The present invention relates to an enteric coated Costus composition with anti-diabetic activity which is enriched with triterpenoids and is made into a dosage form for the treatment of Type-1 and Type-2 diabetes. The Costus Composition is derived from Costus extract derived from Costus plant part. A process of solvent extraction and purification of said extract is also provided. A method for targeted delivery of Costus composition into intestine is provided. A dosage form is provided for the Costus composition. The enrichment with triterpenoids is up to 95% of the composition. Costus composition can lose its activity in acidic condition of the stomach. Hence by giving enteric coating to Costus Composition, it can withstand the acidic condition of the stomach thereby enhancing the bioavailability and bioactivity of the composition.
