AVT Natural Products Ltd.

AVT Natural Products (AVT NPL), the first Indian company to foray into Chinese agriculture sector, will invest $2.5 million in three years for production, dehydration and extraction of marigold flowers.
The company has also planned to start a big extraction unit in China.
In an exclusive interview with Business Standard, Managing director M S A Kumar said that the area under marigold cultivation would be increased to 6,000 acres by 2010 from 2,000 acres.
“The company is planning to expand its production of natural extracts in China as the climatic condition and government policies there are quiet favourable for this line of business,” said Kumar.
It also plans to source from China paprika, a chilli variety used for natural colour, artemisia and wolf berries, widely used as nuetraceuticals across the world.

China, which is the largest producer of marigold, has the climatic advantage because of prolonged day light and narrow range of variation in temperature during day and night.

Kumar said marigold from China would be used mainly for poultry pigmentation and natural colouring, while those from India would be used for producing lutein, which is widely used in the eyecare industry. AVT NPL, which started operations in China in 2005, has expanded its marigold acreage in the country from 500 acres to 2,000 acres.

The company is operating in the country through its arm Heilongjiang AVT Bio Products, which has forged an alliance with Shuangyashan State Farm in Heilongjiang province.

AVT provides seeds for farming and cultivation is done on 100 per cent buy back arrangement. The company started its first ever de-hydration plant in China through its Singapore-based associate AVT Natural Pte Limited in September this year.

AVT NPL, which is the only Indian company to produce de-caffinated tea, is planning to increase its production. The company currently supplies 2,000 tonnes annually. The worldwide demand for this specialised tea is around 8,000 tonnes.



from Twenty First Annual Report :

FUTURE PROSPECTS

The capacity utilization of the extraction plant dropped from 9015 Mt in 2005-06 to 7783 Mt in 2006-07. R&D efforts for new Products are being accelerated to fill the extraction plant with new products. Our objective is to improve the capacity utilization of the Extraction Plant in the next 2 to 3 years.


During 2006, your company successfully grew Marigold in Shungyashan City in Heilongjiang province in China. As this location is found suitable for Marigold growing in North East China, your investment holding company in Singapore has decided to expand Marigold growing area in this location. Consequently, the name and registration of Tonghe AVT Natural limited, located in Tonghe county is changed to Heilongjiang AVT Bioproducts Ltd located in Shungyashan city. We are putting up a new dehydration plant in Shungyashan Government owned State Farm.

PERFORMANCE OF SUBSIDIARY COMPANY

AVT Natural Pte.Ltd, Singapore together with its subsidiary, Tonghe AVT Natural Ltd China has recorded sales of Rs 5.41 Crores and a loss of Rs 3.75 Lakhs during the period ended December 2006. We expect improved performance in sales and profits of the subsidiary company in 2007 from our Chinese operations.

the Company has issued the following press release:

AVT Natural Products Ltd has stated its Marigold Flower processing unit in Heilongjiang Province of North East China. The new plant of Heilongjiang AVT Bio-Products Ltd was dedicated to the globe last week by the Chairman of AVT NPL, Ajit Thomas. AVT NPL manages marigold contract farming operation in Southern India.

Marigolds are the primary raw materials for the manufacture of Lutein."


AVT Natural Products Ltd has informed that AVT Natural Pte Ltd, Singapore, wholly owned subsidiary of the Company has entered into an agreement with Kemin Foods L.C.(USA) for managing their wholly owned subsidiary in Thailand, Siagra Company Ltd. The management agreement is initially for a period of three years and is on a profit sharing basis. As per the agreement, the marigold pellets produced at Siagra Company Ltd, Thailand will be processed at the Company's extraction plant in Kochi, India.


what is lutein ?

Lutein is a carotenoid, meaning a natural colorant or pigment, found in dark green leafy vegetables such as spinach, egg yolks, various fruits and corn. Lutein is the active carotenoid in this potent, natural source antioxidant. It is naturally derived from marigold flowers and contains a normal blend of carotenoids including zeaxanthin and cryptoxanthin. Lutein also filters the high energy blue wavelengths of light from the visible light spectrum.

Main Function:
1.Promote healthy of eye and skin through reducing the risk of macular degeneration;
2.Be good at protecting the eyes, the arteries and the lungs from damaging free radicals;
3.Support normal eye function and protect the retina by blocking harmful blue light;
4.Reduce the risk of heart diseases and cancers.


Marigold flower processing Plant of Heiliongjiang AVT Bio Products Ltd, China, a stepdown subsidiary of AVT Natural Products Ltd, commenced operations on September 20, 2007.