Financial Daily from THE HINDU group of publications
Thursday, Aug 04, 2005
Financial Daily from THE HINDU group of publications Thursday, Aug 04, 2005 |
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Corporate
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Diversification Assam Co plans pharma foray Nithya Subramanian
New Delhi , Aug 3 ASSAM Company Ltd, which is demerging its tea and oil and natural gas business, is planning to enter the pharmaceuticals and biotech space. The company is planning to enter into bulk drug supply agreements with pharmaceutical companies. Speaking to Business Line, Mr Krishna K Jajodia, Chairman, said: "After establishing our expertise in tea cultivation, we are expanding into herbal and medicinal plant cultivation." The company hopes to bring about 200 hectares under this cultivation. "We are in talks with some of the leading pharma companies and hope to finalise something soon. While we will provide the bulk ingredient, the companies would manufacture the formulations," said Mr Jajodia, without disclosing the names of potential partners. The company is in the process of appointing an advisor. Mar Jajodia also said that the company was planning to leverage the strong brand name enjoyed by its tea, which is sold at various international retail chains."We feel that Assam would offer the right climatic conditions for cultivation of these plants. The company already has expertise in growing organic tea." The new medicinal and herbal bulk drug business would be consolidated under the tea company. Mr Jajodia said that the decision to vertically split the parent company was aimed at helping these businesses have focused growth plans. The newly created oil and gas entity would be listed once the demerger process is completed. On the oil and gas business, Mr Jajodia said that the company currently has five exploration blocks in India and is looking at international opportunities in countries such as Kazakhstan, Syria, Libya, and Yemen. The expansion could cost the company as much as Rs 900 crore, which could be raised through a mixture of internal accruals and raising fresh capital.
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