COMPANY PROFILE

Over the years, Ayurveda, the ancient wisdom of healing from the Indian sub continent has been on the path of dynamic resurgence as a holistic health care system attracting worldwide wisdom. Established in the year 1989, Nagarjuna Herbal Products Limited has one basic mission that is restoration of Ayurveda to its original glory. It was specifically setup with the mission to contribute to this resurgence in a creative manner in Kerala and elsewhere. By pursuing this path with single minded devotion, the company hopes to become the worthy inheritor of a priceless heritage. Even a casual glance at the track record of the company would show that the company is well on its way to achieve its mission and going beyond. In this search for excellence, Nagarjuna has gone one step further. For the first time, it has brought together the Aryavaidya and Ashtavaidya schools of thought to take advantage of the finer points of both. To sustain this delicate synthesis, Nagarjuna draws on the expertise of advisory committee consisting of renewed Ayurvedic physicians. Within a short span of 18 years, Nagarjuna has become the second largest Ayurvedic house in Kerala with a turnover of 21 crores, continuously making profit since 1991 and declaring dividends regularly for the last 17 years. The companys loan and interest payments are so prompt that it has won the admiration of the financial institutions that support it. Nagarjuna Herbal Products Limited is also the first corporate house in the Ayurvedic sector in Kerala. It is also having the certification of ISO 9007-2000 and the GMP certification. The company provides employment of over 1200 persons directly and indirectly. Nagarjunas state of the art of manufacturing facilities are located at Alakkode, 6 km from Thodupuzha, in the Idukki district of Kerala State, where traditional values and strict adherence to ancient Ayurvedic texts as the law. This place has proximity to the Western Ghats, which has abandon resources of herbal plants. This production facility are also streamlined to incorporate modern technology to have benefits of its accuracy, hygiene and speed in mass production, supervised by experts in Ayurvedic wisdom as well as by knowledgeable engineers.

The venture has active participation from the Kerala State Industrial Development Corporation, Kerala Financial Corporation and the Industrial Development Bank of India. The company is promoted by Sri. V.G. Devadas Namboodirippad, first entrepreneur with financial support from the financial institutions KSIDC and IDBI. An innovative Research and Development with a 70 lakhs Research Laboratory and a never vigilant quality control section ensures that the Nagarjuna products are of the best quality and true to the Ayurvedic stipulations .These products numbering from over 500 are distributed all over Kerala through a network of 800 franchisees which have the unique feature of having the service of Ayurvedic doctors to attend to the needs of the patient customers in the outlets. The company has not limited its operations to the boundaries of kerala alone, but has extended to 17 states outside kerala. The main areas of operations are Karnataka, Tamilnadu, Andra Pradesh, Goa, Delhi, Maharastra, Gujarat, U.P, M.P, Rajasthan, Orissa, & Uttaranchal. Nearly 180 franchises with service of doctors and quality medicine are already operating in outside kerala. Interest in the form of enquiries is clear evidence that company is intended to expand this franchisee network in the above said states and particularly the metropolitan cities in an ambition manner. Ayurvedic treatment is another area to which Nagarjuna has paid special attention. Ayurvedic is for rejuvenation for the healthy and curing of the sick. Nagarjuna Ayurvedic Centre at Thannipuzha, Kalady , Kerala has all facilities to serve the needs of both, which is set up on the banks of the river Periyar in sceneric surroundings and the centre provides the entire range of Ayurvedic treatments exclusive to Kerala life, Pizhichil, Dhara ,Siro-vasti ,indicated for Rheumatism ,Arthritis ,Stiffness of joints, Spondylitis ,Fatigue, lack of vitality and so on. A sister concern of Nagarjuna Research is a charitable Institution, which is currently implementing an ambitious programme for promoting the cultivation of Ayurvedic plants and trees, as there cannot be Ayurveda without them. In the last few years, lakhs of medicinal plants have been planted under the aegis of the foundation. Basic Research into Ayurveda, publications of Ayurvedic literature and so on are some of its many projects.

