Processing Systems

Technology plays a major role at every step, resulting in decreased production costs and increased yield. At Agrotech Resourcesi, innovation has resulted in numerous modifications to the diverse aspects of the Agarwood processing industry. The company has developed in-house technologies with the active assistance of its sister concerns. With the right use of technology, Agrotech Resources produces superior quality products at reasonable prices, something that the industry looks forward to. The quality of essence depends on the quality of wood, the ago-climatic conditions where the trees are grown, and the extraction techniques adopted. Our tree-tech division works closely with wild tree suppliers and farmers to help them understand quality requirements so that the customers are assured of quality products.


We accord utmost importance to proper pre-harvesting and post-harvesting techniques. The company follows a multilevel processing system comprising a cluster of independent primary processing units, an oil extraction factory, warehousing, and a packing and forwarding Centre. Various grades of chips, flakes, powder, essential oils etc., are manufactured as per customer specifications at the primary processing units. The powder of uninfected wood and the leftovers of extraction will also be utilized for the manufacture of by-products.

The company has established a strong wild natural Agarwood sourcing network in the Assam, Nagaland, Mizoram, Tripura and Meghalaya states of Northeast India, where we have set up primary processing units in collaboration with our associates. In Odisha, the plan is to set up primary processing centers in all the 30 taluks of the 5 districts where Agarwood is planted. In the first phase, processing arrangements have been made at one place in each district, which is at Koraput, Nabarangpur, Kalahandi, Raygada, Malkangiri. Such units are established in collaboration with the company promoter of that particular region. The company is also planning to set up processing factories in the other south Indian states of Chhattisgarh, Telangana, Maharashtra and Andhra Pradesh where small-scale cultivation is currently on.

Chips Production

Quality is key element in the production of good quality resinous wood chips. We have kept priority to procure wild wood trees from Assam, Megalaya, Tripura and Nagaland province of north east India. Such Agarwood logs from suppliers are segregated at our associated facility into chips and extraction grade depending on resin content in the material. We focus on each and every step as right from harvesting after the completion of winter, when the trees have the maximum oil content. All these collective efforts leading to the production of best quality wild wood Chips.


The company is establishing a cluster of primary processing centers in the dense plantation zones of Odisha for the production of cultivated Agar wood chips. As soon as the infected trunks of inoculated trees are harvested, small twigs are separated from them, and the stem is cut into pieces 1 to 2 meters long, weighing around 10 to 20 kg each. They are then transported to the nearest primary processing station which has skilled Laboure and supporting facilities. Trees are slit and infected, and the non-infected parts are separated using indigenous tools. Arrangements are made to process the trees into different grades in the presence of growers. The infected wood is then graded according to industry standards as soft yellowish white material, average quality brown ones, and blackish parts which can be used for making chips.

Oil Distillation

Traditional Oud oil extraction factories are set up in the upper Assam region and the adjoining states in association with our partners. The company follows traditional methods to distil oil from extraction-grade wood. Steam distillation or hydro distillation is followed depending on the product requirement of customers. The steam distillation process involves the boiling of water into steam to vaporize resin, which is then cooled into liquid form after condensation. At Agrotech Resources, the semi-continuous extraction of Agarwood oil with water, at the right flow rate and pressure, is followed. In order to produce Oduor as per the customers’ requirements, the company has made required modifications at various stages of the extraction process. It has developed an efficient Agarwood oil distilling process with the assistance of its sister concerns which are engaged in the extraction of value-added ingredients for food products and cosmetics. The temperature, the number of days of distillation, condensation, and the collection of oil as per the distillation duration determine the quality of oil. The quality and quantity of oil is similar to that of conventional extraction process, but the process can be completed in a shorter duration.

As a first step, wood is segregated into various grades depending on resin density, and each grade is separately used for extraction. The wood is chopped and dehumidified with electrical dryers, or in semi-shaded sunlight, for 3 to 4 days, and 3 to 4 hours per day. Later, the chopped bits are crushed into about 1 mm grains to increase the surface area of extraction. Based on odour requirements, the material is soaked in a pot for 200 to 400 hours for fermentation. Depending on the distilling capacity and the quality of wood, the material is loaded into extraction vessels to get the best recovery.

Agar Boya or Agar wax is extracted from the non-infected white wood. We have set up 500 to 1,000 kg capacity units at some of our primary processing factories. After chopping the trunk and grading the wood, leftover white sap wood is cut into smaller pieces of 2 to 3 cm length, and about 0.5 thickness. The material is then soaked in the fermentation vessel for 2 to 3 weeks, and extracted through the hydro distillation vessel which works on firewood.