Assam company sets ambitious target in diversifying business

Kolkata, Oct 10 (UNI) Assam Company Limited, one of the oldest tea plantation companies, which has off late diversified into the oil and natural gas exploration and infrastructural development business plans to invest more than 120 million dollars in next three years to further broadbase its activities.

Speaking to newsmen here today about the future goals of the Rs 175 crore company, ACL Chief Financial Officer Abhay Chowdhury said in order to increase their domestic market share in the tea business they had decided to launch Jumbo and Cheetah branded packet tea by next month in seven selected states including West Bengal, Himachal Pradesh, Madhya Pradesh, Punjab and Andhra Pradesh simultaneously.

To be available at Rs 130 a kg and Rs 120 a kg and in 250 grams, 500 grams and one kg each in packets both the brands would also be tried for the company's fast expanding export market, Mr Chowdhury said adding that to begin with the they had targetted to market at least 150,000 kgs per month.

He said following the injection of Rs 22 crores into the company from internal resources, ACL had targetted to increase its annual production target from the present 16 milliion kgs to 26 million kgs by March 2008.

In terms of exports and following the introduction of two more premium brands of tea-Assam Gold and First Class-the volume of ACL's export would cross the six million kg mark by next year from the present about two million kgs per annum. In terms of value it would be to the tune of about Rs 70 crores from Rs 32 crores last year to Russian and several CIS countries in the region, Mr Chowdhury said.

Speaking about ACL's foray into the oil and natural gas business in upper Assam, where the company was presently operating through three wells, which altogether produce about 250 barrels a day generating daily revenue of more than Rs 200,000, Mr Chowdhury said recently. They had bid for two oil blocks covering about 1,000 square km area in Assam Arakan basin.

''We have bid for the two well since the Assam Arakan basin is believed to have about 40 per cent reserve of the country's total reserve of oil, Mr Chowdhury said adding that they had also received licenses from the Nagaland government seeking another exploration block measuring nealry 320 square km.

Regarding investment in the huge projects, Mr Chowdury said it was to the tune of about 100 million dollars within the next three years since the prospect of return in the project was more than a billion dollars before the end of the decade.

''We are also in the infrastructural development business and recently tied-up with a major Italian Company and bid for the several Metro rail projects and major real estate business at thenational and international levels,'' Mr Chowdhury informed.

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