Your Directors are pleased to submit their Report together with the Audited statement
of accounts for the year ended 31st March, 2013.
||Rs. in Lakhs
||Rs. in Lakhs
|Profit from Operations before Other Income & Interest
|Add: Other Income
|Operating profit before Interest
|Add: Exceptional Income
|Profit Before Tax
|Provision for Tax: Current Year
|Profit After Tax
|Add: Surplus b/f from PY
|Amount available for appropriation
|General Reserve No.I
|General Reserve No.II
|Debenture Redemption Reserve A/c
|Tax on Dividend
|Balance carried forward
Your Companys turnover during the year under review was Rs.598.08 Crores as
compared to Rs.508.52 Crores in the previous year, registering an increase of 18% over
Profit from Operations before Other income and interest for the year ended
31st March, 2013, stood at Rs.123.08 Crores as against Rs.95.04 Crores in the
previous year, reflecting an increase of 29%. Profit before Tax at Rs.131.15 Crores
vis--vis Rs.104.16 Crores in the previous year reflects an increase of 26%. Profit after
Tax in 2012-13 stood at Rs.93.69 Crores as against Rs. 78.85 Crores in the previous year.
Your Directors are also pleased to advise that the Profit earned in 2012-13 has also been
the highest in the history of the Company.
Your Company has already paid an Interim Dividend of Rs. 5/- per share aggregating to
Rs. 933.85 Lakhs with a Dividend Tax of Rs. 151.49 Lakhs. Your Directors have recommended
a Final Dividend of Rs.7.50 /- per share aggregating to Rs. 1400.78 Lakhs for the year
2012-13. The Dividend Tax amounts to Rs.238.07 Lakhs.
The Arabica futures market prices started the year at around 178 cents/lb and dropped
marginally in June and picked up again in July 12. Thereafter on expectations of a
bumper harvest in Brazil, declined steadily to close in March, 2013 at 133 cents/lb levels
a level last recorded in June, 2010.
The Robusta futures market prices started at $2000/mt levels, picked upto $2100 by
August 12; Thereafter it steadily declined to close at $1900 levels in December. The
market was steady thereafter and firmed up to $2100 by March 13 on news of lower
crop forecast due to drought conditions in Vietnam which is the largest producer of the
The global production of the 12-13 season is at a record 150 million bags and
consumption was 140 million bags, leaving a surplus for the first time in recent years,
thereby putting pressure on the prices. As per ICO estimates, The total consumption grew
at the rate of 2% in the year 2012-13 with traditional markets growing at 1%. The
consumption in the producing countries and emerging markets have grown at 3 %.
The Global Tea Production declined as compared to the previous year. Tea production in
major producing countries during January/December 2012 was 2770 Mn. kgs as against 2793
Mn. Kgs in 2011 In India, the northern states recorded an increase in overall production,
while in the South it declined due to drought conditions. At present due to the reduced
supply position, the domestic prices have witnessed a sharp escalation as compared to the
previous year. These prices are expected to witness a correction when the new season teas
arrive in the market.
The Indian exports in 2012 were estimated at 201.08 Mn. kgs as against 215.42 Mn. kgs
in the previous year. The domestic consumption has risen approximately 7.8% over the
OPERATIONS: Plantations: Coffee:
The Companys overall Coffee production has increased by 7.7% from 7797 MT last
year to 8396 MT during the current financial year. In the biennial cycle, the production
of Arabica crop has been lower at 1542 MT for the current year as compared to 2129 MT the
previous year. The decline in Arabica production has been witnessed across all districts
in Karnataka due to irregular rainfall and prolonged dry spell during the crucial period,
which apart from reducing the crop yield, has increased the incidence of pest and disease
especially white stem borer. Your Company has taken all proactive measures to mitigate the
spread of pest & disease.
As regards Robusta, The Company has achieved a production of 6800 MT in the current
year as against 5667 MT in the previous year. The Coffee Board has downscaled its
post-blossom India Robusta estimates from 221,300 MT to 215,275 MT.
