AVT Natural Products Ltd has decided to start AVT Tea Services Ltd, London (AVT TSL) as a wholly owned subsidiary to be based in London.
The details of the subsidiary are being worked out and the company expects the new unit to be operational by October 1 this year, Mr Ajit Thomas, Chairman, AVT Natural and AVT Group of Companies, said in a statement.
The subsidiary will allow AVT Natural to offer its decaffeinated tea and instant tea to its customers all over the world through a cost-efficient supply chain, he said.
AVT TSL, London will enable AVT Natural to take their tea-based products – decaffeinated tea and instant tea – direct to market. Mr Richard Darlington, a tea veteran with over 32 years of experience, will head the AVT TSL operations as Managing Director.
According to Mr Thomas, AVT TSL is a logical extension of AVT Natural’s proven competency in value-added beverages manufacturing in India. The new subsidiary will offer a compelling value proposition to the customers by maximising supply chain efficiencies.
Meanwhile, the net profit of AVT Natural in Q1 rose by 23 per cent from Rs 11.58 crore to Rs 14.28 crore ending June 30. The Q1 sales grew to Rs 72.44 crore from Rs 47.84 crores of same period last year.
AVT Natural Products Ltd is part of AV Thomas Group of Companies. The group has been growing tea in South India since 1925 and produces 10 million kg annually. AVT Natural specialises in extraction of natural products such as marigold, spices and value-added teas.
AVT Natural is the market leader in marigold extracts and has established a competitive manufacturing base for decaffeinated tea in India with experience of close to 10 years. AVT Natural also markets speciality spice oils and oleoresins.
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