Deepak Nitrite Limited

CMP = 213

Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and speciality chemicals with more than hundred products across three broad categories. It caters to Colorants, Petrochemicals, Agrochemicals, Rubber, Pharmaceuticals, Paper, Textile, Detergents, Fine & Specialty Chemicals etc. Company  have five manufacturing facilities at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad in Andhra Pradesh. Fully integrated infrastructure equipped to manage a product right from design to despatch lends Deepak Nitrite a strong competitive advantage, company produces complete value chains, right from feedstock to finished product within the organisation.

Deepak Nitrite is adopting the principles of responsible chemistry and stands among 18 Indian companies to be accredited with Responsible Care certification - towards global environment, safety and health management.

Deepak Nitrite currently operates its businesses with three main SBUs namely Basic Chemicals,  Performance Product segment and Fine & speciality chemicals

Investment Rationale

Deepak Nitrite is setting up country’s largest phenol-acetone project at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Dahej, Gujarat. This greenfield mega expansion project is under construction since last 3 years and costing ₹1,400-crore  through its wholly owned subsidiary Deepak Phenolics. The project is very near to completion of final stage and expected to start the commercial production within next 2 -3 months.

Below video link is helpful to understand the huge potential of this mega project.

https://www.youtube.com/watch?v=4q5PmUSVMFs

The phenol-acetone project will achieve 70% capacity utilization by next year (FY18-19) and 85-90% by FY19-20 to generate around 4500 crores annual revenue from new plant.

Below guidelines are given by company’s Promoter and Chairman & Managing Director Deepak Mehta stated that the company will explore more downstream products from phenol.

“We are setting up the country’s largest phenol-acetone plant at Dahej PCPIR with capacity of about 200,000 tonnes per annum. Once this project is commissioned, it will trigger a lot of new opportunities for Deepak.

“We are also looking to explore more downstream products from phenol. We have set an ambitious target of $1 billion turnover in the next three to four years," Mehta told BusinessLine.

http://www.thehindubusinessline.com/companies/deepak-nitrite-eyes-1-b-revenues-in-3-years/article9869314.ece

Company is sourcing best  phenol plant technology from Kellog Brown & Root International and technology for curmene is has been sourced from UOP Honeywell. EPC work for the plant has been done by Thyssenkrupp. It will be one of the best cost effective and efficient plant in the world. Company has added the cumene capacity which is feedstock for manufacturing phenol and acetone. It will further help to improve the profit margins.

India is importing 80% of Phenols and Acetone from other countries to meet the overall demand and Deepak Nitrite is building the plant to meet at least 60% of overall demand. Phenol demand  is expected to remain strong for longer period and entire capacity of Deepak Nitrate will get absorbed in domestic market.  

http://vibrantgujarat.com/writereaddata/images/pdf/project-profiles/Manufacturing-of-Phenol-Acetone.pdf

Phenol is used in the manufacture of a large range of commercial products. It is consumed in laminates, automobile, foundry, paints, rubber, surfactants, pharma, agro-chemicals, infrastructure products, epoxy resins, polycarbonates, phenolic resins industry etc. Acetone is predominantly used in the production of pharmaceuticals, paints, adhesives and thinners, etc. Thus both phenol and acetone have very wide range of application in almost every industry and it is giving clear visibility for very long term revenue generation for the company.

Deepak Nitrite has market leadership position in most of its products like Xylidines, Cumidines, Oximes, Colour Intermediates, Sodium Nitrite, Nitrate & Nitro Toluenes in the India and among top 3 global supplier for Cumidines and Oximes

Deepak Nitrite has  increased its focus on adding high value products catering to pharma, rubber, colourants and imaging products, paper products and other industries. Moving higher in the value chain to improve its profitability in long term.

Diversified product portfolio  gives stability and strength because it covers several industries  like Colorants, Petrochemicals, Agrochemicals, Rubber, Pharmaceuticals, Paper, Textile, Detergents, Fine & Specialty Chemicals.

Over the years company has built enduring relationships with leading global companies with strong distribution network across the globe with footprints in over 30 countries. 

Its strong R&D focus has led to in-house development of new product applications and understanding customer preferences resulting in having strong customer base consisting of some of the largest chemical companies in the world, including BASF, Syngenta Global, Bayer Cropscience, HMEL, Monsanto, Clariant, SF chem, Lonza, IOC, Reliance,  Essar, EASTMAN, saltigo etc.

