Professional Documents
Culture Documents
Submitted By:
Manish Jhawar
PUMBA
Division C
0363
Submitted To:
Sir
S.S.Patil
Faculty for International
business
Pumba
INTRODUCTION
Ayurvedic medicine is widely used in South Africa, with reports of up
to 80% of blacks in South Africa making use of traditional medicines.
There are reports of over 100,000 ayurvedic healers practising in
South Africa and using ayurvedic plants as their materia
medica. The plant trade is believed to generate a large volume of
economic activity with an estimated value of US$ 110 year.
Observations of the market indicate that most of the plants are
harvested from wild populations and are not cultivated. The current
demand for numerous popular plant species used for traditional
medicines exceeds supply, with traders reporting acute shortages
and price increases.
A wide range of wild harvested medicinal plants are traded in the market. The
plants are traded either in the raw form or with limited processing, and with few
controls regarding quality. Products are packaged using recycled waste
materials. While the processing and packaging may not be in a sophisticated
form, the specificity of use of plants and the mixing of various plants for particular
treatments is highly developed.
Types of products
1
The survey of perspectives regarding important trade items must
be considered a snap-shot of the market as surveys were only
carried out once for each of the two street markets in Durban.
Regular monitoring would provide a more accurate assessment of
importance. Access to resources is variable, and this is likely to
determine the importance of plants to traders. Should some plant
be relatively scarce, then it is likely that it would loose its
importance for a trader.
Relative
Plant parts Form in which the product Preferred characteristics/qualities
proportion of
traded is sold of the products
the market
Chunks (30 cm - 10 cm long Thick bark originating from the main
10 cm -3 cm wide), chopped, trunk of old trees. Age of the
Bark 27%
or ground to a powder (<1 harvested product is not critical.
mm)
Whole sections (40 cm - 10 Roots which are mature but which
cm long), chopped (10 mm - can be easily chopped. Freshness is
Roots 27%
5 mm long), or ground to a more important in roots.
powder (<1 mm)
Whole (15 cm - 2,5 cm in The larger the bulbs the better. The
Bulbs 14% diameter), sliced or chopped outer covering should not be
(2 cm - 5 mm) damaged.
Whole Live for planting or dried The fresher the plants the better.
13%
plants The plants should be mature.
Whole sections (40 cm - 10 The fresher the leaves and stems
Leaves and cm long), chopped (10 mm - the better. Younger stems are better
10%
stems 5 mm long), or ground to a and they should not be too woody.
powder (<1 mm)
Whole (40 cm - 10 cm in Tubers should be mature but not so
diameter), chunks of the large as to be unmanageable. Fresh
Tubers 6%
tuber, slices or chopped (2 tubers are preferred.
cm - 5 mm)
A range of plant parts usually Mixtures should be freshly prepared
Mixtures of chopped into 1 cm to 3 cm using plants which have the ideal
various pieces and sold fresh (moist characteristics indicated above.
4%
plant plant parts have not been
species dried), dried or bottled with
various liquids.
The supply of quality plant products is not only critical for the welfare
of millions of consumers, but it is also critical for the welfare of all the
people employed in the industry. In KwaZulu-Natal there are between
20 000 and 30 000 people who derive an income trading ayurvedic
plants in some form. Importantly, most of the people involved are black
rural women, who are the most marginalized group in South African
society. The ayurvedic plant industry therefore plays a critical role in
empowering a large number of rural women.
There is acute competition within the markets and this limits the
sharing of knowledge between market players, especially the healers.
The lack of sharing limits the development of the ayurvedic healing
profession, with healers largely relying on their own or their mentors'
experiences. There is no literature available at present which healers
can use as a reference for administering ayurvedic medicine. One
research group in South Africa is presently developing a
pharmacopoeia for ayurvedic medicine. This will help in the
development of products for the market by understanding the
quantities required for various treatments. However, with over 400
plant species traded, the completion of this task is unlikely to be
achieved in the short to medium term.
In contrast to the fixed factors, there are variable factors which will, to
a large extent, determine how the market will change in the future. The
key variable factors are driven by the actions of the different market
players and the associated authorities. The variable actions of these
key players include:
As the current consumers and current market players are largely from
the least developed sector of South African society, it is essential to
initiate market interventions which promote the welfare of the current
consumers and market players, especially at the lower end of the
market. At the same time, the opportunities for large-scale corporate
involvement at the upper end of the market and in international
markets, should be developed. To maximize the benefits to the
greatest number of beneficiaries, South Africa needs to focus on
achieving the development of both the existing market players and
corporate entrants.
FINANCIALS:
How to raise the funds?
Our company is a private limited company. 20% of funds will be contributed by the
owner from India.
3. Investors: We have five investors for our project who will be contributing 40% of the
total fund raising and collaborator will be contributing 16 % of the funds who will be
black person from southafrica.we have chosen a black person because government
provides subsidies in tax if we have black person as a partner.
COST CONTROL:-
Review and Modify Business Model: The business model must be subject to small and big
changes. We will try to bring changes to business model according to our competitors actions
and markets status. By the term change, I also mean that we will be upgrading and improving
all possible business operations. We will come up with new process and procedures to reduce
costs.
Daily Updates: One of the best ways to start controlling costs it to have daily updates of
production, all possible long and short term expenditures.We will be dividing all these
expenditures, even the ones such cost of machinery or insurance, and sales, by the number of
working days. This will give us concrete figure of the total amount that has been spent.
Similarly after sales of our goods or services, we may also divide the total amount of sales by
the number of working days. This will give us a micro figure about the daily expenditure and
sales. It will definitely help us to zero down on all possible cost problems that we incur.
Uniformity: Cost control management is all about deriving the best outputs in a least cost.
Hence,we will set up a highly efficient and specialized stores department which will oversee
all purchases. We may also take a risk and make long term agreements regarding the quality
and quantity of materials that are being supplied to our manufacturing process. This
uniformity will ensure a timely, cheap and assured supply of raw materials.
Time Planning: Time is money! Well divide the amount of wages that will give out with the
number of work hours per month. Explain to the employees per hour expenditures that we
incur, and hence the necessity for time management.
Interest rates: We will try to take loan at least possible rates from other banks and money
lenders by negotiating from them. It will help us in reducing interest cost.
Inventory cost: We will try to carry only that much inventory will is necessary so it will help
to reduce our inventory carrying cost
We have total investment of 510000 USD and from above data it can be interpreted
that we were at break even at the end of third financial year
BREAK
EVENANALYSIS
INVESTME
NT 510000 USD
1ST YEAR
LOSS -16500 USD
2ND YEAR
PROFIT 163000 USD
3RD YEAR
PROFIT 449500 USD
(WE ARE AT BREAK EVEN AT THE
86000 USD END OF THIRD YEAR)