"The one stop herbal and traditional remedy retailer, wholesaler, manufacture and distributor."
The business grew out of a dream that the Kasan Brothers had. Being in the herbal and traditional business at retail level for the last 15 years, they wanted to have a warehouse that caters for all the Herbal and Traditional African needs, but, to also see that they would be able to westernise the retail environment to be acceptable to the MCC ( Medical Control Council), pharmaceutical trade and the health department.
In 2004 The Kasan brother's joined forces with a struggling herbal company ( MTHC ) to see if could take that company to the next phase. The group established Ranis Herbalist( MM ) as a sister company to handle the sales and marketing solutions for MTHC. After three months and having brought the first of the Ranis Herbalist into production, MM outgrew the premises and production capacity and needed more space. We have a unique way of marketing the one product we had started. It was mutually agreed that MM, on moving to new premises, Kasan Brothers would buy the other partners out. This left MM with a serious cash flow problem and we needed to reinvest to survive. With a loan from the immediate family MM decided to start building it's brand with series of products that were already developed and started helping other companies entering the market with marketing ideas and strategies.
Immunadue and Canova were two such companies who had large marketing budgets, but did not know how to bring the products to the market. MM helped establish them both in the market and in return MM had their national distribution for the first six months. These products became overnight households brands in the herbal market. Since then we have signed exclusivity agreements with other top herbal brands.
At present the company is bursting out of the seams of it warehouse, filled with the traditional needs of the people and a number of products that have been developed to help with common ailments (e.g. Asthma, erectile dysfunction and diabetes, etc). These products have been approved by the MCC and are house brands. They are being advertised on Lesedi FM in the form of a weekly 5 minutes talk show, where people can phone in and ask questions. The phone no. is given out and company direct people to the nearest retail outlet that carries the product. In August Vik took the next step and employed part-time reps to see how his retailers would reacted to having the extra service. The sales have proven that with the extra funding to employ full - time reps the sales will grow rapidly. At present the company employs 11 people in production all previously disadvantaged whom we will be able to train further.
We see the future as an almost limitless opportunity for growth of the company and employment of previously disadvantaged people. Our goal now is to acquire larger premises, purchase more machinery and equipment so that all production will be done in-house. We will be marketing our products more aggressively so that we can reach a wider market which will increase our revenue substantially. Once the new factory is operational and GMP approved we will hire a full time head pharmacist who will be in charge of quality control, according to MCC regulations. Once we have received the funding we will be able to reach our initials targets within one year.
"The one stop herbal and traditional remedy wholesaler, manufacture and distributor."
Ranis Herbalist has been in business for several years and is involved in the pharmaceutical products manufacturing and distribution business. We were formed with the objective of becoming a major participant in the industry, targeting small to medium size businesses and individuals. We have been sustainable since 2005 and have established a strong relationship with numerous distributors throughout the S.A. We have established a work ethic and pride in providing high quality product at very competitive prices. We have been quite successful at this by concentrating on a relatively small number of products types.
For the coming year we are expanding our product line from 11 house brand to 39 which are in a process of registration with MCC (medical control council).
The extent of our market is limited to lack of knowledge on the part of the general public of our products and how they work. With people becoming more aware and with general trend moving towards the more "natural / herbal / traditional" form of medicine /supplements we expect our market to increase rapidly. Another factor influencing our growth is distribution. Our market will grow as we make our products more available in more areas through retailers, wholesalers etc and our own franchising network that we intend to implement.
Our market includes herbal shops, retail outlets, pharmacies and other wholesalers and with the intended growth we will then be able to offer more products and more specialized " Branded Products" to our existing and new clients thus increasing our markets even further.
Ranis Herbalist has at the moment 11 in-house Branded. Many of these products are MCC registered and are awaiting approval. These products are mainly " herbal / traditional" based for which there is an ever increasing market. These products are known in the market place and with development of new products we expect our market to increase. Production costs are relatively low and our product offers the client an alternative route to medicines / supplements that are chemical based.
The bulk of our marketing of our products will be done through radio talk shows, currently we are advertising on a national radio station ( Lesedi FM ).When we have the extra funding we will expand to other radio talk shows which are more commercial, community and prime time. We will be organizing road shows at taxi ranks and other selected Malls. We will have bicycle and mobile trailer advertising in the townships to promote our products. We will have in-store promotions with trained promoters in various shops. Posters and pamphlets will be distributed to motorists and pedestrians at various locations as well as in the relevant stores. Because of the credibility of the brand some advertising will be through word of mouth.
