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Monday, March 17, 2014 (All day)

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Invest in Agarwood reap benefits


Sara Pathirana

Sadaharitha Plantations Ltd embarked into the business of Sustainable Forestry Management 12
years ago. Today, the company holds a land mass of Agarwood plantlings worth Rs. 70 million. The
company had also been reputed with the privilege of being Southeast Asia's largest Agarwood
nursery with the capacity of holding up to one million plants. At the moment, the nursery
established in Ingiriya holds nearly 300,000 Agarwood plants on five acres of land. Agarwood forms
in Aquilaria Crasna and Gyrinop Trees (Walla Patta).
Sadaharitha Plantations is the only company to have successfully obtained the patent license for
Resin Inducement Technology of Agarwood - CA Kit (Cultivate Agarwood Kit) for Sri Lanka from the
University of Minnesota in the
USA. The plantation company is
also mandated in accordance to
acquiring relevant permits from
the National Quarantine, Sri Lanka
Customs, Ministry of Agriculture
and the Forestry Department.
Sadaharitha maintains standard
and undergo mandatory
processes in order to bring down
these species from Vietnam.
The Agarwood plants introduced
through the company are of very
high quality and so, can withstand
any challenges faced by climate
change and various other

Agarwood plants in a special net-house.

ailments. In the norm, it takes about 8 to 15 years for an Agarwood to be produced in the plant but

with the help of the injecting of natural chemicals from the patented technology, the plant will be
able to produce Agarwood in one to two years. The owner can then sell the plant when it reaches
the stage of producing Agarwood either to the plantation company or to any other interested party.
Chairman of Sadaharitha Plantations, Sathish Nawarathna said, We want to demonstrate that this
scheme, if embraced wholeheartedly, will successfully bring about an astounding capital gain and is
considered a good approach in investments, enabling the investor to enjoy a 30-fold profit on an
initial outlay in eight years time. We, at Sadaharitha work and hope to bring this concept to the
public's attention and believe that through proper implementation, a stage can be achieved to the
extent of eradicating poverty.
Sri Lanka boasts of an abundant fertile soil and we can benefit from what our country provides us.
We strive continuously when it comes to customer service which means that we have engaged in
years of thorough and careful research with great focus. Unlike many other companies of the similar
concept, we have made sure to take the time and effort before we brought the Agarwood seeds to
Sri Lanka through feasibility tests. Our years of research has helped us determine that Agarwood
can be grown in home gardens in areas such as Kalutara, Ratnapura, Kegalle, Gampaha and
Colombo as long as the zone is not dry, Sadaharitha Plantations, Chief Executive Director, H. K.
Rohana said.
The Agarwood plants, which is the finished product happens to be
the most expensive type of dark resinous heartwood that forms in
Aquilaria Crasna trees, when the tree becomes infected with a
type of mould.
This darker part is considered to be of utmost value for its
distinctive fragrance and is used as a main ingredient for the
making of incense and perfumes.
The seeds for these plants are specially flown in from Vietnam
and Sadaharitha complies with every rule and regulation in order
to make sure that the process is undertaken through a systematic
and careful procedure.
We had always wanted to work by promoting the business
through green initiative so we moved into this field with this
concept in mind. We initially commenced with Mahogany, Teak

Individual trays filled with


a mixture of sand, compost
and soil and then sealed
for nearly two months to
prevent rainwater from
penetrating into them. This
is then transplanted with
seedlings for the
germination process to
take through.

and Sandalwood and now, we have entered the market with


Agarwood and this indeed is a very viable plant for potential
customers to get into. With our customers, we enter into an FSA
(Forward Sale Agreement) which means that we do not stop after
making a sale. We are with our customers all the way and see
them through to the ultimate harvest, Rohana acknowledged.
Recently, a Rs. 11.5 million worth, three year project from the
Government Treasury Funds was passed through to Sadaharitha

Plantations in order to carry out research through the National Research Council to determine the
commercial viability of Gyrinop Trees.
Agarwood demand globally keeps growing and especially since Agarwood is heavily used in the
production of perfumes, cosmetic products, incense and medicinal elements. China and the Middle
East are growing markets and there is a big demand for Agarwood Oil and Chips for burning, giving
off an aromatic fragrance. There is even Agarwood Tea being produced in some countries,
Nawarathna explained.
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http://www.dailymirror.lk/66119/investing-in-agarwood-take-some-advice-from-pioneers-in-thebusiness

