Beijing: Kerala-based AVT will invest over $3 million in China to cement its status as the world’s leading supplier of Marigold oleoresins and in the process become the first Indian corporate to taste success in the Communist nation’s vast agriculture sector.
“We have just dedicated the company’s new Marigold Dehydration Plant in northeast China’s Heilongjiang Province as part of our effort to boost production,” managing director of AVT Natural Products Limited (AVTNPL), M S A Kumar, told PTI here.
AVT, based in Kochi, will invest over $3 million in a phased manner in China and so far the company has injected over $1.1 million under the first phase, he said.
The second phase of investment will be expanding the capacity of the plant, depending on the demand. In the third phase, the company will look at establishing an extraction plant, he said.
“We are the first Indian corporate to get into Chinese agriculture sector and successfully establish an agricultural growing system as well as to set up a plant to process the product. This is a major landmark,” he said.
“For the AVT Group, it is the first manufacturing plant outside India, which is a milestone for us,” Kumar said after the company set up operations in Shuangyashan State Farm in northeast China’s Heilongjiang Province.
The dehydration plant will convert the marigold into dried pellet through a process called “ensilaging” which will break the cells of the flowers to release the colour and then go through a drying process. The dried pellets are then taken for extraction to get the pigment.