"When one knows Thee, then alien there is none, no door is shut..
Oh, grant me my prayer that I may never loose touch of the One in the play of the many"
Tata Communications, formerly known as Videsh Sanchar Nigam Ltd, has sought Government approval for selling residential property in Kochi and Bangalore in a bid to cash out its unutilised assets.
The company, in which the Government owns minority stake, wants to sell 24 residential properties in the two cities.
The housing units were built when VSNL was still owned by the Government for its employees. According to Government sources, the Tata Communications wants to sell off the properties because the current employees do not want to stay in these units.
This comes even as the Government has undertaken a process to hive off the 770 acres of surplus land belonging to the erstwhile Videsh Sanchar Nigam Ltd into a new company.
The residential property put on the block by the company is not part of the surplus land. The company has to take Government approval under the shareholders' agreement. Government officials said the Department of Telecom is likely to agree with the proposal as the company does not see any use for the flats. The DoT had earlier in 2008 agreed to a similar proposal from the company to sell 30 residential units in and around Mumbai.
CRISIL has upgraded its ratings on the bank facilities of Jayant Agro-Organics Ltd. (JAOL; part of the Jayant group) to ‘CRISIL BBB/Stable/CRISIL A3+’ from ‘CRISIL BBB-/Stable/CRISIL A3’.
The upgrade reflects more-than-expected improvement in the Jayant group’s financial risk profile, driven by sizeable cash accruals, in 2010-11 (refers to financial year, April 1 to March 31). The group reported a significant growth in revenues for 2010-11 and for the first half of 2011-12 and has maintained its operating profitability over the past five years leading to healthy cash accruals and accretion to reserves. The group’s revenues increased by 30 per cent year-on-year in 2010-11 and by 65 per cent in the first half of 2011-12 over that in the first half of 2010-11. Its turnover is expected to increase at a healthy rate over the medium term, driven by healthy global demand, increase in castor seed prices and the group’s position as the largest organised player in the castor oil industry. The upgrade also factors in expected improvement in the group’s operating profitability because of commencement of operations at group company Ihsedu Speciality Chemicals Pvt Ltd (ISCPL) in December 2011.
The ratings continue to reflect the Jayant group’s leadership position in castor oil and castor-oil-based derivatives business, supported by its promoters’ longstanding industry experience, and the group’s healthy operational efficiencies, aided by its integrated operations and healthy working capital management. These rating strengths are partially offset by the group’s moderate financial risk profile, marked by modest operating margins, volatile working capital requirements, high gearing and susceptibility to risks related to stabilisation of operations at ISCPL.
To arrive at its ratings, CRISIL has combined the business and financial risk profiles of JAOL, and JAOL’s wholly owned subsidiaries, Ihsedu Agrochem Pvt Ltd (IAPL), Ihsedu CoreAgri Services Pvt Ltd (ICSPL), and ISCPL, and Ihsedu Itoh Green Chemicals Marketing Pvt Ltd (IIGCMPL; JAOL’s joint venture with Itoh Oil Chemicals co Limited. The entities are collectively referred to as the Jayant group. All the group entities have significant operational and financial linkages with each other. JAOL has provided corporate guarantees for the bank facilities of ISCPL and IAPL.
Outlook: Stable
CRISIL believes that the Jayant group will maintain its healthy market position in the castor oil and castor-oil-based derivatives business over the medium term, supported by expected stabilisation of operations at ISCPL. The outlook may be revised to ‘Positive’ if the group demonstrates a track record of stable operations at its sebacic acid plant coupled with a significant improvement in its capital structure over the medium term. Conversely, the outlook may be revised to ‘Negative’ if the group undertakes a larger-than-expected debt-funded capital expenditure (capex) programme or if its working capital requirements increase beyond expectations, thereby adversely impacting its capital structure.
About the Group
Set up in 1992, JAOL manufactures castor oil and castor-oil-based derivative products. Its promoters have been in the castor oil business since 1952, when they set up Jayant Oil Mills. Following the separation of the Kapadia and Udeshi promoter families, in 2002, the Udeshi family started running the business under JAOL.
