NSE News - Latest Corporate Announcements

Monday, April 30, 2012

5000 Tonnes of castor seed sold by Acazis AG

Gilching, Germany, Mar 19, 2012 (Thomson Reuters ONE via COMTEX) -- Acazis AG / ACAZIS AG signs its first CONTRACT for sale of 5000 tons of castor beans and appoints SINOETH Hong Kong International Group Limited as exclusive distributor for China, Japan, Korea, Ethiopia. . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
Gilching, Munich, 19 March 2012 - Acazis AG based in Gilching, Munich signed a 5 year agreement with Sinoeth Hong-Kong International Group Limited on 15 March 2012. The agreement foresees the marketing and sale of all or part of Acazis AG's castor harvest. It will be renewed for a further five years should neither party decide to terminate the contract.
Sinoeth Hong Kong has committed to purchasing from Acazis AG, a minimum of 1000 tons of castor beans annually. The purchase price of the castor beans is based on the official prices indicated by the Indian Commodity Futures Exchange NCDEX (www.ncdex.com/MarketData/SpotPrice.aspx ) in India. At present the SPOT price for one ton of castor beans corresponds to approximately USD 720, -.
Sinoeth Hong Kong has excellent commercial contacts in both in Asia and beyond. Some of the companies with which Sinoeth Hong Kong currently collaborates include the following:
SDIC International Trade Co. Ltd.,
China National Light Industrial Products Imp. & Exp, Corporation,
China Star Int. Trade Co. Ltd.,
SinoTruk (Hongkong) Ltd.
Sandong Wuzheng Co. Ltd,
Quingdao Doublestar Tire Co. Ltd.,
Changzhou Dongfeng Agriultural Machinery Group Co. Ltd. and
JiangSu Sevencontinent Green Chemical Co. Ltd.
The terms and conditions agreed with Sinoeth Hong Kong already include the purchase of a minimum of 1000 tons of castor beans in 2012. Acazis has guaranteed delivery of the castor crop in two instalments - September and December of this year.
Patrick Bigger, CEO of Acazis AG, has expressed great pleasure in the company's partnership with Sinoeth Hong Kong. He states; "The signing of such a long-term contract with Sinoeth Hong Kong has opened the market for Acazis AG in the sale of castor in the Asian and, in particular, the large Chinese castor market. The conditions relating to a minimum annual purchase provide us with greater operational planning guarantees whilst at the same time minimising the risks for Acazis AG.
We are convinced that we have found in Hong Kong Sinoeth an experienced and very well-connected trading partner which will facilitate access to the world's most important castor importers. With this in mind, we very much look forward to both a fruitful and long-term cooperation."
Jason Xie, CEO of Sinoeth Hong Kong adds; "The contract signed with Acazis AG means that we have acquired one of the major producers of castor oil in the future for our customers in China and Asia. The long-term contract term of 5 years which will be automatically extended for a further 5 years after expiration, will greatly help us to consolidate and increase trade relations with our customers. China is one of the largest importers of castor beans and we are convinced that the quality of the harvest and the significant potential of the 50,000 hectare castor crop means important benefits for our company".
About the company
Acazis AG (Acazis) based in Gilching near Munich, operates in the cultivation and use of castor plants, the production of edible oils, the provision of any related services and the acquisition and management of companies and shareholding in related companies as well as the as the carrying out of Executive Board functions.
Link to the source

Conclusion: 50,000 hectares of castor production is a lot.. if they can get the same yield. In India the yield varies from 500kg/hectare to 1700kg/hectare. The fact is that people see the potential and castor plantations are coming up in Africa, South America, Mexico.. as the saying goes .. more the merrier. Looking forward to Jayant Agro Organics producing higher value added castor derivatives .. maybe India can start import castor seeds!!

