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.

Unlike many reports saying that Bombay Burmah holds 50.73% stake in Britannia Industries, a look at the latter’s shareholding pattern shows that it has no holding. Though what makes this company valuable is its 14.35% stake in Bombay Dyeing and huge tracts of realty it owns for the Wadia’s.

On the financial front, the company kind of meanders. Its net sales rose 12% (YoY) at Rs.74 crore, with costs coming at Rs.79 crore, the company posted an operating loss. Other income of Rs.4.5 crore helped shore some of the loss but but then again an interest outgo of Rs.9 crore, the company ultimately ended Q2 with a net loss of Rs.10 crore.

Auto electrical vertical contributed 38% to the total revenue but 50% of the income comes from plantations – 30% from tea and 20% from coffee. But tea is perennially in the red at EBIT level.