Showing posts with label Water Mgt. Show all posts
Showing posts with label Water Mgt. Show all posts

Wednesday, March 18, 2009

The Emerging Sector - Fixed

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What you think the most pragmatic and indisputable emerging sector will be?

Is it alternate energy themes like Bio-fuel, Wind energy or Solar power solutions?

Or Mobile VAS, DTH or HITS technology?

Or is it Agriculture sector?

Or Electric/Hybrid Vehicles ?


All the above sectors can include in the emerging category with out much thinking and have good scope with the coming time. These sectors are very much depending on the upcoming technology changes and the adoptability issues up to an extent. But I would like to state a few facts on another area which is inescapable for the global community and the sector should come about an emerging or none a way back.

I am talking about the Water Management stuff which will be the most emerging and inevitable sector in coming days. Drinking water will be the rarest and most demandable substance in 21st century. Experts says, if a world war occurs again … its for water …nothing else.

We know that nothing on the earth can survive without fresh water, that a human can’t survive after three days without it. I will provide some facts and statistics related to water which will help you to assess the importance of this sector as well the significance of saving every drop of water.

The following info may also help you to make a decision on investment in the companies involved in water management with a long term vision by understanding how this stuff "water" going to be precious. Most of the information quoted below is related to this sector and some I placed only cause of the gripping nature of the news. I have named some companies below which are in the field of this indisputable emerging sector. Decide yourself whether you include the best of them in your portfolio after reading the portion full.

Jain Irrigation
KSB Pumps
Kaycee Industries
Hindustan Dorr-Oliver
ION Exchange India
Subhash Projects
Thermax
Bisleri/Himalaya(Mineral Water)
Pratibha Industries
Chembond Chemicals
IVRCL Infra
Kirloskar Brothers
Eureka Forbes

70% of the Earth is covered by water.

Only 2.5% of the world’s water is fresh while 97.5% is saline and in oceans.

Only 0.3% of this freshwater is available from rivers, lakes and reservoirs

The rest is stored in distant glaciers, ice sheets, and mountainous areas – all places that we can hardly access.

Less than 1% of freshwater is usable, amounting to only 0.01% of the Earth’s total water.

If the entire world's water were fit into a gallon jug, the fresh water available for us to use would equal only about one tablespoon

Some 97% of liquid freshwater is stored underground in aquifers. People, especially in rural areas, are mostly dependent on groundwater. Around 2 billion people, a third of the world’s population rely on it. Aquifers are most brutally exhausted in parts of India, China, US, North Africa and the Middle East. It can take centuries for aquifers to reinstate. So the world is currently running a groundwater overdraft of 200 billion cubic meters a year.

By 2025 two-thirds of the world’s people will be facing water stress. The global demand for water will have grown by over 40% by then.

An average of 10 lakh people dies cause of wars every year. But 50 lakh dies with out water or water related issues. War or Water ? which is most fatal ?

40 billion hours each year are spent collecting water in sub-Saharan Africa, equal to over 19 million full-time employees.

Over a billion people in the world do not have access to safe water; this is roughly one sixth of the world's

While the world's population tripled in the 20th century, the use of renewable water resources has grown six-fold. Within the next fifty years, the world population will increase by another 40 to 50%. Then ?


Over the past century our water consumption increased tenfold according to the WHO.

By 2025 two-thirds of the world’s people will be facing water stress. The global demand for water will have grown by over 40% by then

443 million school days are lost each year due to water related diseases

Many women and young girls in developing countries must walk as much as six miles everyday to retrieve water for their families.

The recommended basic water requirement per person per day is 50 liters. But people can get by with about 30 liters, 5 liters for drinking and cooking and another 25 to maintain hygiene. The reality for millions comes nowhere near.

Each year, more than 2.2 million people in developing countries die from preventable diseases associated with lack of access to safe drinking water, inadequate sanitation and poor hygiene.

Every 15 seconds, a child dies from a water-related disease.

88 percent of all diseases are caused by unsafe drinking water, inadequate sanitation and poor hygiene.

