Textile

July 10, 2012

Indian Freakonomics – Why the Textile and Furniture Industry has started using Fertilizers

India gives billions of dollars in misdirected subsidies to the fuel and fertilizer sectors which goes into the pockets of middlemen and profiteers. It is a […]
April 22, 2011

Future Ventures IPO Review and Analysis – Unique Indian Consumption Private Equity/Venture Capital Company with Cheap Valuation is a Good Buy

Future Ventures is a VC/Private Equity Company that has invested in a number of small Indian companies and startups mainly focused on the consumption industry in India.With India growing at around 8-9% in the last few years and expectations of strong future growth driven by consumption,Future Ventures seems a good investment considering the portfolio of companies that it owns (analyzed below).Future Ventures is a part of the Future Group run by Kishore Biyani who started India's most famous retail company Pantaloons.The Company has set a price band of 10-11 rupees a share with a target of raising around Rs. 750crore though the IPO.This would represent around 40% of the equity which would give it a post IPO market capitalization of around $375 million.Note the company had tried to come with an IPO 2 years ago but it was deemed to expensive at that time.
March 7, 2011

Lovable Lingerie IPO Review and Analysis – Should you buy the Stock for some love?

Lovable Lingerie is an innerwear textile company that is coming out with a $20 million IPO.Unlike other totally junk issues which are totally hands of market operators,this one seems to have decent fundamentals and the valuation is not too expensive either.The company has managed to sell 6% pre-IPO to Sequioa Capital which is one of the blue blood PE firms in the country.However this should not be an endorsement given that a number of their investments have bombed in the recent mid cap and small cap carnage.Corporate governance and management issues in small companies in India is totally out of control so investing just based on pure fundamentals does not help.Also a number of other companies in the same sector in textiles remain at attractive valuations.That said the company does have good differentiation as it leverages on the fast growing Indian consumer growth story.The company sells Lingerie though top retail outlets like Lifestyle,Shopper's Stop in top Indian metros and has good brand recall.Here are the positives and negatives of the company based on its DRHP.
June 22, 2010

Bangladesh faces major Labor Unrest from less than $1 a day wage textile workers

Bangladesh is one of the world’s poorest countries with a high population density.Carved out of erstwhile Pakistan,this predominantly Muslim country faces huge poverty like other countries […]