IFB AGRO ( IMFL STOCK AVAILABLE AT 6.P.E) BUY

Belonging to IFB Group, IFB Agro is engaged in the production of Extra Neutral Alcohol (Rectified Spirit), IMFL and Marine Products. It boasts of having very successful and leading brands like Volga Vodka, Gold Cup Brandy, Blue Lagoon Gin & IFB Select Whisky under the IMFL segment. Company is also a pioneer in 50* UP category with bestselling brands like Baluba Rum, 3 Cheers Whisky & Russki Vodka. On the other hand its marine division, last year, launched its first ready to fry product "PRAWN POPS" and has plan to introduce more such products in the ready to cook and ready to eat segment. Infact its marine division is poised to become an integrated business and serve all the inputs from the farm to the final consumer. Although it reported poor nos for Dec qtr still for the first nine months sales increased by 15% to Rs 156 cr and NP stood at Rs 6.40 cr. Hence it may end FY08 with topline and bottomline of Rs 200 cr and Rs 10 cr respectively i.e. EPS of Rs 13 on equity of Rs 7.70 cr. .

SOURCE:saarthi.blogspot.com

CAPITAL EXPENDITURE AT DISTILLERY

The modernization project undertaken by the Company to ensure captive power, both grain and molasses based spirit whilst confirming to zero discharge norms. Captive Power facility and the facility for zero discharge norms started the operations from September 2006. The grain based spirit production is expected to commence from August 2007.

IFB Agro Industries Ltd has informed that the Company has started commercial production of Grain Spirit at its plant at Noorpur, South 24-Parganas, West Bengal, with effect from September 07, 2007.

PRODUCTS:-

Alcohol Division

Situated at the bank of the river Hooghly, near Diamond Harbour at South 24 Parganas, West Bengal, IFB Agro commenced their Noorpur Distillery in 1987 creating a landmark in the industrial resurgence of West Bengal with an installed capacity of 60,000 liters per day based on Molasses. Apart from its existing molasses based distillery, IFB Agro has also set up a new state of the art Grain Distillery based on the latest technology in distillation with a capacity of 60,000 liters per day. The distillery ensures captive power and confirms to zero discharge norms. The usage of Multicolumn Multipressure Distillation Technology removes all impurities from the Alcohol to ensure a perfect rich bouquet of taste and flavour. Dry Ice and Carbon-di-oxide (Co2)

The raw Co2 gas generated from the distillery is processed at a separate plant located adjacent to the distillery at Noorpur, comprising the most modern technology, to produce food and industrial grade Co2 and Dry Ice. CS Bottling Three CS bottling plants equipped with modern technology provide a forward integration to the distillery. The bottling plants are located at : • Seerampur, Dist : Hooghly, West Bengal • City Centre, Durgapur, Dist : Burdwan, West Bengal • Dhadka, Asansol, Dist : Burdwan, West Bangal The IMFL Division of IFB is housed at Maheshtala (South 24 Pgs.) West Bengal. At present, the operations of the division are concentrated in West Bengal and the North Eastern States, primarily Assam, Meghalaya and Orissa. The company has targetted business expansions in neighboring states in the near future. All 25 UP & 50UP products are made from Grain Spirit which is sourced in house. 25 UP Products: Volga Vodka, Goldcup Brandy, Blue Lagoon Gin (Orange & Lemonade) and IFB Select Whiskey. 50 UP Products: 3 Cheers Whisky, Baluba Rum, Russki Vodka and Old Pirate Whisky. We also offer our manufacturing facilities to prestigious National Brands. For more details visit :- www.ifbagroimfl.com Marine Foods: Export : The marine division exports Prawn to USA, Europe, Japan, Australia & South Africa. Domestic : IFB Royal Prawn are ready to cook which are hygienically processed, headless, peeled and deveined and aaaaaaaaa economical packed in consumer friendly packs of 100 & 200 grams. The product is available from exclusive aaaaaaaaa outlets in the city of Kolkata, Delhi, Bangalore, Hyderabad & Mumbai. IFB Prawn POPS and Breaded Fish aaaaaaaaa Fillets are ready to fry and are available from consumer friendly outlets at Kolkata. Feeds : IFB Agro is the largest distributor of C.P. Feeds (Thailand) in West Bengal.We also supply farmers with aaaaaaa various types of soil and water probiotics and supplements for healthy and sustainable grow of shrimps. For more details visit:- www.ifbagromarine.net

Vinati Organics Ltd.