IAPL was set up as a backward integration initiative into seed-crushing in 2001-02. It has a seed crushing capacity of 360,000 tonnes per annum (tpa) and cake crushing capacity of 210,000 tpa.
ISCPL was set up in 2006 as a joint venture of JAOL and Mitsui & Co. Ltd, Japan. In August 2011, JAOL bought all the shares of ISCPL, making it a wholly owned subsidiary. ISCPL is engaged in manufacture of sebacic acid, a castor-oil-based derivative, and has commenced commercial production in December 2011.
ICSPL was set up to manufacture hybrid seeds. It has generated revenues of Rs.20 million in 2011-12.
IIGCMPL was incorporated in 2010-11, with JAOL holding 90 per cent equity stake, which has now reduced to 60 per cent. IIGCMPL has not begun operations yet.
The Jayant group reported a profit after tax (PAT) of Rs.249.2 million on net sales of Rs.12.56 billion for 2010-11, against a PAT of Rs.124.6 million on net sales of Rs.9.03 billion for 2009-10.
Jayant Agro Orgamics
Current Market Price: 107.20.
Market Cap: 160cr
Sales 9 months ending Dec 2011: 1372.93cr
PBDIT 9 months ending Dec 2011: 69.34cr
Taxes 9 months ending Dec 2011: 12.24cr
Net Profit 9 months ended Dec 2011: 25.11cr
EPS 9 months ended Dec 2011: 16.74
Promoters of Jayant Agro Organics as per disclosure norms set by SEBI have bought from the Open market (Public) 5,60,346 shares from the open market.
Total Cost of acquisition of 5.6 lakh shares is Rs 6.5Cr Avg price per share is: 116.27
Other interesting fact is .. all these shares were bought from one broker as intermediary:
Ved Brothers Securities Pvt Limited.
In Dec 2011 Results for 9 months:
Taxes Paid 9 months ending Dec 2011: 12.24Cr
Taxes Paid year ending March 2011: 10.63Cr
Net Profit 9 months ending Dec 2011: 25.11Cr
Net Profit year ending March 2011: 24.57Cr
So looks like profits have been kept suppressed and ideally we should have seen around 28.28Cr as net profit for 9 months ending Dec 2011(considering 30.21% income tax rate of March 2011)
Conclusion: In past 24 days 5.6 lakh shares have been bought by promoters spending 6.5Cr in cash at an avg share price of 116.27. Tax payments are also high. Sebacic Acid derivatives plant has also started commercial production. Castor oil and its derivatives are used in toothbrush bristles, medical disposables like feeding tubes, IV fluid, deodorant, shaving cream, aftershave,soap shampoo, perfumes, cosmetics, Textile dyes, Bread, chocolate, icecream, autoparts, lubricants, engine coolants, fuel additives, marine paints, engineering plastics, pencil, writing inks, paper, crayons, mobiles, laptop, telecommunications and furniture Things have started to move and going forward ..we could see sharp price increases. Strong Buy!!
Mumbai, Jan 24 (IANS) The Reserve Bank of India (RBI) Tuesday suggested that the government deregulate the price of diesel fully to help contain aggregate demand and the trade deficit that has widened to $133.3 billion in the first nine month of the current financial year.
"Particularly as the food subsidy bill is expected to rise, it will be prudent to fully deregulate diesel prices to contain both aggregate demand and trade deficit," the central bank said in the third quarter review of its monetary policy for 2011-12.
Diesel is heavily subsidized by the government. Oil marketing companies incurred under-recovery of Rs.12.95 on sale of each liter of diesel in the first fortnight of January, according to data provided by the ministry of petroleum and natural gas.
Oil marketing companies suffered under-recovery of Rs.37,719 cr. on sale of diesel in the first half of the current financial year, which is more than half of the total Rs.64,900 cr. of under-recovery on all the petroleum products.
The RBI said heavy subsidies on petroleum products have led to widening in fiscal deficit.
"Revision in domestic administered prices will add to inflationary pressures, although such revisions are necessary to maintain the balance between supply and demand," the RBI said.
The RBI pointed out that the fiscal deficit of the government has remained at an elevated level since 2008-09.
