NOEL AGRITECH LIMITED
Dear Shareholders, Colleagues on the Board, Ladies and Gentlemen,
It is a great pleasure and honour to welcome you all to this Second Annual
General Meeting of Noel Agritech Limited.
The Director's Report and Audited Balance Sheet are already with you. I am
sure you have read them by now. With your permission I will take them as
PERFORMANCE OF THE COMPANY
The main objective of Noel Agritech Limited was developing Hitech,
Horticultural Projects. To achieve this objective, the company has at its
disposal 65 acres of land near Mangalore which provide ideal climate for
some of the high value flowers like Anthuriums and Orchids. In addition,
Vanilla, which is also an orchid can be grown successfully under this
The first phase of the programme is taken up to produce Anthuriums in one
hectare under Green House.
NOEL's Anthurium Project is the largest in the country which can produce
10,000 flowers per week of exportable quality, in the first phase. This is
a high value flower which has an attractive market in countries like
Germany, Holland, Japan, U.S.A. and other Far East Asian countries.
For the production of quality flowers, it is absolutely necessary to
provide necessary climatic conditions. This is possible only in a
controlled Green house. NOEL's Project has acquired this facility.
Even though our Public Issue was announced during January '95, major
portion of the Project Planning was done during 1994 itself.
M/S DALSEM KASSENBOUW B.V., Holland, one of the most popular Greenhouse
companies in the world, has supplied one hectare Green house for this
Project. This company has also participated in the Company's equity to the
extent of 2,00,000 (Two Lakhs) Dutch Guilders. DALSEM has also undertaken
to provide required marketing support for Anthuriums produced by Noel
M/S. AVO ANTHURIUM VOGELS one of the popular Anthurium Companies in Europe,
is the supplier of planting material for the Project. This company has
supplied 1,00,000 Anthurium plants covering over 20 varieties, which have
already been planted. Every infrastructure like packing hall, power house,
PEQ facility, roads, building, security office have been completed.
Necessary steps have been taken to market a small quantity of Anthuriums in
the Domestic market.
An agreement has been signed with M/S van dijk flora bv., Holland to market
the flowers of Noel Agritech Limited. The firm has agreed to buy the entire
production of one Hectare of Anthuriums at market prices for a period of
five years. In addition, M/S. AVO ANTHURIUM VOGELS B.V., Holland are also
looking to market Noel's Anthuriums in Japan.
The Project is technically manned by Dr. A.A. Patil who has a sound
knowledge of Floriculture. He carries with him two decades of experience in
the field of Horticulture in particular and Floriculture in general. He
along with other 3 persons from the Company visited Holland for 4 weeks
training in the cultivation of Anthuriums and also Management of Green
M/s. TEDMAG, Bangalore are the Technical Consultants who provided the
necessary consultancy from the beginning, from choosing the foreign
suppliers, up to the planning and development of infrastructure like
packing hall, water, PEQ facility roads etc.
As on today, planting of Anthurium plants is complete in every respect, and
the export of flowers would commence very soon.
We have plans to expand the project by adding another 1.75 hectares of
Green House for growing Anthuriums alone so that a sizeable quantity of
Anthuriums are available for export.
M/S. AVO ANTHURIUM VOGELS B.V. Holland and M/S. DALSEM KASSENBOUW B.V.,
Holland, the suppliers of planting material and Green House respectively
have agreed for equity participation in the 2nd stage of expansion of the
In countries like Holland, Anthurium is grown in only about 65 hectares.
The demand for this flower is increasing every year by 10%. The area under
Anthurium is not increasing in Europe in the same pace, as it used to be in
the previous years. With this addition of 1.8 hectares, Noel's Projects
will be the largest Anthurium project in the country with a production
capacity of over 28,000 flowers per week.
As on today, the price of flower in the international market ranges from
1.5. US $ to 3.0 US $ depending on the season. Except in the months of May,
June, July and August, the rest of the years, the flowers fetches a very
high price in international market. Even locally, the company has received
large enquiries for Anthurium flowers. To put in a nutshell the marketing
of Anthurium flowers is not a problem in the international market. It is
necessary to maintain the supply level at a minimum of 10,000 flowers per
week. The company is confident of maintaining this level and when once the
expansion programme is implemented, the quantity can be increased to 28,000
to 30,000 per week. This is expected to take place by the end of 1996 or
The Company has planned the 3rd phase wherein it is proposed to take up
cultivation of Orchids and Vanilla. With this the company will be one of
the largest projects in the country with a wide range of flowers and high
Since the Company is in the process of implementation,the question of
declaring dividends does not arise. However, my colleagues on the Board and
I are optimistic about declaring a satisfying dividend in future years.
I take this opportunity to acknowledge the wise counsel and guidance given
by my colleagues on the Board in discharging my duties.
My sincere thanks to the Government of India, the Financial Institutions,
Bankers who helped the Company in various ways to achieve the present level
My sincere thanks are due to Mr. Sheshadri Iyer and Mr. S.K. Bhat of
TEDMAG for providing timely consultancy in every aspect of the Project.
My sincere thanks to the suppliers of various equipments for the Green
House and other infrastructure. Thanks are also due to M/S. K.N. Alva
Associates who are the Civil Engineers of the Project. My thanks are also
due to the press for their support.
My sincere thanks are also due to the staff of the Company at all levels
for their commendable job in achieving the progress in a short time.
My special thanks are to our beloved share holders. Their support is most
inspiring. I am touched by their warmth and enthusiasm of their presence in
this meeting and their support to the project.
I hereby conclude wishing your families a prosperous and a bright new year.
John Manmohan Bangera
Chairman & Managing Director
Place : Bombay
Date : 29th September, 1995