Zumbani Project Business Proposal - DRAFT - GC0108
Zumbani Project Business Proposal - DRAFT - GC0108
Zumbani Project Business Proposal - DRAFT - GC0108
Table of Contents
Preamble................................................................................................................................................................. 2
Project Summary................................................................................................................................................. 2
Product range, uses and benefits.................................................................................................................2
Background........................................................................................................................................................... 3
Objectives of the Project and implementation plan............................................................................4
Project Description............................................................................................................................................ 5
Industry and Market Dynamics.................................................................................................................... 6
The global herbal market............................................................................................................................6
The local and regional markets................................................................................................................7
Herbicure’s target market............................................................................................................................... 7
Market strategy.................................................................................................................................................... 7
Financials............................................................................................................................................................. 10
Preamble
Midlands State University intends to form and support a start-up business focused on
producing novel Lippia javanica (Zumbane) products. Along with the vaccines and other
anti-viral therapy options, these include a rub, nasal spray, bug repellent, and inhaler
that will act as adjuvant treatment for Covid-19-related and other upper respiratory
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infections (URIs). It will also sell Zumbane essential oil extract, which can be used as an
ingredient in cosmetics and other products. The new business will be registered and run
under the name 'Herbicure.' Zumbane and other ingredients were used in various
formulations in the products. The products are on technology readiness level 7 because
they have already been manufactured and registrations with the Traditional Medicines
Association are in the works. The next stage of the project entails performing stability
tests, assessing toxicity, and determining the composition of microbial and heavy metals
as required by MCAZ.
Project Summary
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Table 1: Herbicure’s product catalogue and value proposition
Background
Global incidence of upper respiratory infections (URIs) reached17.2 billion in 2019 and
accounted for 42-83% of all cases from the study Global Burden of Diseases, Injuries,
and Risk Factors between 1990 and 2019 1. The global outbreak of Covid-19 worsened
the statistics with at least 90% of the global population acquiring the infection at least
once and a global mortality of 14.9 million between 2020 and 2021 2. The Covid 19
associated mortality was at 5469 in Zimbabwe as of 4 May 2022 3. Although herbal
remedies such as the use of Lippia javanica (Burm.f.) Spreng. (Zumbani/Umsuzwane)
have been reported to significant alleviate URI symptoms, the lack of research,
documentation and registration of phytomedicines from such plants have delayed their
validation by regulatory organizations such as the World Health Organization (WHO).
This motivated this research on Lippia javanica and the development/manufacturing of
L. javanica rub, nasal spray and inhaler to be used as a complementary drug to
combat severe Covid-19 and other respiratory symptoms. This is also in response to the
statement by the Africa Union Centre for Disease Control and Prevention (CDC) on
herbal remedies, that research on efficacy and safeness of herbal supplements for
Covid-19 treatment be done, along with registration of medicinal outcomes.
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chrome-extension://dagcmkpagjlhakfdhnbomgmjdpkdklff/enhanced-reader.html?openApp&pdf=https%3A%2F%2Fwww.thelancet.com
%2Fpdfs%2Fjournals%2Feclinm%2FPIIS2589-5370(21)00266-2.pdf
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https://www.who.int/news/item/05-05-2022-14.9-million-excess-deaths-were-associated-with-the-covid-19-pandemic-in-2020-and-
2021
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https://covid19.who.int/region/afro/country/zw; Accessed 6 May 2022
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Additionally, we used the distinct properties of Lippia javanica4 to make a novel bug
and insect repellent in the form of a jelly formulation. This formulation particularly
joins the fight against malaria, which affects 250 million people and kills about 2million
annually5.
Although Covid 19 vaccines have been formulated and used in many countries, there
have been mixed feelings within the Zimbabwean public regarding the acceptance of the
vaccine. This has led to most of the Zimbabwean communities resorting to some herbal
formulations. Alleged Covid-19 patients are said to have been healed after inhaling the
plant’s steam covered with a blanket, a process known as Kunatira in Shona. The World
Health Organization (WHO) warned individuals that steam inhalation therapy carries a
risk of burn injury6. Although studies (for example, Little et al., 2016)7, have shown that
steam therapy can help thin mucus as a supplemental course of action to give some
relief when grappling a cold or flu, there is need for safer methods of administering the
medicinal properties of Zumbani.
https://www.researchgate.net/publication/26757181_Lippia_javanica_Burm_F_Spreng_Its_general_constituents_and_bioactivity_on_mo
squitoes
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https://www.si.edu/spotlight/buginfo/diseases
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www.who.int/docs/default-source/coronaviruse/clinical-management-of-novel-cov.pdf
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Little, L., Eidesen, P. B., Müller, E., Dickinson, K.J.M and Lord, J. M. 2016. Thermal time course for Pleurophyllum criniferum on Campbell
Island (2010-12-06). PANGAEA, https://doi.org/10.1594/PANGAEA.862004, accessed 15 February 2021.
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Table 2: Phase 2 objectives and implentation strategy
To conduct start-up Start-up period for 3 months This period will confirm the
sales in herbal during which we will results of preliminary trials
pharmacies, while produce and conduct sales and help with initial
registering with MCAZ over herbal pharmacy marketing of the products.
counters. We will also carry
surveys for all users to
evaluate the efficacy of our
various products.
