workss. Therefore Gallic companies have to look at provider of workss and infusions.
United Kingdom ( U.K. ) has until late been good below that of many European counties. U.K. based MNCs have given limited importance to research in herbal drugs. British husbandmans excessively have non given much importance to medicative workss. Less than 2000 hectares are devoted to medicative workss. But ingestion of herbal medical specialties has been turning at the rate of 10 % ( WHO report, 2008 )
Although U.K. has no individual national office, the medical specialties and Healthcare merchandise regulative bureau and the section of wellness in England have legion squads to develop policy on the safe usage and pattern of traditional medical specialties. Herbal medical specialties are regulated under Medicines Act 1968 ( 2001/83, EC besides applies ) . Until 2011 the directive provided two regulative paths for herbal medical specialties to make the market i.e licensed herbal medical specialties and unaccredited herbal medical specialties. Since May 2011 unlicensed herbal medical specialties have been ban in the market.
The British Pharmacopoeia contains 124 national monographs. There are around 500 licensed herbal drugs in the U.K. but none are included in the national indispensable list. Herbal drugs are sold in pharmaceuticss as OTC and prescription medical specialties.
Scope of Herbal merchandises in the European Market
The European market is of great involvement to many exporters all over the universe as there are many driving forces responsible for this involvement. There have been assorted markets late that have emerged which require herbal infusions. This is because consumers want to purchase merchandises which are “ natural ” and those that contain minimal man-made substances. . It is due to this attractive force towards herbal merchandises that Companies have started utilizing herbal infusions for dietetic addendums, nutrients, medical specialties and even decorative merchandises.
Several Tendencies can be noticed within the European Union which shows assuring usage of herbal infusions
a. The paradigm displacement: Most of the European companies are now taking at supplying dietetic addendums and functional drinks to forestall diseases instead than to bring around them. This is because within the European states at that place has been a displacement in the attack. This displacement was from healing to corrective in the mid 1890ss. And now it has shifted from disciplinary to preventive. Most companies are aiming the consumers by positioning their merchandises as a preventative addendum. The Ayurceuticals manufactured are placed in the market cater to 3 types of demands. And the ground why they are bought by the consumers are because the ingredients that go into doing these merchandises are herbal infusions i.e. “ Natural ” Reviewing the wellness addendum available in the European market it was observed that most merchandises claimed to assist and heighten unsusceptibility system instead than bring arounding a peculiar disease.
b. Socio-Economic factors: Unlike developing states like India assorted states in the European Union have a bulk of aging population of which Germany is taking a lead. Increase in age leads to assorted unwellnesss and upsets. This is the ground why the overall wellness attention industry is turning in Europe since consumers are willing to pass on merchandises to bring around themselves. What many companies are taking for it to aim the mid age population and supply preventative medicine. Consumers are willing to purchase these merchandises since the merchandises are assisting them to forestall the diseases. Equally far as the older populations are concerned they are looking for merchandises that aim at non merely one disease but all the secondary symptoms associated with it
c. Nutraceuticals Market: The neutraceuticals market in Europe is turning at a fast gait and is taking at taking over the health care system. Neutraceuticals are merchandises which are extracted from the natural beginnings or man-made chemicals which supplement the diet to supply nutrition and assist forestall nutrition upsets. Ayurceuticals, a bomber sector of neutraceuticals has been deriving enormous sum of involvement in the European market. Ayurceuticals is chiefly the usage of ayurvedic herbs to bring around diseases. This is one of the chief grounds why European purchasers are turning to Indian companies in order to purchase herbal infusions for their merchandises. The neutraceutical sector purposes at aiming the demands of the consumers. Within Europe the demands can be categorised in three sections. They are:
For each of the 3 sections of demands herbal infusions play an of import function to providing to those demands. Within the European markets it is good understood that ayurvedic herbal infusions are non merely the parts of the works but standardised photochemicals manufactured by sophisticated engineerings. Therefore, for each section there are assorted merchandises available in the market, most of which require herbal infusions.