A New Thrust to Research & Development The R&D division at Nagarjuna has evolved stringent testing procedures for its drugs. An example is the fail safe system of multiple tests, which ensures a high level of quality, consistency and efficiency in all its formulation. A significant development recently is the establishment of a modern laboratory. This laboratory has an on-going programme of basic research in Ayurveda, besides development of new formulations and standardization of drugs. Nagarjuna has its own hospital facility in Thodupuzha, where an experienced team of physicians carries several highly modernized Ayurvedic treatments. Nagarjunas commitment to advance the cause of Ayurveda, doesnt stop at the manufacturing and marketing drugs, but also covers a broad spectrum of activities in the true of Ayurveda. The major among them are: Development of new medicines to prevent diseases inherent in changing life styles and compacts the evil effects of modern civilization. Gross pollination of the different branches of Ayurveda and modernization of the versatile scenic. Establishment and maintenance of botanical gardens of medical plants and herbs to eliminate the death of the drugs. Identification, production and marketing of diseases related specified drugs through modern technology and methods and to make these essential drugs available freely for the alleviation of human suffering. Comprehensive multifaceted development of Ayurveda in all its varied aspects and extensive propagation of its message. Presently, Ayurveda has become progressively global, offering immense opportunities to Ayurvedic companies all over. So Nagarjuna is committed to exploit these opportunities as much as possible to its advantage. However in order to do this, the company has to upgrade its infrastructure, equipment, R&D and people to the internationally accepted standards including product registration abroad. Nagarjunas presence in exports now extend to Asian, European , South American and Middle East markets ; operations have already been started to countries such as Canada, Kuwait and other Gulf countries, West Indies, Singapore etc. The companys

marketing activities cover over 17 states other than Kerala. This indicates that company is on the right track and that the overall position of the company is very stable and positive and that it looks forward. Quality Policy Committed to quality of the product Restore Ayurveda as a mainstream health management system Achieve a sustained organizational growth

Quality Objectives Focusing on process and customer Developing and empowering people Encouraging creativity, innovation and teamwork Using effective information technology

Mission Vision Values The company delivers solutions that will please its customers. Delivers returns that motivate its investors By understanding the deep and fundamental needs of its people, its customers, its investors and Eco system (Alliances, Community and Environment) Take actions that strengthen the company and inspire the best in others (By setting an example in relationships, integrity, honesty, humility and hard work). To be the best solution provider in health care through in Ayurveda. Restoration of Ayurveda to its original glory

MARKETING

Nagarjuna has emerged as one of the top-most leader of Ayurveda market in Kerala by means of its marketing strength. The core of the marketing network is a chain of exclusive franchisee clinics spread over the states of India namely Kerala, Tamilnadu, Karnataka, Andhra Pradesh, Maharastra, Gujarat, Goa and Delhi. Nagarjuna has a very good and wide marketing network, which includes over 850 franchise outlets in the state of Kerala and 180 franchisees outside the state. The unique features of these franchisee clinics is the availability of a doctor and the availability of Nagarjuna brand medicines at all times, Sales depots services these franchisees. There are 4 sales depot in the state of Kerala. The entire marketing operations are controlled from the Head office situated at Thodupuzha of Idukki district The marketing programs includes propagation to Ayurveda, which is facilitated through sales promotion programs, social marketing activities like medical camps, seminars, awareness camps etc. In Kerala, the marketing operations of Nagarjuna are mainly under divisions of Generic divisions, Ethical divisions and OTC divisions. Generic Division: This division handles the marketing of classical preparations (traditional medicines) and about 75 % of turnover if the company is derived from this division. The generic division is under the control of a regional manager and 4 area managers who are supported by a team of 20 marketing executives. Ethical division: This division handles marketing of ethical products. There is a regional sales manager, who heads this ethical division and there are 4 sales managers and 21 marketing executives to support him. About 15% of turnover of the company comes from this division.

