Rounaq Bakshi notes

  Zuari Industries  investment portfolio crosses 4500 cr ZIL is a publicly listed company and holding company of Saroj Kumar Poddar (son-in-law of Late KK Birla) led the Adventz Group, a diversified conglomerate of 26 companies having diversified operations across four major industry verticals- Agriculture, Engineering & Infra, Lifestyle & Real Estate and Services.  In its capacity as holding company, ZIL principally earned interest income from loans and advances extended to group companies, dividend income from the large portfolio of investments it held and income from its real estate project (Zuari Rain Forest Phase-1, Goa). Post April 30, 2022, Gobind Sugar Mill (GSM), one of the oldest sugar mills in Uttar Pradesh, with nearly 75 years of operations merged with ZIL.  ZIL broadened to add the SPE division post-merger with a cane crushing capacity of 10,000 TCD, an ethanol distillery of 125 KLPD and a cogeneration plant of 40 MW.  ZIL has also extended...

  HUDCO  1,50,000 Crore MoU with Maharashtra Housing and Urban Development Corporation Limited ( HUDCO ) has signed a Memorandum of Understanding (MoU) with Mumbai Metropolitan Region Development Authority (MMRDA), Maharashtra, on 8th April, 2025 at Mumbai.  The MoU has been entered to establish a framework for cooperation between  HUDCO  and MMRDA wherein  HUDCO  shall explore and provide funds up to Rs.1,50,000 Crore over a period of five years for development of infrastructure projects to be implemented by MMRDA in Mumbai Metropolitan Region.  Further,  HUDCO  will also extend Consultancy services and Capacity Building activities to meet the emerging requirements of MMRDA.  The MoU was signed in presence of Shri Devendra Fadnavis, Hon’ble Chief Minister, Maharashtra, Shri Eknath Shinde, Hon’ble Deputy Chief Minister, Maharashtra, Shri Sanjay Kulshrestha, Chairman & Managing Director,  HUDCO  and other dignitaries....

Chennai Petroleum Corporation : setting up a new grassroot refinery of 9 MMTPA capacity at Nagapattinam 2022:  Chennai Petroleum Corporation  (CPCL) has approved the proposal for formation of a joint venture company for implementing the 9 MMTPA refinery project at Cauvery Basin at Nagapattinam in Tamil Nadu, at an estimated cost of Rs 31,580 crore CPCL will hold 25% stake in the new refinery while Indian Oil and other seed equity investors such as  Axis Bank ,  HDFC Life  Insurance Company,  ICICI  Bank ,  ICICI   Prudential  Life Insurance Company and SBI Life Insurance will hold the rest. The board has also accorded approval for equity investment of up to Rs 2,570 crore by CPCL in the JV. The new refinery will produce petrol and  diesel  of Bharat Stage-VI specifications and polypropylene as a value added product, at a project cost of Rs 31,580 crore.

  Viksit Bharat by 2047, where India aspires to become a global AI powerhouse India is rapidly building a strong AI computing and semiconductor infrastructure to support its growing digital economy. Here are the key developments: Scaling AI Compute Infrastructure:  The initial phase of the mission has already made 10,000 GPUs available, with the remaining units to be added soon. This will enable the creation of indigenous AI solutions tailored to Indian languages and contexts. Opening Access to High-Performance Computing:  India has also pioneered the launch of an open GPU marketplace, making high-performance computing accessible to startups, researchers, and students. Unlike many countries where AI infrastructure is controlled by large corporations, this initiative ensures that small players have an opportunity to innovate. Robust GPU Supply Chain:  The government has selected 10 companies to supply the GPUs, ensuring a robust and diversified supply chain. Indigenou...

