Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

by Surekha Galagoda

Producing quality tea, adding value and diversification will be the main focus of Talawakelle Tea Estates Ltd (TTEL)this year.

Factory modernisation to meet international food safety and hygiene requirements, replanting to enhance yields, cost management, human resource development and environmental conservation practices will be areas of priority, TTEL Chairman Rajan Yatawara said.

TTEL recorded a post tax profit of Rs 105. million during 2005 while the turnover was Rs 1.62 billion. The post tax profit and turnover were 80.6 per cent and 108.5 per cent of the 2004 levels.

The focus on quality and higher tea production increased turnover and gross profit. High growns recorded an improvement in profitability but low growns reflected a decline from the previous year due to a decline in yields.

The year's results were impacted by the wage revision of 2004, high energy costs and rising interest rates. Cost management and productivity mitigated the impact of cost increases. A substantial contribution from sundry income and reduced management fee charged by Hayleys Plantation Services Limited also helped results in the year.

Tea production increased from 7.6 million kgs, to 8 million kgs in 2005. High growns increased from 5 to 5.40 million kgs, a record since 1993, reflecting an 8 per cent increase over the previous year.

Low growns at 2.6 million kgs were on par with the previous year. Increased production of bought leaf reduced the impact of a lower estate crop. Dry weather had an impact on crops in the low growns.

Favourable weather especially in the first half of the year helped the high growns.

Good agricultural practices contributed to the increased production achieved in the year.

Investments in long-term sustainability and growth was Rs. 140 million. It was despite the non availability of concessionary funding, Yatawara said.

The money was invested in the areas of field development, factory modernisation, quality assurance systems, energy cost savings and social welfare development.

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.