Investing in agarwood? Take some advice from pioneers in the business


2015-03-11 10:48:17

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The persistent and culturally-embedded nature of


demand for Agarwood by end-consumers has placed the current global market at an estimated range of US$ 6 8
billion with rapid growth foreseen in the future.
Resinous Agarwood is extracted from Aquilaria trees and its unique fragrance is widely used in world class
perfumes, traditional medicine, incenses, aroma therapy and cosmetics.
Sadaharitha Plantation Ltd, Sri Lankas commercial forestry company has the honour of being the pioneer of
intelligent forestry investments and offering Agarwood investor plans. Sadaharitha is the foremost company that
introduced Agarwood as a commercial forestry investment, said Sathis Navarathne Chairman, Sadaharitha
Plantations Ltd.
This mantle is not held lightly as they firmly believe it is their duty to warn prospective investors of unscrupulous
deceivers who promise rich dividends through Agarwood investments. As forewarned by Sadaharitha, several

companies have begun to emerge including smaller nurseries offering plants and seeds with the promise of
producing Agarwood.
The Chairman noted We have over 13 years experience in commercial forestry. Together with the National
Research Council, the Sri Jayewardenepura University, Australian Curtin University and Wescorp International
Market Research, we spend time and effort toward researching Agarwood. This showsit is not something to be
taken lightly where one can simply take a small plant or import a few seeds and receive a good harvest.

New entrants
Sadaharithas paramount concern is to make sure that the public is aware about new entrants, who do not
possess the technology rights to harvest agarwood commercially. The Public should avoid investing in copy cats,
as it will not profit them in the end Navaratne stated. We want to protect this industry as it is very profitable for
the average person. However it is also an industry that gives back to the country through economic development,
employment as well as back to mother nature.
As an Organization who had delved deeply into Agarwood production Sadaharitha has overall superlative
knowledge of its plants We import seeds sourced from good mother. We have evidence and knowledge,
awareness of the lineage of the plants. Also we transport the plants to the investors own land, Department officials
come on inspection and they give salient advice. This is given free of charge. However other companies only
directly sell the plants. They do not supply any of these, he noted.
We tell investors when choosing trees do so from trees which are guaranteed from good mother plants and using
the appropriate technology they can receive the benefits of their investment.
Other entrants offer plants says Navaratne, At a lower price, they also inform their clients that they also have the
technology to produce Agarwood. This we state is the main misnomer.
He explained, Our plants are sold for Rs 1,400. The buyer looks and sees what he believes is the same plant for
Rs 300, decides instead to buy the cheaper option. After planting, the buyer awaits several years to harvest
Agarwood followed by the realization it does not grow naturally but through a separate system.
Further clarifying the process he said After this realization the buyer begins to look to procure this system, but it is
not available to be purchased. Worse part is that the company that originally sold the plants has vanished, or the
company says another falsehood being they claim they have the technology.
However, it is Sadaharitha who have the the patent and sole ownership of the available technology. Known as the
Cultivated Agarwood Kit orthe CA-Kit, covers the full patent. Contravening the sole ownership of this patent, the
production of Agarwood cannot take place.

Long-term repercussions
We are duty bound, to warn the population, create awareness and hopefully save investors from these incoming
similar companies who do not understand what our patent covers. Or the risk they are placing their customers
future in he said. People need to understand that even though they invest in the product, the repercussions will
only be felt in 6-7 years. At this point they are caught in a trap and these repercussions can be felt by the entire
industry too,
We have not left any room, any leverage, the patent covers all scenarios. We have covered all the possible
methods from A-Z through the patent. There is absolutely no room to maneuver. He stated.
According to Navaratne We well know that our technology is certain, there is a tendency to try and use other
methods. Under intellectual property rights they will have to face legal action.
His concern is our people still lack awareness that this technology exists, what is the correct and apt technology
and what is better suited. These companies also claim they have the market to sell the produce, with more

falsehoods. Due to this lack of knowledge they fall for these deceivers who cheat the investor he warned.
Importantly SadaharithaCan give a complete guarantee. We have a ready market. We can take the end product to
the market. We have already signed forward agreements with the worlds leading giants in the natural Oil trade.
None of the other companies that sell Agarwood in Sri Lanka give this guarantee or assurance. They do not
submit an agreement as they do not have the capacity to do so within the framework of the law.
This is a competitive edge that no other company possesses, company officials confirm.

Collaborations
Joining Sadaharitha in growing Sri Lankas Agarwood plantations are recognized regional plantation companies.
Navaratne says, Some have also joined us and sourced plants from us purchasing the CA-Kit and begun to grow
Agarwood in their own plantations.
It begs to ask the question why these reputed regional plantations are collaborating with us. They have years of
experience, knowledge, fully understand the legality, success of the technology, have great awareness of the
international markets, have reputed management and follow good practices. This is an extremely good example
for the farmers, as to who they should join and this shows them the way forward, Navaratne concluded.
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