  India is undergoing a remarkable transformation in Artificial Intelligence, driven by the visionary leadership of PM Modi. For the first time in India’s history, the government is actively shaping an AI ecosystem where computing power, GPUs, and research opportunities are accessible at an affordable cost. Unlike in the past, AI in India is no longer confined to a privileged few or dominated by global tech giants. Through forward-looking policies, the Modi government is empowering students, startups, and innovators with world-class AI infrastructure, fostering a truly level playing field. Initiatives such as the IndiaAI Mission and the establishment of Centres of Excellence for AI are strengthening the country’s AI ecosystem, paving the way for innovation and self-reliance in this critical sector. These efforts align with the vision of Viksit Bharat by 2047, where India aspires to become a global AI powerhouse, leveraging cutting-edge technology for economic growth, governance, an...

  Tanfac Industries commissions expanded capacity of its hydrofluoric acid plant Tanfac Industries has completed the brownfield expansion project of its hydrofluoric acid capacity from its existing unit from 45 MT to 90 MT and commissioned expanded capacity Speaking on the occasion, K. Sendhil Naathan, Managing Director of Tanfac Industries, said, We are excited to announce that we have completed the expansion project at the cost of around Rs 100 crore and commissioned the new State of the art HF plant as planned.  With this TANFAC site has become one of the largest HF plants in India.  In line with earlier communication, Co. intend to use majority of HF to manufacture high-end specialty fluoride molecules within  group companies.  This expansion will sustain growth trajectory going forward. Hydrofluoric acid  to get rid of rust and to polish or etch glass .  This chemical is also added to commercial rust removers, automotive cleaners, and water s...

  PG   Foils : Microcap Story PG   Foils  manufactures a wide range of everyday use products under the  PGF  brand, which are distributed not only within India but also in over 25 countries, including the UK, UAE, Australia, Russia, Bangladesh, Sri Lanka, Egypt, Jordan, Mexico, Oman, Nepal, Philippines, Kenya, Ghana, Nigeria, and more. Manufacturing facility spread over 4.5-acres in Pipaliya Kalan, Rajasthan   Cash / liquid balances of Rs 16862.19 Lacs   Total replacement value of land, plant and assets pegged at a significant Rs 150 cr    PG   Foils  holds a distinguished position in the aluminum  foil  and packaging industry, being the first indigenous company in the field, the first in northern India, and the first to be backed by Indian promoters   PG   Foils  enjoys undisputed market share in pharma industry packaging for decades now. The Company is the first choice of all major lead...

  RPG  Life Sciences: To continue moving towards Life time high For the full fiscal year FY24 too, the company achieved a 29% year-on-year increase in PAT  Saw an expansion of EBITDA margin from 21.0% to 23.3% year-on-year.  Revenue from operations, totaling Rs 582.05 crores, experienced a 14% Y-O-Y growth for FY24. Top priority, Domestic Formulations, the biggest contributor to the Company’s business, recorded robust growth in both value and volume To enter other specialties like Gastro and Derma to emerge as future growth drivers of Domestic Formulations business Structural approach of cost optimization has helped explore newer avenues in operations to achieve cost efficiencies, helping to maintain 5-year uninterrupted Y-o-Y margin expansion trajectory for the past 5 consecutive years

  RPG   Life Sciences eyes acquisitions amid strong growth across segments RPG  Life Sciences is actively exploring acquisitions in both the formulations and active pharmaceutical ingredients (API) segments, says Managing Director Yugal Sikri. The recent monetisation of land in Thane, near Mumbai, has strengthened the company’s position, leaving  RPG  Life Sciences with a cash surplus of over ₹200 crore after clearing its debt over the past five years.  This surplus is now driving the company’s acquisition ambitions, Sikri said. RPG  Life Sciences operates in three main segments: domestic formulations, international formulations, and APIs. Domestic formulations contribute about 66% of revenue, international formulations 19%, and APIs 15%, and all three segments are growing in double-digits RPG  Life Sciences: An Integrated Pharmaceutical Company APIs to Formulations; R&D to Manufacturing to Marketing RPG  Life Sciences, part of  RPG ...

