Business Daily from THE HINDU group of publications
Sunday, Jun 25, 2006
Business Daily from THE HINDU group of publications Sunday, Jun 25, 2006 |
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Corporate
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Overseas Investments Marketing - Market Shares AVT Natural to invest $3 million in China G K Nair
Roadmap Investments to all global expansion programmes through Singapore arm. Marigold sown in 2,000 acres; area to be expanded to 10,000 acres in five years. Harvesting, processing & extraction of oleoresin to take place in October
Kochi , June 24 AVT Natural Products Ltd (AVTNPL), as part of its global expansion programme would invest $2-3 million in its project in Chinese province of Heliangjiang, besides taking over the management of a US subsidiary company in Thailand.
Routing Investments
Speaking to Business Line, Mr M.S.A. Kumar, Managing Director of AVTNPL, said that 100 per cent holdings in its Chinese subsidiary, Tonghe AVT Natural Limited, was held by the parent company and the investments had gone through its wholly owned subsidiary, AVT Natural Pte Ltd , Singapore. "Investments to all its global expansion programmes would be routed through this holding company," he said In the first phase, the company had already sown marigold in 2,000 acres and the area would be expanded to 10,000 acres in five years. Harvesting, processing and extraction of oleoresin would take place in October this year, he said.
China's role
At present, China accounts for 50 per cent share of the world marigold market of an estimated $50 million, while India holds 25 to 30 per cent and the balance by Peru. AVTNPL is the leader in the country with 70 per cent of the market share, he added. The company has a strategic alliance with Kemin Foods L.C, USA, which has the patent for Lutein extracted from marigold for using in neutraceuticals. The market for this product is growing at 20 per cent a year and AVT is the sole supplier of the raw material to the US company.
Pact with US firm
AVTNPL's acceptance as a leader in marigold production culminated in its US alliance partner handing over the management of the latter's Thailand subsidiary, Siagra Company Ltd, early this month. Under the agreement, for a period of three years on a profit sharing basis, AVTNPL would process marigold pellets produced in Thailand in its extraction plant here, he said. The company, "aiming at becoming a global leader in natural ingredients providing flavour, colour and health to enrich human life", also exports corcumin, green tea extract, spice oils and oleoresins.
Earnings
The 100 per cent EOU has reported a sales turnover of Rs 71.72 crore last fiscal as against Rs 57.29 crore the previous year. The profit after tax has gone up to Rs 7.50 crore from Rs 4.60 crore. Its EPS was at Rs 19.69 compared to Rs 12.08 the previous fiscal and the market capitalisation was Rs 70 crore at current rates.
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