Conglomerates

July 2, 2012

Why has Abound Solar Demise Surprised People

The news report on Department of Energy informing of Abound Solar demise surprised many people and led to the usual media excitement of Obama’s faulty loans […]
June 22, 2012

In an oversupplied solar cell market, BHEL to invest $500 million to build factory in Minister's Constituency

However India's biggest capital good equipment company BHEL owned by the government is plannning a $500 million investment to build a solar cell factory in at Sakoli which is part Union heavy industries minister Praful Patel's constituency Bhandara.Talk about how dumb you can get. BHEL hardly has too much expertise in the solar panel industry and with solar cells in massive oversupply,it is almost sure to lose money. However that is how things work with Indian government companies where investment is made at the whims of ministers rather than rationality and business sense.BHEL is currently trading at one of the lowest valuations in its 10 year history and its not a big wonder why. The company has benefited in the past as did other machinery and engineering companies from an infrastructure invesment boom. However those glory days are over for the company as it faces competition from the Chinese companies and decreasing orders flow. Praful Patel the minister has already spent a few years in the airline ministry presiding over the conversion of the state owned carrier Air India ino a basket case. Now its the turn of BHEL to be turned into a basket case as well.
June 21, 2012

Contrarian Investing in Solar Stocks as Sell Side sees Solar Industry Gloom and Doom, Jeffries sees degrowth in 2013

However I think that with the prices going down by such a lot , demand elasticity is rapidly picking up leading First Solar to unexpectedly start its closed German plants. With most sell side analysts giving up the industry for dead, volumes dying down and a sense of doom existing ,its time to build positions here as the major solar companies like Trina,Yingli continue to grow volumes by 30-50% .
May 31, 2012

6 Reasons why the Time for Buying Solar Stocks has arrived

Solar Stocks have made their investors suicidal with drops of of 80-90% from the top common even amongst the biggest solar companies. A number of solar […]
January 14, 2012

India Engineering Conglomerates GMR and L&T Raise their Solar Ambitions

The Indian Solar Power has been one bright spot in the gloomy infrastructure and engineering sectors in 2011. With share prices crashing with growing corruption, land acquisition and financing problems, Solar Energy has surged in India thanks to government support and subsidies . While a number of Green Technology companies have started up to capitalize on the growing renewable energy trend, the established constuction companies in India have not been far behind . While utilities like Tata Power, Adani, Reliance Power, NTPC have already built or are setting up power plants based on solar panels , L&T has become a major solar EPC players . L&T is now raising debt with a $100 million issue to fund its solar expansion plans .
January 7, 2012

Green Energy Projects in India preferred by Debt Syndicators over Thermal Power

power projects.See below for the problems besetting India's thermal power project developers.Note wind and solar power projects are seeing more interent from debt syndication lenders like IDFC,IL&FS because of 2 reasons a) Strong support from state and federal governments which are going all out to support Renewable Energy through tax breaks,feed in tariffs,capital subsidy b) Secure Power Purchase Agreements (PPA) by NVVN at even higher prices for green energy c) No problems of fuel supply availability that plagues the coal and gas power plants in India d) Lesser Environmental issues that beset the Coal Power and Nuclear Power Plants in India with local agitations e) Land Acquisitions problems are also lower as solar and wind power plants don't require prime land
January 4, 2012

India's Power Industry caught in Coal Crisis – Revival through Shorter PPA, Fuel Cost Tariff Indexation

This new plan has following features 1) Reduce the Power Purchasing Agreement Tenure to 5 years from 25 years.This would make it easy to change the prices of power purchased to reflect the changed realities 2) Some sort of fuel cost indexation for electricity tariffs .The reason is that prices of imported coal has risen dramatically which has made the large UMPP get stuck because the revenues don't meet the costs. This plan will take 6 months to be implemented as the government talks with stakeholders like states which are reluctant to change the power prices decided in the PPA with the earlier UMPP being built by Tata Power and Reliance Power in Gujarat and Andhra Pradesh.
January 3, 2012

India Faces Dark Summer in 2012 with Prices Spiral,Fuel Shortages,Local Agitation,Producer Losses

India faces a Long and Dark Summer in 2012 with its Electricity Industry in Shambles.The list of woes is almost non-ending and the government is the biggest culprit.Locked in a policy paralysis due to its corruption taint,the authorities have failed to move.Indian Electricity Companies too are facing losses and may even default on some project debt.The state distribution companies already have racked up billion of dollar in losses due to total mismanagement of tariffs and power theft.So the whole supply chain is in trouble with the Indian Banks also in trouble as they have lent billions to the power producers.
July 5, 2011

List of Air Conditioning Companies in India with Price Review – Japanese Entering the Premium AC Segment