The extent of our market is limited due to insufficient funds to market and promote the products effectively. With people becoming more aware and the general trend is moving towards the more "natural / herbal / traditional" form of medicine /supplements we expect our market to increase rapidly. Another factor influencing our growth is distribution. Our market will grow as we make our products more available in more areas through retailers, wholesalers etc and the franchising network that we intend to implement.
Our market includes shops, retail outlets, pharmacies and other wholesalers distributors. With the intended growth we will be able to offer more products and more specialized " Branded Products" to our existing and new clients thus increasing our markets even further.
Our prospective buyers are as follows:
¨ All herbal shops
¨ Informal shops
¨ Pharmacies that cater for the informal market
¨ Selected pharmacy wholesalers
¨ Supermarkets and cash ad carry's
Our clients sell our product as an alternative to ethical medicines. This is currently sold mainly to the informal market but there is a trend that other sectors of our population are also moving towards the herbal form of medicines.
The major market segment for our products is the informal and "herbal or traditional" medicine Consumer. We have thus far limited our distributor network to South Africa with plans to expand throughout Africa and international countries demanding our product.
We expect the market for our product to become quite diverse as it is a growing trend world wide for the use of " herbal and traditional" form of medicines and supplements. With clinical trials being done at leading South African Universities on South African Herbs, it will be easier to have our products accepted internationally.
We estimate that there are in excess of 3 200 manufactures of herbal products in South Africa, of which more than 900 operate informally, and 1 400 are G.M.P approved ( Good manufacturing practice), approximately 1 800 are purely herbal manufactures of which about 900 have MCC ( medical control council) approval of their products. The annual sales for these products is approximately R 1.3 billion. This is a growing market and in addition there are many thousands of individuals, hospitals etc who are also prospective users of our products.
The trend towards use of more of herbal products is a positive influence for the sales of our products. The government is in the process of legislating that all alternate medicine manufactures be GMP complied and have their products MCC approved. Our products are already MCC approved and our factory will be GMP standardized.
There are a lot of alternatives to our products but these are mainly of the chemical nature and as explained earlier the general trend worldwide is to move to the more " natural or herbal" form like which products offer. Once the public become more aware and educated in what's available in the market place we expect more demand of our products.
Many of the natural / herbal products available are not manufactured up to GMP standards.
Ranis Herbalist has at the moment 11 in-house Branded products and about 1500 outsourced products. Many of these products are MCC approved. These products are mainly " herbal / traditional" based for which there is an ever increasing market. These products are known in the market place and with development of new products we expect our market to increase. Production costs are relatively low and our product offers the client an alternative to chemical medicines.
Existing products include the following:
7-2-7 House Brands:
v Breathe For Life
v Clean For Life
v Moringa For Life
v Ajomo For Life
v Sea Waters
v Holy Water
v Healing Water
v Showtime Liquid
v Dr O Male/Female
v Wonder Pill
v Mama Indaba
v Traditional Products:- eg. Bath Salts, Fats , Oils, etc
v Church apparel - Which includes Candles, Holy Water, Wafers and Church Clothing.
v Spiritual products - For the African market which includes, Tokoloshe Salt.
v In total there are about 1500 products that Ranis Herbalist has available in the market.
We have been marketing our products since 2004 and will be adding new products to our current range
This market has already been established and it is due to this market that a need has arisen to develop further products.
The products on offer by Ranis Herbalist have great value to the consumer as it is an alternate natural and traditional formulation of medication, Which has been on an ever growing demand. Firstly because the consumer can identify with the product and being herbal there are less side effects. It is also in general less expensive than the chemical equivalents on offer at present.
Ranis Herbalist envisage their future growth through an aggressive marketing campaign, a larger rep force and above average service delivery.
We will have a tele-sales department who will be trained in product knowledge. So apart from the sales aspect, they will also be able to inform the end user on our product.
Our franchise store will also create awareness as there will be constant marketing activity in their shops.
The strategy of the company is to meet the increase demand for our product. Our existing client base is one of our target markets offering them a more diverse product range as well as new products. With the manufacturing equipment we will be able to offer more specialized.
"In-house Branded" products and aggressive marketing of the same as this will lead to a greater demand for our products increasing our market. We will also aggressively market for a larger market share through our marketing campaign and rep force.
Our objective from the start has been to establish a reputation as the "forerunners" of the herbal industry. Because our main interface is with distributors, we have made it a top priority to insure that they all receive "first class" treatment. This, along with our commitment to very high quality products has begun to achieve that image.