Sunday, April 29, 2012

Castor oil Loan Scam 1100Cr detected by Central Vigilance comission

The Central Vigilance Commission has unearthed a large scale fraud committed by a private firm by allegedly misusing Rs 1,100 crore loan taken from different nationalised banks and wrongly claiming its end-use.
CVC officials said the firm was taking loans from various banks with the stipulations that it will be used by farmers of different states for growing and supplying castor seeds.

During  a detailed scrutiny, the Chief Vigilance Officer of Bank of Maharashtra noticed irregularity and found that the firm has perpetrated an alleged fraud of Rs 50 crore. "The matter was brought to the notice of other banks and the Commission which found that the total amount involved in the whole case is Rs 1,100 crore," a CVC official said. He said that a consortium of nine banks have lent to the firm.

"The loan amount has been siphoned off through Village Level Aggregators appointed by the company. The account has become Non-Performing Asset and has been declared as fraud,"  the official said refusing to divulge further information. The Commission advised the banks to ensure that staff accountability be fixed in the case and has asked them to get the case registered with CBI. "The CBI has been directed to register
the case and investigate the matter," he said.An email query on the matter sent to Bank of Maharashtra and other banks did not yield any response.

"It is a serious fraud. The firm has wrongly claimed that the loan amount was being used by the farmers. We are awaiting CBI's preliminary enquiry report on the matter," the official added

Conclusion: This is not good news.. There were no names mentioned but considering the size of Jayant Agro in the castor business it is a cause for concern. hopefully the whole of udeshi family is involved in day to day running of Jayant Agro and will be able to prevent this scam from impacting Jayant Agro. News has been reported in major news papers in April 22,2012 onwards.

Link to news Item: Link1 , Link 2

Monday, April 23, 2012

Jayant Agro: Castor Crop Survey-SEA & Jayant estimated earnings Year 2011-12

Looks like there has been a huge increase in cultivation of Castor in India. As per Solvent Extractors Association (SEA) of India.

=   Total area under Castor crop in India for the year 2011-12 is 11.50 lakh hectares. It has increased by 34% as compared to previous year.

=    Estimated total production of Castor Seeds in India for the year 2011-12 is 16.19 lakh tonnes.  It has increased by 30% as compared to previous year.

Average yield for the year 2011-12 is 1417 kg/hectare as against 1453 kg/hectare during the year 2010-11.  It has decreased by 3% as compared to previous year.

Export numbers have also increased by 60% .. so we can expect Jayant also to report higher earnings for the year ended March 31,2012.

Jayant has reported for 9 months ended dec2011.(Year on Year)Sales increase: 62%  PBDIT Profit margin of 5.05%Net Profit margin of 1.83%

Assuming Jayant Agro maintains the same profit margins as reported for 9 months ended Dec 2011we can expect Jayant Agro Expected year ending March 2012:-Sales:1,875.20crPBDIT: 94.69crNet Profit: 34.31cr EPS: 22.87

Please Note for year ending March 2011 Profit margins were
PBDIT : 5.41%
Net Profit: 2.10%

Assuming Jayant maintains the same margin as march 2011..(higher than margins for 9 months ended dec 2011) these margins would result in :- 
- PBDIT:  101.44cr
- Net Profit: 39.37cr
- EPS: 26.25

Now we all know that Sebacic acid derivatives plant has started production from dec 2011 so we can expect margins to improve for 3 months data..

My guess estimate for Year ending March 2012 Net Profit numbers:
Poor Result would be below 31Cr EPS: 20.66
Fair result would be: 34.31cr EPS: 22.87
Great result would be: 39cr,  EPS: 26 or above

A     whatever the result .. we can expect the dividend payout to increase based on historical figures..  
        dividend payout as percentage of net profit (Including dividend tax):
          March 2011: 13.40%
          March 2010: 23.33%
          March 2009: 36.18%
          March 2008: 25.65%
          So even assuming 5 yrs avg of 19.71% and assuming worst case result of 31Cr Net Profit: Dividend payout will be rs 4.07 per share assuming 34-39cr as net profit dividend payout could be: 4.46 - 5.12 assuming 13.4% for net profit of 31cr we can expect dividend of 2.76 (Poor payout) 
           Conclusion: Jayant is a strong value buy! For year ending March 2012 we can expect Jayant Agro to report:
            Topline of 1875cr 
            Net Profit from 30cr to 39cr, 
            EPS of 20-26 per share and 
            Dividend payout from Rs 2.76 to 5.12 per share (before dividend tax)

       PN: this is my personal view based on publicly available information. please do your own deep dive before investing

Saturday, April 21, 2012

Jayant Agro: Castor oil to rescue Auto Companies..

