Contents Contents Introduction Tea Oil & Gas Infrastructure - - PowerPoint PPT Presentation

Contents

Financials

Introduction

Oil & Gas Tea Conclusion Infrastructure

Contents

3

Introduction

Assam Company India Limited (Assam Co.) - Over the years

γ

Assam Co. is currently engaged in Tea, Oil & Gas and Infrastructure businesses.

γ

First Company to establish Tea Estates, brand Premium Tea, Export, establish Tea Seed Estates, Organic Tea Farm and transact Electronic Tea sales.

γ

Oil was first discovered in India by Assam Railway & Trading Company, an associate company of erstwhile Assam Co.

γ

Building SEZs in Hydrocarbon & Power Sector in a area spanning

• ver 1000 acres in the state of Gujarat.

γ

Professional and experienced management engaged across all segments.

Assam Co.

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 under consortium with various partners in the lucrative Assam-Arakan basin Amguri, AA-ON/7 & AA-ONN/2005/1 in partnership with Canoro Resources Limited, ONGC & OIL. Overseas Presence 17% stake in Austin Exploration Limited, Australia JV with DMS Exploration Services, LLC, USA with exploration interests in Australia and United States. Developing Hydrocarbon & Power sector specific SEZs in an area of

• ver 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

• ver 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 Company India 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 East Hydrocarbon Ltd (100%) Austin Exploration Limited (17%)

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China 29% India 25% Sri Lanka 8% Kenya 9% Others 29%

Tea – Sector Perspective

γ Declining production levels over the last

few years due to rain shortfall in Assam, Sri Lanka and Kenya. Global Shortage of Tea is likely in 2010

γ Domestic Per capita consumption is

expected to grow at 3% - 3.5% annually. The increase in the domestic consumption is expected to further widen the demand- supply gap leading to firm Tea prices

γ Assam has witnessed less rainfall in

January 2010 and it might impact the production of the high quality Tea in February – March 2010

Black Tea Demand and Production in India (in Million Kgs) Percentage of total Tea production

933 946 999 982 1023 893 927 956 945 981

800 850 900 950 1000 1050

2004 2005 2006 2007 2008 Demand Production

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Tea – Company Overview

γ

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 in Assam

γ

One of the most reliable Tea exporters in India and exports about 17%

• f its total production to major markets like Europe, Russia & Middle

East

γ

Reliability in terms of quality and commitment to on-time performance

• ver the years have associated Assam with various esteemed clients

– The Company’s client portfolio includes name as – R. Twinings,

Taylors of Harrogate, Tetley GB Ltd, Gebrender Hollenhampt (GMBH) and Ahmad Tea Ltd.

γ

Recognized for its quality of Tea, stringent operational norms and premium welfare of human resources

γ

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 Kgs Domestic Sales quantity: 116 Lac Kgs

γ

Current year realization over Rs 150 per kg

– trend likely to remain firm in foreseeable future

γ

Optimal mix of exports and domestic sales & auctions to maximize realization

γ

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

γ Strategic acquisition of available Tea factories to enhance production levels at minimum cost

– Look-out for acquisition of domestic / international Tea plantations

γ Improvement in process through in-house R&D facilities – Attempts to implement a 12-month

production cycle as opposed to the current 9-month production cycle Yield Improvement

γ Plantation of new clones in vacant patches in hectares under cultivation to improve yield per hectare γ Re-plantation of field with selection of highest quality clones and most advanced available technology

to improve productivity.

γ Constant endeavor to improve productivity without compromising quality – Better age profile of bushes

by re-plantation and usage of high quality agri-inputs (EU / International norms) Quality Management

γ Implement agreed utilization of pesticides & other fertilizers for quality assurance – Follows EU /

International norms

γ Pursue conventionally most proven processes to produce superior quality of tea

Market Development

γ Direct Exports to discerning international markets γ Strong relationships with global bidders and tea marketers

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Oil & Gas – Overview

γ

Upstream presence in Oil & Gas through participating interest in various blocks.

–

3 major blocks namely Amguri, AA-ON/7 & AA-ONN/2005/1 located in the state of Assam, India

γ

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)

γ

17% Shareholding in Austin Exploration Limited (AEL)

–

AEL operates in 5 E&P Prospects in Texas, U.S.A. and 2 E&P Prospects in South Australia

γ

Gas based power plant prospects to be materialized

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Oil & Gas – Blocks

Amguri Block

Production sharing contract with Canoro 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:

γ

The consortium gets premium US$ 4-5 per barrel over Bonny Light Crude due to its superior quality of the oil

γ

5 Appraisal wells drilled, 3 wells under production and high success rate

γ

3 producers of Oil & Gas and 1 producer of Gas producing 500 BOE/ D & 1.5 MCM

γ

Appraisal drilling in progress on the results of 3D seismic

γ

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:

γ

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, awaiting PEL from the Assam Government.

High Low Best Oil 98 mmbbl 35 mmbbl 80 mmbbl Gas 897 bcf 121 bcf 617 bcf

Production Sharing Contracts

AA – ON / 7 AA-ONN/2005/1

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Infrastructure

γ

Developing Hydrocarbon & Power sector specific SEZs in over 1000 acres in Vilayat, Near Dahej, in the state of Gujarat, India

γ

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:

γ

Physical possession of around 700 acres of land had been taken. Rest of the land is under acquisition and same will be completed soon.

γ

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.

γ

Currently negotiating terms with various large Multi National Companies for an Anchor Tenant.

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Key Financials

1,388 1,532 1,740 1,939 1,350 500 1000 1500 2000 CY 2005 CY 2006 CY 2007 CY 2008 CY 9M 2009

All figures in Rs. million

Net Sales

100 114 153 270 276 70 140 210 280 CY 2005 CY 2006 CY 2007 CY 2008 CY 9M 2009

EBIDTA

34 75 86 102 183 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

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.com parveen@cdr-india.com