However, net profit was only marginally higher at Rs 37.95 crore, as compared with Rs 36.49 crore in 1996-97.

Meanwhile, the Singapore government, which holds a stake of around 9 per cent in Duncans via Temasek Holdings, has nominated its ambassador Tony Siddique on the board. Siddique was scheduled to attend the board meeting that followed the 5th annual general meeting of Duncans on Wednesday.

Chairman GP Goenka said Duncans will be focussing on both fertiliser and tea. The turnover from the tea business is estimated to exceed Rs 250 crore in 1998-99, he said.

He outlined plans for expanding the tea business which includes:

* Creation of fresh production capacity including acquisition of more gardens;

* Buying more tea from the public auctions;

* Enhancing market penetration of low unit packets since this segment does not attract excise duty;

* Increasing investments in existing brands like Runglee Rungliot, Double Diamond and Shakti;

* Leveraging its Darjeeling labels, particularly the Runglee brand;

But due to excessive rainfall of over 250 inches in less than two months of July and August 1998, the company's production is down by 250,000 kg on the same period last year.

Duncans plans acquire a few more gardens in north Bengal. The company accquired Dima Dima tea estate in January this year for Rs 11 crore.

The management has also planned a restructuring programme which includes:

* Bringing down GP Goenka's holding in Duncans to 62 per cent from the present level of 77 per cent. The board had earlier thought of bringing down the promoter's stake to 40 per cent;

* Clearing up the balance sheet, which lists loans advanced to group companies. The company has sought legal opinion on the issue, and then it will outline a framework to recover the loans.

Another area of concern, according to Goenka, is the increase in sundry debts to Rs 161 crore. Of this, Rs 115 crore constitutes the retention price support to be realised from the union government.