Organics is engaged in the business of producing IBB (Iso Butyl Benzene) and ATBS (2-Acrylamido 2 Methylpropanesulfonic Acid).


the company with a capex of about Rs.35crs is presently expanding its ATBS facilities from 3k MT to 8k MT and the same is expected to be completed by June 2008.This expansion will make the company the world's second largest producer of ATBS.ATBS is a specialty monomer used in oilfield and mining chemicals, water-treatment, acrylic fiber, personal care, emulsions, adhesives etc. The world demand for ATBS is growing steadily and is expected to increase 2 to 3 fold with the production of enhanced oil recovery polymers.The company is in the process of finalizing long-term supply agreements for ATBS with worlds largest buyers based in USA and Europe.

the company has entered into a long-term supply agreement with BASF, USA, world's lamest producer of Ibuprofen. The company has increased its Isobutyl benzene (IBB) manufacturing capacity to 14000 TPA and is the world's largest producer with 70% market share.IBB is one of the key raw materials for making Ibuprofen.The supply agreement warrants BASF to buy majority of its IBB requirements from the company up to 2011. The contract can be renewed for additional three years and is expected to contribute up to Rs 240 crore in revenue in the first five years. As per the contract the monthly selling price of IBB is adjusted based on monthly world prices of key raw materials and exchange rate, thus minimizing the company's exposure to these variables.The production and supplies have ramped up since July and the coming quarters should reflect all the developments.

the company is planning to convert its ATBS production facility into an Export Oriented Unit from a Domestic Tariff Area.It is understood that the process would get completed by these year itself.It means that the profits from the sale of ATBS could be tax-free for the next couple of years.

ATBS/Na-ATBS&TBA:At present except the company there are only 2 other major producers of these monomers in the world.As suppliers of these products are limited,customers remain very keen to work for a new source of supply.All the major users of these products are based in Europe or U.S.A.,thus they prefer to enter into annual contracts.

The company falls on the vagaries of currency fluctuation as it exports its products mostly.At present on some cases its passing the extra costs to its customer.Going forward,The Company is aiming at minimizing foreign currency exposure by entering in to forward contracts and negotiating currency risk-sharing deals with customers.

Crude oil is one of the prime inputs for the products of the company and in the last few months it increased significantly.Vinati on to a certain extent was able to pass the hike to its customers. Incase of IBB,Vinati has a long term price escalation clause with BASF.On the ATBS front the company faces competition in terms of dollar pricing from majors like Lubrizol.The company though is confident of maintaining margins in this specialty monomer by passing the price fluctuation to its customers.

On asking the management about their new product application,they clarifies by saying "We are working on projects such as producing the versatile and high value monomer Tertiary Butyl Acrylamide (TBA.TBA is a high margin product for us and realization per kg is in the range of $5.We have already sent samples to various customers and we expect trial orders to begin soon".Tertiary Butyl Acrylamide or TBA finds its application mainly in the making of hair gel and water treatment polymers.

company recently rewarded its shareholders by issuing them 1 free shares for every 2 shares held.These certainly entails a lot of conviction in the company as it shows the confidence of the management in the growth prospects of the company.



company is expected to post 150cr sale in 07/08. expcted e.p.s could be around 15-17 rs.and price target 150 rs in short term

Selan Exploration Technologies-Enjoying A Super Spike In Crude Oil Prices

Selan Exploration Technologies-Enjoying A Super Spike In Crude Oil Prices
BSE 530075; CMP Rs 259

FY09 is likely to turn out to be another year of massive growth for Selan Oil Exploration. Rough estimates place Crude Oil production from the three operating Gujarat onshore fields of Bakrol, Indrora and Lohar at 128,000 barrels in FY08. This was a near 30 per cent increase in production, over the 100,000 barrels Selan produced in FY07.

For FY09, the estimates are, that Selan will produce close to 150,000 barrels but as against an average price realisation of $ 71 per barrel in FY08, the realisations in FY09 would exceed $ 110 per barrel putting FY09 Revenues in the region of Rs 68 crore (Rs 36 crore), accordingly after PSC payments to the GOI, the after tax profits could work out to Rs 25 crore (Rs 13 crore) or an EPS of Rs 15 (Rs 9), a near 100 per cent increase.

Quite significantly, what a $ 122 per barrel price of Crude does to the estimated reserves of Selan is even more staggering. The value of Crude with Selan works out to Rs 22500 crore, which rises to Rs 28000 crore at a Crude price of $ 150 per barrel and to Rs 37000 crore at a Crude price of $ 200 per barrel. The price forecasts for Crude have been made by Goldman Sachs in a recent report, with a time frame of 6 to 24 months.

Investors would recall Goldman Sachs had made prediction of a $ 100 barrel Oil in early January 2007, when the then prevailing price was just $ 50 per barrel and it has taken a mere 15 months to reach their projected price target.

Most Oil Bulls like billionaire T Boone Pickens of BP Capital, believe that Oil may never go below $ 100 per barrel again. While such a prognosis may be bad for the World Economy, it underlines a bright future for marginal players like Selan Oil.