At any given time, half of the world's hospital beds are occupied by patients suffering from a water-related disease.

People in rural areas are four times more likely than those in cities to have no safe supply of water.

The urban population pays on average 12 times more per litre. In Jakarta, Indonesia the poor pay water vendors 60 times the price of water from a standard connection; in Karachi, Pakistan, 83 times; and in Port-au-Prince, Haiti and Nouakchott, Mauritania, 100 times.

By 2015, water will be the villain in death of 1 in every three.

The usage of fresh water Increased by 6 folds over last hundred years.

The fresh water depleted to 1/3rd in last 20 years and the usage has been doubled.

A study by International Water Management shows, by 2025 India will be in a deadly shortage of drinking water/fresh water.

India uses the 93% fresh water for agricultural purpose, 3.27% for industrial purposes and the rest 3.73% for domestic usage.

Saline water can be desalinated for use as drinking water by going through a process to remove the salt from the water.

Each day the sun evaporates a trillion tons of water.A small drip from a faucet can waste as much as 75 liters of water a day.



A person must consume 2 litres of water daily to live healthily. Humans drink an average of 75000 litres of water throughout their life.

Over 70,000 different water contaminants have been identified.

If all new sources of contamination could be eliminated, in 10 years, 98% of all available groundwater would then be free of pollution.

Freshwater animals are disappearing five times faster than land animals.

Humans daily use about 190 litres (50 gallons) of water.

Two thirds of the water used in a home is used in the bathroom.

To flush a toilet we use 7.5 to 26.5 litres (2 to 7 gallons) of water.

In a five-minute shower we use 95 to 190 litres (25 to 50 gallons) of water.

To brush your teeth you use 7.5 litres (2 gallons) of water.

For an automatic dishwasher 35 to 45 litres (9 to 12 gallons) of water is used.

The 40000 crore steel plant (Mittal Group) at Orissa required 12 billion metric ton water in a year.

1 kg of steel production requires 45-295 liters water.

1 kg of paper production requires 160-273 liters of water.

1Kg Alluminium production requires 1340 liters of water

1 Kg synthetic fibre production requires 200 liters of water

1 Kg Glass production requires 70 liters of water

Purification of 1 litre petrol requires 10 liters of water

1 Kg Butter production consumes 10 liters of water

1 KG sugar production requires 9 literes of water

1 Kg Sulfuric Acid production requires 10 liters of water

It takes 5,680 litres (1,500 gallons) of water to process one barrel of beer.

About 25,700 litres (6,800 gallons) of water is required to grow a day's food for a family of four.

It takes 7,000 litres (1,850 gallons) of water to refine one barrel of crude oil.

To manufacture new cars 148,000 litres (39,000 gallons) of water are used per car.

Is this sector emerging? I think a fixed one!

It is expected that increasing demand and thinning presence will make the water costlier and they, the related service providers will do better in days to come. It is recommended that a good long term vision portfolio must have one or two good scrips from the above list.

Request comments and

I am not responsible for your investment decisions. Do your own homework before any bulk investment.

Wednesday, March 4, 2009

Multibaggers - Part II

Dear Readers,
We have reached almost near the bottom of Sensex. There is none a further 13,000 points left to fall. It is expected a maximum of 2000 more points may crash, if a worst fall down occurs. This is the right time to start the great accumulation process on every major fall, will do miracles in long term by a careful selection of good stocks. Please do your own research before make any investment decisions.

I have put together some facts on certain 60-70 scrips I collected while searching good stocks to invest. The first batch of 10 were published in http://www.stockmarketguide.in/ in the month of February. I am submitting 4 more for your perusal and further investments decisions. I am sure that the Small/Mid cap scrips quoted below will do great job for us in coming days and will be the real multibaggers in future.
I am planning a 3 to10 year long term investment to scrip specific and expect readers will make close analysis before any bulk investments. I didn’t stressed much on the technicals, instead, I recommended a best BUY RANGE after considering certain technical factors. The right time to enter in the market is unpredictable in current situation and the BUY RANGE proposed may help you to take a decision.