Conclusion 

Deepak Nitrate is growing at decent pace with existing product portfolio and generating  revenue around 1500 crore and profit more than 100 crores. But upcoming phenol and acetone mega plant is going to bring huge turnaround  in topline and  bottom line in coming quarters. 

Company is continuously maintaining its market leadership position in several products and now further addition of phenol and acetone. It is because of exceptional foreseeing ability of management to capture the opportunities for those chemicals where stable demand and supply gaps exist for longer period and scope of  adding high value products.

Deepak Nitrate stock at cmp Rs 213 is very good  investment opportunity for short term and long term ( 1 year - 4 years). It can be bought + / - 10% from cmp with 10 -20% of portfolio allocation.

'Transport and Logistics' Sector Update

Dear Readers,

Yesterday Government has granted infrastructure status to the  Logistics sector with below given update. It is commendable step taken by government to accelerate the growth of Transport and Logistics sector. TCI and Gati are direct beneficiary  of this  initiative, need to hold both stocks for further gain.  

Logistics Sector granted Infrastructure Status 

The Logistics Sector has been granted Infrastructure status.The need for integrated Logistics sector development has been felt for quite some time in view of the fact that the logistics cost in India is very high compared to developed countries. High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export market. Development of logistics would give a boost to both domestic and external demand thereby encouraging manufacturing and 'job creation'. This will in turn be instrumental in improving country's GDP.

The inclusion of “Logistics Sector” in the Harmonized Master List of Infrastructure Sub-sectors was considered in the 14th Institutional Mechanism (IM) Meeting held on 10th November, 2017. It was recommended by the Institutional Mechanism and subsequently approved by the Union Finance Minister, Shri Arun Jaitley. “Logistics Infrastructure” is included by insertion of a new item in the renamed category of ‘Transport and Logistics’, with a footnote stating that "Logistics Infrastructure” means and includes Multi-modal Logistics Park comprising Inland Container Depot (ICD) with minimum investment of Rs. 50 crore and minimum area of 10 acre, Cold Chain Facility with minimum investment of Rs.15 crore and minimum area of 20,000 sq. ft, and/or Warehousing Facility with investment of minimum Rs. 25 crore and minimum area of 1 lakh sq ft.

It will enable the Logistics Sector to avail infrastructure lending at easier terms with enhanced limits, access to larger amounts of funds as External Commercial Borrowings (ECB), access to longer tenor funds from insurance companies and pension funds and be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL). 

http://pib.nic.in/newsite/PrintRelease.aspx?relid=173674

Diwali Greetings

Dear Readers,

On this auspicious festival of lights

May this festival of lights bring lot of light into your lives and along with that may it bring joy, happiness and prosperity for you and your family

'Wishing you a Very Happy Diwali'

Note - I will be out of station for few weeks and may not able to reply you on time due to busy schedule.

Gati Limited

CMP = 111

Gati Limited is a pioneer in the express distribution, supply chain solutions, e-commerce & cold chain logistics. Gati has transformed the logistic industry in India with many a path breaking revolutionary initiatives that paved the way to an organized logistic industry. Gati started operations in 1989 as a door-to-door cargo company, a division of Transport Corporation of India (TCI).  It became a separate company in 1994. Over the years company has grown its extensive network across India providing deliveries to 19000 pincodes, covering 672 out of 676 districts in India by using different modes of transports ie. Road, Rail, Air & Sea. It also offers specialized logistics services and it is currently among the top  players in the E-commerce logistics business. It has a strong market presence in the Asia Pacific region and SAARC countries with offices in China, Singapore, Hong Kong, Thailand, and Nepal.

https://www.youtube.com/watch?v=Pot9krQzF7k

Gati is an end-to-end logistics solutions provider with following business structure.

E-Commerce Logistics and Fulfilment Services

http://www.gaticonnect.com/

Gati E-connect is the e-Commerce Logistic Solutions vertical of Gati Ltd. It is first integrated e-Commerce logistic solutions provider in India. Gati's e - Commerce solutions come with the expertise to achieve complex needs in managing customised  e-tailing logistics solutions. Leveraging its extensive express logistic  network, strong e-fulfilment capabilities and innovative supply chain technologies. Gati’s e-Commerce logistics has built a capacity to deliver more than 80,000 packages per day.

https://www.youtube.com/watch?v=zKtJkQrRZ_s

Quick facts 

• Pan-India presence to deliver to a wide customer base
• Delivery  capability  to  handle  shipments  ranging  from  0.5kg  to 1 ton
• IT and Automation Solutions
• Dedicated Customer Care Center
•  ‘One Ship Model’ setup for end-to-end delivery 
• Door step delivery backed by blend of bikers, drivers and franchises growing regularly.
• Capability to handle large volume with greater operational efficiencies and flexibility.