Production and Development thrust

The promoters are making a preferential allotment of 18 lakh shares at Rs 165 apiece bringing in Rs 30 crore into the company. These funds will be used to dig more wells over the 5 dug in FY07, in the existing Oil blocks, and leave some spare money to develop the Oil field at Ognaj and the Gas field at Karjisan, which are still to be leased out to Selan Exploration.

Logistics in place

Recent agreements have been signed with the Indian Oil Corporation to uplift the existing and additional production at the international rates for Crude Oil. The IOC and the State of Gujarat have also agreed to refund the levies on account of Sales Tax and surcharge on Sales Tax.

Institutional Supply in the Counter is about to finish

Merrill Lynch Espana SA which held a stake close to 8 per cent in the company has sold roughly 6 per cent in the Open market during FY08. It now holds a mere 3.74 lakh shares, which too should get extingsuished soon.

There are no major shareholders left in the company except the promoters, which as we can see are raising their stake and not reducing it. So further liquidity in the stock may just dry up.

Higher Production in FY09

Selan's Crude Oil Production is set to rise to an estimated 150,000 barrels (128,000 barrels)during FY09. This quantity is double the figure recorded over the past three years and indicates that Selan Oil is ready to scale up its business operations.

Gross Under-Valuation

Various estimates place Selan's Crude Oil Reserves at 45 mn barrels (excluding Ognaj and Karjisan) are worth roughly Rs 13000 crore at the realised market price of $ 71 per barrel and a currency conversion rate of Rs 40 to a US Dollar. The figure goes up to 22500 crore, 28000 crore and 37000 crore at Crude price of $ 122 a barrel, $ 150 a barrel and $ 200 a barrel with a Re Vs Dollar rate of 41.

Assuming even 25 per cent of the Oil Reserves are recoverable, a market cap of Rs 419 current crore indicates a massive under-valuation of the Selan stock.

NELP is beneficial to new oil field operators

More importantly, private oil field operators are not subjected to subsidy sharing beyond the Oil equity due to the GOI, and hence stocks like Selan do not carry operative risks like other E&P operators like Ongc.

Background

Following the move by the Government of India in 1992 in opening up the oil sector for private initiative in exploration and production of Hydrocarbons, SELAN was amongst the first private sector companies to have obtained rights to develop three discovered oilfields situated in the state of Gujarat namely Bakrol, Indrora and Lohar, all with proven oil and gas reserves. SELAN was subsequently awarded two more fields in Gujarat namely Ognaj Oilfield and Karjisan Gas field.

All the oil and gas blocks have a well laid out infrastructure. Hence these blocks are easily accessible and are in close proximity to the Government's crude gathering station as well as are in close proximity to a large industrial town.

The various seismic and reserves assessment studies have established substantial amounts of oil and gas reserves in these blocks.

SELAN thus has significant oil and gas assets in its control which require developmental work and for the purposes it would require substantial amounts of Capital investment to augment its development and growth objectives.

SELAN has a Development Plan for drilling of additional wells in these blocks in the next 3 to 5 years. The Plan is intended to be executed in a phased manner and would involve large capital expenditures, to be funded through a combination of external borrowings and internal accruals.

source:- BazaarLive

Adhunik Metaliks to sell Orissa Manganese stake to PE funds

Adhunik Metaliks to sell Orissa Manganese stake to PE funds

poster:jiefu Sam Xu date: 21:28:00

Kolkata-based steel manufacturer Adhunik Metaliks is in talks with private equity players for picking up stakes in its wholly owned subsidiary, Orissa Manganese & Minerals.

According to Adhunik Metaliks Managing Director Manoj Agarwal, the deal will be concluded in the next one month following which the promoters can dilute 10-11 per cent stakes in the company.

Orissa Manganese & Minerals has six manganese ore mines and one iron ore mine.

"The iron ore mine has reserves of 80 million tonne and will start production by June-July 2008," said Agarwal.

Adhunik acquired the company for Rs 60 cr in April 2007.

The mines don't have captive clause and the manganese and iron ore can be sold in the open market to various end users.

The company has mining rights of 15 million tonne for its manganese reserves.

Adhunik Metaliks has lined up its third phase of expansion, which entails forward and backward integration to increase its earnings before interest, taxes, depreciation and amortisation (EBITDA) from 18 per cent to 26 per cent.

The third phase would be completed by October 2009, but the benefits would kick in by the end of 2008-09, he said.

Adhunik will be closing its current financial year with a profit after tax (PAT) of Rs 96 crore, which is expected to increase to Rs 176 crore in 2008-09.

The investment in the third phase will be Rs 422 crore, of which debt will account for Rs 274 crore.

The expansion plans include raising the sponge iron capacity from 150,000 tonne to 315,000 tonne, setting up a captive power plant of 17 mw and a Sinter plant to use the fines.