Some of the addendums and functional drinks have wellness claims against many diseases which are prevailing in Europe. These claims are different from the claims made by pharmaceutical companies. The claims made on the lavels of neutraceutical merchandises are genrally classified into 3 types. Each of the three types are
Harmonizing to Euromonitore the range of herbal merchandises for usage in the neutrceutical and decorative sector is 1 trillion dollars by 2020. This figure stresses on the fact that the demand of herbal infusions and preparation in the European market is merely traveling to increase.
Diseases predominating in Europe
The being of herbal sector in the European markets is due to the lack, demands and diseases that are predominating in Europe. There are assorted diseases impacting the European states. The diseases can be split into those that affect the Europeans and those that affect the unrecorded stock. Amongst the assorted chances that the company has to tap the market one is aiming peculiar diseases and for that it is indispensable to understand the top prevailing diseases in Europe
Overview of the top diseases impacting European human population
Chronic diseases are the chief cause of mortality in Europe. Research ( by EDEC ) suggests that complex conditions such as diabetes, depression and dementedness will enforce a outstanding load in the hereafter. Some old ages ago chronic diseases were considered to be a job of merely the rich and aged people. But today we know that which high income states, hapless every bit good as immature people are affected by these chronic diseases. The deductions of the diseases are besides really serious.
There are a figure of chronic diseases that affect people all over Europe. The most prevailing 1s are:
Alzheimer ‘s disease
Parkinson ‘s disease
The nexus between disease and age is important from an economic populace policy point of view. The proportion of Europeans aged 65 old ages and older is projected to turn from 15 % to 23 % by 2030. This tendency is clearly one of the many grounds for the turning load of chronic diseases in Europe. ( Pomerleau, Knai and Nolte, 2008 ) .
The prevalence of mental upsets is really high in Europe. Dementia amongst those who are aged i.e. 65 and supra, in 2000 was estimated to change between 6 % to approximately 8 % . WHO has estimated that one in five individuals will develop depression and each twelvemonth 33 million European suffer from major depression. In 2008, the rates were lowest in Spain, Greece and Portugal while the highest estimations were for Finland, Israel, Belgium and France. Suicide from depressive upsets is the 3rd prima cause of decease among immature Europeans.
Top diseases impacting farm animal in Europe
Novel schemes and responses are necessary to run into the economic and human wellness hazards that are associated with farm animal diseases. Human-health menaces from farm animal come in two basic signifiers: ( I ) zoonotic diseases, and ( two ) food-borne unwellnesss. Zoonotic diseases are those diseases that arise in animate beings but can besides be transmitted to worlds. Potentially pandemic viruses, such as grippe, are the most newsworthy, but many others, including hydrophobias, undulant fever and splenic fever besides do be. Food-borne unwellness can come from disease agents such as salmonella and E. coli.
Highly infective farm animal diseases remain dismaying for the people of Europe because:
They are still extremely infective for worlds.
They are go oning to germinate.
There is a hazard of generic recombination with the viruses that are better adapted to, and can be easy transmitted among worlds.
The diseases impacting farm animal in Europe include:
Catching spongiform brain disorders ( TSE )
Ovine and Caprine undulant fever ( B. Melitensis )
Salmonellosis ( zoonotic salmonella )
Ovine and Caprine undulant fever ( B. Melitensis )
Salmonellosis ( zoonotic salmonella )
African Swine Fever
Bluetongue ( High hazard endemic countries )
Proposed Selling Scheme
In order to put out a market scheme it is of import for the company to first understand and audit the market in which it wants to come in. Second, since the herbal infusions can be used in a figure of merchandises, it is indispensable to cognize the different sections available to the company. Therefore a secondary research was carried out to understand the European market and to estimate the chances that Konark has in this market. After which, a market cleavage was done in order to derive cognition of the different sections predominating in the EU.
Herbal infusions can be used in a figure of Fieldss. Hence developing a market scheme was non possible without finding which market to choose. Each market has a different demand of herbal infusion. Therefore a market audit was carried out to understand the chances that the company had and the menace faced by the company in the European market. A market Audit was carried out utilizing STEEP methodological analysis. This methodological analysis helps the company understand its current topographic point in the market within different classs.
