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AVT Natural Products Ltd.

BSE: 519105 Sector: Industrials
NSE: AVTNPL ISIN Code: INE488D01021
BSE LIVE 15:44 | 02 Dec 31.80 -0.70
(-2.15%)
OPEN

32.25

HIGH

32.25

LOW

31.65

NSE LIVE 15:44 | 02 Dec 31.65 -0.75
(-2.31%)
OPEN

32.00

HIGH

32.50

LOW

31.50

OPEN 32.25
PREVIOUS CLOSE 32.50
VOLUME 14033
52-Week high 42.90
52-Week low 26.40
P/E 19.88
Mkt Cap.(Rs cr) 484.31
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 32.25
CLOSE 32.50
VOLUME 14033
52-Week high 42.90
52-Week low 26.40
P/E 19.88
Mkt Cap.(Rs cr) 484.31
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

AVT Natural Products Ltd. (AVTNPL) - Chairman Speech

Company chairman speech

AVT NATURAL PRODUCTS LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT ADDRESS BY Mr. AJIT THOMAS. CHAIRMAN AT THE 24th ANNUAL GENERAL MEETING OF THE SHAREHOLDERS OF THE COMPANY TO BE HELD ON 9th SEPTEMBER 2010. Ladies and Gentlemen, I have immense pleasure in welcoming you all to the Twenty Fourth Annual General Meeting of your Company. The Directors' Report to the shareholders and the audited accounts of the Company for the year 2009-10 have been with you for some time and with your permission, I shall consider them as read. Operations and Performance: 2009/10 Profits dropped by 7.12% as compared to previous year. Profit After Tax was Rs 6.52 Crores in 2009/10 as against Rs 7.02 Crores in 2008/09. Sales dropped to Rs.82.97 Crores in 2009/10 from Rs 87.45 Crores during previous year. Global slow down coupled with poor monsoon in 2009 adversely impacted both Sales and Profits. Spice Oleo Sales and Value Added Beverages Sales were lower due to reduced global demand. Marigold Oleoresins, key ingredient in Eye Health Care and your company's main product line was not impacted as demand compression did not occur in this segment. Your company experienced margin pressures in all 3 product categories. Cost push in labour, power and fuel prices coupled with lower product prices dented the operating margins. With the increase in Agricultural commodity prices and increase in cost of cultivation, Marigold Farmers are demanding higher flower prices. Southern India experienced adverse weather conditions for Marigold crop growing resulting in lower flower output and lesser volumes through the plant. Thus margin pressures coupled with lower volumes resulted in 7.12% drop in PAT. Dividend: Based on the performance of your company, your Directors have pleasure in recommending a dividend of 30% on the equity capital absorbing a sum of Rs. 228.43 Lakh for the year 2009-10. Subsidiary Companies: AVT Natural Pte. Ltd., Singapore together with its subsidiary, Heilongjiang AVT Bio-Products Limited, China has recorded sales of Rs 7.15 Crores and profit of Rs 20.41 Lakhs in the period ended December 2009 against the sales of 8.43 Crores and a profit of Rs 9.56 Lakhs during the period ended December 2008. We expect improved performance in sales and profits of the subsidiary company in 2010 from our Chinese operation due to increase in growing areas and higher flower output. Recognition ofln-house R & D Unit: The Department of Scientific & Industrial Research, Technology Bhavan, Under Ministry of Science & Technology has accorded its recognition to the in-House, R&D facility of your Cochin plant. Wind mill: The Company had set up a windmill project 600 KW in Erode District, Tamil Nadu. The wind mill has started its commercial operation with effect from 27th September 2008. The wind mill has generated 13.70 Lakh units in the year 2009-10. This output is as per our projections. Closure of Plant: During the year 2009-10, the company had closed its plant located at Hindupur. The said plant which was processing various grades of marigold flower, cultivated in and around that area and that the plant was running only 4 to 5 months a year depending on the flower arrival. With the introduction of the Hybrid seeds at Sathyamangalam and Hassan cultivation area, the company was able to meet its requirement of 'Xanthophyll' from these two areas. The Hindupur plant was set up in a lease hold land and its lease period had already expired, is being vacated by your company. Future Prospects: The 'Critical Global Strategic Partnership Agreement' signed with Kemin Health, L.C. (Kemin), Des Moines, Iowa, USA last year for supply of Marigold Oleoresin is progressing as planned. Future volume of this product is expected to register around 5 to10% annual growth rates. Kemin and AVT are working together in further strengthening the Lutein (Eye care ingredient from Marigold Oleoresin) supply chain in anticipation of the emerging global competition. Kemin is working closely with AVT to expand their product range in the Functional Food space based on agricultural raw materials from India and China. Another Eye Health Carotenoid - Zeaxanthin - is exclusively grown and extracted by your company for Chrysantis, Chicago, USA. Chrysantis holds a patent for their hybrid seeds containing Zeaxanthin. This new molecule in Eye Health holds promise for future growth. Spice Oils and Oleoresins demand is bouncing back with the start of the global economic recovery. Your company will continue its focus on 'niche food safe' platform to increase the sales. The importing countries' thrust on Food Safety will result in higher sales for this product group in future years. Value Added Beverages - Decaffeinated Teas - will grow at a faster rate with addition of more customers and higher volumes. We expect to fill the second extraction plant volumes during next 2 to 3 years. Instant Teas is another product we are focusing on. 2010 Crop Season is progressing well. Good summer showers and timely rains from South West Monsoon are helping the crop growth. We increased flower prices to meet the expectations of Farmers. We strengthened the Agricultural Operations Management systems. To mitigate risk of single season, your company now cultivates in Monsoon season in two more geographies as well apart from traditional summer areas. Thus we expect good flower output during 2010-11, thereby ensuring higher capacity utilization of the plant. Acknowledgement: Before concluding, I wish to take this opportunity to express my sincere gratitude to our esteemed customers for their continued support. I would like to place on record my sincere thanks and appreciation to my colleagues on the Board for their invaluable guidance. I would like to thank all our shareholders, customers, farmers, bankers, suppliers and other stake holders for their continued support to the Company. I acknowledge the contribution and dedicated efforts of our team of employees at all levels in the organization. Thank you. Ajit Thomas Chairman

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