Date:27/08/2007 URL: http://www.thehindubusinessline.com/2007/08/27/stories/2007082751000200.htm

Back Kanan Devan to pay 10%

Our Bureau

Kochi, Aug. 26 The net profit of Kanan Devan Hills Plantations Company grew by 13 per cent to Rs 2.68 crore (Rs 2.37 crore) for the year 2006-07. The AGM approved a dividend of 10 per cent to the shareholders.

The profitability of the company was partly affected due to the increase in wages paid to the employees. “Wages constitute over 60 per cent of the operational expenditure of the company,” Mr T.V. Alexander, Managing Director, said.

Despite the inclement weather, starting with the heavy monsoon and frost damages last year, the company increased tea production to 20.31 million kg as against 20 million kg in the earlier year.

The productivity per employee has gone up from 39 kg of leaf to to 44 kg.

The initiative taken on the export front has begun to yield results, with the company exporting 0.92 million kg of tea last year.

This is expected to go up further during the current year and would reduce the dependence on tea auctions and enable better price realisations.

The total income of the company grew to Rs 122.16 crore (Rs 105.33 crore).

“True to the belief that employee ownership ushers in a strong sense of belonging to the company and thereby brings about their best, the productivity levels continued their upward trend during the year.

The price realisation was also much higher compared to the previous year,” Mr Joy Joseph, Chairman, said.