He said raw material accounted for 80 per cent of the companies expenditure, which was expected to come down to 40-50 per cent after the expansion plans were implemented. – Business Standard

Adhunik Metaliks Ltd. just buy for short term gains

the proposal of Orissa Manganese & Minerals Ltd for issue of shares to public through IPO and / or disinvestment of part of Adhunik Metaliks Ltd shareholding in Orissa Manganese & Minerals Ltd by offer for sale via Initial Public Offer.

Product Details:
	Sponge Iron
	Pig Iron
	Billets / Blooms
	Rolled Products
	TMT Bars
	Wire Rods
	Transmission/ Mobile Towers
The above company has got manganese Ore mining lease in the state of Orissa, Iron ore and graphite ore leases in the State of Bihar.The details of the mining leases are as under as details below :- Total Area State Production (Tons/Avenue) Manganese ore 2365.73 acres Orissa 1 million Iron ore 680.80 acres Bihar Graphite 172.00 acres Bihar The company is producting approx. 1 lac tonnes of manganese ore and supplying different grades of manganese ore to the Tata Iron & Steel Co. Ltd., Joda, Steel Authority of India,Durgapur, Bokaro, Rourkela, Eveready Industries (I) Ltd., Madras, Hyderabad, Calcutta, Ispat Alloys Ltd., Balasore and Baheti Metails and Ferro Alloys Ltd., Ahmedabad. The company's turn over on account of manganese ore is approx 10 croresper annum. the company propeses to start mining operations over the mining lease of Iron ore in the State of Bihar very soon, the expected targeted production is 3,50,000 tonnes per month and the axpectedturn over is Rs.8.75 crore. The company is setting up a washing plan for benificiated of graphite ore and from the expected production and sale of beneficiated graphite flakes will be around 1.5 crores.

RPG Cables to sell Mumbai land, return to profit

MUMBAI, Dec 7 (Reuters) - Optical fibre and power cable maker RPG Cables (RPG.BO: Quote, Profile, Research) plans to sell land near Mumbai to clear debt, a senior official said on Friday.

The company owns 15 acres (6 hectares) in Thane and does not need more than half of it, Pradipta K Mohapatra, chief executive- technology business of the diversified RPG group, said at a press meet.

Mohapatra oversees the operations of RPG cables, RPG Life Science RPGL.BO and Zensar Technologies (

"The money can be used to clear our entire debt," he said. "The interest outgo can also be saved."

Loss-ridden RPG cables has a debt of 1.07 billion rupees and pays an annual interest of about 140 million rupees.

Indian firms are selling surplus land in large cities to fund expansion, repay debt and to tap record land prices that have more-than-doubled in the last two years.

RPG Cables, with little orders coming through, had closed two plants for nearly four years, but restarted one after a 333.1 million rupees order from the state-run Mahanagar Telephone Nigam Ltd (

It had also cut employees to 400 from 1,500 and will take a decision on staying or exiting the telecoms cable business in early 2008/09, Mohapatra said.

The company is expected to return profits in 2007/08, he added. (Reporting by Narayanan Somasundaram, editing by Harish Nambiar)

BUY FOR SMART GAIN

1.LAKSHMI ELECTRICAL

2. R.P.G CABLES

3 MUDRA LIFESTYLE

4. POKARNA (TIE UP WITH HOGOBOSS MAY TAKEOFF )

5. SHREE PRECOTAED STEEL

Publish Post

Mudra Lifestyle Ltd

Mudra Lifestyle Ltd, a leading manufacturer and exporter of fashion fabrics and garments located in Mumbai, is expanding its manufacturing facility by setting up a new integrated unit with all the processes of yarn dyeing, weaving, process house and garment manufacturing.
The new project relating to dyeing, weaving and process house will be set up at Tarapur, Maharashtra, while the garment unit will be set up in Bangalore. The company has already acquired 10.57 acres of land at Tarapur. Further, the Karnataka Industrial Areas Development Board has allotted 2.12 acres in Bangalore for the other project.
In the weaving division, the company will install 84 looms initially, which will be entirely imported. The processing division will have a capacity of 105,300 metres per day. An in-house garmenting unit consisting of various machines will be set up to cater to the making of garments and packing them into pieces as per customer requirement. After expansion, the company's yarn dyeing capacity will go up by 660 tonnes per annum, weaving capacity by 8.25 million metres, processing capacity by 32.66 million meters, and garmenting by 7.43 million pieces per annum.
In October 2006, the company applied to the Maharashtra Pollution Control Board for environment clearance for the Tarapur project. It is, however, yet to apply to the PCB for environment clearance for its Bangalore project. The total cost of the project is Rs 155.09 crore. The company plans to raise funds for the project through a mix of IPO proceeds, term loan and internal accruals. The expansion project will start partial commercial production by July 2007 and full commercial production from October.



