Karuturi Global Ltd
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BSE Code:
531687
NSE Code:
KGL
Business Profile
Business Profile
Karuturi Networks (KARUTNET) is engaged in the businesses of floriculture, processed foods and information technology. It was incorporated in 1994 and got its present name in 2001.
The company operates through its three business divisions of floriculture, processing foods (gherkins), and information technology (IT). It has rose farms in Bangalore and its subsidiary, Ethiopian Meadows, manages rose farms in Ethiopia. On acquiring Sher Agencies, a large floriculture unit in Kenya, the company would be expanding production capacity from the current 150 million stems to around 650 million stems per annum. The company has a tie-up to produce international grade greenhouse structures for both the domestic and the overseas market with an annual capacity of 24,000 tons of greenhouse material.
The gherkin processing and bottling plant is located in Tumkur. The company has tied up with customers in US, Europe and Russia and bagged a prestigious order worth INR 3,000 million to be executed over a span of five years with dispatches beginning in late 2007. The IT division provides internet services, develops software, and markets niche technology products and services. In 2007, it acquired Estel Communications, a category A broadband internet service provider with pan India presence.
Under the brand name Flower Xpress, the company has 40 retail outlets in and around Bangalore and has planned to expand the network to 300 retail outlets with Pan India presence. With offices in North America, UK, Japan, Singapore, and Australia, It sells its products to boutique manufacturers and supermarkets across 15 countries including Holland, United Kingdom, Germany, Italy, Singapore, Taiwan, Muscat, Dubai, Bahrain, Australia, Japan, Brunei, and New Zealand and across North America. Ethiopian Meadows, Dubai is another subsidiary of the company.
The registered office is located at 95/1, Naranhalli village, Doddabelavangala Doddaballapur, Bangalore-561203.
Financials
On a standalone basis, Karuturi Networks registered a 10.45% growth in net profit to Rs 34.89 million for the quarter ended September 2007 from a profit of Rs 31.59 million for the quarter ended September 2006.
Net sales rose 14.72% to Rs 98.37 million for the quarter ended September 2007 from Rs 85.75 million for the quarter ended September 2006.
Total income was Rs 101.15 million for the quarter ended September 2007.
The earnings per share (EPS) of the company stood at Rs 1.34 for the quarter ended September 2007.
On a consolidated basis, the company registered a profit of Rs 179.49 million for the quarter ended September 2007.
It recorded a net sales of Rs 539.58 million for the quarter.
Total income was Rs 542.82 million for the quarter ended September 2007.
The earnings per share (EPS) of the company stood at Rs 5.4 for the quarter ended September 2007.
Recent Developments
22-OCT-07
Karuturi Networks announced that the company on Oct. 19, 2007 completed all formalities leading to acquisition of infrastructure and management control of Sher Agencies, Kenya.Post this acquisition, the company emerged as the world`s largest producer and exporter of roses. Karuturi Roses are available in Africa, USA, Europe, Middle-East, Far-East Asia, Australia and New Zealand.
Future Plans
It has planned a further expansion of the Ethiopian facility by another 50 hectares and a proposed additional acquisition of 100 acres in Kenya.
In FY`08, the company will commence operations under contract farming to grow exotic vegetables both for the domestic retail chains and global market.
It is presently looking at making its presence felt in the Dubai Flower Centre in order to be well poised to take on the large East European market which is opening up apart from the conventional Middle East market.