Investment opportunities in Indian Agrichemicals Industry.

Agrochemicals
AgroChemicals Industry In India:
India’s more than Rs 6,000-crore agrochemical industry is the fourth largest in the world, after the US, China and Japan. The sector has been growing at more than 12% a year, while exports, which account for nearly half of the revenue, has been growing at about 25%.- ET-27.12.07.
See below some top notch Indian companies in this business.
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India Glycols Ltd.:
http://www.indiaglycols.com/

Very strong promoter group.

Fully integrated, Robust Recession free Business Model. A very solid growth stock to hold on to for years together and creat wealth for self and family.

First and only company in the world to produce Ethylene Oxide (EO) / Mono Ethylene Glycol (MEG) from renewable agro route based on molasses, since 1989. Leading manufacturers of Glycols, Ethoxylates, Performance Chemicals, Glycol Ethers & Acetates, Guar Gum and Potable Alcohol. Taking steps to de-risk the business model by integrating backward and forward and in the process to exploit the total value chain.

Entering into the business of manufacturing natural active pharmaceutical ingredients (API’s), standardized botanical extracts and spice extracts for the beverage, dietary supplement, functional foods, pharmaceutical and cosmeceutical industries. Have a strategic advantage of being located in Dehradun,India, which is an extremely favorable agro-climatic zone for herbal and plant cultivation in India. Also, have a strong hold over raw material supply through own cultivation in the foothills of the Himalayas and contract cultivation with farmers in the region. This assures availability of a variety of desired raw materials at competitive prices. Proposing to commence production in May 2008.

Progressively expaning capacities. Highly diversified product range. Continously developing new high value derivatives of molasses. Integrating backward to produce molasses in house to derisk price variations in molasses.

Highly diversified product range across more than 15 Industries from Agrochemicals, Automobiles, Oil & Gas,Mining, textile, Paint, Paper to Detergents, Healthcare & Foodprocessing, Personal care and Pharmaceutical. RECESSION FREE PRODUCT PROFILE.

Price Rs.237/- as on 19.03.2008.

Strong buy.

Expected EPS >Rs.80- 110/- for f/y 2008-09.
Expected P/E >10

Projected Price range as on 24.12.09 is Rs. 800/-
to 1000/- .

26.5.08:

F/y-2007-08 turnover is Rs. 1524/- Cr. The net profit is Rs. 178/- Cr and EPS is Rs.64.03/-.

Expected Turnover for f/y 2008-09 is Rs. 2000/- Cr. and expected net profit is Rs. 240/- Cr. The projected EPS is Rs. 85/- to 90/-.

Price as on 26.5.08 is Rs. 315/-.A strong buy at this price.
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Rallis India:

F/Y -2007-08 EPS is Rs. 100/-.
Price as on 19.03.2008 is Rs.320/-
Buy.
A TATA CO. Expected to reenter into Pharma Business.
Projected Price Rs. 600/- to 1000/- as on 24.12.09
Price as on 23.5.08 is Rs. 413/-.
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