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Kohinoor Mandal

KOLKATA, Sept. 24

BEEYU Overseas Ltd has decided to go in for a bonus share issue at a ratio of 1:10. The entire issue will be funded out of the company's general reserves.

Currently, Beeyu Overseas' capital base is Rs 5.32 crore comprising 53.19 lakh equity shares of Rs 10 face value. The authorised capital is currently at Rs 5.50 crore, which means it will have to be increased to accommodate the extra equity. As on March 31, Beeyu Overseas' reserves and surplus were at Rs 6.25 crore.

Meanwhile, the company has merged all three subsidiaries with itself effective from April 1, 2001. The Calcutta High Court had approved the merger in March this year. The subsidiaries are Beeyu Plantations Ltd, Beeyu Exports Ltd and Singapore Amusement Park Ltd.

The tea plantation and factory of Beeyu Plantations at Doddabetta in Ooty have commenced commercial production. While Beeyu Exports was engaged in the business of tea blending, all its income was generated by blending charges.

Singapore Amusement Park was the owner of the land on which Beeyu Plantations carries out its business in Ooty. The merger has reduced the overall administrative expenses of the group.

As a result of the merger, the turnover of the company during 2001-02 jumped up to Rs 51.11 crore from Rs 36.50 crore. However, profitability has suffered. Profit after tax dropped to Rs 83.34 lakhs against Rs 1.35 crore in 2000-01.

``Profitability of tea and coffee both declined in the face of continuously falling prices. The situation was further aggravated by the over-supply of tea vis-a-vis its demand. Even then the company registered a 42 per cent increase in gross income'', company sources said.

For the year ended March 31, 2001, Beeyu Overseas registered a turnover of Rs 36.5 crore against Rs 23.22 crore in the previous financial year. Profit before tax, however, dropped to Rs 2 crore from Rs 3.07 crore. Similarly, net profit dropped to Rs 1.35 crore from Rs 2.47 crore.

Beeyu Overseas is also engaged in setting up an instant coffee-producing unit in Russia along with Tata Coffee, a subsidiary of Tata Tea Ltd. A protocol of intent has been signed between Beeyu Overseas, Tata Coffee and a large Russian coffee importer.

``It will be a joint venture company. Progress has been made on the project. We have selected the site of the project. The project report is in an advanced stage of finalisation. We are also negotiating with a few producers of tea and coffee for appointment as distributors of the products'', sources said.

Beeyu Overseas, which is listed in the bourses of Kolkata, Kochi and Coimbatore, was able to increase its sales to Russia and the CIS countries despite depressed market conditions. It also sold a substantial amount to West Asian markets such as Dubai.

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