The Plantation regions are experiencing an unprecedented dry weather, with the day
temperatures ranging between 18 C to 34 C. Though the rains received during February
& March 13 were useful, the same was insufficient for blossoming in certain
areas. This shortfall was covered with irrigation in all Robusta estates. Backing
irrigation has also been provided depending on the availability of water in the irrigation
The total tea production of the Company in the current year was 6.640 Million Kgs as
against 6.775 Million Kgs in the previous year. The Glenlorna Estate of the Company at
Kodagu District has achieved an all time record crop of 922 MT of Made Tea with a yield of
The Company has achieved a total Pepper crop of 1148 MT in the current year as against
864 MT in the previous year, which constitutes an increase of 33%. Due to prolonged dry
weather which has been prevailing continuously for the last two years, pest & disease
in Pepper has become a major cause of concern. The Company has taken all proactive
measures to counter these attacks and for irrigating Pepper vines during the crucial
The Companys Curing Works at Kushalnagar cured a total of 12509 MT Coffee during
the current year as against 12010 MT in the previous year. In addition, 307 MT of
Monsooned Coffee, a value added product was processed as against 304 MT in the previous
The unit handled higher volumes during the year due to the better crop arrivals during
2011-12 season and continued to achieve good financial performance due to the sustained
cost reduction initiatives in the factory and better husk sale realization.
The ISO 22000:2005 certified Pepper Unit inside the Kushalnagar Curing Works premises
handled the grading and steaming operations of the Companys entire pepper produce.
Timber Value Addition:
The manufacture of Marine Plywood at the outsourced job work location has been
temporarily discontinued and negotiations are on hand to locate a new vendor. The business
model is being reworked to optimize the cost of conversion on a lower quantity of Timber
During the year 2012-13, your Company exported 4831 MT of Coffee as against 5735 MT in
the previous year.
Your Company continues to focus on growth through differentiated Coffees with volumes
at 1870 MT with very good premiums.
Your Companys continues to focus on quality and participated in various
International Competitions to show case its coffees. In the current year, we have
won 14 awards at the Fine Cup Award Cupping Competition 2012 held in Melbourne, Australia
as against the previous years 12 awards. Your Company has also participated in the
Rainforest Alliance Cupping for quality in December 2012 and four of your estates
were rated a score of 80 and above and these coffees will be publicized by Rainforest
Alliance in the SCAA event to be held in Boston. Your Company is committed to growth
through quality and will continue to participate in International forums with a clear
focus to promote its products.
Instant Coffee Division
During the year under review, the instant coffee division has successful carried out
capacity balancing of equipment to achieve higher product output per anum. The prime focus
was on consistent quality, customer centric initiatives and work force development. The
Division achieved record production of 6639 MT as compared to 6347 MT in the previous year
an increase of 4.6%. Total exports in volume terms increased to 6493 MT as against
6331 MT in the previous year - an increase of 2.56%. High capacity utilization was
attained at all the units and across all product variants. The improvement in production
levels were achieved due to successful completion of extraction debottlenecking at Theni.
A 2000 TPA premium extraction unit for the Freeze Dried Facility is under commissioning
at Theni supported by the technologies from GEA Niros Extraction Plant and Roaster
from LILLA. The new project is expected to go on stream in the month of June 2013.
Focus on Non-Russian markets has enabled the Company to make inroads into West Africa
and Japan. Key customer relationship building approaches are under progress. This will
give your Company a balanced market approach covering most of the key geographies.
The division consumes twenty percent of its total power requirement through renewable
energy sources. The Freeze Dried unit operates its equipment with wind power, thereby
contributing to Companys green initiative.
The Instant coffee units are certified by FSSAI (Food safety standards authority of
India), ISO 9001 and 22000:2005, Kosher (Toopran), Halal and SA 8000 (Theni). The
Theni unit won the certificate of appreciation from Ministry of Commerce and Industry,
Govt. of India for highest growth in exports amongst the manufacturing units (TN and
Pondicherry) for the year 2011-12.
Plantation Trails, our hospitality business has performed well in the year under review
as compared to the previous year. The growth rate is in the range of 16% over the previous
year in terms of turnover.