At present our products have a small but loyal following. With the increase in production capacity we expect our market as well as our image to increase and become more well known.
This will be enhanced further by our intention to embark on an aggressive marketing campaign. We will increase our staff compliment considerably to cope with the growth and demand and these will include tele - sales rep force and distributors.
All promotions are done through radio talk shows, we are currently promoting on Lesedi fm at least three times a week, and when we have extra funding we will expand the Radio talks to more commercial, community and prime time. Road Shows will be organised to reach a wider market and will provide distributors with promotional materials, We will also target taxi ranks for promotions due to the number of commuters connecting from these taxi ranks every week day. There are number of townships we are targeting in the Gauteng area initially where bicycle and mobile trailer advertising will be done and in all the franchise stores staff will be equipped with all the necessary training on our products and will be provided with product literature which in turn use to promote the products to their consumers.
Because of the reputation the products gained and the fact that our higher prices gain them a larger profit the distributors are enthusiastic about promoting our products.
We have a medium to small but loyal following at present. Our product is known in the market place and we intend to increase that market through various channels as described earlier. In the future we want our products to be perceived as high quality affordable products and we intend to achieve this by extensive marketing and advertising and increasing our distribution network.
We expect quite a bit of publicity for the products. We are already promoting on a national radio (Lesedi Fm) which reach millions of potential consumers across the country and we are receiving a universally positive response. After acquiring funding we expect to expand to more Radio stations for publicity in the first quarter of the current year. New product announcements will be sent to every media source we can identify.
On in-house products range we control the pricing, this allows us to make 50% plus profit margins.
Out sourced product can be broken down in two categories:
1. Products that are distributed to all distributors, and the margins are between 10% - 15%.
2. Products that we have sole distribution on, the margins are between 20%- 25%.
Ranis Herbalist will increase profitability by increasing own brand products by increasing its product lines and marketing to reach wider market.
We currently have a staff of 3 personnel who are responsible for interfacing with our distributors and clients. Presently there is no Marketing manager and HR manager, the personnel report to the Vik Kasan who believes that an on hands approach is the back bone of our service.
We currently have one large wholesale distribution centre which offers nationwide service and several hundred local or regional distributors for our products. And we plan expand our distribution by employing representative in all nine provinces in the coming year. Most of our sales occur through the distributor channel at present. The majority of our sales are COD.
Our small rep force deliver their own orders under R4000-00.
For local deliveries we at present have two small SUV.
For national orders we use a logistics company.
At present our sales department handles all queries on products. All expired, damaged and faulty stock are exchanged immediately.
We will have a customer support group who will attend to all related consumer queries in the future.
In the future our tele-sales department will assist with all queries and problems. Because we foresee having an accredited GMP standard factory, our products will be of a high quality.
The competition (Pharmaceuticals ) had a large initial cash injection allowing them to market aggressively which allowed them to have a footprint and brand establish in a short period. The competition's manufacturing cost are low and their profit margin are high. The profitability give them the capability to sustain this aggressive campaign. Ranis Herbalist has the same pricing structure but does not have the initial marketing finance to national brand awareness. We have slowly and positively built a strong brand in the market creating a solid foundation.
Our development program has the objectives of providing new products for the market, improving products we already market and insuring that we employ the most effective manufacturing techniques possible.
Our objective to development is as follows:
v To acquire a factory which meets international GMP standard, including a clean room and laboratory. We will employ a full time pharmacists for research and development and quality control.
v To improve and maintain the quality of our products .
v Improvement of existing products and to get all products MCC approved.
v To develop additional products to add to our already extensive product range.
v To manufacture branded products for other companies.
With the acquisition of the additional equipment we will be able to manufacture greater quantities and increase our revenues, As well as manufacture additional products in-house as opposed to outsourcing these products.
A pharmacist will be employed ensuring quality control and ensure procedures are strictly adhered to. The additional staff in key positions will ensure all factors are covered to ensure smooth manufacturing and distribution processes.
There is plans for further development of additional products. There is also plans for developing improvements on existing products. These development plans will enable us to satisfy the already demanding market on our current products as well as to satisfy the market demand on products we are still developing. There is already a market readiness for our product so its eliminates the need to create a market.
Operations / Production
We currently have 11 employees in production and distribution, we plan to hire all of the personnel we need in South Africa, mainly from disadvantaged communities.