  Maritime  India Vision - 2030 MIV 2030 envisions an overall investment of INR 3,00,000-3,50,000 Cr across ports, shipping, and inland waterways categories MARITIME  INDIA VISION 2030 Impact of  Maritime  India Vision - 2030 MIV 2030 envisions an overall investment of INR 3,00,000-3,50,000 Cr across ports, shipping, and inland waterways categories.  This vision roadmap is estimated to help unlock INR 20,000+ Cr worth of potential annual revenue for Indian Ports.  Further, it is expected to create an additional -20,00,000+ jobs (direct and non-direct) in the Indian  maritime  sector.    India comprises a significant size  maritime  sector with 12 Major and 200+ Non-Major Ports situated along its 7500 km long coastline and a vast network of navigable waterways   The country’s  maritime  sector plays a crucial role in its overall trade and  growth , with 95% of the country’s trade volume and 65% of t...

  Jindal Saw: potential Focus on value-addition Global Steel Pipe Market Set for Significant Growth  The global steel pipe market is projected to grow from USD 146.87 billion in 2022 to USD 325.64 billion by 2027, achieving a CAGR of 8.24%. India to Double Gas Pipeline Network, Spurring Steel Pipe Demand India plans to invest $67 billion over the next 5-6 years to double its gas pipeline network, increasing natural gas’s share in the energy mix from 6% to 15%.  PNGRB Explores Hydrogen Transmission via Existing Gas Networks The Petroleum and Natural Gas Regulatory Board (PNGRB) is studying hydrogen transmission using current gas networks to support green hydrogen projects aimed at decarbonization.  Namami Gange Mission Drives Demand for Steel Pipes India’s Namami Gange Missions I & II, with a combined outlay of Rs. 42,500 crore, focus on river rejuvenation, including projects on the Cauvery, Krishna, Godavari, and Mahanadi rivers.  Har Ghar Jal Mission Streng...

  Glenmark Life Sciences: growth was driven by strong momentum in the Generic API business Net Cash Generated from Operating Activities: 313 cr Vs 597 EPS: 38 Vs 36 Revenue: 2190 vs 2138 PAT: 470 Vs 419 EBITDA margins were at 31.1%, Vs 29.7%   Capital expenditure for FY23 was at Rs. 1702 Mn  R&D expenditure  3.0% of sales     ROICE was 33.5% for FY23      The growth was driven by strong momentum in the Generic API business as well as significant recovery in demand in the  CDMO  business cash generation remains strong during FY23 leading to stable debt free balance sheet with healthy cash      Capex update   Dahej: o The brownfield expansion for the Generic API products at Dahej facility is complete with 240 KL capacity. o The brownfield expansion at Dahej for the Oncology plant is completed.    Ankleshwar: o Intermediate manufacturing block at the Ankleshwar site with a manufacturin...

CDMO  is the biggest theme; select companies can grow 5 times in next 10 years: Madhusudan Kela One big theme from a 10-year perspective is  CDMO . Geopolitical tensions between the US and China are pushing contract manufacturing business to India. Madhusudan Kela believes that the Contract Development & Manufacturing Organization ( CDMO ) sector could grow five-fold in the next decade.  He emphasizes the importance of flexibility and having an open mind in investment strategies, highlighting the significance of climate change and remembering influential market figures. CDMO   is Contract  Development & Manufacturing organisation. International companies are outsourcing, either contract research or some manufacturing to Indian companies.  Because of the geopolitical situation between America and China, a lot of the work which was going to very large multi-billion dollar Chinese companies, due to geopolitical reasons is shifting.  Now, where can...

