Lakshmi Overseas Industries

Lakshmi Overseas Industries Ltd has announce that the working of Punjab Greenfield Resources Ltd (PGRL), a wholly owned subsidiary of the Company.

PGRL is managed by professional team of officers drawn from different areas of cotton procurement, retail marketing and trade. PGRL is headed by Mr. D K Dhawan, Chief Executive Officer having three decade rich experience in Agri-business, commodity trade, import / export, distribution & logistics and has worked for 27 years in Food Corporation of India (FCI) at various senior positions. PGRL is ably guided by Mr. G S Dhiman, President (Agri-business) having experience in procurement of commodities, domestic & international trade, installing power projects and spinning mills.

PGRL is entering into "contract farming" of wheat, seed production and extension services for the welfare of Punjab as a part of Research and Development activities.

PGRL is in the process of procurement of cotton and is finalizing agreements with farmers to mop Best Quality Kinnows during the month.

PGRL has invited offers from the interested farmers of Punjab to undertake contract farming of wheat in 2000 acres to be grown / cultivated under the expert professional and scientific guidance of PGRL Team, Seeds, fertilizers and pesticides will be provided on subsidized basis from PGRL and advances to the farmers could be arranged through a Nationalized Bank. Low interest rates from Nationalized Bank arranged will certainly provide impetus to Punjab Farmers for adopting scientific agronomical practices to take up contract farming. Wheat produced under contract farming by PGRL will carry minimum yield guarantee and prices to be paid to farmers by PGRL under the prescribed agreement. Farmers will be paid prevailing market prices of wheat at the time of sale to PGRL.

PGRL proposes to enter import / export of commodities in the international market in near future. PGRL is all set to jump into consumer market shortly with a dozen products of wheat and rice initially, which will further be strengthened through pulses and spices for each kitchen requirements. Infrastructure activities are also being explored with the intention to contribute further in development of Punjab State.

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.