Post on 29-May-2018
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Contents
Financials
Introduction
Oil & Gas
Tea
Conclusion
Infrastructure
Contents
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Introduction
Assam Company India Limited (Assam Co.) - Over the years
Assam Co. is currently engaged in Tea, Oil & Gas and Infrastructurebusinesses.
First Company to establish Tea Estates, brand Premium Tea,Export, establish Tea Seed Estates, Organic Tea Farm and transactElectronic Tea sales.
Oil was first discovered in India by Assam Railway & TradingCompany, an associate company of erstwhile Assam Co.
Building SEZs in Hydrocarbon & Power Sector in a area spanning
over 1000 acres in the state of Gujarat.
Professional and experienced management engaged across allsegments.
AssamCo.
1839
Founded as a first Tea
Company in the world
1892
Associate Company discovers
Oil in the North East India
[year]
Ventures to build up a SEZ in
Gujarat
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Company Background
Domestic Presence
Participating Interest in 3 Assets underconsortium with various partners in thelucrative Assam-Arakan basin
Amguri, AA-ON/7 & AA-ONN/2005/1 inpartnership with Canoro ResourcesLimited, ONGC & OIL.
Overseas Presence
17% stake in Austin Exploration Limited,
Australia
JV with DMS Exploration Services, LLC,USA with exploration interests inAustralia and United States.
Developing Hydrocarbon & Power
sector specific SEZs in an area of
over 1000 acres in the State of
Gujarat
18 Tea Estates are being monitored
by 15 factories with a total of over
14000 hectares with cultivation in
over 8600 hectares.
Over 15 mn kgs of Quality Tea
produced in year 2009
In-house production and R&D
Division currently in process of
extending the production cycle
Oil & Gas Tea
Infrastructure
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Corporate Structure
Assam CompanyIndia Limited
Tea Oil & Gas Infrastructure
Camellia Cha Bar Ltd
(100%)
Assam Estates Ltd (100%)
Namburnadi Tea
Company Ltd (92.98%)
Assam Oil
& Gas Ltd (100%)
Gujarat Hydrocarbons
and Power SEZ Limited
Duncan Macneill
Natural Resources Ltd
(100%)
North EastHydrocarbon Ltd (100%)
Austin Exploration
Limited (17%)
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China
29%
India
25%Sri Lanka
8%
Kenya
9%
Others
29%
Tea Sector Perspective
Declining production levels over the lastfew years due to rain shortfall in Assam,Sri Lanka and Kenya. Global Shortage ofTea is likely in 2010
Domestic Per capita consumption isexpected to grow at 3% - 3.5% annually.The increase in the domestic consumptionis expected to further widen the demand-supply gap leading to firm Tea prices
Assam has witnessed less rainfall in
January 2010 and it might impact theproduction of the high quality Tea inFebruary March 2010
Black Tea Demand and Production in India (in Million Kgs)
Percentage of total Tea production
933946
999982
1023
893
927
956945
981
800
850
900
950
1000
1050
2004 2005 2006 2007 2008
Dem and Production
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Tea Company Overview
Pioneer in producing quality Tea for almost two centuries First to produce Tea in the world, today it has over 14000 hectares
(over 8600 hectares under cultivation) under 18 Tea Estates inAssam
One of the most reliable Tea exporters in India and exports about 17%of its total production to major markets like Europe, Russia & MiddleEast
Reliability in terms of quality and commitment to on-time performanceover the years have associated Assam with various esteemed clients
The Companys client portfolio includes name as R. Twinings,Taylors of Harrogate, Tetley GB Ltd, Gebrender Hollenhampt(GMBH) and Ahmad Tea Ltd.
Recognized for its quality of Tea, stringent operational norms andpremium welfare of human resources
Supplier of choices to almost all the major Tea blenders in the country
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Tea Operational Details
Key Figures (2009)
Total Production: 15 Million Kgs
Gross Margin on Tea sales: 37%
Average selling price: Rs 133 per kg
(domestic & export market)
Export Sales quantity: 39 Lac KgsDomestic Sales quantity: 116 Lac Kgs
Current year realization over Rs 150 per kg
trend likely to remain firm in foreseeable future
Optimal mix of exports and domestic sales & auctions to maximize realization
Sales mix varies Year to Year depending on the market situation
Destination wise break up of exports
(01.01.09 to 31.12.09)
Country L/Kgs Value (Lac Rs)
GERMANY 0.81 213.22
NETHERLANDS 1.1 315.03
UNITED KINGDOM 17.15 2616.59
UNITED STATES OF
AMERICA 1.41 172.57
JAPAN 0.01 2.4
IRAN 11.27 1987.05
SAUDI ARABIA 1.2 178.2
SRI LANKA 5.85 865.73
Total 38.79 6350.79
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Tea Strategy
Production Increase
Strategic acquisition of available Tea factories to enhance production levels at minimum cost
Look-out for acquisition of domestic / international Tea plantations
Improvement in process through in-house R&D facilities Attempts to implement a 12-monthproduction cycle as opposed to the current 9-month production cycle
Yield Improvement
Plantation of new clones in vacant patches in hectares under cultivation to improve yield per hectare
Re-plantation of field with selection of highest quality clones and most advanced available technologyto improve productivity.