"If the increase in government borrowing already announced is an indication, the gross fiscal deficit for 2011-12 will overshoot the budget estimate substantially," it said.
As per the budgetary estimates, the government targets to bring down fiscal deficit to 4.6 percent of the gross domestic product for the fiscal ending Mar 31, 2012.
"At the current juncture when there is a need to boost private investment, the increase in fiscal deficit could potentially crowd out credit to the private sector. Moreover, slippage in the fiscal deficit has been adding to inflationary pressures and it continues to be a risk for inflation," the RBI said.
Next in line is LPG.(only 4 cylinders at discounted prices rest at 700-800 per cylinder) Watch out for your energy consumption pattern.. Buy Jayant and Tata Communications if you have not yet entered.
Jayant Agro Organics has reported its Q3 December 2011 results.. Jayant has 4 subsidiary companies..
- Ihsedu Agrochem Pvt. Ltd.
- Ihsedu Speciality Chemicals Pvt. Ltd.
- Ihsedu Coreagri Services Pvt. Ltd.
- Ihsedu Itoh Green Chemicals Marketing Pvt. Ltd.
Ihsedu Agrochem Pvt Ltd is a non listed materially significant subsidiary of Jayant Agro Organics. Ihsedu networth and sales make up more than 20% of Jayant Agro Organics consolidated networth and net sales..
Similarly Ihsedu Speciality Chemicals Pvt Ltd is a non listed materially significant subsidiary of Jayant Agro Organics as Ihsedu Speciality Chemicals Pvt limited "networth" is more than 20% of consolidated networth of Jayant Agro Organics.
For year ending March 2011.
Standalone profits for Jayant Agro was: 17.21Cr
Consoldiated profits for Jayant agro was: 24.57Cr
Considering the facts that Jayant has 2 subsidiaries which are materially significant its always adviseable to look at the consoldiated numbers.. So lets look at the latest consoldiated numbers..
1. On a Year-on-Year basis the numbers are great..
- Volume driven performance..
- Costs have increased decreasing margins
- Taxes paid at 32% of PBT is good.
These numbers are great ..specially if you consider the fact that March 2011 (24.57cr) net profits were 97.14% higher than March 2010 (12.46cr) net profits.So this increase is over a higher base..
Jayant Agro Organics with a profit of 25.11cr has exceeded last year's profits within 9 months of this financial year.
Sales are doing great lets look at the margins..
1. Margins on a Year-on-Year basis is down 108 basis points (ie. 1.08%) from 6.13% to 5.05%
most likely we might see margins drop to 2010 levels of 4.56% (unless the new derivatives business really increases the profit margins)
2. Depreciation as a percentage of sales is down.. while on absolute numbers it is still increasing..
3. Interest payments at 2% of sales is right on the dot to take advantage of the 2% interest subsidy scheme of govt of india for exporters. (so expect higher debt levels ..)
Strong topline growth .. is an indication of Jayant's growing position within the castor oil and derivatives business. Margins are stable at 5-6% PBDIT.. with the castor derivatives plant in place .. we should see higher margins..(Watch out for that)
Segmented results is not for the consolidated entity.. hence does not make sense to compare them.
Conclusion: Jayant Agro Organics is growing consistently.. profits are still very low with 2% net profit margins.. Derivatives plant's first full quarter of operations is going to be Jan-March 2012 and something to watch out for improvement in margins.. Pls note as per management derivatives will add around 200-250cr (annually) to the topline so donot expect sharp increase in topline based on new castor derivatives business. I would continue to hold Jayant stock for now due to improving business climate (peak oil, bio-renewables demand)
Advanced Cell Technology is now the only company in US to have an active FDA human clinical trial with Stem Cells...
If you see "Organ transplant" (heart, kidney, lungs..) the biggest problem is "Histocompatability" Histocompatability is nothing but .. when a new entity enters into the human body..(like a transplanted kidney) the human body has a defence mechanism which can detect the kidney as foreign body and attack it.
