Bombay Burmah

Bombay Burmah Trading Corporation, Limited (BBTCL) is a 150 year old company, belonging  to the Wadia group. As the name suggests, the company in its early years, dealt with trading of timber from Burma (now Myanmar). It turned to tea plantations in 1913. Today it has five estates and four factories having 1,863 hectares for tea plantation. In coffee, it has 8 estates, totaling 927 hectares of planted coffee and produces about 1000 Tonnes of clean coffee per year, on an average, out of which 50 Tonnes is organically cultivated coffee, which is in highest demand for exports. It has three more units – auto electrical components, investments and healthcare.

The company ended Q3FY16 with a net loss of Rs.10 crore though net sales showed a 4% (YoY) rise at Rs.53 crore. It was the huge interest outgo of Rs.9 crore, up 28% and higher expenses which pushed the company into the red. Plantations contributed 42% to the total income and it posted a loss at EBIT levels.

100% FDI is currently allowed in tea plantations but not in anything other plantations. The news doing the rounds is that foreigners could be allowed to invest in these coffee plantations, get labourers to pluck coffee beans, process raw material and thus help in boosting India’s coffee exports.

In terms of shareholding pattern, promoters stake currently stands at 65.91% and balance 34.09% is held by 17,676 shareholders.