Increasing involvement in “ natural ” medical specialty
More ingestion of herbal merchandises leads o increasing demand of infusions
Many consumers are interested in infusions whose workss are available in Europe
Companies search for API and are looking at the planetary biodiversity
Exporters of infusions with interesting history of traditional usage can look for European spouses in developing preparations for the EU market
Value add-on remains in Europe as merchandises get patented
The EU herb tea sector is consolidation taking to increased figure of makers
Become a selected provider for a big company to provide big measures of the infusions
Requirements in measure and bringing conditions can be hard to run into
Wild handiness of workss is the EU is diminishing due to unsustainable aggregation procedures
Distinguish from non sustainable Rivals by implementing a sustainable production system
Sustainable system can take to increased pricing while other providers who do non hold such a system have lower monetary values therefore presenting as a competitory menace.
The EU THMPD regulates the herbal medical specialty
Clarity for exporters on demands across EU and for EU consumers could take to growing
Near impossibleness to market new infusions and menace to those that have non been in the market for a long clip.
The neutraceutical and industry for alternate medical specialties is turning and spread outing at a fast gait and the demand for herbal infusions are high in both the Fieldss. In such a province the company needs to understand its mark market. There are basically two signifiers of cleavages. The most of import section is separating between the conventional pharmaceutical industry and the ingredients required for the herbal medical specialty industry/Neutraceutical Industry. The conventional pharmaceutical industry includes homeopathy and Western traditional medical specialties, while the herbal medical specialty industry includes the ayurvedic and Chinese herbal medical specialties. Before a market scheme is put in topographic point the company needs to understand the demands and the issues with each of the sections. Both the industries have their plus points.
Ingredients required by the conventional Pharmaceutical industry
Ingredients required by the herbal Medicinal Industry
Large market with comparatively limited market growing
Small market with high market growing
Highly competitory market
Difficult for new participants to come in
Easier for new participants to come in the market
Large volumes & A ; and extremely seeable participants
Low volumes and less seeable participants
Traders are the chief market channel
Traders and agents are chief market channel
High degree of standardization
Increasing degree of standardization
Vertical integrating is limited
High degree of perpendicular integrating
The 2nd cleavage that follows are the infusions which fall under temperate species and those that fall under tropical species. Temperate Species are workss which are allowed to be grown in the EU while to tropical species are the workss which can non be cultivated in the EU. Therefore the company must cognize the workss that fall under each class. This is because if the company offers ectracts of the temperate species there will be heavy competition non merely from the Indian providers but besides from the European providers who will be able to supply the merchandise at a much lower monetary value. In such a instance the company need s to hold added inducements provided to the European purchaser to purchase the company ‘s merchandise over the European provider ‘s merchandise. Therefore it will be easier for Konark to supply infusions of the tropical species.
Herbal merchandises have found its usage for a broad scope of applications from herbal medical specialties to cosmetics and functional drinks. Within the European Union at that place has started a new tendency of adding herbal infusions to strengthen nutrients. Most consumers are drawn by merchandises and dietetic addendums that contain herbal merchandises. Hence the chances for usage of herbal merchandises in assorted signifiers are huge.
In this undertaking a few chances have been mapped which if targeted could take to a successful merchandise in the market. ( Detailss have been non been disclosed due to confidentiality demands )
Company ‘s flagship Merchandise: Curcumin
Curcumin is an active constituent of Curcuma longa which is available in different concentrations. It is the company ‘s flagship merchandise. Curcumin and its derived functions have found a batch of involvement in the around the universe in the recent old ages. It is non a fresh merchandise per Se, but after making a thorough secondary research on the merchandises available with contain curcumin, it was noticed that even today the full potency of curcumin and its derived functions has non been realized. This gives a possibility for companies to utilize such merchandises for newer diseases and nutitional demands. Reviewing diseases impacting Europe serves great importance since it explains the demand for drugs in those sectors and consequentially the unmet medical demand.
