Wednesday, March 18, 2009

The Emerging Sector - Fixed


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
Bisleri/Himalaya(Mineral Water)
Pratibha Industries
Chembond Chemicals
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.


  1. Very good one sir.. I have been think about this from quit long time and did some research.

    I feel Jain, Kirloskar and IVRCL are good picks for long term. May be i invest more on IVRCL than any others..

  2. Shabu,

    Innnnncredible research. Great!.

    Jain Irrigation is best pick. Agri will become boom only if govt takes some strict innovate rules.

  3. Dear Mr Shabu,

    Indeed a very good & detailed posting on yet another natural resource of this world which is most under-valued vis-a-vis it importance visible on its Face value.

    Thank you for educating us about the importance of water as a natural resource. Investing in Water as a next emerging sector is a secondary aspect. Primary aspect is educating people about emergence of water as a likely scarce resource.


  4. Dear Bulls,

    Thanking you for the inspiring comment.I am agree with your views that saving as much this resource is the primary thing than as an investment option... regards

  5. I think VAS is going to be a high growth sector for coming years in IT/Telecom sector due to auction of 3G spectrum...

    I am interested in 3 Companies.
    (Past 3-Year CAGR Over 100%)
    1. OnMobile
    2. Tanla Solutions
    3. Geodesic

    I have analysed these companies but want other to analyse them and give their views about these companies.

    The few things i want to know are...

    1. What is their business model and products?

    2. Do they have regular revenue generating business or product for sustainability?

    3. How much they will be gaining from 3G...?

    4. Will they be able to maintain their Sales and Profit growth rate in future as their past has been excellent?

    5. Valuations...? (PE)
    Onmobile - 32X
    Tanla - 3X
    Geodesic - 5X

    Geodesic and Onmobile has been growing consistently apart from Tanla which had slower last quarter result...

    Thanks, awaiting you replies...

  6. Super-Duper site! I am loving it!! Will come back again - taking you feeds also,

    Feel free to visit my site -

  7. I all the time used to read piece of writing in news papers
    but now as I am a user of internet therefore from now I am
    using net for articles or reviews, thanks to web.

    Feel free to surf to my webpage:
    my web page -

  8. If you want to improve your knowledge only keep visiting this
    website and be updated with the most recent news update posted here.

    Review my web blog;

  9. he blog was how do i say it… relevant, finally something that helped me.

    Also visit my web page;

  10. When I saw this web site having amazing featured YouTube videos, I decided to watch
    out these all videos.

    Here is my web blog -
    My page:

  11. Can you please send by e-mail me the code for this script or please tell me in detail concerning this script?

    My web page -

  12. This is a very good tips especially to those
    new to blogosphere, brief and accurate information… Thanks for
    sharing this one. A must read article.

    Feel free to visit my blog post ...
    my web site - website

  13. YouTube movies are famous in entire globe, as it is the biggest video sharing web site, and I become too happy by
    watching YouTube video tutorials.

    my page:
    Also see my page ::

  14. Hello everybody, I be familiar with YouTube video carries less bytes of memory due to
    that its quality is poor, however this YouTube video has impressive picture features.

    My web blog -



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.

Total Pageviews