the Board of Directors of the Company in its meeting held on 01st February, 2008 has allotted 30,00,000 (Thirty Lakh) Equity Warrants of Rs.10 each at a premium of Rs 110/- per warrant, to the promoters of the Company entitling the warrantholders to apply for an equivalent number of fully paid-up equity shares at any time during 18 months from the date of allotment, the detail is as per following: 1) Name of the Promoters: Mr. Murarilal Agarwal; No. of Equity Warrants: 12,97,000; 2) Name of the Promoters: Mr. Ravindra Agarwal: No. of Equity Warrants: 12,93,000; 3) Name of the Promoters: Mr. Vishwambharlal K Bhoot; No. of Warrants: 4,10,000; Total No. of Equity Warrants: 30,00,000."

the Company has its Initial Public Offer of 95,80,000 Equity Shares of Rs. 10/- each at premium of Rs. 80/- aggregating to Rs. 86.22 Crores. Company made Pre IPO Placement to SIDBI Venture Capital Limited and State Bank of India at premium of Rs. 65/-.

The Company has positioned itself as an integrated multi product, multi fiber and multi market player covering the entire textile value chain at length. The Companys target market is a diverse mix of the domestic market, garment export trade and international market (exports) to ensure risk diversification and stability of earning. Presently the Company sells its fabrics to domestic as well as international market. In addition, we also use the fabrics for internal consumption and at the same time sell it to other garment exporters. The Company exports its Garments and recently started with manufacturing garments for Indian well known brands. Companys process house caters to its requirements and at the same time do outside jobs.

The Company is making continuous efforts in upgradation of technology and also expanding its capacity to reduce the cost and to remain as a competitive supplier of high quality products in the domestic and as well as in the international market. During the year, the Company has installed 12 looms and 300 stitching machines under TUF Scheme and the commercial production has already been started. The Company is also in the process to install 112 looms other than mega expansion project. The Company is in process to install two units of garments having more than 500 stitching machines at Bangalore in rented property and the same will be shifted in owned building after the same is ready and we expect that the Companys full mega expansion project is likely to be commissioned by February 2008 and we expect that the combined effect of all will give good results for the current financial year.

it is going to post 10.eps for 2007-08. at current level 46.5 it is avilable at 5 p.e just buy for smart gains.

Varun Industries Ltd

During the financial year 2007-2008, your Company is offering 90,00.000 Equity Shares of Rs. 10/- each for cash at a premium of Rs. 50/- per Equity Share aggregating to Rs. 54 Crores through Initial Public Offer

CORE PROJECTS:-

a. Stainless Steel Kitchenware / Houseware Manufacturing Plant and Warehouse Project

Your Companys most modern manufacturing plant which is the countrys largest manufacturing facility to produce Stainless Steel Kitchenware and Houseware conforming to the international standards, commenced warehousing activities in full swing such as receipt of products, checking, packing and stuffing in containers for export during the financial year under review.

The manufacturing process is in advanced stage with the installation of most of the plant & machinery and equipments and the production is likely to commence during the first half of the current financial year.

b. S. S. Sheet Re-Rolling Project

As part of the backward integration of the Stainless Steel Kitchenware / Houseware Manufacturing Project at Vasai, Dist. Thane,your Company has started establishing a Stainless Steel Sheet Re-rolling Project at jodhpur, Rajasthan having a capacity of 18,000 MT per annum and the total project cost is about Rs. 48 Crores, which is being financed with borrowed funds and internal accruals.

For the said project the Company has already acquired leasehold land plot admeasuring about 10,200 sq yards in the RIICO Industrial Area and the civil construction and erection of Plant and Machinery are in progress and the production is likely to commence in the current financial year.


DIVERSIFICATION:-

a. Agro-product industry

As mentioned in last years report, your Company has penetrated into Agro-based product by taking 45% stake in a company "Sapling Agrotech Private Ltd." which is a 100% EOU near Kolkata for producing and exporting "White Button Mushroom" under the technical and commercial arrangement with Dalsem Mushroom Projects B.V.Netherlands.

The total project cost stands around Rs.24 Crore and is the largest of its kind in the eastern India. The plant commenced trial/commercial production during 2007 and was formally inaugurated by Shri Nirupam Sen, Honble Minister for Commerce &

Industries, Govt, of West Bengal on Wednesday the 9th of May, 2007, where Shri Mohanta Chatterjee, Honble Minister for Food Processing Industries & Horticulture Dept., Govt, of West Bengal was the Chief Guest and Shri Binay Krishna Biswas, Honble Minister for Refugees & Rehabilitation Dept., Govt, of West Bengal was the Guest of Honour.

Considering the technical inputs received during the period of trial/commercial run and with certain technical modifications in the plant, the Companys full-fledged production for catering to the export market and a reasonable Quantity for the domestic market, where demand is very much encouraging is likely to commence very soon.

b. Power Generation

(i) Wind Electrical Power

With the successful installation of 3 Wind Power Turbines of 1.25 MW each with combined Power generation of 3.75 MW in Rajasthan to supply power to the Ajmer Vidyut Vitaran Nigam Limited, the Company has installed 2 more Wind Turbine Generators of 0.60 MW each, enhancing the total power generation capacity to 4.95 MW, with the total investment of Rs.24 Crore with concomitant increase in income from the sale of power. Your Company is continuing to pursue such opportunity to set up more Wind Mills.

