Andrew Yule & Co Ltd has lost more than half of its production of Darjeeling tea this year on account of the indefinite shutdown in the hills.

According to Debasis Jana, the company’s Chairman and Managing Director, Andrew Yule has lost close to ₹2 crore in revenue terms due to the drop in production.

The company produces nearly 1,10,000 kg of Darjeeling tea every year. But this year, it has only been able to produce 38,000 kg. Nearly 3,400 kg is lying in the factory, which the company has not been able to access due to the strife.

“We stand to lose close to ₹2 crore in revenue terms, but our loss is still small as we have only one garden in Darjeeling,” Jana said at a press conference here on Monday following the company’s AGM.

The tea division accounts for nearly 55 per cent of Andrew Yule’s total turnover. The company produces close to 102 lakh kg of tea a year across its 15 gardens in Assam and West Bengal. Tea prices were up by nearly ₹10 per kg this year as compared to last year.

The division is looking to set up a bought-leaf factory in Assam with a capacity of 1 million kg a year. The project will contribute directly to both the topline and bottomline of the tea business, the company said.

Andrew Yule has earmarked a total investment of ₹12 crore for this fiscal, of which ₹8 crore will be pumped into the tea business. Apart from tea, the company also has electrical and engineering divisions.

Printing press division Hooghly Printing Company Ltd, a fully owned subsidiary of Andrew Yule, has been under pressure due to poor demand. The company, which primarily caters to State government orders, has seen its order book dwindle this year.

“Ideally we would be comfortable if our order book is ₹30 crore annually. But it usually ranges between ₹20 and 25 crore; but this year the position is very bad,” said Jana.

Related Topics
comment COMMENT NOW