Constant endeavor to improve productivity without compromising quality Better age profile of bushesby re-plantation and usage of high quality agri-inputs (EU / International norms)
Quality Management
Implement agreed utilization of pesticides & other fertilizers for quality assurance Follows EU /International norms
Pursue conventionally most proven processes to produce superior quality of tea
Market Development
Direct Exports to discerning international markets
Strong relationships with global bidders and tea marketers
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Oil & Gas Overview
Upstream presence in Oil & Gas throughparticipating interest in various blocks.
3 major blocks namely Amguri, AA-ON/7& AA-ONN/2005/1 located in the state ofAssam, India
Strong partnership with pioneers of Oil & Gas
Canoro Resources Limited, Canada(listed on Toronto Stock Exchange) Oil & Natural Gas Corporation Limited
(ONGC)
Oil India Limited (OIL)
17% Shareholding in Austin ExplorationLimited (AEL)
AEL operates in 5 E&P Prospects in Texas,U.S.A. and 2 E&P Prospects in SouthAustralia
Gas based power plant prospects to bematerialized
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Oil & Gas Blocks
Amguri BlockProduction sharing contract withCanoro Resources Limited, Canada
Assam Co. 40%
Canoro Resources Ltd 60%
Resource Estimates as per Sproule Report (2P)Area: 52.75 sq. km (approx)
Current Status: The consortium gets premium US$ 4-5 per barrel over Bonny Light Crude due to its
superior quality of the oil
5 Appraisal wells drilled, 3 wells under production and high success rate
3 producers of Oil & Gas and 1 producer of Gas producing 500 BOE/ D & 1.5 MCM
Appraisal drilling in progress on the results of 3D seismic
Gas Re-injection Plant is currently under implementation; process completion is
expected by June 2010; following which production is likely to enhance significantly
Future Plan:
10 more wells are being firmed up during next three years and of which 2 appraisal
wells are being planned in 2010-11 and first part of 2011-12
High Low Best
Oil 80 mmbbl 20 mmbbl 46 mmbbl
Gas 237 bcf 107 bcf 167 bcf
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Oil & Gas Blocks
Assam Co. 35%
Canoro Resources Limited 65%
Resource Estimates as per Sproule Report (2P):
Area: 319 sq. kms
Current Status:
Considering drilling work programme, a separate
Rig has been deployed by the Consortium.
Assam Co. 10%
ONGC 60% & Oil India Limited 30%
Resources:
To be ascertained
Current Status:Exploration work is to start, awaitingPEL from the Assam Government.
High Low Best
Oil 98 mmbbl 35 mmbbl 80 mmbblGas 897 bcf 121 bcf 617 bcf
Production Sharing Contracts
AA ON / 7 AA-ONN/2005/1
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Infrastructure
Developing Hydrocarbon & Power sector specific SEZs in over 1000acres in Vilayat, Near Dahej, in the state of Gujarat, India
Formed a 100 % owned SPV (Special Purpose Vehicle) by the name of
Gujarat Hydrocarbons and Power SEZ Limited (GHPSL), formerly
known as Gujarat Hydrocarbon & Energy SEZ Ltd
Current Status:
Physical possession of around 700 acres of land had been taken. Rest of the land is
under acquisition and same will be completed soon.
Considering the option for setting up a dedicated jetty in Dahej to cater the need of
proposed unit in the SEZ. The Company has approached authorities in Gujarat to
allocate the site for the jetty in Dahej.
Currently negotiating terms with various large Multi National Companies for an Anchor
Tenant.
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Key Financials
1,3881,532
1,7401,939
1,350
0
500
1000
1500
2000
CY 2005 CY 2006 CY 2007 CY 2008 CY 9M
2009
All figures in Rs. million
Net Sales
100114
153
270 276
0
70
140
210
280
CY 2005 CY 2006 CY 2007 CY 2008 CY 9M
2009
EBIDTA
34
7586
102
183
0
50
100
150
200
CY 2005 CY 2006 CY 2007 CY 2008 CY 9M
2009
Profit After Tax
CAGR (5 years)
Net Sales Over 10%
PAT Over 48%
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Conclusion
Extremely well placed to
further enhance its position in
the Tea segment
Tea
Oil & Gas
Infrastructure
Continued
Cash flows & growth
Strong
Scalability & Rewards
Significant
Asset Value & Annuity Returns
Oil & Gas exploration is
expected to soon yield rich
dividends
Infrastructure section is likely to
witness considerable momentum
in CY2010
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For further information / queries, please contact:
Sumit Kumar Khetan
Assam Company India Limited
Phone: +91 33 2283 8306/ 09/ 12
Email: sumit@assamco.com
Anoop Poojari / Parveen Goyal
Citigate Dewe Rogerson
Phone: +91 4007 5006 / 31
Email: anoop@cdr-india.comparveen@cdr-india.com