DAVANA OIL SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

Transcription

1 DAVANA OIL CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS 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 1

2 SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS 1. General description Appearance Botanical name Botanical family Extracted from Extraction method Aromatherapy Classification Scent Brownish, viscous liquid of peculiar, very aromatic, some what balsamatic and persistent odour0 Artemisia graveolens Compositae Stem & leaves Steam Anti-infectious Stimulant Sweet, fruity moss smell. 2. Davana plantation Family Class Genus Species Composite Asteraceae Artemisia Artemisia pallens The botanical name of Davana is Artemisia pallens. 'Davanum' in Marathi, Tamil and Kannada. It is known as 'Davana' or Cultivation in India Mostly in red soil regions in South India particularly in Tamil Nadu and Karnataka Cultivation practices Grows well in rich loamy soils does not withstand heavy rains Season is not an important Criterian when Davana is grown for use in garlands and bouquets. In this case, the crop is pulled out when it is about two months old. On the other hand, season is very important when the crop is grown for production of oil. The crop is allowed to grow until it flowers, which takes about 4 months from sowing. 2

3 Yield Fresh herbage yields Davana oil yield 14 tonnes per hectare 10 kgs per 14 tonnes of herbages 3. Physical properties of Davana Oil Oil of Davana is a brownish, viscous liquid of peculiar, very aromatic, some what balasanic and persistent odour. Freshly distilled oil has sharp and herbal top notes. This disappears on keeping, leaving a mellow pleasant note. Specific gravity at 15.5 deg.c Refractive index Acid No. 2.4 Ester No Soluble in 10 volumes of 70% alcohol. 4. Specification Colour Clear, brownish yellow liquid Odour Very rich lingering fruity odour Refractive index at 25 deg.c to Specific gravity at 25 deg.c to Optical rotation +34 deg to +41 deg Acid value Less than 3.5 Ester value 31.5 to 46.5 Solubility Clearly soluble in less than 1.5 volumes of 80% ethyl alcohol Total ketone content (Hydroxylamine 36 to 56.0% hydrochloride method) expressed as davanone Free davanone as per GC 25 to 52.5% 3

4 5. Chemical composition of Davana Oil Davanone, a sesquiterpene ketone, is the main component of the oil of Davana. Linalool, dehydro-a-linalool, terpinen-4 oil,nordavanone (C11- terpenoid) and devanafurans have been isolated in a fraction of Davana oil. These compounds are reported to contribute for the characteristic odour of Davana oil. Chemical composition: Constituents Relative concentration in % Davanones 55.0 Nerol 10.0 Geraniol 5.0 Hydroxy davanone 3.0 Dihydro rosefurane 2.5 Furano-norditerpenoids 2.0 Hydroxy nerolidol 2.0 Davana ethers 1.5 Artemone 1.5 Davana furans 1.0 Davana esters 1.0 Hydroxy dihydrorosefuran 0.5 Nor-davanone P-cymene Sabinene Eugenol Cadinene Farnesol Camphene Borneol Methyl eugenol Methyl iso eugenol Linalool Linalool oxide Lilac aldehyde Lilac alcohol 4

5 SECTION II PRODUCT APPLICATIONS 2.1. General details Davana Oil is one of the important essential oils. Essential oils obtained from higher plants are important raw materials used for manufacture of perfumes, flavours and cosmetics. Even with considerable development in production of synthetic perfumery and flavouring chemicals, essential oils continue to be the important raw materials for these industries throughout the world. The general realisation of health hazards associated with the synthetic has led to increased use of natural raw materials, especially for high grade perfumes and flavours. Such natural raw materials should be much more important for future industrial development in the third world, as production of these materials do not depend upon the traditional sources of energy like, petroleum or coal, but the oils are obtained from renewable energy sources. Because of its wide variety of climate and soil, India is one of the few countries in the world, where all the major essential oils used in perfumery, cosmetics or flavour industries can be produced in one or the other region of the country. There are around 2000 species of medicinal and aromatic plants that have been reported in India. Perfumery sector In expensive perfume compositions Also for flavouring cakes, pastries, tobacco and some of the beverages Oil of Davana is used in expensive perfume compositions. The oil is also being used for flavouring cakes, pastries, tobacco and some of the costly beverages. 5

6 SECTION III INDIAN MANUFACTURERS A few number of units produce Davana oil in the country to meet the requirements Davana Oil is produced by a few organisations in the unorganised sector largely for the export market. The Indian organisations involved in Davana oil include the following * Aditya Aromatics Srinagar P.O., Varni Mandal, Nizamabad * Asean Aromatics Pvt. Ltd., Factory & Office : Plot 15-A, IIIrd Cross Street, Nehru Nagar, Kottivakkam,Chennai * Hindustan Mint & Agro Products Pvt. Ltd. Barehseni Street, Chandausi * Kanaga Aromatics (P) Ltd., Subbaiah Naidu Industrial Complex, Y. Pudupatti, Arumbanur Post, Madurai North * Kancor Flavours and Extracts Limited, XVII/138, Kanakkankadavu Road, Angamaly South , Kerala * Naturola Agro Pvt. Ltd. No.7, Sai Niwas, Modi Baug Pune * Sivam Aromatics 263, Sanisanthai, Chennampatty, Erode Dt

