An business idea with huge potential seeking investment in seed round. The products offers $62 Billion global herbal market with high-quality and proven herbal supplements, medications and also bulk actives (APIs) for manufacture of Allopathic, Ayurveda, Siddha and Unani medications. The advantage of investing in this company rather than any other existing company is its unique business focus. While other existing companies are not having broad look at business potential and are going blindly by old market numbers, I have precisely captured the market potential and need in each of the segments through a thorough market research. This business intelligence gives PSS Herbs India the insight to reach the market on-time with the right offering that market is looking for in the price and quantity that makes the business a success and reputable brand.

1. PSS Herbs India
Business Plan

2. Mission
• Be a one stop shop for a wide range of Indian herbs,
herbal extracts, purified active ingredients and Ayurvedic
formulations that enable holistic health.
• Provide customers with the highest quality of herbs and
herbal products that are ethically and organically grown.
• Be recognized the world over for the inroads in research
and development to leverage the combined knowledge
of Ayurveda, Unani and Siddha in coming out with
natural medications for disease conditions that are
prevalent in the modern world.

3. The Team
contd.
• Vinoth Sankar - Chairman, CEO & Founder
– Hands-on experience in herbal export business
– Expertise on Supply Chain Management, Procurement,
Manufacturing operations, Warehousing, Shipping & freight,
Industrial commercial terms et al.
• Supported by PSS Jeyandran, a renowned herbologist with
over 50 years of trading experience in the herbal business
and an authority in herbal formulations
• PSS Jeyandran and Vinoth Sankar have been key contributors
to the success of PSS Exports – A India based market leader
with over 100 year history in the export of processed herbs
• The management team comprises of domain and business
experts with hands-on experience in leading the business
towards success

4. The Team
As of September 2013
Name
Title
Mr. Vinoth Sankar J
Business Owner
Mr. P. Jeyendran
Advisory Board (Herbs/Procurement)
Siddha Doc
Ms. Madhavi CN
TBD
Dr. K. Anand Solomon
TBD
TBD
Advisory Board (Medical Formulations)
Advisory Board (Business Development
& Strategy)
Global Sales Head
Director – Herbal Extracts & API
Division
Director – Nutraceuticals Division
Director
Division
–
Herbal
Formulations

5. Market Summary
• Multiple factors causing a major shift to herbal medicine
• “Herbal treatments highly lucrative in the international
marketplace” – WHO
– Developing Nations: 80% population depends on
traditional medicine for primary health care
– Developed Countries: 70% of the population use
some form of alternative medicine
• Global market forecast @ US$93.15 billion by 2015
Source: Global Industry Analysts, Inc
• Indian herbal exports market shows CAGR of over 20%
for herbal raw materials and 25% for herbal medicines
(currently at USD 0.3 B & USD 1.9 B respectively)
• The industry is largely unregulated
• Competing Countries: Japan and China

6. Opportunities
• Lifestyle health concerns on the rise. People keen on
relief/cure through herbal formulations.
– Reasons for the shift towards herbal medicines:
• Less expensive than medicines bought from an allopathic pharmacy
• Cost effective
• No serious side effects like allopathic medicines
• Growing awareness on the goodness of going herbal
• Therapeutic effect and medicinal benefits
• High potential areas: Obesity, diabetes, heart disease, bone
and joint problems. Hair loss, skin allergies and beauty
products
• Markets’ desperate need for trusted & high quality products.
• Global markets implementing measures to control adulteration
• Competition: China is a key competitor but customers are
concerned about China-based products as being low on quality

7. Opportunities
contd.
• Geographies
– US: GOI, in association with the Indian Consulate in NY has set
up an Ayurveda Development Board in the US to promote
herbal exports and smoothen the process
– Europe: Costs less and takes less time to approve medicines as
safe and effective under the "doctrine of reasonable certainty.
There is NO inherent prejudice in Europe against molecularly
complex plant substances.
– Developing Countries: Herbal remedies are increasingly
becoming important due to their affordability and effectiveness
• An additional market from the competitive segment of
allopathic pharma: Herbal extracts (API) widely in use in the
allopathic medicines
– 25% of allopathic medicines contain plant derivative - WHO

8. Opportunities
•
•
•
•
contd.
The legal ambiguity in Europe and the US: Marketing authorization
for the nutraceutical division in the highly regulated markets
In-depth herbal knowledge of PSS core team that ensures high
efficiencies
Environment conscious markets: PSS satisfies this by procuring
from those farmers who follow scientific methods of cultivation to
offer high quality produce.
Internet & Social Media:
– Social analytics presents great scope to understand & respond
the customer needs
– Marketing/sales activities generate better results with reliable
visualizations about the competitor strategy, market landscape
and customer expectations.
– Increased business through Internet Marketing.
– Relatively no/low cost promotion and international brand image

