Addressing the company's shareholders recently, Ajit Thomas, chairman, AVT Natural Products Ltd said that despite margin pressures due to cost escalation and reduction in selling prices due to Chinese competition, the company could maintain profit after tax of Rs 51.03 crore due to the success of its eye health carotenoid Zeaxanthin.
He also said the company has become debt free as on March 31, 2014 and doesn't have any short term or long term loans with the exception of unmatured fixed deposits of Rs 37.65 lakh.
"The strong balance sheet will enable the company to explore future growth opportunities through both organic and inorganic options," said Thomas.
Foreign subsidiaries
Thomas said the Singapore and China subsidiaries reported a 37.34% drop in sales to Rs 6.78 crore in 2013 as against Rs 10.82 crore in 2012. The drop was mainly due to lower production and sales of Marigold Oleorsin (feed grade) and lower prices compared to 2012.
The company closed its China subsidiary as it is better placed to meet its entire marketing needs from India operations, said Thomas, who added there wont be any significant impact on its financial performance consequent to this closure.
Instant Tea Business
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The company invested around Rs 13.5 crore to set up an instant tea plant at the Cochin extraction plant.
"We expect to have a significant instant tea business by March 2016. This is a major growth area for company's future growth," said Thomas.
Commenting on health supplements, he said that the company has launched a range of condition-specific helath supplements under the brand name 'Optim Helath in select cities.
"The launch has just initiated in Delhi and Chennai," said Thomas, who added that the distribution is primarily through the chemist network.