Immense Profit through Moringa Value Addition... Slight Plus with Rich Profit!
As far as the value addition is concerned, I gain an annual revenue of Rs 36 lakhs. The cost of raw material is Rs 15 lakhs. Labor charges amount to Rs 6 lakhs.
Moringa (Drumstick tree, Moringa oleifera) naturally has more medicinal properties and therefore more profit can be gained by way of various value addition methods. Though value addition to Moringa is widespread in Tamil Nadu, there are only a few who make use of the market opportunity of it, gaining profit by means of value addition in the right manner. We met one such person, Easwar Ayyapan, a Siddha Doctor, who belongs to Pachapalayam, next to Perur, Coimbatore district. He has elaborated various value addition technologies on Moringa and the market opportunity pertaining to it.
Why should Moringa be value added?
There is an important place for Moringa in terms of value addition process. There are more medicinal properties for the Moringa available in Tamil Nadu. And it is consumed directly as food in Tamil Nadu. Hence, the value addition in Moringa is surely meant for those who live abroad.
The Moringa available in our country has more market opportunity abroad than within. Most of us could have known only about powdering the Moringa and selling it. But many are not aware that Moringa has a huge international market to an extent of separating all its parts including its seeds.
Value added products of Moringa
Through value addition process all the parts of Moringa, such as its bark, leaves and seeds can be sold. There are so many varieties of products from Moringa that could be gained through value addition, starting from Moringa powder to Moringa tea mux, Moringa strawberry mix, Moringa peppermint, Moringa bark oil, seed oil, leaf oil, Moringa dhal, Moringa oil cake, Moringa shampoo, Moringa soap, Moringa face cream and Moringa soup mix.
Places of Raw Material Availability
I procure Moringa raw materials grown by organic farming from Coimbatore and its surroundings. As the products of Moringa are available throughout Tamilnadu people can procure them from their respective places.
It will require a minimum amount of Rs 4 lakhs to establish a value addition facility for Moringa, with a space requirement of 10 feet length and 15 feet breadth.
Points to Consider during Processing
While drying various parts of Moringa such as leaves, bark and seeds, they should not be dried on the floor. It will add dirt and dust if dried on the floor, making them unclean. The value added Moringa products are mostly sold abroad and therefore making a clean product is very important. If the product is not clean, it cannot be accepted abroad except for the local market. Therefore, the leaves can be dried using solar driers so that the product is dust free and also the product is heated at the optimum temperature and used accordingly. Similarly, the seeds can also be dried and the outer coat can be polished so as to increase its profitability. That kind of product is what is appreciated and desired in the market. For the value added products quality is the primary requirement which could be supported by the modern technologies.
Other than Tamil Nadu, the products of Moringa are sold in other states of India as well. The value added Moringa products are used abroad for their medicinal properties. It is also used as a daily food product in Malaysia, Singapore and Japan. There are many countries awaiting the good quality Moringa products to be imported from India. What they need is organically grown natural products. They tend to reject products that are made using chemical inputs and as they love naturally grown products. This will further lead to loss of market opportunity as well.
As far as the value addition is concerned, I gain an annual revenue of Rs 36 lakhs. The cost of raw material is Rs 15 lakhs. Labor charges amount to Rs 6 lakhs. Transport cost is Rs 7 lakhs. Cost of packing, electricity amounts to Rs 2 lakhs. Deducting 30 lakhs as expenditure I get a net profit of Rs 6 lakhs. And the profit could differ according to the extent of business investment and capabilities.
Quality is the primary requisite
People abroad tend to spend more money for quality food products. But there are a few here who try to sell quality compromised products for sale in the name of export. That is the reason for the people abroad who hesitate to do business with those whom they do not have prior contacts.
When it comes to quality of value added products made in India we cannot deny there will be some defects. But if we strive not to compromise in their quality while making value added products I can boldly declare that there will be none other than us in the world to compete in this business”. Thus Easwar Ayyapan concluded.
Places of Training on Value Addition
Entrepreneurs who aspire to make value added products should have proper training and tendency to search for market opportunities. Tamil Nadu Agriculture University, Central Food Technology Research Institution, Mysuru, IIFPT Tanjore and KVK Farms in Tamil Nadu are some of the organizations that provide proper training on value addition. One can then create market opportunities fully and get into the business.
(This article written in Tamil by Durai.Nagarajan for Naanayam Vikatan magazine dt 29/4/18 has been transcreated in English by V Amalan Stanley)