7 SECTION IV IMPORT/EXPORT TRENDS 4.1. Present import level 100 kg per annum Countrywise imports of Davana oil Period: April 2001 to March 2002 Country Quantity in Kg France Present export level Around 1950 kg per annum Countrywise exports of Davana oil Period: April 2001 to March 2002 Country Quantity in Kg Australia 2 Austria 1 France 100 German F Rep 254 Hong Kong 4 Israel 4 Japan 3 Netherland 80 Singapore 31 South Africa 4 Spain 111 UAE 400 UK 58 USA 863 Sample of individual exports - Period 2002 Name of the Exporters Quantity in Value in Rs. Country Date Port tonnes Southern Spice Produ Dusseldorf to Mumbai Plant Lipids P.Ltd., New York to Chennai 7

8 Plant Lipids P.Ltd., Frankfurt to Synthite Inds. Chemls Shanghai to Chennai Chennai SECTION V PRICE TRENDS The price of Davana oil is surging because of limited supplies and continued strong demand. Average price of Davana Oil : Rs.16,000/- per kg. 8

9 SECTION VI INDIAN DEMAND Indian demand Export demand Total demand 500 Kg per annum 2000 kg per annum 2500 kg per annum A few number of units produce Davana oil in the country to meet the requirement. In India, Davana oil has not attained popularity because of its high price. Nevertheless, the countries like USA, Europe, Japan are showing increasing interest for use in perfumes, cakes, pastries, tobacco and also a few of the costly beverages. 9

10 SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Oil and climate Davana is mostly cultivated in the red soil regions in South India. It comes up very well in rich loamy soils. Process of cultivation Davana is mostly cultivated in the red soil regions in South India. It comes up very well in rich loamy soils. Considerable care is necessary in the cultivation and harvesting the crop. Davana is an annual herb, family compositor, requiring about four months to reach maturity, at which it attains a height of about around one and half feet. According to the research findings, two distinct varieties of the plant occur. This fact is of considerable importance in the production of Davana Oil. Season is not an important criterian when Davana is grown for use in garlands and bouquets. In this case, the crop is pulled out when it is about two months old. On the other hand, season is very important when the crop is grown for production of oil. In the lattu case, the crop is allowed to grow until it flowers, which take about 4 months from sowing. It is grown as short term crop from November to February/March and as a ratoon crop extending upto April/May. A few light showers in the season, bright sunshine, a crisp winter with no first and heavy morning dew, all contribute to a good crop. The cop does not withstand heavy rains. Particularly, when the crop is blooming and is getting ready for harvest, cloudy weather or rain could substantially affect the oil yield. Total yield the main crop and the ratoon crop is about 14 tonnes per hectare, which on shade drying and distillation yields about 10 kg. of Davana oil. Appropriate maturity of the crop and proper shade drying of the herbage are important factors affecting the quality and yield of the oil. In large scale distillation, an average yield of 3.2% from a material dried for about 2 days may be considered satisfactory. Oil content in davana is maximum in the flower head and is much less in the leaf and stem. At the time of harvesting, flower heads contribute nearly 45% of the total weight of the plant material, while it is only about 30% in the ratoon crop. Distillation Davana herbage is dried in shade for 2 to 3 days and then steam-distilled for obtaining the oil. The distillation equipment consists of a boiler, distillation stills, condensers and receivers. 10

11 Distillation still is made up of mild steel. It has a perforated metal sheet at the bottom to support the herbege, which is loaded into the still for distillation. Loading and unloading can be mechanised with the help of an overhead chain pulley block.the lid of the still can be swung aside during loading and unloading. It is important that the herbage should be evenly packed inside the still, otherwise steam channels may form during the distillation and result in poor yields. The condenser, which cools the hot vapours received from the still, consists of many tubes made up of copper or stainless steel and mounted inside a jacket. The condenser is provided with inlet and outlet for the circulation of cooling water. The hot vapours consisting of steam and essential oil vapours are cooled in the condenser tubes and the condensate flows out into the receiver. The oil, being lighter than water and insoluble, floats on the top in the receiver and only the water gets drained out. The oil can be drawn off separately at the end of distillation. The receiver is fabricated out of stainless steel and consists preferably of two compartments, so that if any oil escapes from the first compartment, it can be retained in the adjoining compartment. Distillation is carried out preferably at atmospheric pressure, as this will prevent any sort of burnt odour in the oil. Usually about six to eight hours are required for completing one distillation. The oil should be free from sediments, suspended matter and moisture before storing. It is stored in aluminium container. The containers should be filled to the brim to exclude all air to prevent deterioration during storage. Oil Content and Yield Total yield of fresh herbage from the main crop and the ratoon crop is about 14 tonnes per hectare,which on shade drying and distillation yields about 10 kg. of Davana Oil. Appropriate maturity of the crop and proper shade drying of the herbage are important factors affecting the quality and yield of the oil. In large scale distillation, an average yield of 3.2 per cent from a material driedfor about 2 days may be considered satisfactory. Oil content in Davana is maximum in the flower head and is much less in the leaf and stem. Thefollowing percentage yields have been obtained in thelaboratory distillations : Percentage yield of oil (v/w) in Davana Air dry basis (dried for two days) Oven-dry basis Whole plant Flower heads Leaves Stems