  ZF Commercial Vehicle Control Systems India Limited (“ZF CVCS”): ADAS system ZFCVCS — A Leading Supplier of Technologies and Services to the Indian CV Industry Six decades of market leadership with multiple growth levers Pan India Sales & Service Network 12k retail outlets, 200+ authorized service centers; a ZF touch point every 100 km Retrofit Solutions State-of-the-art technology upgrades incl Door control system, Trailer ABS / EBS, Passive ADAS system Launch of Electronically Controlled Air Suspension (ECAS) for Ultra Low Floor Entry buses (ULE) in ICE and EV buses ECAS — Electronically Controlled Air Suspension Applicated in ICE and EV buses with Ultra low Floor Entry Advanced Driver Assistance Systems (ADAS) Driving into the future ZF Commercial Vehicle Control Systems India Ltd is Part of ZF’s new Commercial Vehicle Solutions (CVS) division and is the region’s market leader for advanced braking systems, conventional braking products, and related air assisted techno...

  Hindustan  Copper   Ltd Signs MoU with IIT (ISM),  Dhanbad for Technical Collaboration IIT-ISM, Dhanbad, being an Institute of national repute, particularly in the fields of mining of minerals and its beneficiation and Earth Sciences, will play a key role in solving the emerging geological, technical, environmental, sustainable and ore beneficiation issues for achieving the envisaged expansion programme of HCL. HCL is in its expansion phase with about three fold enhancement of ore production capacity wherein development activities in projects are either on-going in nature or already   planned in most of its mines Copper  consumption in India is expected to grow sharply with the government's thrust on infrastructure, defence, renewable energy and electric vehicles. Hindustan  Copper  to ramp up  copper  output to 12.2 MTPA by FY29 Expansion of ore production to 12.1 MTPA in phase one will take seven to eight years, which would be furthe...

  NLC  India  : Top PSU NUPPL's GTPP Unit# I (660 MW) successfully started its commercial operations, by which NLCIL Group's Installed Power Generation capacity increased from 6,071.06 MW to 6,731.06 MW.   Capex achievement upto December, 2024 is Rs. 5247 Cr has exceeded the Annual Target for FY 2024-25.   Achieved all time highest Coal production of 115.16 LT with 40.11 % growth as compared to 82.19 LT in Nine months Ended FY 2023-24.  NLC  India Limited (NLCIL) has been conferred with the prestigious Mining Innovation Award for upholding high standards of operations in mining.   Key Highlights -Financial Performance of Nine Months Ended Dec 2024: All time highest Revenue from operations of Rs.11,445 Cr as against Rs.9,458 Cr in the corresponding period of the previous year, registering a growth of 21 %  All time highest Total Income of Rs.12,909 Cr as against R.s.9,912 Cr in the corresponding period of the previous year, registeri...

  Akums Drugs: Down 30% CDMO is the biggest theme; select companies can grow 5 times in next 10 years: Madhusudan Kela The Delhi-based contract development and manufacturing organisation (CDMO)  Sandeep Jain, Managing Director of Akums Drugs said he expects the company's revenue to remain flattish for FY25.  However, he will be able to maintain the margin in the CDMO business at around 15%. About 78% of Akums' total revenue comes from the CDMO business. Exports contribute around 5% of the company’s total revenue, and Jain said the aim is to maintain this level. The company is also putting substantial effort into its marketing business to drive growth across other segments. Akums is a pharmaceutical CDMO offering a comprehensive range of pharmaceutical products and services in India and overseas.  The company has the largest capacity in the country. Its capacity utilisation stood at 40%, and can scale up to 60%.

  Akums and Jagdale aims to address India’s burgeoning demand for nutraceuticals, functional beverages, and therapeutic solutions.  As the partnership evolves, both organizations envision contributing significantly to the health and wellness revolution while fostering a sustainable ecosystem   The launch of the aseptic carton pack product line marks the beginning of a transformative journey, setting new benchmarks for quality, innovation, and consumer satisfaction. With a projected focus on mass-market accessibility and premium health-driven offerings, the partnership also taps into underserved medical markets, including critical care nutrition and therapy support products.  This holistic approach positions the tie-up as a catalyst for change in the healthcare and wellness landscape     The electrolyte RTD market in India, valued at over ₹1,000 crores with more than 150 million packs sold annually, is experiencing robust growth.  With a steady 10%...