Air conditioning has almost become a necessity in India, owing to the hot and humid weather conditions in India. Almost all the electronic and home appliance companies now are manufacturing and marketing ACs. Gone are the days of the primitive & huge window ACs in India, the modern day ACs come in a wide range from split to cassette, packaged unit to slimpak etc. There are also internet enabled & sensory ACs. Prices of Air Conditioners In India the lowest priced ACs can be had at Rs 12000-13000 which are of a 1 ton size and can be bought from good brands like Samsung and LG.The price range can go upto Rs 30-35000 for better Japanese brands which have higher energy efficiency and premium features.This is the general price range for ACs in India though you some companies like Sharp,General sell even higher priced ACs touting their better quality.But India being a highly price sensitive market lower priced ACs sell more.Earlier Spilt ACs used to be priced much higher but with companies lowering the prics to the Rs 18-20000 range,split ACs have been selling more increasing their marketshare in India.
July 5, 2011

Electrical Home Appliance Companies in India – List of Top Refrigerator,AC,TV and Washing Machine Manufacturers

Every home these days is full of modern appliances that are available in the market. With every day that passes by, technology is getting evolved and so are the home appliances. Hence in the present age of technology it is extremely crucial that a home has most of the necessary appliances of the modern day. These appliances have made our life a lot easier and comfortable. More importantly the lives of the people at the present are very much fast paced. Thus at times like this the advanced home appliances help us to save time as well as energy. The common appliances that we use in our everyday lives are juicer, mixer, micro wave ovens, grinders, washing machines, refrigerators, air conditioners, TVs etc.The Indian market is growing at the fastest pace in the world right now with the growng middle class spending rapidly in acquiring these appliances.Some Companies like LG and Samsung have made massive inroads into the Indian market winning huge marketshares.Japanese and US electrical appliance companies have been slow to get off the blocks giving the first mover advantage to the Koreans.Domestic Indian companies like Godrej,Onida and others have also lost out in the marketshare despite giving a good fight in the initial stages.However the massive size of the Indian market has made it imperative for every global electrical appliance company to invest in India.However sales and distribution remains the most important thing to penetrate the Indian electrical appliance market.
March 19, 2011

List of India Machinery/Capital Goods/Engineering Manufacturers/Stocks – Set to Capitalize on Infra Growth

India's Economy is being hampered in its growth trajectory by lack of infrastructure which is leading to supply side problems.India suffers woefully from a lack of roads,electricity,ports etc. and almost a trillion dollars is going to be spent in the next few years as demand outstrips supply.India's Machinery and Capital Goods Industry is set to capitalize on this strong growth and is already seeing massive orders which are 2-3 years worth of their annual revenue.While the stock valuations of the capital goods equipment manufacturers has come down a bit from the heavy days of 2008,they are still quite high reflecting the strong growth potential.India's Engineering Industry is also composed of a number of smaller manufacturers that export light engineering equipment worth several billion dollars mostly to developing countries.India's Machinery Sector is composed of a mix of government owned and private companies as well as the giant capital goods MCN conglomerates like Areva and others.Here is a list of the major Indian equipment manufacturers.
March 8, 2011

India's Major Construction/EPC/Infrastructure Companies (L&T,HCC,IVRCL,NCC,JP,Gammon)- Facing Tough Times Temporarily?

India is set to see a massive infrastructure capex cycle over the next decade as the existing infrastructure fails to support India's massive population.$500 Billion is expected to be spent in India's next 5 year plan with expenditure concentrated on roads,railways,ports,water,power,transportation etc.Capital Goods,Construction and Real Estate Companies will benefit hugely from this capex cycle.A Number of Companies have been raising capital from the Indian Stock Markets as India requires massive amounts of capital to fund its ambitious growth plans. Here is the list of top construction companies in India on the basis of their tie-ups with their international counterparts, technological advancements, generating money from the market to trigger their expansion plans and for establishing an entire township in the wastelands and making it the hottest commercial destination.Note Infrastructure companies in recent days have taken a massive beating falling to their 2008 Lehman lows.This is due the the numerous scams hitting the country,delays due to land acquisition,high interest rates and slow execution.However the long term potential of these construction/EPC companies in India remains excellent due to the massive investments.
March 2, 2011

List of Top Power/Electricity Companies/Utilities in India – Growing Exponentially

India's Electricity is set to see a huge boom as the 8-9% economic growth rates require massive amounts of energy.India is planning to nearly treble its electricity capacity to almost 450 GW by 2020 from around 160 GW now which means a yearly addition of nearly 23 GW in the next decade.Currently India’s Electricity comes mostly from Coal and Hydro Based Energy.Almost 50% of Energy Requirements and 53% of the Electricity is generated from Coal.Despite Coal being the the Dirtiest Form of Energy,India has got little choice in the matter.Most of India’s upcoming Electricity Plants are based on Coal.Hydro Energy is generated mostly from India’s Northern Himalayan States.Renewable Energy forms only 7.7% of the Capacity with around 11 GW of the 16 GW from Wind Energy.Nuclear Energy is around 3% of the total capacity at around 4.5 GW.Here are the list of the major power utilities in the country which is currently dominated by the state run PSUs.However the next decade should see the rise of private electricity companies.
December 8, 2010

