The Hindu Business Line : Saptarishi Agro to resume operations

SAPTARISHI Agro Industries Ltd, a mushroom export unit, acquired by Calibre Rehabs Ltd from the Thapar Group, will recommence operations in January 2004, according to company officials.

Calibre Rehabs plans to spruce up the facility, which has been out of production for more than a year, and harvest the first batch by February. Getting the unit going is important to source bank funds for scaling up production and to stem the monthly losses due to recurring expenditure of about Rs 7 lakh to Rs 8 lakh on salaries, they said.

To reach a 100-per cent capacity utilisation, the company will need about Rs 5 crore as term loan and Rs 2 crore for working capital. But it will have to first prove itself before banks offer to extend funds. Calibre Rehabs plans to get it running to at least one-third of its capacity to produce about three tonne of mushrooms daily. The unit has changed hands a few times since its incorporation in 1992 by an individual promoter. Tata Tea Ltd acquired it in 1996 from which the Thapar group's Global Green Company took control in 2000. Calibre Rehabs acquired Saptarishi from Global Green in January.

Calibre Rehabs' strength is that its promoters operate one of Asia's largest and profit-making mushroom units, Agro Dutch Industries Ltd, in Chandigarh. Agro Dutch produces about 90 tonne mushrooms on a daily basis and packs them for leading brands. Saptarishi's workers are being trained at Agro Dutch, which will also provide the technology and marketing back up, they said.

Initially, Saptarishi's output of about three tonnes per day will be sold to the local market. Once production is scaled up it will cater to export markets, the officials said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
SABMiller shuts brewing plant in UP

Saptarishi Agro to resume operations

Gandhidham allots equity shares

Singer stops UP unit operations

ONGC loan for MRPL

Silver Smith opens branch office

Bharat Forge acquires German firm — To break into auto makers' captive vendor base

Cochin airport targets Rs 25-cr profit