Agarwood: A distinctive investment for a sustainable tomorrow

Sadaharitha Plantations Ltd Chairman Sathis NawarathnaWhile Sustainable Environment Conservation is on the spotlight in today’s economic platform; sustainable commercial forestry has made a remarkable impact on our local eco system for over a decade. In a recent interview with Sadaharitha Plantation Ltd Chairman Sathis Nawarathna, we discussed the conscious development progress that is taking shape in green investments and how Sadaharith Plantations Ltd is encouraging investors to turn towards intelligent green investments.

Q: Sadaharitha has been the pioneer in carrying out extensive research and testing the grounds to create awareness over Agarwood and its impact on Commercial Forestry. What measures have you taken to populate sustainable environment conservation with the introduction of Agarwood to the local eco system?

A: Our organisation is in the forefront of commercial forestry and we were the first to introduce Agarwood in a commercial scale locally. As the pioneer in commercial forestry, I am impressed by the success and trust Sadaharitha has earned through this exercise.

We have invested a lot of resources to conduct continuous research to monitor artificially inoculated Agarwood plants. The CA-Kit technology that is executed by Sadaharitha ensures that the plant is acclimatised to the terroir and the investors could reap the highest returns on their investments during the harvest.

Our aggressive research and ground testing has been taking place for the past 14 years and the 23,000 strong investors who have joined hands with Sadaharitha Plantations speaks for its success itself.

While the branch network has grown up to 25 over the years, our workforce too has increased from 20 to 500 since the commencement of our business in Horana years ago. I have to especially mention that we have a healthy mix of investors from the corporate sector ranging from Corporate Heads to Senior Managers of reputed enterprises in Sri Lanka.

Q: How can Agarwood help toward sustainable development and in which markets is it most popular?

A: Agarwood is a fragrant resinous substance; that is used to manufacture perfumes, cosmetics and pharmaceuticals around the world. Agarwood can be extracted through Eaglewood better known as Wallapatta locally. However there are regulations prohibiting the export and felling of Eaglewood in Sri Lanka. There is a massive demand for Agarwood Chips in the middle-eastern market. In China it is used to manufacture bracelets and Incense Sticks. Agarwood is widely used as an air freshener and a nerve stimulant in many parts of the world. However at present the supply of agarwood can only fulfil 40% from the total requirement.

Q: What sets Agarwood apart from our traditional exports as Tea, Coconut and Rubber?

A: While we have a broad understanding on how the export markets and the plantations work for Tea, Coconut and Rubber; we must understand that all these industries require immense time as well as a big workforce. Due to the market saturation the profit margins that one could reap through these traditional goods are very low and the cost of business keeps rising, which does not make them sustainable businesses on the long run.

In the case of Agarwood you can gain rapid profits from your investment in a short term. Due to the heavy demand over supply the market value of a kilogram of Agarwood is as expensive as Gold. Keeping this in mind we can assure the investors that you would gain a higher return on investment once you harvest Agarwood from your plantation.

o put this in to perspective: a matured tree can bring you a ROI of Rs. 100,000/-. If I may further clarify this should you invest on 25 saplings and once we harvest the matured trees your investment for the saplings will be Rs. 414,000/- and the ROI in eight years will multiply up to Rs. 2.5 million. Hypothetically speaking should you have a plantation of Agarwood in a span of an acre which would realistically hold 400 trees your investment would be Rs. 6,624,000/- and your ROI in 8 years would be Rs. 4 billion.

Q: Can you explain the mechanism behind the Agarwood investment plans made available by Sadaharitha?

A: We have two investment plans for interested investors:

Investment plan 1: A package investment Plan in company owned Aquilaria Plantations, for which the total maintenance is undertaken and security is provided by Sadaharitha during the entire investment period.

Investment Plan 2: For those who have lands, plants could be obtained from Sadaharitha subject to a minimum number of 40 plants @ the price of Rs.1400/- per plant.

Q: What are the factors that one should take in to consideration when investing on commercial forestry?

A: When investing on commercial forestry one should not only consider the fact of conserving the eco-system but also the fact of highest ROI. When it comes to investing on an Agarwood plantation one should research about the history of the company, after sales service and the technique they use to artificially inoculate Agarwood to reap a bountiful harvest. Moreover one should also consider the investment plan proposals, how the ROI is disbursed, whether there is a demand for the harvested by products in the market, and that necessary legislations are in place to protect the interest of the investor and the buyer.

Q: What are the value added services that an investor can expect from Sadaharitha Plantation Ltd.?

A: We have been in business for the past 14 years and our team consists of specialist research teams based in Sri Lanka and Australia. In the meantime we also employee an expert advisory board, who are constantly providing us research data locally as well as internationally; representing the University of Sri Jayewardenepura in Sri Lanka,  Curtin University Australia, Wescorp Limited and National Research Board.

The sole patent rights to use the CA-kit technology in Sri Lanka belongs to Sadaharitha Plantation Ltd., which gives us the opportunity to prove the authenticity of the investment plans to our investors. In order to ensure that our investors have a guaranteed export market to sell their harvest at the best market price possible, Sadaharitha Plantations Ltd. have signed up business agreements with buyers worldwide.

Our technical knowledge pool includes staff members who have an extensive working knowledge in forestry and comprises of graduates who majored in Agriculture. They are constantly mentored by our academically accredited professors to carry out their research and empower their technical know-how. Sadaharitha Plantations has taken steps to create security to your investment. By operating plantations in various sites the company can ensure that they still reap their ROI even during a natural disasters.

Q: Finally, what message would you give to readers who are interested to invest in your available plans?

A: Before investing one must verify whether the company that they are choosing to purchase the green investment plan is reliable and whether they have a footing in the international market to sell the by-products that are harvested. In fact, commercial forestry investments give the investors a sense of satisfaction financially and consciously. While it adds value to the environment by planting Agarwood, one can efficiently earn higher ROI. Investing on commercial cultivation of Agarwood not only would you gain financial stability but also actively contribute towards a sustainable environment, creating a unique investment opportunity.

2 COMMENTS

  1. Hi sir , one of my friend have 7 perches of land area . So how many plants can he grow ..? Or does it requires a large area for grow it .? And can we grow this agarwood plants In gampaha district …? or does it requires a specific land to grow it ?

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