This Division has been the recipient of several awards "The Platinum Pick
Hotel" by Make My Trip, which is a leading online travel portal. Holiday IQ another
online review website has awarded us the "Exceptional Service Award". Trip
Advisor the worlds number one travel review website has endorsed Plantation Trails
for its excellent services based on the customer feedback.
The newly renovated Cottabetta Bungalow has been well received by the market as a
premium product and has exceeded the targeted profitability. The restoration work at
Thaneerhulla Bungalow has commenced and will be completed by May 2013.
Our focus has been to strengthen the sales & marketing processes in order to build
strong distribution channels, improve our online presence and build the brand. Skill
Enhancement sessions for the staff, kitchen and food hygiene, safety processes have been
given prime importance during the year and regular audits were conducted. The
implementation of technology and innovation to automate systems and improve efficiency are
As a sequel to the Joint Venture Agreement entered into by our Holding Company
Tata Global Beverages Ltd with Starbucks Inc., USA, your Company has commissioned a state
of art coffee roasting facility at Kushalnagar which would be catering exclusively to the
requirements of the chain of outlets established by Tata Starbucks in India and to the
Starbucks supply chain in SouthEast Asia. This facility was inaugurated on the
8th February, 2013. The Coffee beans used in this roastery are being supplied exclusively
from the Companys own estates.
During 2012-13, Rs.5806.63 Lakhs was incurred primarily on account of welfare,
modernisation, up-gradation and other programmes undertaken in the various units of the
Eight O Clock Coffee Company
Eight OClock Coffees Turnover during the year stood at Rs. 1099.27 Crores
over the Previous Years turnover of Rs. 1040.50 Crores, despite the increased
competitive intensity as many competitors, including Starbucks and Kraft, were very
aggressive with deeply discounted promotions. During the year, Eight OClock also saw
continued strong competition from single serve PODS which consumed shelf space as more
consumers moved into the single serve arena. During the year, Eight OClock single
serve K-Cups were launched through Keurig and quickly gained a 6% market share of the
single serve market. In the fiscal year, the green Arabica commodity costs declined
steadily which allowed Eight OClock Coffee to improve margins as we maintained
current pricing levels. The Landover manufacturing facility performed admirably this year
improving the efficiencies of the roasting and processing departments leading to lower
costs of production. Profits in Eight OClock Coffee improved considerably this year
recording a Profit after Taxes of Rs. 66.89 Crores which was a significant improvement
over the Previous year s profit after Taxes of Rs. 4.71 Crores.
Rising Beverage Company
During the year Consolidated Coffee, Inc. made an investment in the Rising Beverage
Co., LLC. taking a 47.30% stake, @USD 22.366 million Rising Beverage Co. LLC (RBC) is a
US-based performance beverage and bottled water manufacturer that sells products under the
brand Activate. This product has a unique delivery system whereby vitamins stored in a
chamber inside the bottle cap are released when the bottle is opened. This ensures the
efficacy of the vitamins, which would else deteriorate if it sits in water for a period of
time. Activate products also do not contain sugar or any calories and is targeted at the
Eight O Clock Holding (EOH):
Your Companys overseas subsidiary in the U.S. Consolidated Coffee Inc.
(CCI) acquired 100% stake in newly floated subsidiary EOH, which currently holds the
entire stake in Eight O Clock Coffee hitherto held by CCI.
Alliance Coffee Limited
During the year under review, the Registered Office of the Companys Subsidiary
-Alliance Coffee Ltd. (Alliance) was shifted from Kolkata to Bangalore after receiving the
necessary approvals from the Company Law Board, Eastern Region Bench, Kolkata. It is
proposed to merge Alliance with the Company.
The Ministry of Corporate Affairs has exempted holding companies from attaching the
accounts of its subsidiaries to its balance sheet. In terms of the said Circular and as
required under the Listing Agreement with the Stock Exchanges, the consolidated financial
statements of the Company together with its subsidiaries are attached. Any shareholder may
ask for a copy or inspect at the Registered/Head Office a copy of the Annual Accounts of
Alliance Coffee Limited and the consolidated financial statements of Consolidated Coffee
Inc., USA which includes the Eight O Clock Coffee Company financials.