Potential launch of curcumin merchandises for Diabetes Mellitus – Type -2:
Diabetess is a chronic disease that arises when the pancreas does non bring forth adequate insulin, or when the organic structure can non efficaciously use the insulin it produces. This leads to raised glucose degrees in the blood and can do long-run harm to the organic structure and failure of assorted variety meats and tissues. Presently about 55 million Europeans are affected by diabetes Mellitus type 2. ( Figure: )
Surveies conducted at research institutes have proven the consequence of curcumin against diabetes. A comprehensive survey was done on the diseases and the usage of curcumin against assorted symptoms of the disease. A matrix attack was taken up. ( As suggested by Dr Arun Bhatt, Clininvent ) With the aid of secondary research it was observed that curcumin can handle about all symptoms associating to diabetes. Assorted poly herbal preparations are besides in the development phase at Konark herb teas and wellness attention which have the possible to handle diabetic conditions. Through the research it was observed that several herbs in combination with curcumin could be used against the diabetic symptoms. Curcumin besides has shown positive consequences for cut downing cholesterin and LDL degrees in the organic structure i.e. forestalling fleshiness. This can give curcumin an chance to move as a drug for pre diabetic syndrome. This can hold a much better market since it has been observed that the tendency amongst more people globally is altering from unwellness to wellness.
Eyess and vision
Retinopathy – caused due to oxidative emphasis and redness
Cataract- does non forestall but delays its happening.
Feet and tegument
Joint hurting – degenerative arthritis
Dry oral cavity
Alzheimer ‘s disease
Prostate malignant neoplastic disease
UTI – Urinary Tract Infections
( -* : Details non disclosed due to confidentiality demands. )
As per the current ordinances it may be hard to turn out medicative claims for the merchandise. But nutritionary and wellness claims can be made for the merchandise. The whole construct is to aim the disease as a whole and non merely the symptoms. If a merchandise is made available in the market which acts on all the primary and secondary symptoms of a disease it will be readily accepted by the consumers. Bing a natural merchandise besides plays a really positive function in the eyes of the consumer.
Herbal extracts per say are non allowed to be patented since they are protected by the traditional cognition of the state. Therefore globally no company is allowed to patent the herbal infusion or its usage. But however there are several molecules of herbal infusions that have been given patents. This is because there has been use of engineering and procedures to give the molecule belongingss which was non characteristic to the natural one. There are 1000s of patents for herbal molecules. When a research was conducted it was noticed that most of the patented molecules were bought over by MNCs. This lone proves the importance of engineering and processing. A list of parametric quantities for formed after researching patents, to understand the features developed in the molecules. These features were passed on to the R & A ; D section for development intents.
Since the company manufactures a figure of infusions, a merchandise mix demands to be made in order to understand the topographic point of the merchandises in the targeted market. Hence a survey was done for over 200 herbal infusions and they were split into four classs. The footing of which the infusions were split can be seen below:
This was done to set Forth to the company sing the the placement of the merchandises so the company can travel in front with either puting into the merchandise for proprietary intents or non put in farther research since the merchandise is being sold in its natural signifier as it is.
Herbal cures for farm animal and family pets are deriving as much importance as are medical specialties for European population. Livestock diseases are a major cause of decease within Europe as they can impact worlds excessively. As per the European guidelines man-made antibiotics are non allowed to be fed or injected to the farm animal in Europe. In this scenario herb tea merchandises play a really of import function. There are assorted herbal infusions which can be added in the provender ( feed additives ) . Adding a herbal preparation will non merely move as an antibiotic but can besides move against the assorted diseases that affect the farm animal. In fact there are several diseases which can non be treated by allopathic medical specialties. The farm animal proprietors readily buy merchandises which can assist construct their lives stocks strength. The regulative guidelines for herbal infusions as provender additives are non every bit rigorous as are for man-made substances added. The secondary metabolites of the herbal infusions serve as a good substance for antibiotics in provender additives.
Herbal infusions have gained its involvement even for pet proprietors and veterinary physicians. A research was conducted and the observations were noted. It was observed that the ayurvedic herbal infusions could bring around most of the pet related jobs. Pet proprietors can non put in the expensive medical measures generated by the physicians. Therefore they prefer traveling for herbal redresss. In fact there are assorted forums online that discuss the infusions which can bring around certain pet related diseases. Konark should near companies that cater to veterinary demands. This hence expands the usage of herbal infusions.
Top Veterinary jobs
Joint and musculus diseases
E-business is an interesting manner of communicating and concern for many concerns all over the universe. Small and Medium graduated table companies in developing states like India and China are working trade via vitamin E Business. Internet is has been a engineering used by all companies globally. Hence a inquiry that arose at Konark Herbals and wellness was to happen out the different ways to tap the EU trade utilizing e concerns and how can they be tapped.