Here is an interesting article by ICIS Green Chemical Blog

For the benefit of readers I have copied it but here is the link to the original article

The global automotive industry is abuzz with the tightened supply of polyamide 12 (also called nylon 12) which are used in cable ties, wire insulation, flexible hosing, nozzles, damping cogwheels, flexible cover caps, sheet gaskets, sealing rings, and in other fuel line applications/auto-related parts.
PA-12 is also used in plastic parts to make solar panels and cable coverings used in offshore oil and gas production.

Based on several googled websites, PA-12 reportedly have excellent properties such as high degree of dimensional stability under humidity or freezing environment; high resistance to chemicals such as hydraulic fluids, oil, fuels, grease, salt water, solvents; strong resistance to cracking under stress; high-resistance to abrasion; and has high fatigue resistance.
PA-12 also dampens noise and vibration, according to various sources. Unfortunately, I am not familiar with cars but from what I've seen on several news about this PA-12, this is an important chemical for the automobile industry as car makers and several players along the automotive supply chain held an emergency meeting yesterday in Detroit, Michigan, to discuss the critical issue on PA-12 shortage.
According to this article from Plastics News, there are very few suppliers worldwide of  PA-12, namely Evonik, Arkema, Ube Industries and EMS-Grivory. Global PA-12 production was estimated at around 100m lbs/year. Evonik is the only producer here vertically integrated in a key PA-12 feedstock called cyclododecatriene (CDT), which is manufactured by cyclotrimerization of butadiene.
CDT is used to make laurolactam, which in turn is used as a monomer in PA-12.
Unfortunately, a fire broke out at the end of March at Evonik's CDT facility in Marl, Germany, (two employees were killed) and CDT production (capacity is not disclosed) is expected to remain out-of-order for at least three months. This in turn, will affect PA-12 production for those who are dependent on CDT material.
Now here comes the castor part (sorry it took a while to get to this point...).
According to Evonik, the company is able to provide alternative substitutes to its CDT-based PA-12 products in the form of its VESTAMID Terra DD, which contains 45% renewable-based materials made from castor oil derivatives (mostly sebacic acid). The product is based on the polycondensation product of 1,10-decamethylene diamine and 1,12-dodecanedioic acid (this is where sebacic acid comes from).
VESTAMID Terra also comes as polyamide 6,10 which has a 63% biocontent -- the polycondensation of 1,6 hexamamethylene diamine and 1,10 decanedoic diacid (another sebacic acid material); and polyamide 10,10 - a 100% bio-based polymer from the polycondensation of 1,10 decamethylene diamine and 1,10 decanedoic diacid.
Evonik said it is possible to modify the biobased polymers to achieve much of the same material attributes as PA-12. In fact, the company announced yesterday that it has begun measures to increase production capacities of its VESTAMID Terra polymers at its Shanghai, China, plant.
An additional compounding facility for VESTAMID Terra will become operational in the third quarter of this year, and new capacity for the polymerization of the bio-based nylon are in the works and is scheduled to operate in the second half of 2013.
As the blog noted in previous posts about castor-based polyamides, Arkema has also been expanding its castor-based polyamides (under the RILSAN brand) -- when it acquired Hipro Polymers and Casda Biomaterials last year.
Other castor-based polyamides producers include Rhodia (Technyl eXten: PA-6,10) , BASF (Ultramid Balance: PA-6,10),  DSM (EcoPaXX: PA-4,10) and DuPont (Zytel PA-10 and PA-6,10). One thing to note is that Elevance is also targeting to produce natural oil-based derivatives such as diacids for PA-11 and PA-12 and is currently collaborating with companies like Arkema and DSM.
An interesting information about this PA-12 shortage is that other types of polyamides such as PA-6,12 and PA-6,10 could be an alternative to PA-12, according to producers who were interviewed* by ICIS colleagues at the recent plastic tradeshow NPE.
According to US plastic compounder A Schulman, PA-6,12 is a superior alternative to PA-12 for automotive applications given the same chemical resistance factors but PA-6,12 is said to have higher melting point. According to A Schulman, PA-12 supply has been increasingly tight even before the Evonik fire incident as demand from the oil and gas production has taken consumption share from the automotive supply chain.
More plastics are also being used in the automotive manufacture and therefore nylon-based materials are increasingly being used.
DuPont said* it is also working with auto makers to find alternatives for PA-12 in certain applications.
Rhodia, which produces PA-6,10 is reportedly* also working with customers to seek replacement for PA-12, while BASF -- a small CDT supplier as well, is offering its support to PA-12 producers.
Meanwhile, Evonik has also been in the middle of a planned PA-12 expansion, which was announced in December last year. Evonik said a 5,000 tonnes/year PA-12 expansion will supposedly start this year, and another 20,000 tonnes/year PA-12 expansion in its Asian facility is scheduled to be completed within 3 years.