12 Source of technology * Oil Technological Research Institute, Jawaharlal Nehru Technological University, P.B.No.17,Anantapur Andhra Pradesh Major plant and machinery suppliers Name of the equipment Distillation column Name of the supplier Chemac Equipments Pvt. Ltd. Regd. Office & Factory: M.J.D'Souza Compound, Safed Pool, Saki Naka Mumbai Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad Condensors Sieco Engineers Pvt. Ltd. #25, Bommasandra Industrial Area, Hosur Road, Bangalore Universal Heat Exchangers Ltd., Pollachi Road, Malumachampatti Post, Coimbatore Boilers Cethar Vessels Ltd., No.4, Dindigul High Road, Trichy Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68 12

13 SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Installed capacity Feed material 45 kg per annum of Davana oil 31.5 tonnes per annum of Davana crop. Utitlity requirement Basis : One kg. of the product Steam Process & Cooling water Installed power 500 kg 250 liters 15 HP for project of capacity 45 kgs. per annum 13

14 SECTION IX GLOBAL SCENARIO Important global consumers * Alexander Essentials Ltd 55 yorkshire street Morecambe,lancashire La3 iqf England * Berje Inc. 5 Lawrence St. Bloomfield, NJ 07003, USA Senior Vice President * Frencharoma Imports Inc th St., PO Box College Point, NY Contact: Kamal Mansukhaui 14

15 SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Installed Capacity : 45 kg. of Davana Oil Project Cost : Rs.26 lakhs Assessment of project cost 1. Land S.No. Description Cost Rs.in lakhs 1.1 Cost of land of one acre at Rs.5.5 lakh per acre Cost of levelling, laying internal roads/fencing and compound wall Building Subtotal 6.05 S.No. Description Cost Rs.in lakhs 2.1 Factory building of area 100 sq.m. at Rs.3200/sq.m Non-factory building of area 40 sq.m.at Rs.4500/sq.m. 1.8 Subtotal 5 Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection 0.13 Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) 0.06 Installation charges (2%) Total cost of plant and Machinery

16 4. Technical know-how fees Rs.0.40 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1 Electrification Steam boiler and auxillaries Water storage tank, borewell etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 0.24 weigh balance, etc Diesel generator Effluent treatment 0.6 Total Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses Pre-operative expenses: Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment 0 Total Provision for contingency Rs.1.2 lakhs 8. Working capital margin Rs.0.02 lakhs 9. Total project cost Rs lakhs Means of Finance Say Rs.26 lakhs Total project cost Promoter's contribution Term loan from financing institutions Rs.26 lakhs Rs.10.4 lakhs Rs.15.6 lakhs 16

17 11. Financial statements (Rs. in lakhs) 11.I. Cost of production Variable Cost Rs.in lakhs Raw material and utilities 0.49 Spares and maintenance 0.23 Selling expenses 0.36 Total variable cost 1.08 B Fixed cost Salaries and wages 0.25 Interest on term loan and working capital loan 2.8 Depreciation 0.98 Administrative expenses 0.22 Total fixed cost 4.25 C. Total cost of production A + B 5.33 D. Selling price per kg. (in Rupees) E. Annual sales turnover (Rs.in lakhs) 7.2 F. Net profit before tax (Rs.in lakhs) (E-C)) 1.87 G. Breakeven point in % 69% 17

18 SECTION XI SWOT ANALYSIS Strength Weakness Opportunity Threat Suitable climate in India for growth of Davana Low demand in the country Excellent export opportunity Other countries growing Davana 18

19 SECTION XII FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND RECOMMENDATIONS Considering the fact that Davana crop could be cultivated only in tropical countries like India in specific seasonal conditions, it is an attractive export oriented project. The demand for Davana in the global market is growing up steadily. The good knowledge of the international trends in the field is required to exploit the export opportunity for Davana. 19