Andrew Yule & Co Ltd has decided to fund its Rs 150 crore proposed transformer making facility at Sriperumbudur in Tamil Nadu by selling its five acres of land of its existing unit. Its present plant is located at Perungudi in Chennai.

Kallol Datta, CMD of Andrew Yule said at a press conference on Saturday that five-acre land, which is on a IT corridor, could fetch a prime value and could fund large part of the investment for the Sriperumbudur unit. The new unit would be on 10 acres of land, located some 40 kilometers southwest of Chennai.

"The 1,200 mva existing plant as well as 5,000 mva new higher capacity (400 kv) transformer units are proposed to be located at Sriperumbudur," said S Swaminathan, Director (Planning) of the company. The new facility is expected to be ready in the next couple of years.

Andrew Yule has also planned to set up two green tea processing factory in West Bengal at a cost of Rs 1.5 crore.

Dividend

Datta said Andrew Yule, a Government of India enterprise, which is still under BIFR ambit, recommended a dividend of 5 per cent for 2014-15. It reported a net profit of Rs 17.77 crore in 2014-15 against Rs 7.04 crore. It currently has an accumulated profit of Rs 157 crore. The company obtained a special permission from BIFR for declaring the dividend, first in 21 years.

Declared sick in 2004, the company has currently achieved positive net worth of Rs 224 crore.

The company hopes to formally come out of BIFR domain soon after resolving certain issues with tax and provident fund authorities. BIFR is currently hearing the appeals from the company on these issues.

Meanwhile, Andrew Yule-promoted Tidewater Oil Co (India) Ltd has recommended a dividend of Rs 250 per share. Andrew Yule holds 26.22 per cent stake in Tidewater.

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