The natural ingredients industry includes merchandises for the pharmaceutical, decorative and nutrient industries. The chief mark groups for exporters in India and China of well-known natural ingredients are chiefly distributers and importers, but for exporters of new and unknown merchandises it might be of import to accomplish the involvement of ( end- ) makers further down the supply concatenation. If they find the merchandise interesting plenty, this will make demand among distributers and importers, who will in bend hunt for providers.
In order to place the demands and suitableness of the usage of e-business patterns in EU trade, inquiries were asked to some European purchasers and Indian exporters via electronic mails. A simple Questionnaire was prepared to understand what the European purchaser expects from the web sites and hunt engine.
After questioning the clients, E-business could be divided into 4 chief concern procedures:
aˆ? Marketing and gross revenues
aˆ? Product Service Delivery ( PSD )
aˆ? Customer Service
Specialised E-marketplaces are really rare in this sector. The chief ground why E-marketplaces are non really common in this sector is because there are excessively many hazards involved. A purchaser of natural ingredients needs to cognize a batch of elaborate information on:
Quality of the merchandises
Legal demands and paperss.
Market demands, such as Good Agricultural and Collection Practices
It was noted that the general outlook is that trade goods like infusions and
oils will be easier to sell on the Internet compared to new merchandises which still have
to turn out their value on the EU market. During the interviews two respondents named the
following e-marketplaces for natural ingredients:
Greentrade – hypertext transfer protocol: //www.greentrade.net
Biotrade – hypertext transfer protocol: //www.biotrade.org
Tradekey – hypertext transfer protocol: //www.tradekey.com
Alibaba- hypertext transfer protocol: //www.alibaba.com
Indiamart – hypertext transfer protocol: //www.indiamart.com
However, these market places are non seen as topographic points where respondents purchase and sell merchandises, but as topographic points where companies can happen chances and contact information. One representative even stated that it might be a good chance to make an e-marketplace where companies can easy do contact and portion information, but which will non be used for buying. One EU representative said that his company frequently uses search engines to happen new providers, but that it is frequently time-consuming and unrewarding since he can non happen the information he needs. Therefore, his advice was to utilize hunt engine selling and usage keywords such as merchandise name.
Product Service Delivery ( PSD ) : EU representatives are rather positive on the usage of merchandise service bringing applications.Shipment presentment is particularly seen as a really utile tool. Lodging to the agreed bringing day of the month is, nevertheless, much more of import than directing shipment presentments. EU companies appreciate the service, but think that honoring the in agreement bringing day of the month is much more of import.
Payment: Buying merchandises and stuff on the Internet seldom occurs between concerns in the natural ingredients industry. Purchasing is largely done in the traditional manner: European companies receive a sample, they check it and if they approve it, the trade can be closed. As is the instance with most merchandises, EU companies frequently wait with payments until they receive the merchandises in good order. This is a job for the exporters since many European companies delay the payments after the merchandises have been received. Online invoicing would, hence, non be really utile as it will non trip payment.
Customer Service: The lone application that might be of import, harmonizing to EU representatives is e-newsletters. However they felt that a few points that should be kept in head.
The intelligence should be kept short.
The company should hold the option to unsubscribe to it.
Challenges and the manner forward: Exploitation such web sites can be really fruitful, but certain issues need to be addressed while doing usage of such web sites.