The Head Pharmacist, is a veteran of Pharmaceutical manufacturing technology. He is currently consulting to Ranis Herbalist on product development. All production is currently sub-contracted due to lack of facilities. For quality control at present we rely on our Sub- Contractors. Which has being up to standard and we are pleased with it. When our factory is operational all production will be handled in-house and quality control will be handled by our in-house pharmacist.
We have several suppliers :
We have a good working relationship with all our suppliers and they are all in good financial standing.
The technology involved in the production are nano technology used to increase the efficiency of absorption on our capsules and the freeze dried process used for the extraction of active ingredient from barks and roots.
The other technology involved is alcohol and water extractions, this form of extraction is widely used for the actives in herbs.
For Quality Control at present we rely on our Sub-Contractors, which has being up to standard. When our factory is operational all production will be handled in-house and quality control will be handled by our in-house pharmacist.
Once we have our factory we will have a fully automated receiving department and all products will be logged into the system. At present all stock is checked manually once per week. At present our stock holding is approximately one months.
In general the competition have high profit margins, their market strength is greater than Ranis Herbalist. Past history will indicate that we have considerable experience marketing and distribution and with extra finance we can market and promote our products to position ourselves and successfully compete in the market.
Ranis Herbalist is a young enterprise, located in Crown Mines, with a history of positive earnings. We are already recognized in the industry as manufacturers and suppliers of high quality "Herbal / Traditional" medicines and supplements. We are legally structured as a close corporation with 100% of the common stock being owned by Mr. Vik and Ram Kasan, president and founders. Products include a limited (thus very manageable) range of Branded Products and outsourced products plus new products that are in the final development stages.
7-2-7 Product's manufacturing facilities are at this stage limited, but able to meet current requirements. With the acquisition of additional plant, equipment and projected business requirements will be able to increase our profit at the end of this year. The manufacturing organization is composed, at present, of personnel with average to good skills but there is an ample supply of skilled personnel in the business community to support growth. Our ability to control the production process is good ,evidenced by our reputation for quality products and have been registered with MCC.
The forming of the company, Ranis Herbalist t/a Muti Magic cc, was initiated by MTHC who had formulated a meal replacement called " 7-2-7 Meal 4 Life" . Ranis Herbalist t/a Muti Magic was established in April 2004 as the marketing, sales and distribution arm as it was this company that provided the necessary expertise on marketing, sales and distribution of the product range.
Ranis Herbalist marketed the products in Gauteng and OFS where it has been well accepted by consumers. Within a short time, 8 - 12 months, Ranis Herbalist had outgrown its premises and moved to its current location.
It was at this time that a decision was taken and the Kasan brothers bought the meal 4 life formulation and broke away for the parent company. More products were outsourced and the Ranis Herbalist Brand products grew with the objective to build a one-stop complete solution for retailers dealing in the informal market.
The two brothers, Ram and Vik Kasan, applied their expertise in their fields to get the company from a one House Brand product to eleven House Brand product company. In addition to the House Brand products the company at any given time has 1500 outsourced products available for their clients. Ram Kasan's expertise lies in retail and Vik Kasan's expertise lies in marketing and distribution. They are about to launch an extension to the Showtime range and launch a new range of BBA ( Black Body Building Association) accredited body building and slimming products.
During 2006 our two main competitors, Canova and Immunadue, asked our company to establish a comprehensive marketing plan for them. Both the products from these companies have become house hold brands due to the fact that they followed our marketing strategy as we mapped out for them.
During 2007 - 2008 the Ranis Herbalist increased their House Brand range to the eight that they carry today. They started signing exclusive distribution agreements with manufactures. In August 2008, Vik took the decision to try a small part time rep team which has proven to be highly successful and further prove that there is great potential for growth. Regular radio talks were also implemented on Radio Lesedi which has proven positively in educating and creating public awareness of the brands and increase sales. All of this forced the company to purchase a delivery van and erect a mezzanine level in order to keep up with the growing demand.
Although the company has grown from strength to strength it is obvious that the growth in itself has put pressure on the company's cashflow and having said that the company is a profitable company and is and will be more profitable in time to come.
7-2-7 Product, as shown has projected many organizational changes and growth in personnel count. This is to accommodate the ever increasing market. With the acquisition of the plant and equipment Ranis Herbalist will be able to manufacture more in-house brands and other products thus offering a wider variety to the market in general. Further to this, with its own plant Ranis Herbalist can offer client their own Branded products. The development of additional products will also influence markets and sales.