The Joint Venture (JV) "Tata Coffee (Uganda) Limited" incorporated in Uganda
during 2006 has been closed. In connection with the above, the closure intimation has been
filed with Reserve Bank of India.
The Company has been in compliance with all the conditions of corporate governance as
stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges. The detailed
Report on Corporate Governance in terms of Clause 49 of the Listing Agreement and a
certificate of the Auditors thereon is attached to the Annual Report.
REDEMPTION OF DEBENTURES
The 7% debentures which were alloted in pursuance of Rights Issue in 2006 have been
fully redeemed during the year. The redemption was made in three equal installments at the
end of 4th, 5th and 6th year from the date of allotement.
The Companys focus on welfare and improving the quality of lives of our people
has continued as before. Initiatives to improve the standard of living have been
undertaken by providing educational assistance to the children of employees, providing
drinking water at the work spot, providing transport at subsidized rate to the school
going children of employees, supply of provisions through Co-operative store branches
located at each Unit/Estate, to name a few.
The Companys commitment to comply with the international requirements under
Social Accountability has been re-validated by the re-certification of Social
Accountability 8000-2008 Certificate by the Certification Auditors.
The re-certification of the Company under Rainforest Alliance also shows the
Companys commitment towards protecting and preserving the environment & eco
system. Safety in all aspects of work and even personal safety is of utmost importance and
the Company is taking all possible steps to ensure a safe working condition for all
Mr. P.T. Siganporia who was the Director on Board demitted his office as a Director in
accordance with the Group Guidelines with effect from 11.07.2012. Your Directors wish to
place on record their sincere appreciation for the valuable contribution made by Mr.
Siganporia during his period of association with the Company.
Mr. Harish Bhat was appointed as Additional Director of the Company with effect from
27th July, 2012 and in terms of Article 101 of the Articles of Association of the Company
read with Section 260 of the Companies Act, 1956, (the Act), he holds office upto the
ensuing Annual General Meeting. The Company has received a notice from a member in terms
of Section 257 of the Act signifying his intention to propose the appointment of Mr.
Harish Bhat as a Director in the forthcoming Annual General Meeting.
Mr. Hameed Huq was re-appointed as Managing Director of the Company by the Board at its
Meeting held on 14th December 2012 for a period commencing 3rd
January, 2013 to 2nd January, 2014.
Mr. U. Mahesh Rao who retires by rotation at the forthcoming Annual General Meeting has
informed the Company that he does not wish to offer himself for re-election as a Director
of the Company. As required under Section 256(4) of the Companies Act, 1956, a resolution
for not filling the vacancy caused by Mr. Mahesh Raos retirement has been included
in the Agenda of the Annual General Meeting. Your Directors wish to place on record their
appreciation of the contributions made by Mr. Mahesh Rao during the period of
association with the Company.
Mr. R.K. Krishnakumar and Prof. Arun Monappa retire by rotation and are eligible for
SERVICE TO THE COMMUNITY
The Coorg Foundation, a Public Charitable Trust established by your Company continues
to provide support to various individuals and institutions in the field of Health Care,
Education, Sports and Culture during the year.
The Foundation continues to provide scholarships to top ranking students who have
studied in the Institutions based in Kodagu. In addition, an initiative has been launched
to provide vocational training to underprivileged students to enable them to seek
alternative forms of employment in association with an NGO firm based in Bangalore.
Rural India Health Project Hospital, Ammathi, which is managed by the Company,
continued to serve the needy sections of the society.
