The Hindu Business Line : Krebs plans bio-fuels, food products foray

KREBS Biochemicals and Industries Ltd, the city-based biochemical company engaged in the manufacture of active pharmaceutical ingredients using fermentation technology, proposes to diversify into other activities.

In a press release here, the company said it has identified bio-fuels and its down stream products and food products to catalyse growth.

In this direction, the company has acquired Jampani and Kovur co-operative sugar mills in Andhra Pradesh. KBIL has also diversified into the food products segment by setting up a stackable potato chips unit with a capacity of 1,800 tonnes per annum. The company expects to commence commercial operations of the potato chips unit in the second quarter of current financial year.

Having suffered a marginal fall in both turnover and net profit for the fiscal ended March 2004, the company has finalised its business targets for the current fiscal.

It has achieved a turnover of Rs 101.97 crore (Rs 102.14 crore) and a net profit of Rs 13.5 crore (Rs 14.87 crore) on an equity of Rs 6 crore for the year ended March 2004. The company has attributed the fall in profitability to slowdown in the movement of anti-asthmatic segment drugs and increase in the raw material costs and drop in sales prices of some of the products. The KBIL board, which adopted the audited financial results here on Saturday, has recommended a dividend of 80 per cent (Rs 8 per share) for the year under review.

The company is now aiming to achieve a turnover of Rs 200 crore in the current fiscal with a net profit of Rs 30 crore, according to the KBIL company secretary, Mr A. Veerendra Kumar.

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