Amount requested: $6,500
Project Description
Researchers at MSU embarked on a research exercise to bridge the gap between claims
of medicinal effects of L. Javanica and its official acceptance (Phase 1). Subsequently, 3
safe and convenient herbal products were developed: a rub, nasal spray and inhaler that
will aid as adjuvant treatment to Covid-19 and other URIs, alongside the vaccines being
administered and other anti-viral therapy options. We also have an essential oil extract
that can be used as an ingredient in cosmetics etc. and a bug repellent to particularly
mitigate against mosquito bites. Herbicure’s product value proposition is based on our
belief that the general public should be provided with organic alternatives such as
herbal products delivered through a process that they can trust and familiarise with.
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An adequate profile of phyto-chemicals available in the herb were extracted and safe
compositions of the products were formulated, with accompanying guidelines for use
that will be printed on the administration notice, along with the ingredients. We carried
out preliminary trials with 40 volunteers with 87% registering significant responses to
our products. Effectively, our products are at technology readiness level (TRL) 6. They
have been tested for composition (microbial, heavy metals), toxicity & use (preliminary
tests) and are currently being registered with the Traditional Medicine Association as
required by Zimbabwean law for herbal remedies. However, to reach the market (Phase
2), we still have a number of activities and compliance measures to carry out.
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https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5442578/
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/
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https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/
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Figure 1: Regional Analysis by form i.e. liquid, powder or whole herb.
Market strategy
We will initially enter the market by retailing our products to herbal outlets such as
Greenworld pharmacies. We plan on opening our own branches that will sell herbal
healthcare and cosmetics products. We will use testimonials from users to for further
advertizements of the herbals on various media platforms such as National television,
Central FM, Star FM, Zi FM, Sunday Mail and the Herald. We will also feature our
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/
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products on our MSU website, Facebook and innovation promoting websites such as
ELISA, who have already invited us to showcase them. After registration with MCAZ, we
will move into supermarkets, pharmacies and various shops. We also plan on carrying
out affiliate marketing, when our product brand has gained enough momentum. Since
we already have sanitizers and still water on the market, it will not be difficult for us to
register the supply of these other products, after MCAZ approves. By year 3 of
successful local herbal production and sales, we will obtain export licences targeting
markets in North & Latin America and Europe.
Implementation Plan
Table 3 furnishes more details on the work plan and timescales. We expect that the
pre-commercialization activities should take only 4 months (time to market), after
which our products will be sold as a traditional medicine in herbal pharmacies (M4) and
subsequently in the expanded market (M7). Zumbane fresh and dry plants will be
bought from subcontracted collectors at $0.50/kg . Entry into the expanded market will
require compliance with MCAZ and suppliers requirements by various platforms. We
have already received documentation on the required registration and compliance
protocols for complementary drugs.
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Table 3: Work plan for Phase 2 of Herbicure
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11M12
WP1 Product testing and improvement
Task 1.1 Subcontract tests on critical parameters (Table 2)
Task 1.2 Subcontract design of product labels and finalize on packaging
WP2 Purchase and installation of equipment
Task 2.1 Procure and assemble required machinery
Task 2.2 Conduct production tests and optimize on operating parameters & ergonomics.
Task 2.3 Produce at least 500 samples for herbal market
WP3 Regulatory compliance & market entry
Task 3.1 Set up sales platforms with herbal pharmacies (open 2 outlets for medicines & cosmetics)
Task 3.2 Carry out follow up surveys on customers to assess efficacy
Task 3.3 Complete registration with MCAZ and inspection of production facilities
WP4 Market expansion
Task 4.1 Product launch into wider market (mid month) with various stakeholders
Task 4.2 Marketing and Dissemination of results from herbal sale platforms in WP3
Task 4.3 Manufacture at least 1000 bottles of each product ahead expansion into pharmacies & supermakets
Notes:
*Equipment purchase orders to be made at beginning of Gannt period (soon after funding).
*Sales effectively start in M4 in herbal pharmacies, but in M7 for the expanded market
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Financials
The funding budget is detailed in table 4, while table 5 projects the expected cash flows
in terms of profits
A. EQUIPMENT
Essential oil distiller (100litre) electricity powered 2 4000 8000
Water distiller (20 litres per hour) 1 500 500
Microbial incubator (70litre) 1 1200 1200
Hot water bath (60 litre) 1 600 600
Analytical balance 2 400 800
Mixing bowl with dispenser (10 litre) glass 4 60 240
Electric homogeniser 4 30 120
Testing and MCAZ registration 5 300 1500
SUB TOTAL 12960
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According to preliminary costings done, the zumbane rub, nasal spray, inhaler and bug
will be sold at $2 each with an average profit of 30% above the production costs
(~$1.50 per 100g or 100ml). The Lippia javanica oil will be sold at $1.23 per 100ml. The
projected sales and profits are presented in Table 5.
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Table 5: Projected sales and profits
Y1 Y2 Y3 Y4 Y5
Rub, inhaler, spray & repellant sales 8000 12000 16000 18000 20000
Profits $ 4 000,00 $ 6 000,00 $ 8 000,00 $ 9 000,00 $ 10 000,00
L. javanica oil 2000 3000 5000 6000 6000
Profits $ 570,00 $ 855,00 $ 1 425,00 $ 1 710,00 $ 1 710,00
Total $ 4 570,00 $ 6 855,00 $ 9 425,00 $ 10 710,00 $ 11 710,00
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