IFB Agro stops marketing flagship firm’s products

Our Corporate Bureau

Kolkata, Aug 31: IFB Agro Industries Ltd has discontinued the marketing of home appliances made by group flagship IFB Industries Ltd. It has also given up its tea business, chairman Bijon Nag told shareholders at the 19th annual general meeting. “We will disinvest in any unrelated area we have,” Mr Nag said. However, IFB Agro director Bikramjit Nag, the chairman’s son, said the company does not have any unrelated businesses.

The chairman said the company has already initiated an exercise to reduce plant cost and noted that its shrimp business is doing well. The company has set up a special team for logistics management.
IFB Agro makes alcohol, whisky, rum and gin and is also into shrimp and prawn culture. According to the directors’ report, profitability in the core area — alcohol — remained stagnant despite a 16-per cent increase in volume. It says, the increase in sales tax has adversely affected the market.

The entire assets and liabilities of its home appliance business has been transferred to the flagship with effect from March 31, 2001. According to IFB Industries’ balance sheet, the net amount arising out of the transfer was adjusted towards receivables from IFB Agro. However, transactions relating to the transferred assets and liabilities are being continued in IFB Agro.