Has the Tata Group reputation of honesty been tarnished after the Telecom Scam

The Tata Group in India is known for its high standards of corporate governance and ethics.In an environment where Big Business openly colludes with politicians/bureaucrats to blatantly loot and plunder,the Tata Group has stood out for its success and reputation of honesty.While Stock Market Scandals and other Scams happen with great regularity,Tata have generally stayed away from the mess.The Group's Success in diverse sectors such as Metals (Tata Steel),Automobiles (Tata Motors) ,Software(TCS) have made it the most successful business conglomerate.Audacious acquisitions of overseas companies like Jaguar,Corus,Daewoo have announced the arrival of the Indian MNC.However the recent 2G telecom scam has tarnished this reputation of integrity as Nira Radia tapes reveal the chairman of the group Ratan Tata of hobnobbing with a shady lobbyist.Ratan Tata has gone to court over breach of privacy but has not explained why his group companies has appointed an obviously corrupt lobbyist.His Telecom Companies Tata Teleservices and Tata DocoMo were obvious beneficiaries of the adhoc regulation and policy in the last 10 years.A letter from Rajeev Chandrasekharan has in a succinct and factual manner raised questions about the silence of the Tata Group over the last 10 years as the Telecom Shenanigans were being played out.
September 5, 2010

India's Tata Power looks to become a Geothermal Energy Leader,Targets 25% from Renewable Sources by 2017

ndia is one of the fastest growing economies in the world with fundamentals indicating that this rapid growth will continue for the next 10-20 years as well.However Green Investing in India is fraught with risk since major Green Energy Companies like Suzlon and Moser Baer have proven to be abject failures till now.A Good Way to do make Green Investments into India is through Renewable Energy Focused Utilities.Tata Power which is one of India's largest utilities is looking to focus on Green Energy as well.The company has 16% of its power supplied from Renewable Energy Sources and is looking to increase it to 25% by 2017.
September 1, 2010

Empire Building through Unrelated Expensive Acquisitions make Reliance Industries Stock Underperform

Reliance Industries is known to have one of the smartest management teams in the country.The Reliance Group led by Mukesh Ambani is well connected with proven record in executing huge projects in the Oil and Gas Arena.However outside of their core competence,the Group has suffered.Its Retail Entry has not been much of a success despite big bucks being poured in the last 3-4 years.It entry into marketing of oil based fuels has also meandered without going anywhere.Now the Reliance Group has announced an entry into the Hotels Sector by acquiring a 14% stake in East India Hotels at a significant premium over the market price from the promoter Group.This ~$220 million investment is totally unrelated to Reliance's activities and make no strategic sense.
August 23, 2010

Reliance's Strategy in Acquiring Shale Gas Assets is to Assimilate Extraction Technology

Reliance's Strategy in Shale Gas makes a lot of sense.The Technology is but new and unproven on a long time scale.There have been concerns about the environment impact of Shale Gas Extraction.Also low Gas Prices due to the GFC has made the industry growth slowdown.This is a good time to buy Shale Gas Assets relatively cheaply as Economic Recovery will again see Fossil Fuel Prices heading up.
August 9, 2010

India's Largest FDI Industrial Project in Orissa stopped after violating Environmental norms

POSCO is setting up a humongous steel complex in the eastern Indian state of Orissa with the total investment of $12 billion.The project which was initiated […]
July 21, 2010

India's leading corporate group Tata sues Greenpeace over a Turtle game

Tata Group is the most respected Indian Industrial Group,however that seems to be changing India’s Tata Group of companies is the most respected corporate group in […]
July 13, 2010

Is the Jindal Rs 42000 crore Coal to Liquid project in Orissa wasteful just like the Tata-Sasol CTL plant?

Jindal Steel and Power Limited (JSPL),one of India’s biggest private sector Steel companies is looking to build a Rs 42000 crore ( ~$10 billion) Coal to […]
June 13, 2010

India's Telecom Operators cup of woe brimmeth over with Reliance(RIL) Entry into Broadband Wireless

Indian Telecom Opertors Cup of Woes Indian Telecom Operators have seen Bad News  hitting them one by one  in a unrelenting way for the past one […]
June 11, 2010

Indian Government Reaps Huge Windfall from Wireless Auction leaving Telecom Operators Bleeding Red Ink

The Indian 3G and Broadband Wireless Auctions finally ended after Two Months resulting in a Massive Windfall for Government Coffers .The combined value of both auctions […]
June 7, 2010

Ambani Detente – Reliance breaks the shackles,Plans to enter Indian Power,Telecom and Financial Services

The detente between the Ambani brothers which lead to the rescinding of the non-compete agreement has resulted in Reliance Industries  Ltd (RIL) being the biggest Winner […]
May 24, 2010

India's Ambani led Reliance Group free to enter Power,Telecom and Financial Sectors

Indian mega industrial groups led by Ambani brothers decided to rescind their non-compete agreement which allows oil and petrochemical giant Reliance  to enter the financial,telecom and […]