(ii) Hydro-electrical Power

The Companys bid of |une, 2006 for setting-up of 60 MW Hydro-electric Power Project at Kinnaur in Himachal Pradesh after having technical and execution tie- ups with TCE Consulting Engineers Ltd. and Hindustan Construction Company Ltd., respectively is under consideration of the Government of Himachal Pradesh alongwith other bidders.

c. Iron Ore Mining

(i) Mines at village Siddhapura

Raising of Iron Ore by the Company from these mines having an area of 108 acres with estimated results of above 10 million tonnes located near Village Siddhapura, Dist. Bellary (Karnataka) under contract from Shri Anjaneya Kadam is expected to commence from August, 2007, subject however to the clearance by the Forest Department of Central Govt, and execution of Lease Deed.

(ii) Mines at village Narayanpura

Various approvals / clearances from the Government of Karnataka and the Central Government are under process and after having obtained these approvals / clearances, the Lease Deed in favour of the Company will be executed and thereafter the work will start at the Companys mines having an area of about 103 acres with estimated results of about 9 million tonnes located near Village Narayanpura, Dist. Bellary (Karnataka).

d. Petroleum & Natural Gas

Your Company, in collaboration with established technical partners viz. Oil and Gas Drilling Company "NAFTA" Pilla Limited, Poland, Shandong Kerui Petroleum Equipment Company Limited, China and IROilRigs Middle East Limited, Hong Kong has submitted several competitive and technically viable offers to premier public sector units viz. ONGC and Oil India Limited against their global tenders such as two bids of value of Rs.74 Crores and Rs. I74 Crores for Charter Hiring of three Drilling Rigs for Oil India Limited and one bid of value of Rs.330 Crores for two Deep Land Drilling Rigs for ONGC. The said bids are under scrutiny and consideration. Your Company is very hopeful of being awarded with at least one or two jobs being technically and financially competitive.

The Company is also endeavoring to enter in offshore drilling and is in the process of bidding for several high value tenders of ONGC.

e. Real Estate

Your Company did not make aggressive move to enter into real estate market due to its high volatility throughout India. After considering the same and taking a cautious move, the Company is in readiness to persue into Real Estate Industry preferably in Eastern India at Kolkata and Bhubaneshwar the nations current destination for real estate where it is booming for consumers markets and with smaller capital investment and very low risk factor.

buy this company for long term investment view for one year .

currently it is trading at 75.and promoters hold 70%.and book value is at 77 rs.last year dividend is 45%.

just buy and hold .it will double in six months easily

Minda group's renewed international aspiration

With 19 manufacturing facilities, the Minda Group has strong technical tie-ups with several international players like Tokai Rika (a Toyota Group company), Fiamm SpA (Italy's leading automotive components company) and Valeo of France. It is the largest manufacturer and original equipment supplier of CNG/LPG kits to various car makers like Maruti Suzuki, Hyundai and Tata Motors.

NK Minda, the managing director of the Group, created a robust international brand of automotive switches, horns, lighting, and automotive batteries. The Group has 70% marketshare in two wheeler switches in India, 35% marketshare in two and four wheeler horns, 15% marketshare in automotive lighting.

Mr Minda talks to Automania on the group's renewed international aspiration which has taken the group to Southeast Asian markets and the focus on Research and Development. This comes after the group's flagship company Minda Industries Ltd has been awarded the National R&D Award 2007, by the Department of Scientific and Industrial Development, ministry of Science and Technology.

With the Indian automobile industry going full steam, what expansion plans are underway in the NK Minda group?

We are setting up a new plant at Bidadi, Bangalore for the manufacture of Blow Molding parts for 4 wheelers. This is a new product category and in keeping with the NK Minda group's philosophy of adding products, which have a higher value addition. We have a technical agreement with Kyoraku Company of Japan for the product.

The plant will have an initial investment outlay of Rs 25 crore and is expected to add Rs 50 crore to the topline of Minda Industries Limited in the next 3-5 years. Besides, we are also doubling our production of the CNG/LPG kits, to 8,000-10,000 units per month from the current 4,000 units in next one year. We recently signed a joint-venture with Valeo Electrical Systems to produce automotive starter motors and alternators for cars.

What other products are being launched by the company?

We are enhancing our portfolio of motorised mirrors. The new generation cars like Maruti Sx4 and Zen Estilo, Hyundai i10 and Verna are coming with these modern mirrors and to meet the demand the production will be doubled to around 10,000 units by FY 2009-10, from the 5,000 units currently produced.