Express Logistics

http://www.gati.com/

Express distribution is time sensitive movement of commercial packages on door-to-door delivery concept and Gati is a pioneer in developing this concept in India more than 25 years back. This division of Gati is the most preferred Express Distribution and Supply Chain Solutions provider because of its ability to handle every distribution need of its customer. An intrinsic network that spans the length and breadth of India Gati-KWE has a reach of more than 99% of the districts in India. A large fleet of more than 5000 vehicles and an assured space across 32 airline sectors ensures that all couriers,  cargo and shipments are delivered in time at the right place. 

Express distribution division of GATI has over 5000 clients from industry sectors such as Pharma, FMCG, Engineering, Auto ancillary, Textiles & IT hardware. Express distribution division has a combined fleet of 5000 vehicles and a warehousing capacity of 3.3 mn. sq. ft.

https://www.youtube.com/watch?v=RyOliosedmg

Quick facts 

• Unmatched multi-model network
• Door pickup & Door delivery
• Well-developed  network and  optimised route planning system
• Operates in 32 airline sectorsExpertise in handling high value shipments & perishable goods
• 24/7/365 service level monitoring system 
• Online tracking, sms and e-mail updates of shipments in transit

Cold Chain Logistics

http://gatikausar.com/

Gati Kausar is a subsidiary and cold-chain arm of Gati Limited. It is the longest established cold-chain company in India, with 30 years of expertise in the cold-chain distribution business. Gati Kausar offers customised solutions for temperature sensitive shipments including consumer foods, pharmaceuticals, retail and agri-food sectors.

Gati Kausar innovative cold-chain transportation solution, strengthened by cutting edge technology,and a vast fleet of refrigerated vehicles equipped with advanced climate-control systems ensures that perishable products are delivered in a fresh, healthy and potent state to retailers and end consumers.

The state of  art modern refrigerated units, established reefer network, temperature controlled vehicles, IT infrastructure and experienced team helps them offer the right solution for every customer need.

Quick facts 

• ISO 9001:2008 and FSSAI certified company.
• HACCP procedures for safety and prevention of contamination.
• State-of-the-art modern refrigerated units from France and USA  Containers with insulation to withstand the harsh India climate zones.
• Tamper-proof  vehicles  to  mitigate  pilferage  risk  Unmatched  Infrastructure and Network.
• Fleet  comprising  of  close  to  180  refrigerated  vehicles  load  capacity from 1.3 tonnes to 24 tonnes, temperature range from +25 o C to -25 o C.
• Transporting  approximately  2,00,000  tonnes  annually unmatched network, covered over 300 districts in India.
• IT  capabilities,  Modern  Vehicle  Tracking  System,  Data  loggers  to  monitor in-transit conditions throughout the journey.
• In  house  capabilities,  In-house  dedicated  solutions  team,  reefer trucking team and refrigeration team In-house workshop, with inventory of approximately 3000 SKUs.             

Investment Rationales

Long outstanding FCCB issue with Goldman Sachs is recently resolved . It has enabled the company to expand its business activities like strategic investment, demerger, fund raising and business expansion without any restriction.  It has also resulted significant decline in debt.

Gati maintains its the market leadership position in express distribution in the non documents market with ~19% market share. The logistics industry in India is expected to grow at CAGR of 16 -20 % in the coming years.

Gati with its widespread reach and warehousing capabilities is well  positioned to seize these opportunities rising due to implementation of GST 

Gati is fully integrated multi-modal logistics player with a comprehensive pan-India network, it is clear beneficiary of business shift from unorganised to organised players after the implementation of GST from last quarter.

The demand for warehousing is expected to grow at an annual rate of 10 % and  Gati with its widespread reach and warehousing capabilities is well positioned to seize these opportunities.

Gati has fleet size of 5,000 trucks , 200 reefer trucks, 76 warehouses and over 6,000 trained work force with a widespread network managed by multi-modal capabilities, technology supported expertise makes Gati the most prefered one-stop solutions provider for all logistic requirements from warehousing, freight forwarding, supply chain solutions, temperature controlled solutions, B2C couriers and fulfilment  centres.