When an organ transplant is done ..the new organ introduced into the body is identified by the "defence mechanism" as a foreign body.. and attacks it.. causing the destruction of the new organ and leads to failure of the transplant and can be life threatening to the patient.. Histocompatability issues cause organ transplant process to include an additional step of "Donor Compatibility"
Now unlike heart, kidney transplant.. which all face "Histocompatability" issues .. there are "immunologically privileged" sites within our body where the body defence mechanism does not attack a foreign body.. "Eye, Brain and testes" ..
Stem Cells science had advanced to a level where complete body parts can be "manufactured" but stem cells technology still has to overcome histocompatability issues except for "Eye, Brain and testes" which are "immunologically privileged"
ACTC.OB (Advanced Cell Technology) is at present conducting FDA approved Clinical testing for Stargardt’s macular dystrophy and dry age-related macular degeneration (dry AMD) using retinal pigment epithelial (RPE) cells derived from human embryonic stem cells (hESCs).
ACTC is targetting the eye for stem cell related cure.. where there are no histocompatibility isues.. latest update state that additional patients are being enrolled (which means positive development for first few patients..)
So ACTC.OB is something where you need to have an investment.. because it has taken an immunologically priviledged area of the human body where histocompatability issues are not present..
Everybody has heard about "Eye Donation" but have you heard about eye transplant being done between related entities ( ie blood relations ..) In other organ transplants like kidney, heart, lungs etc.. transplants are done only after "Donor Compatability" (Related entities) due to histocompatibility.
Alert:
Now I invested in ACTC at 9 cents per share..when market cap was 56.48 million right now ACTC has a stock price of 0.15 Dollars ie 15 cents with a market cap of 245 million. So even though the market cap of ACTC has increased 433% since the time I have invested in ACTC my actual gains are just 66.66%
Stock dilution is very high and a cause of concern.. My personal advice is to buy at a price below 10 cents..
There are questions about dilution of equity.. right now ACTC is looking to increase the number of equity shares that ACTC can issue from 1.8 billion shares to 2.8 Billion shares. ( 1Billion additional shares) It seems all 90% of convertible notes and warrant holders have "AGREED" to convert their notes and warrants into equity and hence the company will have to issue 380 million shares and additional 240 million shares.. so total we could see a dilution of about 620 million additional shares..
Insiders like Dr Robert Lanza have inbuilt clause that additional shares will be issued when their holding drops below x% ..
The good part is all notes and warrant holders (90% ) have agreed to convert .. (which is an indication that they prefer stocks over bonds (interest bearing) and could indicate that soon ACTC will not need any more funding (as its going to report good news/data .. my take) hence this conversion by all notes and bond holders..
PN: ACTC is a 0 or 100 stock.. so invest keeping in mind this could be Zero tomorrow. (Though I doubt that will happen)
Lets review the short term call given:
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Recommendation Date: Dec 10,2011
Recommendation: Sell NIFTY 4700 PUT @ 68 on Monday Dec 12,2011. Buyback the PUT @ 2 on Dec 29,2011. Earn 12% return in one month.
Dec 29,2011 NIFTY-4700-PUT-Dec closed @ 53.85
Actual Result:
Profit: ((68-53.85)*50)-307.50 = 400
Returns: 400/25,000 = 1.6%
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Well so that's it folks.. as we can see.. expectations are different and reality is a lot different. We expected 12% return in reality we got 1.6% but lets dig a little deeper..
Here is the price movement of NIFTY-4700-PUT-Dec from Dec9,2011 till the date of expiry (Dec 29,2011)
As we can see NIFTY-4700-PUT-Dec has moved from lowest price of 10.05 (Dec 27,2011) to a high price of 180.55(Dec 19,2011) giving us opportunities (10.05) and also some scary moments (180.55)
Conclusion: On Dec 9,2011 NIFTY was @ 4866 and Dec 29,2011 NIFTY @ 4646 a drop of 4.5% but we still got to close the month with a profit of 1.6% .. Option "Selling" Its an opportunity to get higher returns but not without potential losses.. everyone has to take a call .. should I sell at 10 or wait for 2, should I book losses at 180 or sell 1 lot NIFTY-4500-PUT-Dec @ 50.50 (Recommended on Dec 16,2011)
This is not a one shoe fits all.. my current recommendation for NIFTY-JAN-4600-PUT @ 76.50 has been executed by "My own world...In my own Words" @ 87 which is at a great price.. So find your own battles.. (entry and exit points)
its recommended to take the final call yourself..
and
- Do not take bets which you cannot afford to loose..