There are several companies registered on such trade sites which are bogus and send cozenage mails. These mails are by and large from Africa and Nigeria. Therefore it is of import to transport out a thorough research on the company who has enquired about the merchandises. There would assist in forestalling fraud
The company needs to show itself professionally i.e. give short and specific information which would be sufficient for the European purchasers to understand what the company does. Many European representatives were of the sentiment that companies give out long and excess information which is non merely useless but fails to capture the oculus of the client
The questionnaire was
Harmonizing to you what are the effects of
A merchandise catalogue
Information about certifications
Search engine selling
Online production position
Tracking and tracin
Barriers to Entry – Issues and challenges
The potency of herbal merchandises within the European market is really outstanding. Therefore the biggest challenge for the company is competition. Within India entirely there are over one 1000 providers of herbal infusions. The European purchaser has a overplus of providers to take from. Suppliers range from big companies like Sabinsa, Sigma Eldrige which have offices around the universe, to little graduated table makers. Unfortunately the scenario is such that it is the cost factor that differentiates between the providers. Quality comes 2nd and engineering takes the last topographic point. Though this state of affairs is more outstanding within Indian purchasers who buy the merchandises for their European subordinates. The scenario is altering but this will take its clip. Another issue is that most purchasers treat the herbal infusions as trade good merchandises which leads to the monetary value dialogue
Competition from China: India ‘s biggest rival is China, This is because the Chinese providers manufacture about the same extracts as the Indians. One of the biggest issues that Indian providers face is competitory monetary values. There are 1000s of Chinese providers who give quality samples of the merchandise at half the monetary values of that given by the Indian providers. It is all together a different issue sing the quality of the existent merchandise which is dispatched.
European purchasers stress a batch on Good agricultural patterns, where in the makers obtain natural stuffs straight from the husbandmans. This is opposed to the tendency in India. Within India, the tendency is to obtain the natural stuff from bargainers. Since most companies manufacture over a 100 infusions it is non possible to obtain the natural stuff from husbandmans. Therefore it is non possible to keep good agricultural patterns, nor is it easy to obtain such certifications. The European purchasers need to understand such issues prevalent in India.
The regulative system in India is non really rigorous ; instead it is still in its development phase. There are several workss which are non allowed to be exported. There are besides several workss that are non allowed to be used for extraction intents since it is a endangered species. All these informations are available in a book called the Red Data Book Of India. This book is unluckily neither updated nor is it easy available to makers. Therefore the companies are non really educated on which herbs to export and which non to. It is merely at the imposts that the companies are made cognizant that the infusion is banned from exports. This can defile the company ‘s image since if they have committed to the client that they will provide them with the peculiar infusion they are obliged to despatch the stuff.
Due to the new regulations established by the THMPD in Europe which was effectual since May 2011, it is compulsory for an infusion to be used in Europe for 15 old ages, or outside Europe for 30 old ages. Even though Konark does non hold to turn out the usage of the infusion to the European regulative governments, it will be hard to market a new herbal infusion to the European companies is the infusion has non found its usage in Europe through all these old ages. Therefore the THMPD may hold a negative consequence on extracst which are alien or fresh to the EU.
Recommendations and Decision
The European market is really promising for herbal infusions. Looking at the range of the neutraceuticals and ayurceuticals sector there is enormous potency for usage of herbal infusions. There are several challenges that are to be faced by the company but these issues can be overcome. These challenges are faced non merely by Konark but by most herbal infusion makers in India. But this has non stopped the company from turning. There were several stairss taken by the company to work around the issues of which some can non be disclosed due to confidentiality grounds.
Equally far as prohibition on certain infusions and workss are concerned, the burden is on the company to make its thorough research. Ideally the authorities should supply the ruddy informations book to the registered makers so that they are cautioned of the banned merchandises. But since this is ot the instance, there is informations available in some books and on the cyberspace which the company needs to research and update on a regular footing.
Another mode to undertake this job is if all infusion makers get together and organize a forum to portion and exchange such informations. The DCGI should take equal stairss to guarantee that the companies are provided with the Red informations book. It is besides of import for the FSSAI to inform the companies sing the categorization of the herbs i.e. which hers are considered as drugs and which are non, since there are different certifications required for each class. For case, Milk Thisle ( Sylimarin ) is a herbal infusion but is used by pharmaceutical companies as a drug.
Since there are over a 1000 rivals in India and abroad the company needs to put in development undertakings in order to derive an border over other companies. As of today most companies compete against each by citing lower monetary values.
Even though Konark is one in many companies that supplies herbal extracts it has assorted chances to tap the European market. In fact by go toing assorted trade shows that takes topographic point globally that company has already deriving a trade name image. Once the Company gets the chance to go a provider for the European purchaser its trade name image is built after which the purchaser is willing to pay a higher monetary values for the quality merchandises. The chances in the European market are even increasing and if the company taps the right section with the right merchandises it can take to stronger ties with the European companies.