Agro firm's sales rise 83%

Chandigarh-based Lakshmi Overseas Industries Ltd, one of India's largest integrated processors of non-basmati rice, has recorded a rise of 83 per cent in sales, to Rs 134.9 crore, in the fourth quarter of 2004-05.

Net profit has increased by 281 per cent over the previous corresponding period to Rs 7.40 crore, which has been attributed mainly to higher production and economies of scale.

Explaining the growth strategy, Chairman and Managing Director Balbir Singh Uppal said, "Our strong growth is a result of vertical integration, right from paddy processing to by-products. We have been able to achieve highest sales at Rs 407 crore in 2004-05, while economies of scale have seen our net profit rise to Rs 21.8 crore, a growth of more than 100 per cent. Further, an expansion of Rs 150 crore in the areas of rice and by-products will take place, and we are setting up a 24-Mw power plant."

The firm's earning per share in 2004-5 rose to Rs 21.03, as compared to Rs 9.25 in 2003-04.

The company's manufacturing facilities are located on the Chandigarh-Ludhiana national highway, which ensures a consistent supply of paddy from nearby districts of Punjab.

The company covers the entire value chain, right from rice processing to the processing of by-products at various stages, with complete downstream integration.