Andrew Yule And Company Ltd.

Diversified state-run company Andrew Yule will spend Rs. 24 crore on two bought-leaf factories it plans to set up in the tea-growing areas of India’s northeast, seeking to cushion the business against capacity constraints in the region’s gardens. The two factories, the establishment of which was announced earlier by the Kolkata-based Andrew Yule, will come up in Upper Assam and the Dooars in North Bengal. “Investments in the bought-leaf factories will be spread over two years,” Debasis Jana, chairman and managing director of Andrew Yule, said in Kolkata recently. Bought-leaf factories buy green leaves from small tea growers, process the leaves and sell them. Separately, the company reported sales of Rs. 449.35 crore from operations and other incomes in FY17, up from Rs. 389.98 crore in the previous year. It had a net profit of Rs. 27.39 crore in FY17 as compared to Rs. 8.35 crore in FY16. Meanwhile, the continuing stalemate in the Darjeeling Hills has affected the sales of Andrew Yule’s specialty teas. These specialty teas fetch Rs. 5,000-15,000 per kg. However, the company’s output from Assam and Dooars gardens have fetched about 5% higher prices this year. The company produces around 10.2 million kg of tea annually.