- Always keep extra cash just in case you get margin calls
Another strategy is: Straddle from both sides..
- SELL NIFTY-JAN-4600-PUT @87 and
- SELL NIFTY-JAN-4900-CALL @ 40.40
Investment 50,000 you make (87+40.40) *50 -600(Transaction cost) = Rs 5770 i.e. 11.54% return.
This is only if NIFTY Closes between 4700 and 4900 by end of JAN 2012 Expiry ..your earnings will drop but your profits are protected till 127 points on either side i.e. you will not make losses till 4573 and 5027 in NIFTY..
(personally I would not recommend this as NIFTY @ 4646 is still closer to the bottom rather than at the top..)
This is next leg of recommendation for short term.. 12.5% till end of Jan 26,2012. in 29 days..
4600 PUT available at 76.5 can be sold at current levels.. buyback at 2 or less..
Return 76.5-2 =74.5 x 50 = 3725-600(transaction cost) =3125 on investment of 25,000
that is a return of 12.5% in 29 days..
NIFTY 4700 PUT will be a sell tomorrow (Dec 29,2011) at any price below 10 or wait for target buyback Rs 2/= HAPPY NEW YEAR PN: suggestion is only for one lot of NIFTY PUT. One can also select these options.. NIFTY-4600-PUT JAN @ 76.50 make 3125 on investment of 25,000 return 12.5% NIFTY -4500-PUT JAN @ 55 make 2050 on investment of 25,000 return 8.2%
Everybody is flummoxed by the strength of the US Dollar. Look at the facts.
Oct 2008 Monetary base for US was: 1.129 Trillion Dollars.
August 2011 Monetary base for US was: 2.658 Trillion Dollars
So ideally speaking with the excess dollars floating around in the market ..the value of dollar should fall. but we are seeing the rise of the dollar.. what's the reason?
The reason is simple. the excess dollars is not in circulation in the market. The excess dollars are parked with the federal reserve as excess reserves.
how much of excess dollars are held in Federal Reserve:
Oct 2008: -ve 381 Billion Dollars
August 2011: 1.57 Trillion Dollars.
As of Dec 14,2011: 1.52 Trillion Dollars.
How much dollars are in circulaton in the market:
Oct 2008: 1.46Trillion
Aug 2011: 1.00Trillion
Dec 14,2011: 1.1Trillion
So actually the dollars in circulation in the market right now is 350Billion Dollars less than what it was on Oct 2008 and hence we are seeing this rise in Dollar strength.
from Jan1975 the banks have always held "minimum required" reserves with the fed
The question in our mind is why this sudden rise in "Excess" dollar deposits with the federal reserve?
Well the Federal Reserve bank changed the policy on Oct 6, 2008. That starting Oct 6,2008 the Federal reserve will start paying interest on reserves and excess reserves to the big banks.. (link) [Read carefully the original implementation date was somewhere in Oct 2011]
Surprisingly I just found that the stock market decline also started from Oct 2008.. (Link) coincidence??
Conclusion: The current strength of the dollar is cooked.. Cooked by the world famous chef "Fed". The stock market crash 2008 and subsequent market volatility is also driven by the withdrawl of "Credit" from the system. keep a close watch on FED action.. live within your means.. banks are going to feel the brunt of credit squeeze ..
PN: these are my personal views about publicly available information. I could be wrong in understanding the information.. Please do your own deep dive before making any investment decision.
Well the year is coming to an end and here is a chance to make 12% return in 1 month in NIFTY Options.
Strategy:
Sell NIFTY 4700 PUT One lot.
Current Market Price: 68
Investment: 25,000
Buyback on Dec 29,2011.or before NIFTY 4700 PUT at Rs 2 or less.
