Exactly .
http://pib.nic.in/newsite/PrintRelease.aspx?relid=95247
why are they not paying royalty on their captive quartz mines - if they are, where is it reflecting ?
Exactly .
http://pib.nic.in/newsite/PrintRelease.aspx?relid=95247
why are they not paying royalty on their captive quartz mines - if they are, where is it reflecting ?
Granite mines are not be confused with natural Quartz mines. And also, they pay royalty to Govt for their Granite mines.
Disclosure: Invested, could be biased.
Looking at pokarna's precarious financials over the years, I am wondering how they got the money to buy these - they have been in debt and hardly have had cash. who are these supplier mines - why did they choose pokarna ? why can't they themselves forward integrate and do this
The toughest is to get a quartz mine - not process it - sort of similar to cellular spectrum. once you got the spectrum, equipment and all else only make a marginal difference.
for any mineral, getting access is the biggest moat - not processing it. AFAIK, this brettton stone etals is good marketing spiel but the real question is how do they get such low cost quartz and if they had all of this before, how did things change only in 2014
Hi, good question. I cant confirm but I think they dont have a quartz mine yet where they can mine, they have applied for a license of quartz mine, its under process. Currently they source the qurtz from a supplier mine close to Vizag.
And PESL is like a factory, not a mining subsidiary as you think , it processes natural quartz material into a manufactured stone. Please read more about how Quartz stone is made.
And the company is 2-3 decades old, I believe they have acquired and developed granite mines over the years, but I think its good to ask them.
Thanks-Mahesh
Plus one to above post - Looking for AGM updates held today. Kindly provide. Thanks.
The revenue share from various segments was mentioned in reports that I head read about this company but there was no mention on the B2B and B2C split. This comprehensive report by Motilal Oswal (http://www.researchbytes.com/Indo-Count-Industries-Limited-I0159.htm) clearly mentions that the revenue split is:
81% - bedding
16% - spinning and
3% - consumer goods and that going ahead they are focusing more on the bedding business and its various verticals.
Its major customers are Walmart, JC Penny and Bed,Bath and Beyond. Also its top ten customers contribute to 50% of the revenues (from the Key Risks page of the same report), so I think it is safe to assume that it is currently working as a B2B type company until their direct outlets have a large chunk of the overall business.
@amitnagar If you have data on the B2B and B2C split then please share the same.
Disc: Not invested in this company. Currently tracking it. I request others to kindly mention if they are invested in this company in their replies (at least in the first reply) so that other readers may take that into consideration while reading your posts.
Found some red flags
pokarna raised money in 2009 through FCCBs and invested as debentures into its subsidiary. I can't find detials of the mines owned/leased by them - how much they paid, royalty share with government etc. what are the terms, can these be fished out dry, what about pollution control/environmental clearances.
It seems unbelievable that quartz being a mineral would have no "externalities" to be shared with the government (especially as its exported for the benefit of a private party) much like telecom spectrum.
At this point, I have no answers either way - anyone in the know, if you can help. the biggest moat in mining business is acquiring a low cost mine itself - similar to acquiring inexpensive spectrum in telecom. The rest of it is riff -raff - for eg., it does not matter what towers you use ericsson or nokia and similarly so, bretton stone or otherwise. Those are the axes to make the trees fall - I am interested in how they got the forest - especially a national resource.
And to round it out, check this article out :most of these names would be familiar - these were companies that raised FCCB's and defaulted and were not known for their governance. how can things change so quickly - operating a quarry requires environmental clearance etc. and why borrow FCCB and invest into a subsidiary that makes mines. Why not borrow under the subsidiary itself directly ?
Any help would be greatly appreciated.
The business model of Indo is different than Ambika/Nitin Spinner. Ambika mainly into supplier of yarn to customers which is like B2B type while indo is consumer growth story like B2C.
You can't compare stocks here. Valuation of indo can reach to 40+ p/e in 5 years while B2B biz max P/E can be 25
Any one attended AGM meeting today ? Any Updates ?
I am a little confused with regards to the structure of Kagome deal. The deal in a way technically allows Kagome to leverage TB’s US distribution network and sell its products without involving TBEL.
Also, does someone have any idea on what was the shareholding structure before Kagome deal? I believe it was held by PE players and Ashok Vasudevan/Meera Vasudevan and others – pg 3 of http://www.kagome.co.jp/company/news/n_pdf/140415002.pdf.
I understand that this structure would be to give exit to PE players. But in the process, have AV/MV also partially exited? Currently they own 30% - what was their holding pre Kagome deal? And why did they exit partially, if at all – cashing out for years of efforts, especially at a time when they are talking of start of the third innings??
I am not able to clearly understand what good this deal does for TBEL and how different it would have been for TBEL, even if this deal hadn’t happened.
Also, why still continue with this manufacturing (TBEL) and marketing structure (PBI) – why not merge the two? Wouldn't that simplify a lot of issues. What am I missing here?
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