Beeyu Overseas aims to double turnover

KOLKATA: Tea company, Beeyu Overseas Limited has said it aimed to double the turnover to around Rs 50 crore during 2006-07 due to rise in production and better price realisation.

"We have expanded our tea manufacturing capacity and acquired a company during the last fiscal. Moreover, there was better price realisation from early this year. These factors will help us to achieve a turnover of about Rs 50 crore this year," Beeyu Overseas Chairman and Managing Director B P Singh said.

The company posted a net profit of Rs 11 lakh during 2005-06, down from Rs 75 lakh in 2004-05. The sales during the year was Rs 23 crore against Rs 36 crore achieved the year-ago period.

The turnover from the tea business was Rs 11 crore, which was expected to jump three times to Rs 33 crore in 2006-07.

"The Ooty factory's installed capacity has been enhanced from 2000 tonne to 7500 tonne. Secondly, we have acquired a factory near Siliguri, Neelkanth Tea Company that will add about 2200 tonne during the year," Singh added.

The company invested Rs 17.5 crore during the last fiscal. Beeyu pumped in Rs 12 crore in the Ooty factory and infused Rs 5.5 crore to buy the Siliguri factory.

The tea price realisation increased by about Rs 10 per kg in south India and Rs 15 kg in north India. Global tea production was expected to be nine per cent lower due to drought in several countries.

Beeyu Overseas was also looking for opportunity for overseas auction after it participated in one in the US organised by few Indian tea companies in the recent past.

Meanhwile, the company transferred its coffee business to Alliance Coffee Ltd, a 51:49 joint venture between Tata Coffee Ltd and Beeyu Overseas.

The joint venture will be chaired by ex-Alva Laval chairperson Lila Poonawalla. The managing director will be nominated by Tata Coffee soon.

The JV company will sell coffee to the world market except in India. Tata Coffee invested Rs 100 crore for freeze dried coffee.

Commercial production was expected from November this year. The agglomerate tea will be sold by the company from July, Singh said.

Alliance Coffee was expected to rake a turnover of Rs 250 crore during full year of its commercial operation.