Tedco to demerge

Though the country is currently reeling from a shortage of foreign currency, one retail and manufacturing group, Tedco, says its export order book currently exceeds its available plant capacity.

Exports contributed 67 percent of its total lounge output for the 12 months ended September, the company says.

The company, whose financial year ended in September, has decided to change its year-end to December and will be changing its name to Nyore Nyore, its flagship brand name.

It is also planning to separate its retail and manufacturing businesses so that each stands alone.

It says after the demerger, it will focus on the retail of clothing, furniture and electrical goods.

The manufacturing arm will continue to invest in new capacity. This sector is expected to grow by at least 15 percent in output, mainly driven by exports.

Turnover for the 12 months to September increased by 497 percent from $4.1 billion to $24.5 billion. Operating profit soared from $1.4 billion to $10.4 billion while net profit shot up from $1 billion to $8.2 billion.

The company says the manufacturing business has now overtaken the retail business as the largest business unit.

The manufacturing division had a fantastic year, and for the first time contributed more to the group income than the retail division. Unit production was up by 6 percent.

The company says the investment in M & L is yielding positive results and so was the acquisition of Modfur and the introduction of Conpari, an Export Processing Zone company.

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