The inventory levels of Sugar are still high, but post December 2015 the Ethanol prices are fixed at Rs.49 which is very lucarative and the govt incentive of Rs.4000/T of sugar if the industry crosses the 4MT of Sugar exports. These two can be huge booster for the industry. We can look at playing this with Balrampur Chini (Debt to Equity is just 0.4 inspite of huge capacity) and can also look at Praj Ind an indirect beneficiary of revival of Ethanol blending.

Disclosure : Not invested yet, but tracking closely.

India continues its rapid volume growth of 34% in the US, despite overall volume declining by 10%
- Strikingly in contrast, all other major countries have shown a decline in volume, with Ecuador and Vietnam falling by 20% and 40% respectively in August
- Market share of Indian shrimp import has increased to 31% in the month of August 2014, from 21% last year
- Year to date market share has also improved from 17% last year to 23% this year
- However there has been a major decline in prices of shrimp in the US..to $8.75 from $10.83/kg last year

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Source : http://www.undercurrentnews.com/2015/10/06/us-september-shrimp-import-value-volume-dive/

Disclosure : Invested from sub 500 levels

Hi

@Vivek_6954

I came across below news

Aurobindo Pharma to raise $250-300 mn through QIP, equity dilution of 3-5%
As per the media flash, Aurobindo is likely to launch QIP Issue and is looking to raise $250-300 mn (Rs1650-1950 crore).
The promoter’s stake in company is likely to remain above 50%. Total equity dilution to be around 3-5%.

Would like to know your views on the same. (Wont the market take this negatively)

I have entered about a month ago in Aurobindo (seeing thier pipeline of Drug Approvals)
although right now very small position.

Regards,
Kapil Gupta

Hi

1. I agree Valuation is a bit stiff at this price and I wish I had met the mgt few months ago.
2. Mgt did explain that synthetic colours will take a long time to be replaced by natural colours due to several reasons (naturlas have less variety in shades, they are expensive, it is just the propoganda that several countries have made naturlas food colour obligatory, it is like govt. making organic food in all the restaurant mandatory
   1. Regarding customers: If you are getting same quality stuff at a substantially cheap rate from a branded player who is positioned second in the industry, would you buy? that is how Mr. Manke explained.

1. As you can see from Sensient's website, they are now focusing on Naturals market. Due to high entry barriers (explained in note) and small market size, there are only four major players globally. Sensient with its deep pocket can buyout Vidhi (that question is covered in the note).
2. In past few years Vidhi and Roha has gradually taken up a decent market share. How they did it? They are able to produce 30% cheaper than Sensient and they have established a brand as 2nd/3rd largest player in the industry.
3. As explained by the MD, Mr. Manek, India had a poor reputation globally until a few years ago i.e. nobody believed we could be able to manufacture high quality colours. In last decade the scenario has changed substantially and Vidhi and Roha both have taken a huge market share from Sensient.

Now how will Sensient give a comeback or are they even interested in a comeback? Is synthetic colour market too small and insignificant for them? Will they acquire Vidhi and Roha? Story yet to be unfolded