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

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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.

pamotors hold 70%

corporate bodies holds19

public holds 11%

just buy for double in 6 months

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