Gati has partnership with major global player Kintetsu World Express for express distribution business & supply chain solutions and with Kauser for cold-chain  distribution and solution. It give world wide access in business and related technology.

Gati Kausar has immense potential for growth opportunities rising  in the agri, food and pharma sector.

Conclusion 

Gati is ready to capture  the strong opportunity unfolding in the Indian logistics landscape because this sector will remain backbone of every development rising due to GST,  e-commerce, infra, housing and in agri sector. 

In the past stock was unable to participate any market rally due to pending FCCB issue. The issue was settled in last quarter but that time most of the transport and logistic stocks came under pressure due to initial hiccups while implementation of GST. Now transport and logistic will pickup the growth momentum and it will remain the main beneficiary. Gati at cmp Rs 111 is providing decent investment opportunity ( 1 year -  4 years) for short as well as for long term. It can be bought +/ - 10% from cmp.    

Happy Dussehra

Dear Readers,

May God shower his blessings on you and you win over every hurdle in Life.

May this Dussehra bring lots of happiness and fulfill all your dreams. 

Wishing a very happy Dussehra to you and your family.

Listing of Equity Shares of Lasa Supergenerics Limited

Dear Readers, 

The equity shares of Lasa Supergenerics Limited are going to be listed with effective from Thursday, September 21, 2017. 

http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20170919-10


http://www.bseindia.com/xml-data/corpfiling/AttachLive/9fe3f83c-da0c-4246-ac8d-07483afae791.pdf

You have shown great patience in adverse conditions which has delayed the listing of Lasa by six months. Still you are winner even with this delay because Lasa will give decent return in future and it has very good growth potential. You can continue to hold both stocks for 100 -300% return on your initial investment (pre-demerger) in 3-4 years. Those investors who have given higher allocation near 20% can book partial profit on 100% return to make their remaining holding free of cost. 

Next stock will be posted in the first week of October.

Happy Ganesh Chaturthi

Dear Readers 

Orient Paper & Industries - Switch to Smart

CMP = 96

Orient Paper & Industries Ltd (OPIL) is flagship company of CK Birla Group  and incorporated in 1939. The company has two divisions, the paper and consumer electrical division. The paper division produces a wide range of tissue, writing, printing, and speciality papers, paper products and boards. It is the largest  producers and exporters of tissue papers from  India.

The consumer electrical division is the largest manufacturer and exporter of fans from India with more than 60% share in exports and a dominating presence in more than 35 international markets. 'Orient Electric' is one of the leading consumer electrical brands in India with a diverse portfolio of fans, lighting, home appliances and switchgears.  The company has strong R&D capabilities, which enable it  to develop and  innovate new products that meet the needs and expectations of modern consumers.  OPIL has five manufacturing units located at Amlai (Madhya Pradesh), Guwahati (Assam), Kolkata (West Bengal), Faridabad (Haryana) and Noida (Uttar Pradesh).

https://www.orientelectric.com/media/videos

https://www.youtube.com/watch?v=KxgnPl6eWiI

Paper Division

The paper unit at Amlai Madhya Pradesh is engaged in the manufacturing of tissue papers, writing and printing papers, photocopier papers etc. It  is  having a capacity of 1,00,000 tonnes p.a. (printing and writing paper 45000 tpa and tissue paper 55,000 tpa) An eco-friendly enterprise, Orient Paper and Industries undertakes reforestation and other restorative measures. The manufacturing unit is ISO 14001 certified and has received several awards for environmental excellence. It is one of the few companies to have received the ECO mark license from the Government of India. It is also certified for FSC-COC which is compliance of all norms related to raw materials in paper production. Orient paper and paper products are exported to several countries across the world.

http://orientlinks.com/products/

Electric Division

"Orient" brand extended to  wide range of consumer electric products and launched its lighting, home appliances and switchgears product range few years back. Company has decided to rebrand its operation as it aims to become a provider of smart home solutions. Orient Electric is committed to creating great customer experiences by exceeding global benchmarks in quality and best practices. Its entire range is in line with its brand promise of ‘switch to smart’ meaning that each product is technologically advanced, aesthetically pleasing and energy efficient.  It is today the third largest manufacturer of LED lamps in India and is also the first Indian lighting brand to have been awarded BEE star rating for lamps. In the Home Appliances category, Orient Electric offers a wide range of products including water heaters, air coolers and small kitchen appliances. In Switchgears category, it offers MCBs enabled with the revolutionary SDB (Snap Disc Bi-Metal) technology which provides threefold advantage – precise tripping, better repeatability and longer life.

