Carew keeps shining on distillery profit

Infographic: TBS

Despite suffering heavy losses in its sugar unit, Carew and Company posted record revenue and profit in growths due the profit it made from its distillery unit in FY22, according to the company's latest audit report.

In FY22, Carew and Company reported Tk429.36 crore revenue – a 36% growth, and Tk49.17 crore profit – a 236% growth compared to the previous fiscal year, which were record high in its history. 

Carew's distillery unit made Tk368.51 crore revenue and Tk113.90 crore profit – a record – in FY22. In the previous fiscal year, revenue from distillery was Tk267.18 crore, and profit was Tk89 crore.

Meanwhile, its sugar unit posted Tk52.29 crore revenue and incurred Tk61.33 crore losses in FY22. In the previous fiscal year its revenue was Tk36.8 crore and net losses was Tk70.82 crore.

In the July-December period of the current fiscal year, the state-owned liquor manufacturer's revenue increased by 21% to Tk232.96 crore, 90% of which came from the distillery unit.

Carew's liquor sales started increasing significantly since 2021, as the National Board of Revenue (NBR) imposed some restrictions to import alcohol to curb tax evasion.

Carew and Co, currently has six units – sugar, distillery, pharmaceuticals, commercial farm, Akandabaria Farm (experimental), and bio-fertiliser. Among them, the distillery, pharmaceuticals and the organic fertiliser units are profitable.

Concern over raw materials supply

Carew is currently not facing any raw materials crisis at present, but if the growing demand of liquor continue, it will face a raw materials crisis at the end of this year,s said relevant sources.

Currently, Carew and Company needs around 20,000 tonnes raw materials annually for producing alcohol. It gets its supply of raw materials from the state-owned sugar mills.

Now, the Bangladesh Sugar and Food Industries Corporation (BSFIC) owns 15 sugar mills including Carew and Company, but in 2020, owing to heavy losses, the government shut down six sugar mills. 

Saiful Islam, general manager (finance) of the company, said, "Usually Carew and Company managed raw materials from its own and nearby sugar mills. But to meet the growing demand, currently it is collecting raw materials from all the sugar mills under the BSFIC."

Taking into consideration the crisis in future officials said, the BSFIC and Carew are trying to increase sugar cane cultivation, which declined significantly owing to lower price than the cultivation.

As well as the corporation thinks to increase sugar cane price, and inspiring farmers to cultivate high productivity sugar cane. 

Md Fida Hasan, in charge of the distillery unit, said "Currently, the sugarcane crushing is going on. There is no problem of raw materials at now. But, by the end of this year there may be a crisis if the growing demand continues."

He said farmers have reduced cultivating sugarcane due to the lower prices. At preset, one maund sugarcane costs Tk180.

"As a result, to increase cultivation, it has been proposed to increase the price. The government is also in favour of raising sugarcane prices, a decision on this may be come soon," he added.