OTC division: This division deals with the marketing of consumer products. These products are sold to Nagarjunas own agencies, other Ayurvedic agencies and consumer retail shops which result in nearly 10% of the company's turnover. The administration of the marketing division is done through 4 offices located at Vadakara, Shornur, Muvattupuzha and Mavelikara. The medicines required for the market is transferred to these areas offices and are supplied are made to franchisee, and other outlets. There are 2 commercial officers in charge of the inventory management, debt management, finance management and other administrative aspects. There are also other office staffs who helps them also logistic staffs who helps them to make packing deliveries.

NAGARJUNA AGENCY / FRANCHISE NETWORK Nagarjuna mainly have its medicines and services to its exclusive showrooms or franchisees. These franchisees are stocking medicines of Nagarjuna only and are providing the services of a company doctor on a contract basis. This franchisee has an agreement with Nagarjuna to be a business associate of the company .These franchisee act as the Brand Ambassadors of the company in that particular area. The franchisees have to display the name of the company as per the specifications given by the company. These franchisees will be participating with the companys marketing policies, and will be abiding by the company trade policies, credit policies, marketing strategies and other relevant policies from time. The Average sales turnover of the company during the last 3 years is21crores and out of it 80% of the sales turnover is derived from these franchisee networks. It shows the importance of the franchisee network. Nagarjuna have a wide network of over 950 franchisees, in which 850 are in Kerala and the 180 outside the state.

Organization Structure of Nagarjuna Herbal Products Ltd Managing Director

Executive Director

Chief Executive

Finance Manager

Marketing Manager

Production Manager

Personnel Manager

Deputy Manager

Deputy Manager

Production Officer

Personnel Officer

Assistant Manager

Assistant Manager

Production Assistant

Personnel Assistant

Accounts Officer

Sales Officer

Marketing Officer

Accounts Assistant

Account Cashier

Sales Organizer

Clerical Assistant

PRODUCT PROFILE Nagarjuna follows the oldest system of preparation of medicines as per the rules and regulations prescribed. But when hygiene, accuracy and speed matters it is up to the modern machineries. So presently the companys manufacturing process has been mechanized to a large extent. These are controlled by a group of doctors and scientists. Apart from the preparation of traditional medicines, Nagarjuna has a wide range of patent medicines. The R&D division of Nagarjuna has evolved strength testing procedure for its drugs. A significant development in this field is the recently established modern laboratory set up costing Rs. 70 lakhs. The laboratory has an on-going program of basic research in Ayurveda, besides development of new formulation and standardization of drugs is also in this department Nagarjuna has 427 traditional medicines and 27 patent medicines. 1. TRADITIONAL MEDICINES: The important traditional medicines of Nagarjuna are: i. ii. iii. iv. vi. vii. viii. ix. x. xi. Arishtams Asavams Oils Kuzhambus Lehyams Tablets Avarthis Choornams Kashayams Kashaya Choornams

I. Arishtams These are fermented types of medicines prepared adding honey, jiggery, sugar and the powder of some medicines including spices. These preparations will have an alcohol content of 6-10 %, which is generated due to the fermentation process. Self-fermented preparations using Kashayams are called Arishtams and using boiled and cooled water or juice of herbs is called Asavams. Abayarishtam Amrutharishtam Asokarishtam Balarishtam Dasamoolarishtam Dasmoolajeerakam

II. Asavams Aravindasavam Bhringarajasam Chandanasavam Kanakasavam Kumaryasavam Lohasavam

III. Thailams Amruthaadithailam. Arimedhasthailam. Brahmeethailam Balaaguloochuaadithailam. Dhwaantharam thailam Eladi Thailam

These are medicated oils. Decoction juice, milk etc. is added to oils like sesame oil, coconut oil or castor oil and is heated with powdered raw drug, until the water content evaporates completely. In this process, the medicinal extracts of the raw drugs make the oil medicated.

