Seminars and workshops: About to have long 8 hours Investors Workshop in places like Delhi,Hyderbad and Kolkata over the coming 3 weeks. Do pen a mail at firstname.lastname@example.org if you interested in being a part of it. In last Mumbai Workshop,the themes of Jute got discussed and Cheviot incidentally was quoting at about 700 then. Let's pen what attracted me in this company.
Note: This days am pretty much occupied with the workshops and seminars which we are having Pan India. The latest venture "Share Bazaar Android App" has been a huge hit with nearly 30000 downloads over the last few months. Blogs are about to be obsolete owing to technological advancements and hence the decision to migrate everything in the App. Do download the app guys if you haven't done yet. Just search Share Bazaar Arun in play store.
Quote: Cheviot Company is one of the prime examples of a corporate that makes a lot of money from green fibre and sound investments.Harsh Vardhan Kanoria has created Gold out of an Industry, on which the Sun had literally set with the departure of the British in 1947.Today, with its processing units and a turnover exceeding Rs 265 crore, Cheviot Company makes more money out of Jute and its Corporate Investments, in a year, than most companies would ever make in their lifetime.While Kolkata may hold a different meaning for different people, for the current owners of Cheviot-the Kanoria family, the "Sun Never Set On Jute" even with the collapse of the British empire.
Demand for eco-friendly bags: The demand for green products jute goods like gardening products, shopping bags, geo-textile, pulp and paper, home textiles, floor covering and non-woven textiles is very high at the consumers’ level in the international market due to the growing awareness about environment. Of those products, jute-made shopping bags are now the best-selling items. Many countries like the United States (US) and the United Arab Emirates (UAE) have already gone for replacement of plastic shopping bags by jute-made shopping bags. The demand for eco-friendly bags is also increasing in Western Europe, Australasia, Middle East, Asia and African countries. The global market size of jute-made shopping bags will be 500 billion pieces, equivalent to seven million tonnes of jute products, in the coming days, as efforts are on to totally stop use of polythene or plastic materials all over the world because of their adverse impact on environment.
Fibre of the future: Composite and Compounded materials from man-made fibres (i.e. glass fiber, carbon fiber etc.) are already available as products for consumer and industrial uses. Jute is one such natural fiber that can reduce the impact on the environment. It is available in abundance, strong and is increasingly being referred to as the “fiber of the future”. Jute filled PP composites are today being successfully used for various components and materials. . India is still largely an agrarian economy, which needs to generate massive employment in rural areas for a rapidly growing population. Technological breakthroughs such as jute-filled PP compounds show the way for economic development of the masses by marrying state-of-the- art technology and research with cash crops to create rural and industrial prosperity.
New Advancement in Jute Compound: Bengaluru-based
Advantage over Bangladesh :India and Bangladesh together accounts for the 95% of worlds jute production. The cost of producing quality yarn is 40 per cent higher in Bangladesh than in India because of the technological disadvantages. India has set up composite jute mills with modern machinery and technologies for production of fabrics, dyeing or lamination under one roof. Bangladesh has nearly 250 jute mills, but none of them has the dyeing and lamination facilities, which are essential to producing diversified products, according to exporters.
Potential for an anti-dumping tax: Around 125 lakh bales of jute sacks are needed just to package crop seeds in India. Indian jute mills can produce only 25 lakh bales of jute. The Indian Jute Mill Association (IJMA) has already pleaded for an anti-dumping tax in case Bangladeshi goods enter India. The Indian jute commission is considering the plea, and is soon to give a decision about it. This decision is aiming provide a monopoly to Indian jute mill owners which is a very big positive as there are barely few survivors in the industry.
Financials: Company over the past 5 years have grown its topline and bottomline at a CAGR of 8% and 13% respectively. But the half yearly results of 2015-16 presents an entirely different picture where the company has delivered an impressive sales growth of 25% to register a figure of 150crs vs 120crs. Profits have more than doubled to 23crs vs 11crs. The third quarter numbers probably should be the best since its inception.
BTW:For different stock market related services and also for techno-Funda tutorials,rush a mail at my mail id email@example.com to know more about it.
Note: The above is not a research report but assimilation of information available on public domain and it should not be treated as a research report.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”Disclosure: It is safe to assume that I might have Cheviot in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments.