McLeod Russel India Ltd finds bio-fuel production in India through jatropha plantations “unsustainable”. The world's largest tea producer has written off a major portion of its investments in the joint venture company D1 Williamson Magor Bio-Fuels Ltd, a joint venture between D1 Oil Plc of the UK and McLeod Russel.
“We had entered into a joint venture with D1 Oil for biofuel production though jatropha plantations. We had invested Rs 21 crore in the company and we have written off Rs 15 crore. We feel it is an “unsustainable” venture,” said Mr Kamal Baheti, Chief Financial Officer, McLeod.
Dragged down by a drop in production, higher wages and a write-off of Rs 15 crore on its investments, McLeod Russel posted a net loss of Rs 157 crore during the quarter ended March 31, 2012.
The loss stood at Rs 123 crore during corresponding quarter last year. The company's board has recommended a dividend of Rs 6 per share of face value of Rs 5 each. Net sales grew by 14 per cent to Rs 253 crore.