AVT Natural to invest $2.5 mn in China

COMPANIES' GREEN MOVES

AVT Natural Products (AVT NPL), the first Indian company to foray into Chinese agriculture sector, will invest $2.5 million in three years for production, dehydration and extraction of marigold flowers. The company has also planned to start a big extraction unit in China.

In an exclusive interview with Business Standard, Managing director M S A Kumar said that the area under marigold cultivation would be increased to 6,000 acres by 2010 from 2,000 acres.

"The company is planning to expand its production of natural extracts in China as the climatic condition and government policies there are quiet favourable for this line of business," said Kumar.

It also plans to source from China paprika, a chilli variety used for natural colour, artemisia and wolf berries, widely used as nuetraceuticals across the world.

China, which is the largest producer of marigold, has the climatic advantage because of prolonged day light and narrow range of variation in temperature during day and night.

Kumar said marigold from China would be used mainly for poultry pigmentation and natural colouring, while those from India would be used for producing lutein, which is widely used in the eyecare industry.

AVT NPL, which started operations in China in 2005, has expanded its marigold acreage in the country from 500 acres to 2,000 acres.

The company is operating in the country through its arm Heilongjiang AVT Bio Products, which has forged an alliance with Shuangyashan State Farm in Heilongjiang province.

AVT provides seeds for farming and cultivation is done on 100 per cent buy back arrangement. The company started its first ever de-hydration plant in China through its Singapore-based associate AVT Natural Pte Limited in September this year.

AVT NPL, which is the only Indian company to produce de-caffinated tea, is planning to increase its production. The company currently supplies 2,000 tonnes annually. The worldwide demand for this specialised tea is around 8,000 tonnes.