ACIL Presentation

8/8/2019 ACIL Presentation

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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: [email protected]

Anoop Poojari / Parveen Goyal

Citigate Dewe Rogerson

Phone: +91 4007 5006 / 31

Email: [email protected]@cdr-india.com

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