9. Business Concept
• Products are grouped under different divisions based on
the processing required and the manufacture process
– Herbs Division: Provides dry form of medicinal herbs
and culinary herbs
– Nutraceutical Division: Brings out products/
supplements that have high demand
– Extracts Division: New lead compounds to be
developed as drugs and to valorize the traditional
herbal medicinal products
– OTC Division: Creates herbal remedies &
phytomedicines.
• A phase-wise approach to the entire business with capacity
building strategy
• Profitability of individual divisions based on:
Efficient operations; Effective marketing; and Strong sales
force

10. Business Concept
contd.
• Quality of manufacturing practices, product and innovation
strategies & compliance
• Entrepreneurial approach to facilitate personal contact,
subcontracting, market access, appropriate labor pools, and
access to common services.
• A lower overhead/labor cost structure
• Modernized to manufacture a wider range of higher quality
and higher priced products for specific market segments
• Long-term partnership model to offset price/quality
fluctuations in international trade
• Seek out niche markets that target high-end/high-value
usage for PSS products

11. Business Concept
contd.
• Lead sales with targeted market communication activities
for pharma and cosmetic manufacturers, distributors,
nutraceuticals and consumers
• Implement legal procedures and logistics that include
packing, insurance, invoices, export documentation, etc.
• All the strategies, more so the marketing strategy would be
determined through market research.

12. Competition
• Companies with better performance/ranking started
making exports a major share of their total revenue. All
others limited only to Indian domestic market
• Scope for growth limited for SMEs due to lack of
adequate financial funds and other resources.
• Number of foreign-owned companies is relatively small,
but those that are financially strong control about half of
the market.
• Multinational companies responding to the regional
markets nutritional preferences faster than local players.
• Extract manufacturers and suppliers to herbal product
companies are leveraging on quality and timeliness as
essential factors in being successful.

13. Competition
contd.
• Competitive products in Nutraceuticals segment: Fortified
Cereals, Vitamin & mineral supplements, Additional
supplements, Energy drinks and tablets, Foods to reduce
cholesterol levels, Protein Powders, Probiotics and Sports
products
• Competitive products in the OTC segment: Beetroot Complex,
Concentrated Cranberry, Ginkgo Plus, Garlic Plus, Ginseng, Milk
Thistle Plus
• Competitive OTC Brands: Vicks (VapoRub & Cough Drops),
Amrutanjan (Pain Balm), Zandu (Pain Balm), Iodex (Pain
Balm), Moov (Pain Cream), Itch Guard (Cream), Eno Fruit Salt
(antacid), Halls (Lozenges), Dabur (Pudina Hara) etc.
• Indirect competition from allopathic medications
– Can be made to work as additional market opportunity for
Extracts Division, since at least 25% of all allopathic
medicines contain a plant derivative

14. Competitive Advantage
• There is a big competitive advantage for players in
developing countries like India on the due to low cost of
labor for harvesting
• Extensive domain knowledge of the Founder and the
established name in international business
• Consistent quality from locally tested herbs at the core
of each product. Products standardized in order to
increase their authenticity in global market
• Product USP
– Anti-ageing product that replaces the need for
botulax based injection therapy
– Phyto-protectants - chemicals from plants that are
thought to confer protection against cancers and
cardio-vascular disease
– Herbal based probiotics

15. Competitive Advantage contd.
• Cost savings by optimization at various levels makes the
PSS process efficient and helps in creating products
without a high markup price.
• Strategic, quality-oriented domestic sourcing approach
for best quality herbs at best prices
• Product planning based on market research, internal
R&D, competitor moves and industry changes and best
practices
• Market differentiation that is both geography- and
product based
• Operations & HR Strategy to ensure embodiment of
accumulated resources

16. Competitive Advantage contd.
• Core team of PSS Herbs have a long association with herbal
market due to which the business is based on:
– Thorough knowledge of every Indian herb & those associated
with the science of Ayurveda
– High level of competency in understanding herbal
components, properties, benefits and risks.
– A very strong network (a key PSS asset) comprising of leading
suppliers, pharmaceutical manufacturers, trade associations,
doctors, research associates, certifying bodies, distributors
etc.
• Follows a greener and cleaner environmentally friendly
process

17. Goals and Objectives
Short term goals
• Sales goal of $120,000 during first year of operation.
• Customer base of 10 companies by the end of first year
• Increase sales by 15% during the 2nd year of operation.
Long term goals
• Expanding the manufacturing unit by adding on a new
location to meet the growing orders (business to grow
by 100% in the next 5 years)
• International sales offices would be established in
regions that have consistently shown high demand to
contain costs in managing the transactions and tap into
the market completely without rising the sales or
operational expenses.

