Indian Equity Research and Investment Strategy
The board of Triton Corp has approved the splitting of the face value of the equity shares of the company from Rs 2 per share to Re 1 per share. It was decided to convene an extra ordinary general meeting of the members of the company on 04 February 2008 to obtain the approval of shareholders for the said splitting of equity shares of the company.
Further, the board has also approved investment upto 51% stake in Sapphire Global, a company based in U.K.
JCT has announced that Dakshidin Corporation producers of the worlds most powerful water pumping windmill, and the company jointly announce that they have signed a memorandum of understanding for distribution and manufacturing capabilities of Dakshidin’s RESTEC windmills in India.
The company has a strong position and efficient distribution within India and abroad. In addition to the distribution of Restec’s windmills, the project aims to eventually manufacture the products as well.
Sagar Cements Limited (SCL) is a Andhra based cement manufacturer in India. SCL is well on track to shed its status of a mini plant due to the huge capacity expansion planned, which could be in place before end of FY08. SCL would incur the lowest average capital cost per tonne as compared to its peers. It would incur about Rs. 1,430 per tonne on its new kiln as compared to the average capital cost of Rs. 1,600-2,300 per tonne. Private Equity player Blackstone Ventures has bought 7% stake in the company in March 2007.
SCL has a well-established network in the South, especially in Andhra Pradesh. It does its business through a wide network of 25 wholesalers and 575 dealers. (more…)
Royal Orchid Hotels Ltd, ROHL acquired Multi Hotels, Tanzania, which owns 30 acres of prime beachfront land worth $2 Mn. The company would further spend $25 Mn (to be funded 60% thru equity) to build a 200-room resort (EV/room ~ Rs 5Mn). The project is expected to commence work in next 4 months and then require 20 months for completion. The debt/equity is a meager 0.16 (FY07) and hence the expansion would impact debt equity only marginally.
ROHL through its subsidiary M/s Icon Hospitality Pvt Ltd, acquired Royal Orchid Central (earlier only managed) for a consideration of Rs 820 Mn (EV/Room ~ Rs 6.3Mn). The hotel is in the heart of Bangalore and is clocking ARRs of Rs 5,500.
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Aban Offshore just a while ago told us that subsidiary of the company has entered into a contract with Chevron Offshore (Thailand) for provision of the jack-up drilling rig, deep driller 2. The contract with Chevron will be for an estimated duration between 5 and 7 months for drilling operations offshore Thailand. This contract will commence around end of December 2007. The contract value is approximately US $ 28 million to US $ 40 million.
Satyam Computer Services has informed us that the company will be setting up a Process Manufacturing Innovation Center of Excellence (PROMICE) at Hyderabad to help process manufacturing companies fully exploit advances in information technology – especially in the areas of product & process innovation – to achieve new levels of sustainable competitive advantage.
The Hyderabad PROMICE will feature latest technology infrastructure and highly qualified technology & domain experts. It will have virtually simulated factories for each of major 10 process industry verticals viz. metals & mining, building materials pulp & paper, textiles, food & beverages, leather, plastics, rubber, chemicals, and pharmaceuticals.
The company’s process manufacturing innovation center of excellence will create solutions and intellectual property through a new facility to be set in Hyderabad. This will provide exceptional business value to its global customers, while enhancing the organization’s competency in its process manufacturing business unit. Hyderabad provides a perfect setting for industry and institutes to come forward to collaboratively develop IT-based solutions for the process manufacturing industry.