================
NIFTY has not fallen below 4700 till Nov 3,2009 (chart below)
Current price of NIFTY 4700 PUT is 68.15
Sell One lot "NIFTY 29Dec 20114700 PUT" at 68.15 and buy back at Rs 1-2 on Dec 29,2011
Price difference: 68.15-2 = 66.15
1 lot: 50 units so Profit: 66.15x50 = 3307.50
you need to have 25,000 in your option trading account to sell one lot.
Considering 307.50 as transaction cost Net Profit: 3000/=
Investment is: 25,000
Profit Percentage: 3000/25,000 = 12%
investment time period: 18 days..
---------------------------------- Caution: If nifty Falls below 4700 additional margin will be required. If NIFTY closes below 4640 or below on Dec 29,2011 you will be making losses. hypothetically if NIFTY closes at 4600 your estimated loss will be around 40-50 per share ie 50*50 = 2500
If nifty closses at any price above 4700 you will stand to gain Rs3000/= on an investment of 25,000
Other trading strategies are: - Sell NIFTY 4600PUT Dec292011 at 44.90 and make a profit of approximately 2000 on an investment of 25,000 ie 8 % in 1 month - Sell NIFTY 4500PUT Dec 29,2011 at 29 and make a profit of approximately 1150 on an investment of 25,000 ie 4.6% in one month.
Please note this is free advice.. I donot stand to profit from your trading in this options.. This is an advice for selling only ONE LOT (50) trading in more than one lot is not suggested. Please do your own deep dive before investing.
A Smart Mini-Grid (SMG) is an intelligent electricity distribution network, operating at or below 11 KV, where the energy demand is effectively and intelligently managed by diverse range of Distributed Energy Resources (DERs) such as solar PV, micro-hydro power plants, wind turbines, biomass, small conventional generators such as diesel gensets etc. in combination with each other through smart control techniques.
This integrated energy system comprises:
Variable loads which are connected to the distribution grid;
Diverse range of small, local generators based on distributed energy resources, for example, solar, wind energy, storage system; and
Control and power conditioning systems.
Benefits of Smart Mini-Grid
Foster demand side management & response;
Reduce power outages, increasing reliability, efficiency, and safety;
Reduce carbon footprint and minimize fossil fuel consumption
Provide customers autonomy to manage their electricity needs.
Energy is the key to economic development. In India alone, the demand is expected to grow at an annual rate of 6% in the next decade. Estimates by the Ministry of Power suggest that by 2011-12, India will need over 1,00,000MW of additional capacity installation to meet its power requirements. Few power stations of desired capacity can be installed in order to meet the demand. But power stations alone cannot meet the small dispersed loads in remote areas. Globally, the trend is towards managing existing energy resources and demand in an optimal and efficient manner. Over the years, smart grids have evolved for this purpose. Advanced sensing, communication, and control technologies are used in these smart grids not only for generation and transmission of power, but also distribution and utilization of electricity in an intelligent and effective manner.
This distributed generation-based power system/mini-grids can be installed and subsequently integrated to the conventional utility grid or used to provide electricity for localised loads only. It not only fosters effective inter-connection and utilization of multiple renewable energy resources, but also helps in advancing access to energy to the last mile in the most optimum manner by improving the efficiency of the overall system. Besides, it offers immense potential for improving energy access in both urban and rural areas.
TERI has designed, developed, and demonstrated the country's first-of-its-kind Smart Mini-Grid system. The objective is to optimally use smarter control of distributed energy sources combined with intelligent management of loads to improve the efficiency and reliability of the overall mini-grid system. The Smart Mini-Grid, built with the support of the Ministry of New and Renewable Energy (MNRE), was recently inaugurated at the TERI Retreat in Gual Pahari, Gurgaon.
A Smart Mini-Grid system is an application of digital technology which optimizes electrical power generation and delivery (see box). The system is based on the integration of multiple distributed energy resources (DERs) into the same grid. This system is also based on intelligent load and energy resource management. It is designed with local controllers for each of the distributed generation technologies as well as a central controller called intelligent dispatch controller (IDC) which communicates with the each local controller. Whereas the local controllers ensure maximum utilization of energy resources with permissible output power, the IDC performs complex system control functions and takes critical decisions such as automating the demand response, dynamically adding or removing DERs in a seamless manner (based on the existing demand) without affecting the grid stability.
