Protocol for callus induction using the leaf explant of Rauvolfia serpentina was standardized using formulated organic vermicompost extract and coelomic fluid (extracted from the earthworms Eudrilus eugeniae) of various combinations used, 30% vermicompost + 4% coelomic fluid was found to be the best for callus induction. Copious, shiny white callus was observed after two weeks; further creamy white detachable callus resulted after sixth week of culture. This on comparison with Murashige and Skoog medium supplemented with different combinations of BAP (1 mg L-1) + IBA (0.125 mg L-1) and BAP (1.0 mg L-1) + 2, 4-D (0.125 mg L-1) was made respectively. Of the different ratios tried, 3:1 ratio of vermicompost extract: coelomic fluid was found to be best for initiating cell suspension cultures. Phytochemical analysis reported in 34.83±0.14 mg/g of total phenols and 0.063±0.002 mg/g of total flavonoids from the extracted calli and cell suspension samples. Reserpine is detected as the major alkaloid in the callus as well in cell suspension culture (15.151 retention times in HPLC analysis). These phytochemicals produced by in vitro cultures can be significantly used for pharmaceutical purpose. Present study manifested significant callus development on organic vermicompost extract (30%) media and its economic value.