1. OM METALS INFRAPROJECTS LIMITED

Om Metals Infraprojects Ltd, is a company (Kothari Group) having diverse business activities and interests related to Hydro mechanical equipments, turn key solutions for steel fabrication, Hydro power developments, Real Estate, Leasing, Finance, Entertainment centers, Hotels and tourism. The ISO 9002 Company is pioneer in the field of execution from Design, Detailed Engineering, Manufacture, Supply, Installation, Testing & Commissioning of complete range of Hydromechanical equipments for Hydroelectric Power & Irrigation projects, PHED, PWD & various Corporations.

Om Metals Infraprojects Ltd. has to its credentials more than 40 projects completed all over India and abroad. Some major on going projects are Sripada Sagar Project, Kameng Hydro Electric Project, Koldam Hydro Electric Project, Sewa Hydro Electric Project, Madikeda Project, Parbati III Hydro Electrical Project, Chamara II Hydro Electrical Project, Uri II Project, Teesta Low Dam IV Project and Tapovan Vishnugad Project .

A Special Purpose Vehicle "Pondicherry Port Ltd" (PPL) has been iniatiated as a 50:50 joint venture between Subhash Projects & Marketing Ltd (SPML) and Om Metals Infraprojects Ltd. The port will be developed in four phases and will be completed by 2014. It will provide direct and indirect employment to over 10,000 people.

Om Metals has grossed in engineering sector alone a turnover of USD 25M and is now targeting a turnover of USD 50M. The company has successfully completed more than 50 Irrigation and Hydro Power projects across the nation and abroad. Bagged prestigious contracts from organization like World Bank, NTPC, Ministry of External Affairs, NHPC, NEEPCO and others Profit making company since its incorporation.

BSE CODE - 531092
SCRIP - Om Metals Infraprojects Ltd
PRICE - 06.76
SECTOR - Hydro Power and other Infra
PE - 3.80
EPS - 3.91
Book Value - 34.01
BUY RANGE - 5-8
52W Low/High - 5/59

2. AMARA RAJA BATTERIES

Amara Raja Batteries (AMARARAJA) is engaged in manufacturing batteries for the automotive and the industrial sector. Amara Raja will perform beyond our expectations in the Electric/Hybrid vehicle Era. I am dreaming about 2, 3 and 4 wheelers including low floor buses of our state RTCs running on electricity, will rule the roads in coming 7-10 years. If it happens, you will see the hi-tech BATTERY HUBS for recharging/replacing the batteries at every nook and corner. Amara Raja “PitStops” will definitely be there with its advanced technology power boxes. Just imagine that you are holding a Smart Card of AMRB and can recharge/replace the battery of your electric 2/3 or 4 wheelers at anywhere through out your journey.

The company has a range of automotive batteries sold under the brand name Amaron like Pro, Hi-Life, Hi-Way, Harvest, Go, Fresh, Optima, Shield, Gems, and Tips. Original manufacturer (OE) customers include Hyundai, Maruti Udyog, GMIL, HML, Ford and others. It is the market leader in India in the VLRA segment with 42% market share. It is also the largest & dominant market leader of standby batteries in Railways, Telecom and Power Generating stations in India. Leading Clients includes BSNL, MTNL, Lucent, Alcatel, Seimens, BHEL, CGL etc…

The company has technical collaboration with US-based Johnson Controls. The company`s franchisee outlets are known as PitStop, and it has more than 150 PitStops across India. The company’s industrial and automotive batteries are exported to Singapore, Malaysia, Indonesia, Taiwan, Philippines, Greece, Australia, Kuwait, Dubai, China and Japan.

The company invested Rs 882 million to increase automotive battery capacity by 50% from 3.6 million units per annum to 5.4 million units per annum. They also plan to expand the capacity of the industrial battery division, which would incur a capital expenditure of Rs 650 million. The company would be investing Rs 1,134 million in setting up a facility at Tirupati for the manufacture of two wheeler and small VRLA batteries. The proposed investment would be spread over three to four years.