Will the products also require any R&D. Is the company planning any in initiatives on innovation?

We have been instrumental in offering latest technology and engineering products to the two wheeler sector, our core business. Our Automatic Turn Signal switch for two wheelers (where the indicators automatically comes back as in cars), which we developed for Bajaj Auto Limited and is our patented product will be exported to various overseas markets. We have also developed different processes, design and products which have allowed 12 international patents for the company. We are the first auto component group to set up a R&D lab in Japan. It has helped us to develop technology and now we are also supplying automotive Parts to iconic badges like Maybach, Rover, BMW, Audi, Volkswagen, Volvo, Caterpillar, Renault etc.

What happen to your Pant Nagar greenfield facility in automotive batteries?

We are the first to manufacture valve regulated lead acid (VRLA) automotive batteries in India in technical assistance with Fiamm S.p.A. These batteries will first be supplied to the two wheeler segment and later with the expansion in the plant cater to the cars and utility vehicles.

How are the plans for overseas manufacturing progressing. Besides the south east Asia, is the company concentrating on other markets?

The Southeast Asia market is of special interest to us as it has big demand for two wheelers which is continuously growing. We are the first Indian auto component maker to set up a plant in Indonesia. While out R&D lab in Japan is co-ordinating closely with Japanese original equipment manufacturers (OEM) Yamaha, Suzuki and Honda to developed products right from the concept state and take part in the engineering. We have secured orders to develop technologies for some global products of these OEMs, which will eventually help us to consolidate our market in Indian too.

We also have a strategy to cater to Indonesia, Vietnam and the ASEAN region, which are emerging a big two wheeler markets. And the group also plans to establish its base in Uzbekistan to meet the components demand in the Baltic region and feed Poland, Russian and other CIS members countries.

The group is looking for acquisition. Minda had been looking for some sick units in Europe, any progress on those lines?

We have already earmarked Rs 500 crore for expansion and merger and acquisition activity and has already initiated steps in the direction. We are looking for some design development and product manufacturing in Italy and France. Due diligence is on for some European units and we are expecting some success early next year. Our branch office at Turin in Italy has identified these strategic companies.

With the domestic market slowing specially the two wheelers, what is the company strategy to maintain steady growth?

We are looking at exports in a big way. The company would start operating its marketing office in Uzbekistan, in next few months, which would source components from its Indian operations. The slowing domestic market is impacting our margins.

Being a mass volume producer we have identified exports as the key potential growth area and plan to hit an overseas turnover of Rs 170 crore during this fiscal. The initial exports from India would enable us to utilise our local capacities, while consistent volumes in overseas markets would help us establish regional manufacturing bases in several countries.

Any new association with the Tata Nano project.

We are the sole supplier of auto electrical switches and parts to Tata Nano. For the time being our association are restricted to this only, but are looking at strategic alliance once the car is exported to various markets.

Autoline Industries Ltd

Autoline Industries Ltd (AIL) (incorporated on December 16, 1996, as Autoline Stampings Private Ltd.) was initially set up in January 1995 as a partnership firm known as "Autoline Pressings" under Indian Partnership Act 1932, with a capital of Rs. 0.30 million & term loan of Rs. 0.15 million from State Bank of India and Cash Credit limit of Rs.0.05 million. AIL has grown into a medium sized engineering and auto ancillary Company, manufacturing sheet metal components, sub-assemblies and assemblies for large OEMs in the Automobile Industry.

We are engaged in Manufacturing various auto parts / sheet metal components for Passenger cars, Sports Utility Vehicles (SUV), Commercial vehicles, Two wheelers, Three wheelers, Tractors, etc. We are one of the prime vendors to various Automobile Companies like, TATA MOTORS LTD. (earlier TELCO), BAJAJ AUTO LTD, KINETIC ENGINEERING LTD, MAHINDRA & MAHINDRA LTD., FIAT (INDIA) PVT. LTD., WALKER EXHAUST (INDIA) PVT LTD (a Subsidiary of Tenneco, a fortune 500 U.S. company), etc. AIL is also exporting auto parts i.e. brake shoes for Mercedes Benz Trailers to Saudi Arabia, Dubai etc. Further negotiations are at various stages with various Detroit based Auto Component Makers for direct exports. Due to excellent quality in work, cost competitiveness, timely deliveries and State of the Art Tool Room with latest CAD / CAM facilities, the company has, in a short span, become prime vendor to all the reputed Auto Manufacturers in and around Pune. The turnover of the company has accordingly increased from a modest Rs. 6.30 million as on 31.03.1997 to a massive Rs. 1113 million as on 31.03.2006, in just 9 years time. All the manufacturing facilities have been certified as ISO/TS 19649: 2002 by TUV(Rh), Germany.

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Minda Industries Ltd.