A Smart Mini-Grid has greater resilience to loading as compared to the conventional grid system. It is marked by power flow through multiple routes, a feature common to the conventional grid system. However, unlike the conventional grid system, it is designed to avoid cascade tripping of network elements.
The system also has the capability to respond automatically to network problems and minimize network disruptions. It can anticipate and respond to system network problems and avoid or mitigate power outages, power quality problems, and service disruptions using real-time information from embedded sensors and automated controls. The grid is also equipped with a self healing system that enables it to rapidly detect, analyze, respond to power disturbances and restore power supply.
The TERI Smart Mini-Grid facility combines the following distributed generation resources--3.3 kWp wind generator, 1 kWp thin-film solar PV, 12.5 kW solar PV, 100 kWe biomass gasifier, 600 Ah, 48 V storage battery, and a diesel generator. The diesel generator has been added to the system to meet the intermittency of the renewable resources and hence ensure reliable power supply.
Such Smart Mini-Grid systems have great potential, not only in commercial and industrial complexes, but also in hospitals, shopping malls, apartments, residential complexes, educational institutions, remote un-electrified as well as electrified locations to ensure maximum flexibility, reliability, and safety with enhanced efficiency of the overall system.
Conclusion: SMART Grid system is nothing but a mini version of a conventional electricity distribution system the energy produced from different sources are consolidated and the most preferred source is used to provide the electricity. This technology will effectively make the conventional grid system less relevant as households can effectively sustain themselves outside the grid network with their own source of power.. Something to watch out for.
The march is on.. foreign multinationals are on the lookout for castor production sources and its derivatives. As demand for renewable sources of chemicals increases.. India is the largest producer of castor (70-75% of worldwide production) and China is 2nd largest producer of castor oil and its derivatives.
Jayant Agro is the largest castor seed processing company in India and producer of largest range of castor derivatives in the world (Blog link)
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Arkema continues to expand in specialty polyamides with the acquisition of Chinese companies Hipro Polymers and Casda Biomaterials
Arkema announces a project to acquire Chinese companies Hipro Polymers, a fast-expanding producer of biosourced polyamide 10.10, and Casda Biomaterials, world leader in sebacic acid, derived from castor oil and used in particular to manufacture this polyamide 10.10.
Both acquisitions are consistent with Arkema’s strategy to develop performance products, as well as the program presented by the Group in November 2010 to acquire around 1 billion euros of sales.
Both companies report aggregate sales estimated at $230 M for 2011, and employ 750 people on two sites in China.
The acquisition price is based on an enterprise value of $365 M for 100% of the capital of both companies, which are predominantly owned by a joint venture between privately owned Chinese specialty chemical company Feixiang Chemicals and Bain Capital, a global alternative asset manager with over US$60 billion under management.
We are happy to see the two companies to join the family of Arkema, global leader of renewable source based high performance polyamide, and believe that the business and product development of the two companies will be brought to a new high level », added Ji Li, President of Feixiang Chemicals.
By adding Hipro Polymers’ PA10.10 to its technical polymer portfolio, Arkema, the world’s only producer of polyamide 11 also derived from castor oil, would strengthen its world leading position in specialty biosourced polyamides (15 to 20% expected annual growth rate), becoming the only chemical manufacturer to offer a full range of long chain polyamides 10, 11 and 12. Arkema’s acknowledged reputation and application know-how in the end-markets of these various products should help speed up the development of Hipro Polymers, in particular in transportation (automotive, trucks), renewable energies, and electronics.
In anticipation of the rapid development expected over the next few years, Hipro Polymers’ modern and competitive industrial site, based in Zhangjiagang, 110 km from Shanghai, recently benefited from new investments to triple its production capacity.
With the acquisition of Casda Biomaterials, the world’s leading producer of sebacic acid, Arkema would benefit from sebacic acid integrated feedstock for the production of PA10.10, and, through this strategic raw material, would be able to supply diversified world markets such as lubricants, plasticizers and corrosion-inhibiting additives, as well as the fast-growing biosourced and biodegradable copolymer market.
The Casda Biomaterials facility is a competitive industrial base located in Hengshui, 250 km from Peking.