Amaron® is the preferred supplier to Daimler Chrysler, Ford and General Motors. It has selected as automotive product of the year 2000 by Overdrive, Excellence in Environmental Management in 2002 by AP Pollution Control Board. Creative Advertiser of the year '2002 by ABBY, Ford "World Excellence Award" , Ford Q1 Award , ISO-9001 in 1997, QS 9000 in 1999, ISO/TS 16949 in 2004, ISO 14001 in 2002.

The company is one of the largest (designed for producing 3.64million batteries p.a.) and most modern automotive battery plants in Asia . Most of the product components are built in-house and maintains fully automated production line. To cater to ever changing customer needs, Amara Raja has also built a Battery Excellence Centre - the first of its kind in Asia. This research and engineering centre has been conceived as a completely self-sufficient facility with a full range of testing equipment. The centre incorporates all the latest gadgetry for battery performance evaluation, design and life testing and also has capabilities for application engineering, vehicle systems study, simulations and computer-aided design including a full calibration laboratory on site.

The company has launched a new retail store format – Powerzone. Powerzone will offer top quality automotive and power related products for the rural households and shops. It will be a one stop shop offering a platter of products from automotive batteries, tractor batteries and home UPS, from the House of Amara Raja. The first Powerzone store was inaugurated at Chengalpattu, in Tamil Nadu, recently.

BSE CODE - 500008
SCRIP - Amara Raja Batteries Ltd
PRICE - 33.60
SECTOR - Batteries
PE - 3.00
EPS - 20.58
Book Value - 39.00
BUY RANGE - 30-35
52W Low/High - 33/144


3. OPTO CIRCUITS INDIA

Opto Circuits (I) Limited (OCI) is a Bangalore based company engaged in manufacturing of Medical Diagnostics equipments includes, Pulse Oximeters, Pulse Oximeter Sensors, Fluid warmers, Cholesterol monitors etc... OCI is in a specialized, technology oriented Opto electronic industry since 12 years. OCI has the status of Export House and has been awarded two star trading house status by the Government of India. It has ISO 9001-2000 and ISO 13485-2003 quality system certification. OCI group companies have been awarded CE approval for its products. The subsidiaries of OCI possess FDA approval for different products being manufactured by them.

OCI’s infrastructure includes a full fledged R&D and manufacturing facility at Electronics City, Bangalore. OCI’s flagship products like: Pulse Oximeters, Sensors, Digital Thermometers, Thermal Bill Printers are some of the turn key solutions by the company. With its thorough knowledge of the industry & expert management, OCI can competently handle total solutions for its clients, right from conceptual level to the finished product which includes software, hardware and support system..

Criticare Systems, Inc, is now a wholly-owned subsidiary of Opto Circuits. Criticare Systems Inc. designs, manufactures, and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world. Mediaid Inc. is a wholly owned subsidiary of Opto Circuits India Ltd. Mediaid has an established distribution network across US, Latin America and Europe.

Eurocor Gmbh, a 100% subsidiary of OCI, is a European Life Sciences Technology corporation specializing in the research, development and manufacture of interventional cardiology products. Eurocor specializes in coronary stent technology and special cardiovascular devices. Eurocor currently sells its products in over 26 countries around the world. OCI also acquired the Digital Clinical Thermometer division from Hindustan Lever in India during 2002.

The leading National clients of the company includes Manipal Group of Hospitals, Escorts Heart Hospital Delhi, Wockhardt Heart Hospital (Delhi, Mumbai), Apollo Group of Hospitals, Lilavati hospital Mumbai, Breach Candy Hospital, Mumbai etc..

OCI has received Section 510(K) US FDA (United States Food & Drug Administration) approval on two of its new generation range of Pulse Oximeters. The latest certification enables OCI to market its M30 and M34 Models of Pulse Oximeters in the United States which is the largest market for these products. The M30 and M34 Models are already being successfully marketed in Europe and Asian countries.

