Tiaan Ayurvedic & Herbs Ltd Management Discussions.

ECONOMIC OUTLOOK

The company was facing difficulties in carrying out the Financial segment in a profitable manner. Further carrying out financial business required RBI approvals and NBFC certificate as per provisions of Section 45IA of the RBI Act, 1934. Similarly the business of Portfolio Management is again required huge capital base and necessary approvals from SEBI and or other regulators. In the given situation the company has given very limited scope for growth. The Company therefore has decided to venture into a new business having vide scope and great viability. The necessary projects and planning for ayurvedic and herbs business was carried out by the Board to understand the business and its viability. Ayurveda has a brilliant future in India as a business proposition due to the ever increasing demand for natural therapies. This huge demand is driven due to various factors like the stressful working culture, exhaustive lifestyle, the endless quest of peace, the growing ailments with less healthy environment. There has been a shift in universal trend from synthetic to herbal medicine recently. India could make its presence felt in the world herbal market through quality products in view of growing bias towards herbal medicines, dietary supplements and skin and beauty aids because public perception of herbal products is a kin to organic food products.

COMPANY OVERVIEW AND PERFORMANCE:

Ayurveda can be seen as one of most visible faces of alternative medicines practiced throughout the world. In India, it has regained its lost ground in mass appeal along with renewed interest for it in the west. There has been noticed a renewed tendency to turn back towards natural cure. Therefore hebal therapies, natural medicines and yoga centres have made a huge come back. Increasing awareness of benefits of Ayurvedic products, government initiatives to encourage their usage, rising purchasing power to drive demand for Ayurvedic products in India. According to a recently released TechSci Research report, "India Ayurvedic Products Market Forecast & Opportunities, 2011 - 2021", India Ayurvedic products market is projected to register a CAGR of 16% during 2016-2021. Ayurveda has been a part of our culture since ancient times. We have read about many uses of ayurvedic medicines, which have been carried and passed on to generations ahead. With the growth of organic and natural products industry, the demand for ayurvedic products and nutraceuticals has also gone up. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of 1 Billion Dollars (U.S). According to India Nutraceuticals Market Forecast and Opportunities 2017, the nutraceuticals market in India is expected to grow tremendously in the next five years. The market revenues for this industry are expected to reach approximately USD 4.2 Billion in 2017.

OPPORTUNITIES & THREATS:

This industry is directly aligned with the population base. With the average age at 25 years, India is amongst the worlds youngest countries, as compared to the average age of 43 years in Japan and 36 years in the US. In addition, Indias population base of 1.2 billion is estimated to grow to 1.5 billion by 2030. Urbanization, a growing trend, will also rise by 45 percent in the next 30 years. Todays, Indian customers are looking for newer shopping experiences and products. Consumer attention and attraction has shifted from traditional offerings to new inventions, for example demand for soap cakes has moved to liquid soaps, shaving creams to foams and gels and plain detergent has shifted to machine and dish washing powders. The size of the Indian beauty and cosmetics products industry raising with a CAGR of 15%. Among the complete range of products that fall within the gamut of the Indian cosmetics and toiletries market, the most popular item is colour cosmetics. In this segment, nail varnish, lipstick and lip gloss account for maximum sales. Of late, the male toiletries market in India has shown tremendous growth.

The market for cosmetics and toiletries is close to saturation in the developed countries and growth has slowed down. In the meantime, India, with its growing economy, is offering a lucrative market for large multinationals.

Place: Vadodara

For Rachana Capital & Securities Limited

Date: 13/05/2017
Rakesh Nizare Ranjitmal Rathod
(Whole Time Director) (Director)