Swastha The project established by The Coorg Foundation as a fully residential
institution for differently abled, continues to extend its support to the needy children
in the Coorg and neighbhouring areas through its centers in Suntikoppa and Pollibetta by
imparting required education and training. In addition, the Community Based Rehabilitation
programme, initiated with the intention of reaching out to a larger number of challenged
people in the district has rendered commendable service in the area. Regular awareness
programmes are conducted in the villages in Somwarpet Taluk and health camps are organized
at Swastha Premises to identify the needs and to provide supportive devices to needy
In addition, the Company has launched initiatives for the development and protection of
the girl child by instituting a checkup for detection of nutrition defficiency in Girl
Children and promotion of self employment opportunities for women in Theni; Providing
clean drinking water to the residents near the Toopran Unit and operating primary schools
PARTICULARS OF EMPLOYEES
Information required under Section 217(2A) of the Companies Act, 1956 read with The
Companies (Particulars of Employees) Rules, 1975 is given in the Annexure forming part of
this report. However, as per the provisions of Section 219(1)(b)(iv), the report and
accounts are being sent to all Shareholders of the Company excluding the Statement of
Particulars of Employees. Any Shareholder interested in obtaining such particulars may
inspect the same at the Registered Office of the Company or write to the Company for a
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Statement pursuant to Section 217(1) (e) of the Companies Act, 1956 read with The
Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988
RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors, based on the
representation received from the operating management confirm: (i) that in the preparation
of the accounts for the financial year ended 31st March, 2013, the applicable accounting
standards have been followed and that there are no material departures; (ii) that they
have selected such accounting policies and applied them consistently and made judgements
and estimates that were reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of the profits of the
Company for that period; (iii) that they have taken proper and sufficient care to the best
of their knowledge and ability for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other irregularities; (iv) that
they have prepared the accounts for the financial year ended 31st March, 2013 on a
going concern basis.
M/s. N.M. Raiji & Co. (NMR) and M/s. SNB Associates (SNB) Auditors of the Company
hold office as joint auditors till the conclusion of the ensuing Annual General Meeting.
The Company has received a written communication from a shareholder proposing the non
reappointment of NMR as the Joint Auditors of the Company. The Audit Committee and the
Board of Directors have considered the matter and have recommended the reappointment of
SNB as sole Auditors of the Company and the non reappointment of NMR as the Joint Auditors
in the forthcoming Annual General Meeting.
||On behalf of the Board
||R.K. KRISHNA KUMAR
|Dated: 24th May, 2013
Information in accordance with The Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 and forming part of Directors Report for the year
ended 31st March, 2013 A. CONSERVATION OF ENERGY
|1. Energy Conservation measures taken
||The Instant Coffee unit at Theni was consuming high amount of energy in terms of
captive power generation due to huge power shortage in Tamil Nadu. The measures like
alternate arrangements with TNEB and contract for purchase of power from power producers
resulted in sourcing wind energy, which is presently being used for the Freeze Dried
Coffee Plant as a substitute for TNEB power. This approach had given a sustainable impact
in CO2 continuous reduction of around 2 kg emission/kg of Instant Coffee (IC). This was
made possible by way of innovation of the process measures to source power under Group
Captive Concept. Initiatives made to use wind energy for the complete FDC operations
including the Premium Extraction project.
||In addition to wind energy, in Spray Dried Unit, a new initiative taken to reduce
power interruptions and diesel consumption which was managed initially through own captive
power generation (DG sets). Initiative taken and implemented 3rd party power concept
through TNEB during power holidays/ interruptions. This has resulted in steady operations
and reduction of diesel consumption, 0.05 Ltrs of diesel/kg of IC has been saved over
||Spent squeezer has been introduced to use the waste spent being generated during
extraction process. Waste spent is having a good calorific value and is very much suitable
for the Boiler as a fuel. This spent having around 85% moisture is squeezed to 50%
moisture and fed to the boiler mixed with other fuel. This usage of spent has given an
overall saving of 0.27 kg of boiler fuel per kg of IC over previous year.
||Modification carried out in the Husk Boiler at the Instant Coffee unit in Toopran has
led to the utilization of Coffee spent generated in the plant, thereby bringing down power
and fuel cost.
|2. Additional Investments and proposals, if any, being implemented for reduction of
consumption of energy
|3. Impact of the measures at (1) and (2) above for reduction of energy consumption
and consequent impact on the cost per unit of production
||The usage of wind power energy and third party power at the Theni plant has resulted
in savings of approx. Rs. 2.55/ kg. The energy conservation measures introduced at Theni
by the way of spent addition etc. resulted in savings of Rs. 1.08/kg and in Toopran unit
have resulted in savings of approximately Rs. 0.50/kg over previous year.