This project is subject to approval by the Chinese authorities, and the operation should be finalized in early 2012.
A global chemical company and France’s leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, 15,700 employees and 9 research centers, Arkema generates annual revenue of €5.9 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands. The world is our inspiration.
Digging deeper into Peak oil and future energy resources.. Shale gas report by United States Geological Survey (USGS) in Marcellus Assesment Unit (AU) is interesting information.
- First this is a report that was published by USGS in August 2011 .
- Reserves are always an estimation.. and it is a wide range (reporting only for Interior Marcelleus AU)
- Conservative Estimate: - 44,607 Billion Cubic Feet of Gas (BCFG)
- Realistic Estimate:- 81,374 BCFG
- Wild Guess Estimate:- 139,106 BCFG
The report also states that conservative estimate of Natural Gas liquids is: 1,497 Million Barrels of Natural Gas Liquids (MMBNGL)
.
Now on Nov 14,2011 Task leader "Marcellus Shale Gas Resource Assessment" James L Coleman discussed about their report with US Senate committee. (link)
It seems the old estimate of Marcellus Shale reserve was 2 TCFNG and 0.01 BBNGL and latest numbers are 84 TCFNG and 3.4BBNGL
The only large sources of oil reserves are in Deep water and it seems its a difficult task setting up a base and getting the oil out. Its much more economical to extract shale gas "on land" than these "Deep water" oil reservoirs.
Reliance has significant stake in Marcellus Shale. So just don't count out Reliance Industries yet.. and maybe all this weakness in Reliance Stock is for a very very strong upmove in Reliance in the future..
Conclusion: "Contrarian Investing" is a good idea provided we have done some leg work.. Pls note I have no personal interest (investments) in Reliance Industries (all the more reason for Reliance Industries to rise faster ;-p) Donot Sell your reliance stock just yet or at 900 hold for long term.. People like BP buying into Reliance is not a flash in the pan its with much deeper knowledge than we can grasp.
The recent Kingfisher airline cancellation of flights and debt problem is in news. Govt it seems is looking to provide a revival package with debt recast etc..
1. Aviation Turbine Fuel (ATF) is cheaper than Petrol by Rs 11-14 per liter in Mumbai. (depending on the fuel supplier) Domestic flight Mumbai Prices (ATF): Rs 61.98 per liter (Indian Oil)
2. For international flights the (ATF) is still cheaper.. by Rs 25 per liter.
International Flight Mumbai Prices (ATF): Rs 48.7 per liter (Indian Oil)
3. Domestic Mumbai Petrol Prices: Rs73.81 per liter (Indian Oil)
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So its amazing that there are 10 airlines in India and they can influence the govt and get ATF fuel at a price cheaper by Rs 11-14 per liter of ATF fuel price.. while the whole country of 1.x Billion people pay more and cannot influence the Indian Govt enough to get a price parity to ATF fuel for Petrol??
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As per DGCA 396.31 lakh people traveled by Air from Jan to August 2011 ie. in 8 months.
- 49.53 lakh people per month .. which translates to
- 1.65 lakh people per day(30 days)...
there is one more change.. Source to Destination = 1, Destination to Source (back) = 2 since every time an individual travels its counted as a different passenger when actually its the same passenger travelling back..so actual number of unique people travelling is 1/2 ie
- Approximately 82,565 unique passengers per day.
So there are approximately 82,565 individual air passengers who benefit from the ATF fuel prices while there are a millions of people in India who use Petrol and loose out due to higher fuel prices every day!!.
Conclusion: I am not advocating an increase in ATF or decrease in Petrol prices.. The question is about availability of all relevant information before making a decision about bailing out pvt companies. Definitely Kingfisher airlines does not need to be bailed out. in fact kingfisher airline market share is 18.8% which means we are talking about 15,522 individual passengers being impacted on a daily basis. The airline industry has been privatized and many other pvt airlines have shut shop we need to allow for kingfisher to also learn to swim or sink. The industry can accommodate these fluctuations.
India should spend more time and energy in providing better public transportation with connectivity. Railway network needs to be strengthened to carry more percentage of traffic (goods and individuals)
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