IV. Kuzhambu These are only for external application, unique to Kerala. A mixture of sesame oil, ghee and castor oil for external application. Kottam chukkadi kuzhambu Panchasneham Dhanwantharam kuzhambu Eladadi kuzhambu Kaarpasathyaadi kuzhambu Saharachari Kuzhambu

V. Ghrutham Ghruthams are medicated preparations of ghee. Ghee is medicated by adding decoction, powder, juice etc. and is processed until the ghee becomes medicated add water freely. Amrutharaasha Grutham Brhmi ghrutham Swaaraswatha ghrutham Kalyanaka ghrutham Triphala Grutham

VI. Lehyams Lehyams are semi-solid preparation of drug, prepared with the addition of jiggery or sugar candy and boiled with the prescribed liquid and fine powder of drugs, until the correct constituency is obtained. Agasthya Rasayanam Ajamamsa Rasayanam Chinchadhy Lehyam Narasimha rasayanam Maanibhara Lehyam

VII. Tablets Chandraprabha Gulika Chukkumthippaladhy Gulika Kankayanam Gulika Karuttha Gulika Dhanandharam Gulika

VIII. Aavarthies Aavarthies come under the category of medicated oil. Here the selected quantity of oil is being medicated by adding medicines repeatedly. The process of medication is repeated to 7, 14, 41, or 101 times. This enhances the potency of oil. Dhwanandharam 21 Aavarthy Dhwanandharam 41 Aavarthy Dhwanandharam 101 Aavarthy

IX. Choornams Choornams are preparations made from dried medicines into powder form using heavy pulverizer. Ashta choornams Elaadigana choornams Hinguvanchadi choornams Raasnadi choornams Thaaleespatradi choornams

X. Kashayams Disintegrated drugs are concentrated and extracted into water. The drugs are boiled in water and are concentrated PunarnnavadyKashayam Naadi Kashayam Dhashamoola Kashayam Balaageerakadhi Kashayam Indukandham Kashayam

XI. Kashaya Choornams Amruthotharam kashaya choornam Aaragwadham kashaya choornam Balaguloochyaadi kashya choornam Dasamoolakaduthirayam kashya choornam Dasamoolam kashya choornam

2. PATENTS- PROPRIETARY MEDICINES The important patents- proprietary medicines of Nagarjuna are: 1. Cardostab Tablet Effective in hypertension due to any cause

2. Gason It is a strong anti-flatulent drug

3. Haematone Ideal medicine for splenetic and hepatic disorder

4. Halin Effective in common cold, nasal congestion and sinusitis

5. Nagarjuna Eladasamoola Lehyam For all kinds of cough, sore throat and dyspnoea

6. Nutral Tablets For gas trouble, indigestion etc.

7. Rheumat Balm External application in rheumatic pains

8. Smrithi Granules It improves the normal brain functions. Excellent in improving memory, grasping power, intelligence thinking power especially in children.

9. Thaleespathraadi tablets Effective for cough, distaste, spruce and sore throat

10. Nagarjuna Honey Honey packed in small bottles for use in homes and with food

3. OTC (OVER THE COUNTER) Name Ayurvedic Tooth Powder Chyavanaprasam Dandruff Hair Oil Digest Drops Kerapookualadi Lehyam Kids Oil Nagarjuna Agmark Honey Nagarjuna Ayurvedic Soap Nagarjuna Dahasamani Nagarjuna Snana Choornam Nagarjuna Thalipodi Neelibhringaadi Keram Special Eladasamoola Lehyam (40 gm x 21) Tusker Balm PACKING 50 g 250,500g 1 kg 100 ml 25 ml 400 gm 100 ml 50,100,200,500 gm 75,15 g 50 g 50 g 50 g 100 ml 1 jar 10 gm

Area of operation The company has not limited its operations to the Boundaries of Kerala alone, but has extended to 17 states outside Kerala. The main areas of operations are Karnataka, Andhra Pradesh, Goa, Delhi, Maharashtra, Gujarat, U.P, M.P, Rajasthan, Orissa, and Uttaranchal.

