The net sales, however, doubled to Rs 8.27 crore this quarter as compared to Rs 4.89 crore in the same quarter for the previous year. Other income also increased to Rs 15 lakh this quarter as compared to the same quarter last year. For the half year ended September 30, 1999, the company recorded losses to the tune of Rs 5.38 crore as compared to Rs. 4.73 crore for the corresponding period the previous year.

Chairperson of the company Anuradha Desai attributed the company performance to the depression in the international egg powder markets. Though the company has executed more orders, compared to the last quarter, the prices are not remunerative and therefore despite increase in sales, losses could not be contained, she said. The interest costs have also come down as a result of financial restructuring undertaken by the company with the help of and infusion of funds by Venkateshwara Hatcheries. The board of directors of the company and VHL have approved subject to the consent of the shareholders and creditors the proposal to merge the company with VHL. The proposal envisages issue of two redeemable preference shares of Rs 10 each of VHL for every 10 equity shares of Rs 10 each held in Balaji Foods and Feeds Limited. The EGM of the company has been convened on October 30, 1999 to consider and approve the proposal.