India Stocks and Shares Research

Moser Baer - Roadmap

Saturday, September 20, 2008

The management of Moser Baer India is looking at the business as a "chain of value propositions" - attempt is to move from licensee of technologies to creator/developer of IP. The various businesses company is focused on are Optical media, Photovoltaic (PV) Cells, Home entertainment, and Consumer electronics / IT peripherals.

PV Business + Funding:
Moser indicated that Si-based PV should ramp up from 80MW to 180MW by end of year; Thin film based PV should ramp up from 40MW to ~600MW over the next couple of years. There will be small quantum of concentrator-based capacity as well. The total capex for PV is ~$2b out of which $600m will be complete by end of FY09. Mosers PV subsidiary recent raised Rs4.1b from global investors which is a big positive.

Optical Media:
Inventory Levels are down. There is some progress on licensing issues between Philips and Moser's competitors. Festive season demand is not showing signs of weakness. Blu-ray format is ramping up; should be at ~200m run rate by end of next year.

Home Entertainment:
Home entertainment business is already cash positive. The business has been hived off in a subsidiary and management will look at monetizing at appropriate time. Moser does not plan to make big investments in the movie production business.