Conclusion: Jayant Agro is the cheapest big Castor oil companies in the heart of castor growing region in the World.
Jayant Sales are approximately Rs 2000Cr ie USD  400 million dollar
Jayant Market Cap is: Rs 155Cr ie USD 31million dollars
Jayant is the largest processor of Castor Seeds are per Solvent Extractors Association (SEA) since 2005 till date (Link)
Banaskantha district in gujarat produces the largest amount of castor seeds ..and jayant has seed crushing plant in banaskantha.. how big is banaskantha? well here is a comparision.. According to castor oil Report (Must download link
China production of castor oil:81,400Tonnes
Banaskantha District castor Seed production: 178,240Tonnes (2009-10) Banaskantha oil production is 53,472 - 71,296 tonnes.. standalone Banaskantha district would be 3rd largest producer in the world!! (Seed to oil conversion is 30-40%)
Promoters own 65% equity in Jayant and ITOH Oil 4% .. so still one can buy 30% stake in the largest castor oil player in India for just 9 million Dollars!! 
Jayant promoters have patented production process for efficient production of sebacic acid ... patent is valid till 2020.(Link)
Jayant has been consistently paying dividends each year for the past 18 yrs..(3.5cents per share 2011)
CMP of jayant stock is Rs 103.6 ie USD 2.07 per share. (Calculation is based on conversion rate of Rs 50=1USD)
So here its is Folks if you are not invested in Jayant Agro you are really missing out on one of the best Green chemical stock in the world. With new Indian govt regulations which allow foreign individual investors to directly invest in equity of Indian companies.. Investment opportunity in Jayant agro stock is available to one and All!! .... 9 milion USD will buy you a 30% stake in Jayant Agro Oragnics . Ideal price for Jayant is one times sales ie upside is 10 times current stock price.

Tuesday, April 17, 2012

Jayant Agro Organics: PA12 shortage Castor Oil Derived PA11 in demand

March 31 explosion at chemical maker Evonik Industries AG halved the global source of an ingredient used to make the resin, called PA-12.
TI Automotive Ltd. warned its customers in an April 12 letter of severe shortages interrupting production “in the next few weeks.” The Auburn Hills, Michigan-based company supplies brake and fuel lines, as well as fuel tanks and pumps, to all major automakers, including General Motors Co. (GM), Ford Motor Co. (F), Toyota Motor Corp. and Volkswagen AG (VOW), according to its website.