4. Total energy consumption and energy consumption per unit of production:
FORM A: APPLICABLE TO TEA
|A. POWER AND FUEL CONSUMPTION
||Current Year ended 31.03.2013
||Previous Year ended 31.03.2012
|1. ELECTRICITY (FOR MANUFACTURE)
|(a) Purchased Units
|Total Amount (Rs.Lakhs)
|(b) Own Generation
|(i) Through Diesel Generator Units
|Diesel Consumed Ltrs.
|Cost of Diesel (Rs. Lakhs)
|(ii) Through Steam Turbine/ Generator
|2. COAL: C GRADE USED IN DRIER
|Quantity Mts. Total
|Cost (Rs. Lakhs)
|Average Cost/MT (Rs.)
|3. FURNACE OIL
||Not Being Used
||Not Being Used
|4. OTHERS/INTERNAL GENERATION
|(a) Leco for Drier
||Not Being Used
||Not Being Used
|Total Cost (Rs. Lakhs)
|Average Cost per MT (Rs.)
|(b) Firewood used in Drier
|Quantity Cu. Mtrs.
|Quantity (Agri. Briquettes) kg.
|Total Cost (Rs. in Lakhs) (Firewood)
|Total Cost (Rs. in Lakhs) (Agri Briquettes)
|Average Cost per Cu. Mtr. (Rs.) (Firewood)
|Average Cost/MT (Agri Briquettes)
B. CONSUMPTION PER UNIT PRODUCTION
||Current Year ended 31.03.2013
||Previous Year ended 31.03.2012
|BLACK TEA (Kgs.)
|Coal- C Grade
|Firewood (Cu. Mtr.)
B. TECHNOLOGY ABSORPTION : FORM B :
|1. Specific area
||a. Maintenance and sustenance of soil health and Nutrient Index
||b. Integrated Pest, Disease and Crop Management Research.
||c. Bio-Control Research.
||d. Varietal trial of Coffee, Pepper and Cardamom.
||e. Quality enhancement and good post harvest processing.
||f. Environmental preservation through Surface water Analysis, pesticide residue
analysis, etc. and water conservation.
||g. Bio-remediation and waste management - Recycling of Agro waste, compost,
vermi-compost & Coffee waste water Treatment.
||h. Quality evaluation of estate produce and Agro-inputs used in the estates.
||i. Crop Diversification.
||k. Preparation and review of Standard Operating Procedure for Plantation.
|2. Benefits Derived
||I. Crop Nutrition Research :
||a. Maintenance of Soil fertility through annual soil analysis and leaf diagnostic
analysis and the results are used to formulate optimum fertilizer recommendation and soil
||b. Our fertilizer program is rationalized based on soil nutrient status, which is
optimum and adequate to enhance crop production and productivity.
||c. Monitoring the availability of micronutrients and secondary nutrients to improve
Coffee, Pepper & Cardamom productivity and quality.
||II. Coffee Varietal Trial Experiment :
||Identified location specific high yielding, pest, disease and drought tolerant
selection for planting in our Estates.
||III. Organic Manure :
||?????Waste management and recycling of agro waste through large-scale manufacture of
compost with improved technology to enhance the soil fertility status. Introduction of
Trichoderma and Pleurotus - beneficial fungi, to hasten the process of composting and
Trichoderma to the control soil borne diseases.
||?????Addition of coffee waste water to hasten the process of composting and to
increase the nutritive value. It also reduces the volume of waste water for treatment.
||IV. Bio- control Research :
||a. Disease Control - Pepper Wilt : R & D pioneered and scaled up the
culturing of quality Trichoderma fungus through fermentor, for use in the biological
control of Pepper Wilt and Root diseases of coffee.
