Assam Co Plans Merger Of Six Arms
The Jajodia-controlled Assam Company is contemplating a merger of about six of its subsidiaries, in the non-tea areas, with itself.
Shiv N Srivastava, joint managing director (diversification), said, "Since our major emphasis will be on core competency - tea and tea related activities, merger of the arms in non-tea areas will eventually be the only option".
Srivastava, however, did not specify which of the subsidiaries would be merged.
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The companys eight arms are Assam Agro Hi-Tech, Metropolitan Abasan, Lord Inchcape Financial Services, Assam Gold Foods, Duncan Macneill Housing Complex, Duncan Macneill Infrastr-ucture , Assam Estates and Duncan Macneill Telecom .
Barring Assam Gold, which is in the packet tea business and Assam Agro, engaged in research work, the remaining subsidiaries are likely to be merged.
As for its infrastructure development business, three projects in Andhra Pradesh have been put on hold since the company is awaiting the necessary clearance from the government.
To secure its investments, Assam Company has filed a writ petition in the Andhra Pradesh High Court.
It has posted a substantial improvement in its performance in 1997.
Turnover is expected to be around Rs 118 crore against Rs 109 crore last year.
"This has been possible only because of a substantial increase in tea prices both in export and domestic markets", said D L Thapar, director, tea.
"Profitability through cost cutting has been most successful", said Thapar.
The company would continue to monitor its costs. The company's annual crop was 15 million kg.
According to D L Thapar the buoyancy in tea prices is assured till August 1998.