Fans

Company has increased its share of the  domestic fans market and maintained its leadership  position in  the export with 60% market share in total exports of fans from India. Orient has consolidated its position in the premium fans segment with the launch of  Aero Quiet fans. Commissioned a new manufacturing facility at Guwahati, which will help in expanding market reach. In-house R&D unit at Faridabad plant received the prestigious DSIR  certification

Company has  launched the high end fans incorporated with BLDC (brushless direct current motor) technology fans which the company claims that the fans would consume 50 per cent less energy, provide high speed even in low voltages.

https://www.orientelectric.com/img/footmedia/brochure/FAN.pdf

https://www.orientelectric.com/fan

https://www.youtube.com/watch?v=iv4Pl63yMO0

https://www.youtube.com/watch?v=eUOco2A_q-E

Lighting

Orient is the first company to get BEE star rating for its LED bulbs. Orient has consolidated its position in the LED bulb segment with market share of 11% which places it at the no. 3 position in India. Company has started manufacturing LED street lights with scope of good growth in the tender business. Company has made successful in entry into Street lighting segment with execution of 20000 streetlights across 4 states in India.

Orient has strengthened its R&D department for LED lighting with most of the major testing being done in-house now. Further investment has been committed for Goniometer equipment. This will add to the capabilities in design and testing of Street lighting and other professional luminaires which are the major areas of growth in future.

https://www.orientelectric.com/lighting

https://www.orientelectric.com/img/footmedia/brochure/LIGHTING.pdf

Home appliances

Orient has significantly enhanced its product portfolio in terms of premiumness and quality. Also enhanced the distribution of the width of the range. Company has created a brand pull in its home appliances division as well leveraging the success of its 'Orient' brand. Launched new models of air coolers, water heaters, electric irons and wet grinders in about 100 cities with prime focus on 60 Cities. Company run 159 Authorized Service Centers spread across the country.

https://www.orientelectric.com/home-appliances

https://www.orientelectric.com/home-appliances/air-cooler

https://www.orientelectric.com/img/footmedia/brochure/Appliances.pdf

Switchgears

Switchgears are very important safety components for homes as well as commercial spaces. Orient Electric offers a high quality range of MCBs and successfully established itself in new sub - segment. Orient switchgears are with differentiated technology and built for extra safety

https://www.orientelectric.com/switch-gear

https://www.orientelectric.com/img/footmedia/brochure/SWITCHGEAR.pdf

Marketing and distribution

Orient has an enviable distribution network of 100,000 retailers and 3,500 dealers and distributors in India. It is advantage for company while launching any new products like switchgear, air cooler, water heater etc  which can be sold leveraging the existing network.

‘Smart Shop’ Franchise

‘Smart Shop’ serve as exclusive and franchised one-stop shop  which offers complete range of Orient Electric products under one roof. The spacious store serves as a one-stop shop where consumers will be able to see, touch, feel and purchase various products of Orient Electric including Fans, Lighting, Home Appliances and Switchgear.

https://www.orientelectric.com/franchise/overview

https://www.orientelectric.com/franchise/photo-gallery-list/3

https://www.orientelectric.com/media/events-&-exhibitions

Orient Electric E-shop

Strengthened e-commerce presence by selling products through Orient’s own e-commerce portal as well as through other leading online marketplaces.

http://www.orientelectriceshop.com/

Investment Rationale

Orient Paper and Industries Ltd is going to demerge its electrical appliances division to unlock significant value for the shareholders of the company. 

The vertical demerger is to facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies.

It will enable a dedicated management to focus and accelerate the growth of the consumer electric business. 

The nature of risk and competition involved is completely distinct, so it become necessary to make separate teams of professionals to manage the two divisions.

This separation will enable the access to varied sources of funds for the rapid growth of both businesses.

http://www.bseindia.com/xml-data/corpfiling/AttachHis/77f431e6-e5ac-4eb0-87e9-fb6f467fd27d.pdf

Demerger was proposed in September 2016 which is very near to completion within few months.

http://www.bseindia.com/xml-data/corpfiling/AttachHis/11FECFBC_BABF_4132_BAFD_E6D5236E93C8_134008.pdf

Orient Electric has become established player in lighting, switchgear and home appliances products such as air cooler, water heater, induction cooker, mixer juicer grinder, blender and kettle under the brand name of 'Orient' in last few years. It makes the company direct competitor of Havells India,  Crompton Greaves Consumer Electrical and Symphony. Demerger of Orient Electric will unlock decent value for investors if we analyse and compare these companies with Orient Electric.