Auto electrical parts manufacturer Minda Industries Limited (MIL) of the NK Minda Group is planning to invest Rs 250 crore on expansion, including acquisitions and a foray into vehicle battery production, for which it has tied up with Europe's leading automotive supplier FIAMM SPA of Italy. The target for the fiscal 2007-08 is to touch a turnover of Rs 1,000 crore and as a part of the strategy to achieve that we would be investing about Rs 250 crore on expanding MIL's activities. Apart from strengthening existing business of auto electrical components and diversifying into new product categories, the company was looking for acquisitions in both domestic and overseas market for medium-sized companies for which it has earmarked Rs 150 crore. Currently, the company is considering about three options in Italy, which would not only strengthen our existing product line but would also add some allied lines. In India also the company was looking for takeovers in allied auto electrical products. On the company's foray into vehicle battery manufacturing, he said the company has signed a technical collaboration with Europe's leading automotive supplier FIAMM SPA of Italy. The company will invest Rs 40 crore this year in setting up a battery plant at Pantnagar with a capacity of 4 million batteries per annum when fully operational. MIL is eyeing revenues of Rs 50 crore in the first full year of operation from the batteries and the projected revenues in the third year is Rs 125 crore. The company will be manufacturing batteries for the two wheeler and four-wheeler segments, incorporating the latest technological advances, including the Valve Regulated Lead Acid Battery (VRLA). The technical tie-up with FIAMM would provide MIL access to the former's technology for the product. The agreement also gives MIL the exclusive rights over FIAMM automotive batteries in India for sale as well as manufacture for the next 10 years. Moreover, MIL also gets the exclusive rights to market and export 2W/3W batteries around the world. The company has already invested Rs 80 crore in expanding the capacity of its Pantanagar facility which produces electrical parts for two-wheelers and cars. The capacity now stands at around one million motorcycle part per annum and about 300,000 car part a year.


inda Industries Ltd, the flagship company of the Rs 545-crore NK Minda Group, today announced its plans to set up a new plant in Uttaranchal to manufacture automotive batteries. The project, which is targeted at the two-, three- and four-wheeler segments, is in technical collaboration with FIAMM SPA of Italy. Minda would be investing Rs 40 crore in setting up the plant, the total annual capacity of which would be four million batteries. The plant is likely to be completed by December this year and production would commence in the last quarter of 2006-07. Minda shares a very strong relationship with FIAMM, which is a leading automotive supplier in Europe. Collaboration for the battery project also shows the confidence that FIAMM places in our group in terms of absorption of technology and delivering of products of global standards.

Minda will manufacture and market valve regulated lead acid batteries (VRLAs), a first for India; the battery is a sealed and leak-proof one that is completely maintenance-free. Minda expects to clock revenues of Rs 50 crore from its batteries business and has projected revenues of Rs 125 crore in 2009-10. While FIAMM would supply the technology, the agreement also gives Minda the exclusive rights over FIAMM automotive batteries in India for sale as well as manufacture for the next 10 years. The company also gets the exclusive rights to market and export 2W/3W batteries around the world.

Minda Industries plans to raise between Rs 200-250 crore for expansion purposes. The components company, which makes motorcycle switches and handlebars, would use part of the money to set up a new plant in Pantnagar, Uttaranchal the emerging auto hub. Besides greenfield expansion, the company is actively looking to acquire companies to set a global footprint. Minda Industries is the flagship company of the Rs 500-crore Minda group. Besides making switches for 2-wheelers, it also makes switches and horns for passenger cars. It will raise about Rs 200-Rs 250 crore to set up a new greenfield facility in Pantnagar to cater to the OEMs that are setting up plants there. The company expects to spend around Rs 80 crore on the plant to be set up in Pantnagar. It will set up new motorcycle handle bar assembly there. The company plans to start operations by December this year. The company has also set apart a separate sum for acquisitions. IT want to set up a global footprint. The company also plans to spend around Rs 25 crore in setting up a tool room and design centre. The money raised will be a mix of internal accrual and debt. It is also in talks with private equity investors to raise the rest of the money. But, It is also looking at raising FCCBs or GDRs to raise some money to fund our expansion plans. Early this year , the auto component maker had set up its greenfield plant in Indonesia to supply to OEMs like Honda, Yamaha, Suzuki and Kawasaki. It already has four manufacturing plants in Gurgaon, Pune, Hosur, Delhi & Aurangabad.

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JOINT VENTURE

The Company on January 11, 2007 had executed a Joint Venture Agreement (JVA) with Valeo Group, France for the manufacture of alternators and starter motors for passenger cars, commercial vehicles and other two or three wheeler vehicles and / or industrial applications. The JVA will be operated through proposed Joint Venture Company (JVC) namely Valeo Minda Electrical Systems India Pvt. Ltd., whose name has been approved by Registrar of Companies, NCT of Delhi & Haryana and the incorporation activities of JVC are in process

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