The Heritage Foods, promoted by the family of Telugu Desam Party president and former Andhra Pradesh chief minister N Chandrababu Naidu, has plunged into heavy losses.
According to a latest business report, Herigate suffered a huge loss of 77 per cent in its net profits by the end of second quarter ending September 30, compared to the previous year.
Last year, at the end of September, Heritage recorded a net profit of Rs 10.69 crore. This year, the profit has come down drastically to Rs 2.47 crore, which is a fall of 77 per cent. The company’s turnover has also come down from Rs 823 crore to around Rs 630 crore.
In fact, Heritage started suffering losses ever since the TDP lost power to YSR Congress party in May 2019.
Going by the reports, the company recorded a net profit of Rs 21.53 crore as on March 2019, but in the next one year, it posted posted a net loss of Rs 209.21 crore in the quarter ended March 2020.
This has led to the talk as to whether there is any connection between Heritage Foods’ fiancials and the TDP regime.
“When Naidu was in power, Heritage had earned crores of rupees as profits. Now that he is out of power, the company is suffering heavy losses. What is this secret behind Heritage?” commented YSR Congress party general secretary V Vijay Sai Reddy on Twitter.
He sought to know whether Naidu had started Heritage Foods only to convert his ill-gotten money into white. He alleged that the TDP chief had destroyed co-operative dairies being run by farmers for his selfish business interests.
“He ruined the lives of farmers,” Sai Reddy criticized.