Orient Electric business performance for  2016 -17 in all its product segments.

• Orient Fan registered 11% growth in the domestic market, growing faster than the industry average 5 -6%.

• Orient’s lighting trade business grew by 12%, higher than the industry average  growth of  5%.

• Orient Home Appliances has registered a 35% revenues  growth against  the industry averaged growth of 5% in FY 2016-17

• Orient Switchgears has achieved a total 19% revenue growth over last year.

Manufacturing capacity has improved with the opening of new plant at Guwahati to cover low penetrated north -east region.

Aggressive stance is being taken to open “Orient Smart Shops” in all major cities to improve customer experience with the brand. In the long run it will turn the traditional business model of the company into  asset light franchise business model.

Orient Electric is getting a good opportunity for strengthening its presence because with implementation of GST there is gradual reduction in market share of the unorganized sector, it will reflect in results of  coming quarters.

Introduce disruptive innovation in fans covering unaddressed segments, it resulted significant gain in market share of premium fans segment. Company has launched of several premium models of fans and coolers to shift the focus toward fast growing high margin business. 

Improve market share in the consumer lighting  segment and increase brand recall.

Participate aggressively in the street lighting   business.

Aggressive positioning and acquisition of market  share in air-coolers and small appliances segment

Increase e-commerce retailing and presence in  modern organised retail

Company has taken several steps in past few years to ensure the turnaround of paper division. It is mainly as a result of cost reduction and efficiency improvements.

Focus shifting towards high margin tissue paper business, Orient has 85,000 TPA of paper capacity split as  60,000 TPA of writing and printing paper and 25,000 TPA of Tissue paper. Tissue paper demand in India continues to register double digit growth with an equally strong export market. Orient is doubling its capacity in tissue plant to 55,000 TPA and reducing the production of low margin writing and printing paper to 45000 TPA.  Tissue paper expansion project have started commercial production with effect from 1st May 2017. This will double  the tissue paper capacity and further consolidate the  position as  the largest  producers and exporters of tissue papers from  India. This will also contribute to increasing volumes and profitability of the paper business in coming quarters.

http://orientpaperindia.com/beta/resources/fck_upload/EC20Tissue203dt17thOct16.pdf

Company has been able to resolve problem of power shortage by setting up a captive power plant of 55MW capacity and obtained additional coal linkage sufficient to  meet the total coal requirement.

Increased pulpwood plantation covering 2026  hectare and planned to increase by 50%. to achieve enhanced raw material security and tie up with local farmers for sourcing supply of pulpwood.

The water shortage issue has also been addressed by constructing another reservoir to increase our water storage capacity by a further 130 million gallons, which enhances our total  storage capacity to 720 million gallons to overcome this problem of water shortages.

Amlai plant has reduced the water consumption by nearly 40% and achieved zero liquid discharge

Other significant assets held by the company it will remain with Orient Paper after demerger.

• Orient  paper  has  a  land  parcel  of 800  acres  at Brajarajnagar,  Odisha,  

• Orient Paper & Industries Ltd  hold 1,545,140 shares of Century Textiles and Industries under public shareholding is worth  of Rs 185 crores

• Orient Paper & Industries Ltd hold  906,360 shares of HIL under promoter shareholding is worth  of Rs 100 crores

Conclusion

'Orient' is very strong and well established brand in electrical consumer products in India.  Lighting, consumer durable segment will be the direct beneficiary of the rise in disposable income from pay hikes,  housing for all,  implementation of GST for organised players. Home appliances have a very low penetration in rural part of India with improvement in power availability, increase in disposable income and shift in focus on branded category products is giving good growth visibility for longer period. The company is continuously improving its product quality and introducing  a new lifestyle-based product range which are having very good growth potential.

The stock is trading since last 4 -5 months in range of Rs 80 - 96. It has not participated in any rally due to demerger  process pending with NCLT. Now it is in the last stage of demerger process so it is right time to enter before announcement of record date. Orient Paper & Industries at cmp 96 is giving very good investment opportunity for short term as well as for long term. It can be bought +/- 10% from cmp with allocation upto 20%.