It seema PA11 (PolyAmide11) is a replacement for PA-12. PA-12 manufactured from Crude oil while PA-11 is manufactured from Castor oil.. A Comparison of the 2 shows PA-11 infact being superior to PA-12 

PA 11 is a high-performance technical polyamide 11 polymer developed in 1942. It is produced from castor beans. Its properties are basically similar to the PA 12. The resin has earned a preferred material status in the most demanding applications due to its excellent combination of thermal, physical, chemical and mechanical properties. Good impact strength at low temperatures (-40°C), good chemical resistance 
and low humidity absorption (only 1/6th compared to standard PA 6) are outstanding characteristics of the material.

Check out PA-11 Data..  (Link)

BloombergNews Link about shortage
Jayant at CMP of Rs104/= per share  and market cap of 155Cr is ultra Cheap as Castor oil Derivatives are used for high performance plastics.. and a replacement for crude in the chemical industry..

Sunday, April 08, 2012

The Fall of Central Governance: Hello Self Governance.

Looking at he big picture.. we see
- Congress and BJP .. large central (all India) parties not doing so well in Assembly elections in UP.
- Rise of non governmental organisations such as "Anna Hazare" Group, Occupy Wall Street
- Kundankulam Atomic Power Project - Anti-nuclear protest by the locals and People's Movement Against Nuclear Energy.
- Rise of regional political groups.. Kolkata, UP, Bihar, Karnataka etc..

We are surely entering an era of "local" or "self" governance..

with the advent of information age .. there is sufficient level of information available to a person/group ...to make an intelligent/informed decision.. (and this level of information provides enough confidence for individuals (or groups) to question decisions taken at the central level)

Govt worldwide are "stuck" as resistance to central govt decisions are questioned and debated. 

Is this break up of central control "intentional" ?? after all even today I am sure the central govt's have a higher level of information/intelligence to make an informed decision.... then why this breakup of central control??

Are the problems too big to handle hence .. Let's wait-out attitude??

Looking at a future of Post Peak Oil where everything will have to be local? Are we being encouraged into  local self governance .. in subtle ways..

Why is there no national level discussions  on
- "Peak oil"
- "Post Peak Oil Society"
- Zero Growth,
- Being Self Sufficient,
- Self Sustainable?
- Energy Independence.

Is the public being kept in the dark to be fed as the turkey on the dinner table?
with Gas Pipelines to every urban household.. are we going to get cheap gas or we are left with  a "no choice" option?

What are the "Jobs" of the Future?

Wake Up!!

Sunday, April 01, 2012

Jayant Agro Organics: Sebacic acid used in "sustained release" medicine

Now a days all medicines are "sustained release" types.. which means required dosage is released over the period of 24 hours reducing the number of pills and avoid taking excess medicines.. looks like sebacic acid is used in making sustained release medicines 

Carbohydrates are attractive candidates for drug development because sugars are involved in many, if not most, complex human diseases including cancer, immune dysfunction, congenital disorders, and infectious diseases. 

Unfortunately, potential therapeutic benefits of sugar-based drugs are offset by poor pharmacologic properties that include rapid serum clearance, poor cellular uptake, and relatively high concentrations required for efficacy. 

To address these issues, pilot studies are reported here where ‘Bu4ManNAc’, a short chain fatty acid-monosaccharide hybrid molecule with anti-cancer activities, was encapsulated in polyethylene glycol-sebacic acid (PEG-SA) polymers

Sustained release of biologically active compound was achieved for over a week from drug-laden polymer formulated into microparticles thus offering a dramatic improvement over the twice daily administration currently used for in vivo studies. 

In a second strategy, a tributanoylated ManNAc analog (3,4,6-O-Bu3ManNAc) with anti-cancer activities was covalently linked to PEG-SA and formulated into nanoparticles suitable for drug delivery; once again release of biologically active compound was demonstrated.

It seems sebacic acid is used for diabetes treatment also (google search link)

Strong buy for Jayant Agro Organics CMP: 101.40 Market Cap: 151.28Cr.

=happy investing