Having consolidated its presence in the tea sector with a 100 per cent increase in profit in 2009-10, Rossell Tea is eyeing an increased presence in the aviation sector as also the hotel sector for which it has floated a special purpose vehicle with LemonTree hospitality group.
Company Chairman H. M. Gupta said at a press conference here on Wednesday that while the company enjoyed a 100 per cent increase in pre-tax profit from its tea business on a 27 per cent increase in turnover, aviation would play a major role in future. Sensing emerging opportunities for private participation in defence, Rossell has set up a subsidiary, Aerotech Services, which has acquired companies that can further its business vision.
Price realisation
Mr. Gupta said that with consistent quality levels, Rossell outperformed the market, selling its teas at Rs. 159.68 a kg which was 24 per cent higher than the price of 2008-09. The average price for Assam teas stood at Rs. 121.06 a kg during this period. Rossell has 6 estates in Assam spread over 2,100 hectares.
Rossell Managing Director C. S. Bedi said that 80 per cent of the production of 4.3 million kg was orthodox teas which were exported to Germany, Iran, West Asia and New Zealand. He said that the company consistently uprooted and replanted its tea bushes to improve yields.
On the aviation business, Mr. Gupta said that turnover from this segment increased to Rs. 12.09 crore from Rs. 5.95 crore in 2008-09. The bottom line moved from a breakeven point to Rs. 3.76 crore in 2009-10.
He said a 60-room boutique hotel owned jointly by LemonTree and Rossell was already operational in Allepey in Kerala while a 175-room hotel in Bangalore is also operational. A June 2012 deadline is being chased by the Delhi hotel project in which Rs. 170 crore has been pumped in.
He said that a Rs. 300-crore investment was in the pipeline and the main metros were the likely sites.
Dividend
Rossell's consolidated turnover stood 34 per cent higher at Rs. 79.10 crore with a net profit of Rs. 18.87 crore which was 197 per cent higher than in 2008-09. A 20 per cent dividend has been declared.