18. Financial Plan: Capital Expense
Capital Expense
Description
Year 1
(In USD)
Land
25000
Plant Setup
1016609
Machinery for Manufacturing
4293424
Permits, IPR and Legal
Grand Total
27108
5362141

19. Financial Plan: Operating Expense
Operating Expense
Description
Year 1 Year 2
Year 3 Year 4 Year 5
(In USD)
Plant Operating Cost
104500
175333
229333
229533
314167
Total Manpower Expenses
74907
182673
261037
263493
265693
Marketing & Selling Expenses
32942
85955
126393
195687
280162
212349
443962
616763
688714
860022
5574490
443962
616763
688714
860022
536214
536214
536214
536214
536214
0
6777
6777
6777
6777
Operating Expense
Total Expense
Depreciation Machinery (Straight line Method @
10%)
Amortization

20. Financial Plan: Sales Revenues
SALES REVENUES
Divisions
Year 1
Year 2
Year 3
Year 4
Year 5
(In USD)
Herbs Division
96940
472848
971129
1147633
1262396
Extracts Division
23275
446398
1142736
2397682
4656115
Nutraceutical Division
0
184763
599870
1631238
4060716
OTC Products Division
0
160413
571444
1590305
3696974
Total
120215
1264421
3285179
6766858
13676201

21. Financial Plan: Revenue Growth
Rate (%)
REVENUE GROWTH RATE (%)
Divisions
Year 2
Year 3
387.77
105.38
18.18
10.00
1817.93
155.99
109.82
94.19
Nutraceutical
Division
224.67
171.93
148.93
OTC Products
Division
256.23
178.30
132.47
Herbs Division
Extracts Division
Year 1
Year 4
Year 5

22. Financial Plan: Breakeven Analysis
& Profit/Loss Analysis
Breakeven Analysis (Simple Method)
Cash flow from Operations
-327256473
49227579
160104943
364688680
768970741
Cumulative gross income
-327256473
-278028894
-117923950
246764730
1015735471
Breakeven at 3 Years 5 Months
Profit & Loss Analysis
Gross Income
Depreciation & Amortization
EBIT
Interest(100 % equity)
EBT
-327256473
49227579
160104943
364688680
768970741
32172848
32579463
32579463
32579463
32579463
-359429321
16648116
127525480
332109217
736391278
0
0
0
0
0
-359429321
16648116
127525480
332109217
736391278
4994435
38257644
99632765
220917383
TAX 30%
Net Income
-359429321
11653681
89267836
232476452
515473895
Cumulative Net Profit
-359429321
-347775639
-258507803
-26031351
489442544
All numbers in INR

23. Capital Requirements
• The financial requirement for establishing and expanding
the business is $8.18 Million

24. Risks and Rewards
• Being an elaborate manufacturing setup, investment
tends to peak in the initial year.
• Phased approach helps in realizing the revenues early
and to achieve the breakeven by fully utilizing the
interdependencies of the divisions to the company’s
advantage.
• Value of the investment grows owing to the market
penetration, IPR, market intelligence driven initiatives.
• A system-based approach is prosposed to business risk
management.

25. Risks and Rewards:
Benefit for the Investor
•
PSS Herbs India is a total return investment venture that is planned
to provide high dividends along with the potential for moderate,
long-term capital appreciation.
•
PSS Herbs has a medium equity market capitalization, the returns
are comparable to other small to mid-sized companies.
•
Management is willing to negotiate any structure which suits the
investor. The company is seeking an equity investor.
•
Management will provide a seat on the company's board of
directors.
•
Investor will enjoy ROI in excess of that of alternative investments,
as a privately held company, while providing investor liquidity of
their investment by taking the company public at its earliest
opportunity.
Note: According to Euromonitor International, India is becoming an
attractive destination for investments in this sector.

26. Thank you
Vinoth Sankar
Mobile: ++ 91 94884 24951 (India) &
++971 50 860 207 9 (UAE)
vinoth7777@gmail.com
Skype: vinoth7777
Twitter: @PSS_Herbs_India
http://www.pssherbsindia.com