Assam Co plans investment in oil & gas, tea

Tea maker Assam Co Ltd. plans to invest 4.3 billion rupees over three years in oil and gas and tea sectors, a senior official said on Wednesday.

The company is eyeing 3 billion rupees in revenue in 2008, up from 1.7 billion rupees in 2007, on higher oil production, chief financial officer Abhay Chawdhry told Reuters in an interview.

It hopes to complete digging 35-40 wells at its oil and gas blocks in Assam by 2010, and increase oil production to 35,000 barrels per day, from 1,000 barrels per day now.

The company is working in six blocks in the northeastern state. "Major part of the investments will go into development of oil blocks, that will boost our revenues," he said.

It plans to invest 400 million rupees for replanting tea bushes and development of processing units at its estates in Assam, Chawdhry said.

It has 19 tea estates and 16 processing units. The gardens produced 16 million kilograms of black tea in 2006.

The firm is re-introducing packet tea brands and plans to open more tea bars, which serve a variety of teas and tea-based drinks.

It plans to set up 100 tea bars in 2-3 years, from nine now, to capture the market for the ancient brew in India, the world's largest producer and consumer of tea.

"We hope tea industry will capitalise on firm international prices and increasing orthodox production," he said.

It also plans to increase orthodox tea production to 5 million kilograms in three years from 1.6 million kilograms now.

NEW VENTURE

The company, which recently forayed into the infrastructure sector, plans to develop a special economic zone for products and services for the energy sector in Gujarat.

It is forming a joint venture with state-run Gujarat State Petroleum Corporation Ltd for the SEZ, estimated to cost about 20 billion rupees.

The company's shares ended 4.89 percent lower at 33.10 rupees in the Mumbai market.