Indian Equity Research and Investment Strategy
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.
Gamma Infoway Exalt in a fax message has informed us that the company has ventured into IT – systems and network integration sector. The company also provides higher-end network training program all over India with more than 25 centers. Expected annual income from franchisee for first year is Rs 10,04,40,000. Annual revenue generated from systems & network integration for financial year 2008-09 is Rs 26,40,00,000. Total revenue generated for financial yrear 2009-09 expected to be Rs 36,44,40,000. In the year 2008 the company also plans to launch banking call centre. The company is already under talks with major financial & banking institutions.