The Hindu Business Line : AVT McCormick embarks on backward integration

The company has embarked on contract farming of chilli in Andhra Pradesh and Karnataka.Under this project, 2,000 tonne of chilli was produced now, Mr M.S.A. Kumar, Managing Director of the company, told Business Line.

He said, "We work directly with the farmers to develop and implement scientific and sanitary agricultural practices, processing methods and storage techniques".

Approved collection centres are set up in the spice growing tracts, where "we are able to judiciously screen and select raw materials that match international customer specifications".

Through the electronic application system implemented by the company, it could identify the farmers also.

Though, the country has been producing some of the finest spices in the world for centuries, lack of adequate awareness and absence of modern technology have seriously limited the capability of the industry to meet the rising expectations of the international consumers, he said.

AVT McCormick, he said, was a 100 per cent export oriented unit (EoU) and its customers are spread over 60 countries.

As the consumers use spices without cooking, "our products have to be free of pesticides residue and aflatoxin", he said.

The milling and sifting systems could handle a wide range of granulations without losing the distinct spice flavours.

An array of magnets and metal detection systems ensure freedom from metallic impurities, he said.

It employs the latest AOAC testing methods and participates in McCormick's Global Laboratory Accreditation, he said.

The company is the highest exporter of chilli, turmeric and gingerand in bulk, he said.

The EoU, a 50:50 joint venture of AVT and the US-based McCormick exports sterilised spices, pepper, red pepper, turmeric, ginger, curry powder, spice oleoresins etc.

The unit on an area of 16.5 acres of land at South Vazhakkulam, in Kerala's Ernakulam district, has an annual processing capacity of 14,000 tonnes.

The company had an export turn over of Rs 68 crore during Apr - Dec 2004 and is expected to cross Rs 90 crore by March 31, Mr Kumar said.

The unit would be achieving a growth of 15 per cent this fiscal, Mr Kumar added.

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AVT McCormick embarks on backward integration