BSE CODE - 532391
SCRIP - Opto Circuits (India) Ltd
PRICE - 78.45
SECTOR - Medical Diagnostic Equipments
PE - 11.50
EPS - 10.86
Book Value - 19.71
BUY RANGE - 60-80
52W Low/High - 69/244

4. HIND DORR-OLIVER

Hindustan Dorr-Oliver (HINDDORQ) is a leading total engineering solution provider company. The ISO 9001:2000 certified company provides engineered solutions, technologies and EPC installations in liquid-solid separation applications and pollution control for industries like pulp and paper, mineral beneficiation chemicals, food and pharmaceuticals, breweries and distilleries, refineries and petrochemicals, oil and gas, phosphatic fertilizers, industrial and municipal waste water. The research and development facility is certified by Dept. of Science and Technology, Govt. of India.

The company has bagged several contracts from prestigious companies like Hindustan Petroleum Corporation, National Aluminum Company, Bharat Oman Refineries, Indian Oil Corporation, Vedanta Alumina etc…The company has long-term business associations in Sri Lanka, South East Asia, Jordan, UAE, Kenya, Iraq and Kuwait.

HDO has an excellent track record in Mineral Beneficiation, which is one of its core business sector. HDO enjoys leadership in more than 70 different metallic and non-metallic mineral processing industries. HDO has served almost all the customers in Alumina Industry, viz. NALCO, HINDALCO, BALCO, INDAL, MALCO and VEDANTA, by supplying its core process units, such as Sand Washing Plant, Conventional Thickeners, Hi-rate Settlers, Cable Torque Thickeners, Kelly Filters, Disc Filters, Red Mud Filters, Horizontal Pan Filters, Milk of Lime Plants, etc.

HDO has made a major contribution in the field of Uranium Ore Processing and Extraction Plants in India, and has supplied equipment and system to Uranium Corporation of India Ltd., for their Jaduguda Project. The company is also a pioneer in Water / Wastewater and Industrial Effluent Treatment Systems and offer integrated solutions for customer satisfaction. The company has over five decades of experience in India / abroad in terms of executing turnkey projects in this field.


Services
Water Treatment:-

  • Drinking Water Treatment

  • Industrial Process Water Treatment

  • Reverse Osmosis

  • Circulating Water Treatment

Wastewater Treatment:-

  • Domestic Sewage Treatment

  • Industrial Effluent Treatment

  • Refineries and Petrochemical

  • Pulp and Paper Industries

  • Dairy Industries

  • Textile Industries

  • Fertilizer Industries

  • Chemical Industries

  • Tanneries

CHEMICAL INDUSTRIES

HDO also specialized in separating the solids from the liquids in chemical industry. Solid-liquid separation units, such as Thickeners, Clarifiers, Classifiers, Drum Filters, Precoat Filters, Disc Filters, Horizontal Pan Filters, Horizontal Belt Filters, are some of the equipment, which cater to this segment.

HDO was closely associated for post-war construction work in Iraq, which included complete supply and installation of water distribution pipelines and treatment works. HDO has also supplied unique containerized mobile drinking water treatment plants to Iraq. HDO Manufacturing Works is having U Stamp Certification from ASME, United States of America.
HDO has executed many projects with specific technology tie-ups from the companies abroad. This includes:-

MINERALS PROCESSING
GL&V - CANADA (For Equipments in Mineral processing and beneficiation)
CHALICO GAMI - CHINA (For projects in Alumina Smelter and Refining.)

ENVIRONMENTAL MANAGEMENT
ABS - SINGAPORE (For lending technology support in WTP/STP/ETP projects and associating as Equipment supplier.)

KEPPEL SEGHERS - BELGIUM (For various Wastewater Technologies.)

SFC – AUSTRIA (For SBR technology.)

GE INFRA – USA(For Comprehensive water reuse technologies.)

BSE CODE - 509627
SCRIP - Hindustan Dorr-Oliver Ltd
PRICE ON - 35.25
SECTOR - Engineering/Turnkey Services
PE - 5.50
EPS - 10.88
Book Value - 35.71
BUY RANGE - 20-30
52W Low/High - 24/139

I am not responsible for your investment decisions and do close watch before taking any. Happy Investments!

Disclaimer

The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.



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