Nearly 150 franchises with services of Doctors and quality medicines are already operating in outside Kerala. Russia, Sri Lanka, U V, Bahrain etc. are some new market, which they have opened last year. They have already started a treatment centre in West Indies. Nagarjuna presences in exports now extend to Asian, South American and Middle East markets, operations have ready been started to countries such as Canada, Kuwait and other Gulf Countries, Singapore etc... Unlike the other market, these markets are steady market where the company gets consistent businesses. Ownership pattern Authorised share capital Rs. 50000000 Rs. 26480000 Rs. 1.68 Rs. 30218000

Issued, subscribed & paid up Capital Earnings per share Reserves and surplus -

(Of the above shares 180772 shares has been issued as fully paid up bonus shares) Key personnel: Managing director Directors - V.G. Devdas Namboodiripad - P.S.Vijayakumar P.P.Namboodiri Leena Devdas V.G.Jathaveedan

K. Rajan Vaidyabhooshanam K. Raghavan Thirumulpad

Bankers

- State Bank of Travancore, SME Branch Kalamassery

Competitor information The major competitors of Nagarjuna Ayurvedic group are the following companies:i. ii. iii. iv. v. vi. Kottakkal aryavaidysala Ashtavaidyan Thaikkattu mooss Vaidyarnum Oushadhasala Pankaja Kasthuri herbal India limited Dhanwanthari vaidyasala SD Pharmacy Oushadi

Among them the most popular or more competing companies are kottakkal aryavaidyasala and oushadi oushadasala. A comparison between Nagarjuna and these companies performance are as follows. PARTICULARS MARKET SHARE NO.OF PRODUCTS LABOUR FORCE CUSTOMER SATISFACTION NHCL 36% 480 500 71% KOTTAKKAL 28% 505 510 69% OUSHADI 18% 340 400 58%

Infrastructural facilities The company is set up in about 8 acres of land. There are three blocks of buildings to run the business. It does not have its own medicinal plants garden. But they provided the necessary seeds to the local people n let them grow the plants in their own garden and procuring from them. It has various types of plant & machines to process the various medicines. The various types of machines and tools that are used to develop the products are: Decentigator Pulp razor Drug boiler Pans open pans and close pans Fermentation tanks Filling machines Evaporator Pressing machines Tabletting and capsuling machines

Canteen The canteen facility is provided to employees. The canteen runs on contract basis with the required terms and conditions. All the employees are provided with free canteen facility and for this purpose there are some charges which they have to pay per year. Health The premises of the company are kept clean. Accumulation of dirt and refuse is removed daily. All the machines and equipment used are cleaned regularly.

Ventilation and temperature

The company is well ventilated and free circulation of free and fresh air ensured. There are measuring instruments to measure the temperature as most of the part performed with the help of heat.

Lighting Every part of the work place is provided with lighting and artificial lighting is present.

Drinking water Clean and cool drinking water is provided to employees of the company. The water provided is purified only.

Toilet facilities Latrine and urinal accommodation is provided and maintained cleanly and provided separate latrines for men and women.

Achievements/ Awards Nagarjuna Herbal Concentrates Ltd is also the first corporate house in the Ayurvedic sector in Kerala. It also has the certification of ISO 9007:2000 and the GMP (Goods manufacturing Practices) certification. It has also got The Green Channel Award from the Tourism department.

Work flow model The work flow of Nagarjuna herbals concentrates Ltd are in the following way:-

PROCUREMENT OF RAW MATERIALS

WARE HOUSING

POWDERING

PROCESSING

QUALITY CERTIFICATE FROM CONTROLLER

PACKING

DESPATCHING

Future growth and prospects Company will continue to focus more into providing quality Ayurvedic Treatment .The infrastructure and other are being modernized to meet the changing demands .The demand for quality Ayurvedic Treatment is increased and the most interesting factor is that , people from abroad is showing involving in Ayurvedic Treatment . Company is taking well efforts to capitalize this Global Interest in Ayurvedic by providing quality Treatments. This will help the company to grow both in terms of turnover and profits. The company may also introduce certain quality products such products are developed by the Research and Development Section of the company .The company may introduce highly promotional strategy in Ayurveda. It will influence the more consumers in the world wide. The company may develop various activities like advertisement, free medical camp, seminars etc.

The company have the following plans to be implemented for the future growth and prospectus: Continuation of new product development and form change of existing products Standardisation of quality parameters of existing range of products Development of new products range for selected diseases and general health care Collaborative research with renowned institutions GLP accreditation