||b. Coffee Berry Borer Control: Large-scale installation of Berry Borer trap
(Broca trap) with the use of organic solvents and Culturing of Entomopathogenic fungus
Beauveria bassiana, as a part of Integrated Pest Management.
||c. Coffee White Stem Borer Control: Large-scale installation of Pheromone traps as a
monitoring tool, Lime spray and intensive tracing, as a part of Integrated
Pest Management in endemic area.
||V. Organic farming system :
||Coffee and Pepper cultivation is in compliance with Organic Farming Standards as per
NPOP and NOP US technical standards.
||VI. Crop Diversification: Areca nut planted along the valleys and marginal
areas have established and started giving economical yield. Horticulture crops like
Sapota, Avocado and tree spice Nutmeg are experimented.
||VII. Preparation of Standard Operating Procedure (SOP) and package of practices
based Good Agricultural practices (GAP) and Good Processing Practices (GPP).
||VIII. Training programs on critical cultural operations for estate personnel
and advisory circulars to estates and to our customers on updated current/new trends in
cultivation practices, pest & disease management and post harvest technology.
||IX. Certifications All our cultural operations are validated through
international certifications such as Rainforest Alliance, UTZ, SA 8000 and ISO 22000
|3. Plan of action in-house
||I. Improved crop varieties :
||Field Assessment of location specific high yielding and pest, disease and drought
tolerant selection of Coffee, Pepper and Cardamom.
||II. Crop Diversification :
||To assess the potential of very low yielding coffee areas and to identify other
suitable commercial crops cultivation of Oil Palm, Vanilla and Natural Dye plants
Indigo & Bixa Orellana [Annatto dye plant], Medicinal plants and fruit trees.
||III. Mono Cultivation of Organic Pepper Intensive Pepper
cultivation is in compliance with
||Organic Farming Systems as per NPOP and NOP US technical standards.
||IV. Coffee Effluent Treatment Research :
||Experiments are under way to determine economical waste water treatment through
||V. Crop Nutrition Research:
||Rationalization of Fertilizer application for the future. Experimenting on
identification of potential amino acid stimulants for better absorption of
applied nutrients and use of Silicon dioxide to buildup resistance against pest.
||VI. Water conservation :
||To develop an economically viable technique of recycling of treated waste water for
agricultural use Irrigation.
||VII. Quality enhancement Improved process to preserve the "Inherent
quality" of estate produce, right time of crop harvest based on sugar content
(coffee), improved post harvest drying standards to avoid Mycotoxins.
||VIII. Quality of Surface Water To assess and confirm that our farm
activities are not contaminating the receiving water bodies even though less hazardous
chemicals are used as per WHO standard.
||IX. Apiculture - To enhance production through insect pollination in Coffee and
also to revive the diminishing population of honey bees to preserve the bio-diversity.
||I. Collaboration with Research Institutes :-
|| Central Coffee Research Institute, Balehonnur.
|| Indian Institute of Spices Research, Calicut.
|| College of Forestry Science, University of Agricultural Sciences, Bangalore.
||II. Obtained Rain forest alliance, Utz Certificate for Coffee export to EU, USA
and Japan, EU and NPOP Certificate for Organic produce, and ISO: 22000 Certification for R
& G and Pepper Processing unit at KNW.
||III. Scientific technical guidance to students pursuing higher studies both
International and National universities.
||IV. Our R & D Laboratory is recognised by the Department of Scientific and
Industrial Research, Ministry of Science and Technology.
5) Expenditure on R & D
|(a) Capital Expenditure
||Rs. 47.86 Lakhs
|(c) Total Expenses
|(d) Total as a % of turnover
|6. Technology Absorption:
|1) Efforts made
||As in item B (1) above
||Dificult to quantify
|(3) Technology imported:
|7. Foreign Exchange Earnings and Outgo
|Total Foreign Exchange
||: Rs. 15142.66 Lakhs
||: Rs. 36026.30 Lakhs
||On behalf of the Board
||R.K. KRISHNA KUMAR
|Dated: 24th May, 2013