Assam Company Limited
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BSE Code:
500024
NSE Code:
ASSAMCO
Business Profile
Business Profile
Assam Company (ASSAMCO) is engaged in the cultivation, manufacture and sale of tea, and oil and gas exploration. Founded in 1839, the company was incorporated on Mar. 15, 1977 and got its current name on Dec. 4, 1989. The promoters of the company are K.K. Jajodia (chairman) and Aditya K. Jajodia (Vice Chairman). Abhay Chawdhry is the director of finance and CFO.
The first company in the world to establish tea gardens, it has 16 factories, 19 tea estates and gardens spread over 12,000 hectares. It manufactures around 15 million kg tea with 95% of its operations through B2B route. The company also sells packed tea under brands like Regular, Jumbo, Premium and tea bags under the umbrella Assam Gold. It has a large export market in Europe. The company has diversified into oil, gas and hydrocarbons.
Subsidiaries include Namburnadi Tea Company, Camellia Cha Bar, Assam Oil and Gas, North East Hydro Carbon, and Duncan Macneil Natural Resources. Assam Oil & Natural Gas discovers oil fields and works closely with Canoro Resources. The company has signed an MoU with Gujarat State Petroleum Corporation for the development of SEZ hydrocarbon park costing Rs 20 billion and to be operational by January 2010. The company formed Austin Exploration in a joint venture with Austin-based DMS Exploration for exploration help. The company has been able to unlock oil at the Laxmijan oil field and has successfully completed testing operations of the Amguri 10B well recently.
Assam Company has ventured into oil and gas exploration in Australia. It is in negotiations with Libya for undertaking oil and gas exploration concessions and looking for ventures in Sudan, Myanmar, Kazakistan and some other central Asian countries.
The registered office is at Greenwood Tea Estate, PO Dibrugarh, Assam and corporate office is at Assam Tea House, 52, Chowringhee Road, Kolkata-700071.
Financials
Assam Company registered a steep drop of 25.44% in net profit of Rs 97.49 million for the quarter ended June 2007 from a profit of Rs 130.76 million for the quarter ended June 2006.
Net sales declined 12.5% to Rs 217.56 million for the quarter ended June 2007 from Rs 248.64 million for the quarter ended June 2006.
Total income rose 2.13% to Rs 258.76 million for the quarter ended June 2007 from Rs 253.36 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 0.44 for the quarter ended June 2007.
Recent Developments
04-AUG-07
The shareholders authorized the board to raise USD 200 million through international offerings. It also gave approval to offer/issue/allot 18,000,000 share warrants of face value Re 1 for subscription on preferential basis to resident investors and 140,000,000 share warrants of face value Re 1 for subscription on preferential basis to non-resident investors.
01-AUG-07
The company has successfully completed testing operations of the Amguri 10B well. The upper portion of the zone was perforated to determine the hydrocarbon potential of the zone. The flow from the total completion interval confirmed the presence of a gas-condensate reservoir throughout the entire zone of 32 meters. New production from Amguri 10B is expected to be on stream during the fourth quarter generating increased cash flow and production to the company.
21-JUN-07
The company had been awarded Laxmijan Field in April 2004 which was a discovered field by ONGC. Now, the company has been able to unlock the oil. Three promising zones between 3,100 m and 3,520 meters have been identified to hold potential oil and gas. The well has established the commercial flow of oil and gas.
25-JAN-07
Assam Company has inked an memorandum of understanding (MoU) with Gujarat State Petroleum Corporation (GSPC). The MoU was signed for the development of SEZ (special economic zone) hydrocarbon park. The project is likely to cost around Rs 20 billion. The special economic zone is likely to be made operational by January 2010 and this joint venture would be through the SPV (special purpose vehicle) route.
Future Plans
ACL plans to invest around Rs 4,500 million in the next 3-4 years for the development of oil blocks.