Mahindra Group created significant value in the last two decades; MLDL a key priority for the Group Mahindra Lifespaces is identified as a Growth Gem by Mahindra Group  Mahindra Group fully committed to support MLDL’s growth aspirations  MLDL planning to scale its business 5X (Rs 8-10K Cr) over the next 5 years MLDL Residential 50+ projects since 1996 (47.56 msft); 20k+ satisfied customers GDV additions of Rs 18,100 Cr for FY25 MLDL is pioneering development of green homes and thoughtfully designed living spaces Pipeline projects to be launched: 33850 crore Strategy plan: Bold ambition Drive profitable growth to 8K - 10K Cr sales (GDV addition of Rs 45K Cr)  Project execution excellence “First time right” approach to quality On-time delivery  Standardization in design and specs Robust BD engine Robust financial discipline  Rigorous IRR tracking Prudent capital allocation Strategic funding to support growth  Systematic BD process, supersized deals Strong app...

About the Company  Incorporated in 1992, GORIL is a Mumbai based company known for its production of specialty oil. The company is majorly engaged in manufacturing of white oils which have applications in consumer and healthcare industries.  Further, the company is also engaged in production of other specialty oils and lubricants such as automotive oils, industrial oils, transformer oils and rubber processing oils.  The company operates two plants – Taloja (capacity of 2,18,256 KL) and Silvassa (capacity of 1,43,853 KL) Extensive industry and promoter experience with diversified client portfolio  The group has nearly three decades of experience in the specialty oil industry and is known for its presence in the industry at both domestic and international forums.  The company was started by Mr Ramesh Parekh, Chairman, who is now supported by his sons Mr. Samir Parekh, and Mr. Aslesh Parekh.  The group also caters to a reputed clientele base in more than 100 c...

  Maritime Development  ₹30,000 crore  Fund to support shipbuilding and repair clusters The government will soon set up a ₹30,000 crore Maritime Development Fund to support shipbuilding and repair clusters, according to union ports, shipping and waterways minister Sarbananda Sonowal. Indian companies paid freight costs of $85 billion in the financial year 2019/20, of which $75 billion was paid for use of foreign vessels, the source added. The turn to foreign carriers comes as India's shipping fleet has not kept pace with its surge in trade, including imports of energy and exports of refined oil products. India has a fleet of about 1,500 large vessels including tankers, gas carriers, container ships and dry bulk carriers India, which has a huge export-import trade, is a country of charterers and not shipowners thereby resulting in a substantial spend of around USD 75 billion annually for chartering foreign flag vessels for India’s international trade  

  Mahanagar Gas (MGL) : Annual Report 2024 One of India’s leading city gas distribution company providing Compressed Natural Gas (CNG) for mobility and Piped Natural Gas (PNG) to residential, commercial, and industrial customers, serving Mumbai, Urban thane, and Raigad district of Maharashtra Company’s extensive network of ~7,000 Kms of pipeline and 347 CNG stations portrays its commitment to infrastructure development and accessibility.  MGL’s vast infrastructure, coupled with a strong safety management system, ensures the safe, reliable, and uninterrupted distribution of natural gas to its evergrowing customer base   Company’s investment in 3EV Industries Private Limited (3EV), a manufacturer of electric three-wheeler cargo and passenger vehicles, positions it as an entity committed to a cleaner and more sustainable future. These 3W EV’s are expected to replace mostly Diesel & Petrol fuelled small commercial vehicles Signed a Memorandum of Understanding (MoU) w...

