Report on Mentha - ventura1.com

1 Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. BRIEF Report ON Mentha OIL General Characteristics Mentha oil is obtained by steam distillation of Mentha arvensis leaves. Mentha oil and its constituents and derivatives are used in food, pharmaceutical and perfumery and flavouring industry. Menthol is the main constituent of Mentha oil and slow cooling through refrigeration, crystallization, centrifugation and drying is done to obtain it. It is used in the manufacture of lozenges, toothpastes, pain balms, cold balms etc. Mentha is widely cultivated in India and its leaves are used in making sauces/chatni in most households.

2 Supply Demand Scenario India is the largest producer and exporter of menthe oil in the world. At present the major producers of mint oil in the world are India, China, Brazil and the US. Mentha arvensis is cultivated in India in the semi- temperate regions in the foothills of Himalayas in Punjab, Haryana, Himachal Pradesh, Uttar Pradesh and Bihar. The all-India area under Mentha in the country is estimated at about 1,25,000 hectares. Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. India exports different types of mint oils to a number of countries including Argentina, Brazil, France, Germany, Japan, UK, USA, etc.

3 These varieties include the Japanese mint oil (derived from Mentha Arvensis), peppermint oil ( Mentha Piperita), dementholised Japanese mint oil, spear mint oil ( Mentha Spicata), water mint oil ( Mentha Aquatic), horsemint oil ( Mentha Sylvestries), Bergamont oil ( Mentha Citrate) and still others. India cultivates about eight species of Mentha however three species are approved / recognized by the purpose of quality standards and international marketing. The natural oil yields on an average 40-50% menthol and 50-60% dementholised oil, which can be used both in confectionery and medicine in place of imported peppermint oil. Japanese mint oil is not distinguished from the peppermint oil in the Indian trade. Menthol Production in India The cultivation of Mentha Arvensis in India is a dramatic & very successful story.

4 Before, 1964, there was no production of Mentha Oil & Menthol in India. The cultivation of Mentha Arvensis was started around 1870 in Japan so it is also called Japani Mint than extant in Brazil, China and Formosa etc. Col. Mr. Chopra & Dr. Chopra of Regional Reserch Laboratory Jammu Tawi first brought Mentha Arvensis in 1964 and with the best efforts of Mr. Bante Managing Director Hindustan Richardson Ltd (VICKs), the commercial cultivation could be started in India. The survey conducted by Richardson Hindustan Ltd. determined that Tarai Area of Uttar-Pradesh would be a suitable place for the cultivation of Mentha Arvensis so a land of 15 Hectares was purchased to setup an Agriculture Research center for Mentha .

5 The crop of Mentha successfully grown and when the Mentha oil was extracted by Steam distillation, Mentha crop became a Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. viable. Hindustan Richardson Ltd. established a distillation unit in BILASPUR of district Nanital so confidently the Farmer could grow Mentha Herb. They had supplied the planting materials as well as given technical knowledge to grow the Mentha herb. As the result the area of Mentha crops substantially increased in entire tarai and western districts of U. P. mainly Nanital, Rampur, Moradabad, Badaun, Bareilly and recently extended to eastern districts viz.

6 Barabanki, Lucknow & sitapur districts. 80% crop of India, grown in Ut tar Pradesh, rest 20% in Punjab, Haryana. In these two years crop of Mentha Herb developed MP & Gujrat but in little quantity. With the best efforts of Farmers Small Scale Industries and CSSIR laboratories RRL Jammu, CIMAP Lucknow, India is one of the largest producer of Menthol & Mint allied products in world now second one is China. Presently 85% production of Mint products is in India, rest in China, Brazil & other small countries. Crop Combination for Higher Profitability Maize Potato Mentha Paddy Potato Mentha Basil Potato Mentha Paddy Lahi Mentha Paddy Wheat Mentha Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.

7 Seasonality Time of Plantation (Crop) Time of Plantation No. of Harvest Oil Yield Per AcreMentha Arvensis January 2nd wek to Feb. Last2 60kgs to 90kgs Mentha Piperita Dec. Last week to Jan. Last 2 40kgs to 60kgs Mentha Spearmit Dec. Last week to Jan. Last 2 40kgs to 65kgs Year wise cultivation & production of Mentha Oil Year Area Heqtor Production of Mentha Oil 1965 65-70 2 1970 600-650 46 1975 4000-4500 260 1980 8000 500 1981 10000 800 1985 18000 1400 1988 25000 2200 1990 35000 5000 1992 38000 5400 1995 45000 7000 Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. 1996 35000 5500 1997 55000 11000 1999 62000 12000 2001 65000 13000 2003 72000 15000 2004 70000 14000 2005 - 18000-20000* *- Industry Projections Present Demand Domestic (India) 4000-4500 MT.

8 Export (Overseas) 7500-8000 MT. Exports At present the major producers of mint oil in the world are India, China, Brazil and the US. India exports different types of mint oils to a number of countries including Argentina, Brazil, France, Germany, Japan, UK, USA, etc. these varieties include the Japanese mint oil (derived from Mentha Arvensis), peppermint oil ( Mentha Piperita), dementholised Japanese mint oil, spear mint oil ( Mentha Spicata), water mint oil ( Mentha Aquatic), horsemint oil ( Mentha Sylvestries), Bergamont oil ( Mentha Citrate) and still others. Mentha Oil export has steadily increased from India in the recent years. In the year 2004-05 India impressively exported 9160 MT. Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.

9 Although domestic demand for this product has increased on the wake of higher activity by domestic cosmetic and perfume industry. Present domestic demand for menthe in domestic market is estimated to be 4000 MT to 4500 MT. Global Price The price trend of menthol is directed by the status of production in India and China that predominantly depend on the weather conditions. Any irregularity in the weather condition can wither the output and hence could place the commodity on higher quotes. China is good consumer of Indian menthol. Current crop year, in the international market menthol price remained in the range of $16-$21, depending upon the supply scenario. Current Scenario The country is set to see a bumper crop of Mentha this year on the back of higher acreage.

10 The output may jump by over 150 per cent compared with the last year s figures of 18,000-20,000 tonne. Mentha oil is an export oriented commodity, recent strengthening of INR Vs Dollar will further lead to bearish sentiments. Indian rupee has appreciated by from March making the export parity down. Traders are expecting an overall output of 30,000 - 35,000 tonne, which will start hitting the market by the end of May. The consumption of Mentha oil in the country is around 9000-10,000 tonne per annum. The country already has a carry forward stock of over 3,500 tonne. Tuesday, April 17, 2007 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.