Lakshmi Overseas Industries

Lakshmi Overseas Industries Ltd has informed about the status of projects being undertaken by the Company and related developments, as follows:

(i) With the commissioning of new 120 MT per hour (3 units, each of 40MT / hour) state of the art, fully automated, PLC fitted paddy processing plant meeting all the International standards, the installed capacity of the plant has been raised to 1.35 Million MT of paddy per annum. The Company's automatic packaging unit for the retail market products with ultra modern facilities has also been commissioned.

(ii) The Company will procure at least one million MT of paddy during the procurement season in the current financial year. The procurement process has already been started and the Company has made adequate arrangements, including opening of new procurement centres in various districts, for smooth operations. Proper storage and maintenance techniques of the entire stocks have been used for the first time at the Company's newly acquired land adjoining the factory. Additionally, the Company has also rented godowns of Central Warehousing Corporation and Punjab Warehousing Corporation at various locations.

(iii) Government of Punjab had granted exemption to the Company from the payment of 4% Market Fees / Mandi Fee / Rural Development Fee as leviable under the Punjab Agricultural Produce Markets Act, 1961 and the Rules framed there under, on the non-FCI grade paddy purchased by the Company for the 10 years. This was granted due to biomass power plant of the Company. The said exemption has come into effect from the current procurement season, which will greatly benefit the company in boosting its profitability.

(iv) The Company has started export of non-basmati Indian long grain rice and intends to achieve exports turnover of Rs 1000 million (approx) in the current financial year for which it has export orders in hand. The Company has found acceptance of the quality of its products in the overseas markets. The Company's export will not attract any taxes (VAT, market fee etc.), which will greatly benefit the Company in boosting its profitability.

(v) The Company has introduced premium quality, long grain non-basmati rice in the Indian market under the brand "Lakshmi Foods" with affordable price range of Rs 20-22 per kg. This is high quality low priced product comparable to Sharbati and other premium varieties being sold at Rs 30 - Rs 32 per kg.

(vi) The Company's 1st Biomass based power plant is in completion stage and would soon commence its commercial production using 100% own fuel. It will be India's largest biomass power plant. Punjab State Electricity Board has already laid down transmission lines. Income from power would be tax-free and earn carbon credits revenue under Kyoto Protocol. Formal inauguration of the power plant as well as the new processing plants has been scheduled on December 01, 2007.