  Industry Outlook -Aluminium By 2030 Demand, in India, is estimated to be 8.3 million tonnes. Up from 4.2 million tonnes in 2023. Industry Outlook - India  LME Aluminium prices are expected to be impacted by:  a) The threat of trade action on tariffs  b) Continued World manufacturing contraction into Q1 2025,  c) US interest rate cuts,  d) Anticipated surplus in World’s Primary Aluminum market in 2025,  e) Correction in alumina prices,  f) China’s economic slow down & issues with housing oversupply, industry overcapacity, & high debt levels    

  Indian Energy Industry  As per the India Energy Security Scenarios (IESS), both total energy demand and supply of India is estimated to grow at 3.5 times by 2047.  The contribution from oil and petroleum sector will be around 50% in 2032, increasing up to 84% in 2047 whereas share of natural gas sector would increase from 11% in 2032 to 20% of the total supply in 2047  Oil is expected is drive the expansion in the freight transport sector as well as urban construction.  Share of natural gas at 6% in the energy mix for India is one of the lowest in the world India's refining capacity, as of April 2024, is 256.8 MMTPA across 23 refineries.  By 2030, the country aims to nearly double this capacity, reaching between 450 and 500 MMTPA   The National Green Hydrogen Mission, has an outlay of Rs. 19,700 crore and will aid low carbon intensity and reduce dependence on fossil fuels.  Ministry of New and Renewable Energy targets 500 GW non-fossil-base...

 About the company  Wendt India Limited (Wendt/company), established in 1980, was originally promoted by Mr. S. C. Khatau and Wendt GmbH of Germany.  The company started its operations by setting up a super-abrasives manufacturing facility at Hosur (Tamil Nadu) for grinding wheels and tools with technological support from Wendt GmbH. In 1991, Carborundum Universal Limited (CUMI, a Murugappa Group company), a leading conventional abrasives player in India, acquired 30% in the company from Mr S. C. Khatau and subsequently an additional ~10% from the open market to expand its presence in the super-abrasives segment.  Currently, the company is jointly held by CUMI and Wendt GmbH, with each holding a 37.50% stake in the company (as on December 31, 2024).  In addition to the potential divestiture by Wendt GmbH, the company has entered into a trademark assignment agreement with Wendt GmbH and has acquired the absolute ownership of the ‘Wendt’ brand and trademarks with ...

  Cyient DLM: Surge in U.S. Engagement   Adjusted PAT growth of 21% YoY is driven by Volume growth & Efficiency Revenue growth: 27.5% YoY    Altek Electronics, is an EMS company focused on PCB Assemblies, Box Builds and Cable Harness:  Avoid tariffs by leveraging existing facility for onshore production and final assembly. Cyient DLM, incorporated in 1993 as Rangsons Electronics Pvt Ltd, is a leading player in the electronics system design and manufacturing segment. The company provides system design, integration, testing and manufacturing of electronic components and subsystems for OEMs in the aerospace, defense and other high-tech engineering segments. The company is involved in assembling of printed circuit boards for the telecom and direct-to-home industries. Diversified product profile and strong clientele :  Cyient DLM is a leading electronics system design and manufacturing player, which provides system design, integration, testing and manufactur...

About the Company Eimco was incorporated in 1974 as a joint venture between the Elecon group and Sandvik AB (rated 'A-/Stable /A-2' by S&P Global Ratings), the world’s leading manufacturer of rock-drilling tools and mining equipment. Eimco produces a wide range of mining machinery, such as air-powered rocker shovels, electro-hydraulic side-dump loaders, and electro-hydraulic and air-powered load-haul dumpers that are used as loading machines in coal mines. Facilities are in Vallabh Vidyanagar, Gujarat. While Eimco has looked to diversify its revenue, ~80% continues to accrue from the UG coal mining segment wherein the industry is undergoing a positive change. Expectation of a sustained improvement in business risk profile Supported by expected increase in orders from Coal India Ltd following its efforts to enhance output from the underground (UG) mines and focus on reducing import of coal mining machineries.  After the downturn in output from the UG mining segment, benefite...