Goenka, announcing DPIL's plans for a big expansion over the next three years, said that though the company aims to strengthen its presence in tea, it will continue its recent diversification into hotels and enter retail marketing in the Gulf via the chain that has come with Lectra's acquisition.

Goenka said that the recent merger of Katalguri Tea Co Ltd, Eriabarie Tea Co Ltd and Lectra Tracom Pvt Ltd with DPIL Ltd has increased the company's net worth, which will help it to raise funds for future requirements.

Following the merger, DPIL's equity capital has risen to Rs 6.49 crore and its reserves to Rs 24.7 crore. DPIL has reported a profit after tax (PAT) of Rs 4.6 crore on a turnover of Rs 66.79 crore for the year ended March 31, 2000. Net profit stood at Rs 4.60 crore. Clearing the accounts at a meeting on June 26, the DPIL board recommended a dividend of 10 per cent, in addition to the interim dividend paid by Eriabarie before the merger.

"These moves are meant to be essential milestones in our growth plan," said Goenka. "The part repayment of loans will help reduce the interest burden and further acquisition will help increase the company's potential for higher profitability," he said.

The other group company, Warren Tea Ltd, has reported a profit before tax and depreciation of Rs 29.46 crore on a gross income of Rs 144.68 crore. After depreciation, profit before tax was Rs 24.40 crore. The company had paid an interim dividend of 75 per cent, and the directors have recommended a final dividend of five per cent.