Industries

April 09, 2008

Emco to enter high-voltage switchgears

Link: Emco to enter high-voltage switchgears.

Thane-based Emco Ltd, India's third-largest transformer company, has decided to add one more product to its portfolio.

The company is looking for prospective technology partners in Japan and China to enter into high-voltage switchgear manufacturing in the country.

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Rajesh Jain, chairman and managing director, Emco Ltd said, "Since the company is aspiring to become an end-to-end solutions provider in power transmission and distribution segment, a diversification into switchgear manufacturing is an obvious move."

He said Emco is currently looking to get into a technology sharing agreement with an overseas player, which is likely to be in Japan or China.

"Things are at an advanced stage and a decision will be taken in a few months time," Jain said. Two years down the line, the company will have a new manufacturing facility to roll out high-voltage switchgears, he added.

Jain said India's switchgear market is estimated at about Rs 8,000 crore now and growing at 14-15% per annum. "The major players in the high voltage range are ABB, Crompton Greaves, Areva T&D and Siemens."

Jain said Emco Ltd, whose core expertise so far has been transformer manufacturing, is now gradually moving towards project business.

"Under the project business, we will take up complete turnkey solutions in transmission and distribution - right from setting up of 400 KV substations, setting up of transmission lines of 400 KV to 760 KV, manufacturing transmission towers, metering solutions, providing transformers and high voltage switchgears," he said.

The project business is expected to contribute revenues to the tune of 25-30% for the financial year ended March 2008. In the next two years, the company expects this division to contribute over 50% of the total revenues. "Therefore, in two years from now, the project business will become the flagship business of the company," he said.

The revenue target is above Rs1000 crore in the next two years, Jain said.

Emco is also upgrading its tower manufacturing capacity from 20,000 metric tonnes, which it had after the acquisition of Baroda-based Urja Engineers, to 45,000 metric tonnes. The capacity expansion is to be completed by May 2008.

Analysts Rahul Agarwal and Navneet Iyengar, in a March 6, 2008 report said: "Post-expansion, the merged entity would have transmission-tower manufacturing capability of 45,000 MT. Urja is qualified to bid for all state government and PGCIL contracts. This provides Emco with an edge in terms of providing 400 KV transmission lines along with its 400 KV transformer manufacturing capability. The focus is to become an end-to-end solutions provider for the EPC business."


April 04, 2008

Greening India

 

Only 1.5 per cent of the total irrigated area in India is under micro-irrigation; “lousy delivery mechanism”, and not lack of funds, is the reason.

G.P. Sampath Kumar

Trickle-down effect: Micro- irrigation can help farmers make judicious use of scarce water resources.

Rasheeda Bhagat

After a 90-minute early morning walk, “it is the usual yoga and exercise for 40 minutes. I spend more than two hours in maintaining this body, which is growing old at the age of 71, with five heart-attacks.”

It is like a badge of honour that Jain Irrigation Systems Chairman Bhavarlal H. Jain wears his “five heart-attacks, two bypass operations, one angioplasty and one instrument sitting here (pats his heart)… So you have quite an interesting medical history sitting before you. I’ve only recently celebrated the silver jubilee of my first heart-attack that came in 1982 at this very campus (Jain Hills in Jalgaon, Maharashtra),” he says cheerfully.

Hailing from a humble agricultural background, Jain understands the needs of farmers — access to the latest in agricultural technology and inputs — and is pained that India’s ruling classes do not really understand what ails Indian agriculture today.

He describes his father as “a petty trader who had gone through just three classes in the local language. My mother was an illiterate woman who had all the world’s wisdom and a heart that was as large as it could be. I did not inherit any wealth but a lot of wisdom from them; wisdom combined with integrity is what they gave me”.

He recalls how his father would travel to different villages either on foot or by bullock-cart, collect samples of cotton — 10 kg from one house, 20 kg from another — process them, clean them and sell them at the weekly market. Gradually he bought some land “which I inherited; in all 56 acres. Our total revenue till 1972 from the four or five pieces of land was not more than Rs 11,000.” Last year his company’s sales topped Rs 1,200 crore!

The young Bhavarlal went through four years of education in his village (Wakod), after which his father sent him to Jalgaon to complete his high school, and then to Mumbai for a B.Com followed by LLB, which he completed in 1961.

“I did prepare some briefs but my heart was really in business,” says Jain. In 1962 he had three options — pursue a career in law, continue as a first-class gazetted officer as he had passed the Maharashtra Public Services Commission exam or start a small business. “There was not much money available, and with great difficulty my mother gave me Rs 7,000, which was the total seed capital available in 1962. So I began my career with it but couldn’t do much except run an agency business where you don’t need a lot of money for selling somebody else’s products.”

With that money he bought some empty containers, took an apprenticeship for Esso, and later became its agent. “For 15 years I marketed Esso petroleum products, so my rural marketing skills were honed and developed by those guys!” Gradually he started dealing in agri inputs like fertilisers, seeds, pesticide. In 1978, he acquired a sick unit and manufactured Papain, and commenced making PVC pipes in 1980.

Drip irrigation

Next came drip irrigation; “around 1984 I went to an international trade fair in Fresno in the US and saw that there was a technology that saved water. I knew from experience that Maharashtra would forever be short of and hungry for water, and decided to get into this business.”

As for the response to this new technology in the late 1980s, he says, “Forget the farmers, both the opinion-makers and the bureaucrats had to be educated on what I was talking about. When I went to get the licence to send $30,000… big money in those days… the officer concerned asked me a funny question. ‘We are not importing water; there is no import substitution in this technology, so why should I allow you to send this $30,000 outside? I don’t think this is appropriate technology for India.’ This was the first response from a bureaucrat.”

Jain adds that at the level of opinion-makers/politicians, “most were simply not aware of such a technology except for a few like Sharad Pawar and his brother. The farmer is always the last in the link when it comes to awareness of any technology; so he didn’t know anything.”

The man who today holds a nearly 50 per cent share in drip irrigation in India and has played a major role in bringing profitability to the banana farmers of the Jalgaon region and beyond, had to launch an ad campaign “to educate the public on the benefits of water savings; it cost me Rs 50 lakh. Mind you, this was not a product but a concept selling campaign,” he shrugs.

Now there are 54 players in the field, Jain being the largest and credited with having brought 80 per cent of banana cultivation under drip. Asked if he had any doubts in the initial years, Jain says, “For me it was an article of faith; I believe water will be the igniting part of World War III, and there will be fights for water not only between countries, but within the country — states, districts, tehsils and villages.” He is alarmed at the shrinking per capita availability of water in India and asks: “Do you know that in 1947 we had 6,000 metric cubes of water availability per capita and now it has come down to 1,250 metric cubes, which is just the borderline for declaring yourself water scarce.”

On the continuing distress of farmers and their perennial quest for water he says, “Recharge and judicious use is the answer. Micro-irrigation (drip and sprinkler irrigation) has been declared a national policy and provided sufficient funding, but unfortunately the utilisation is not as good as it could be.”

On the crops that benefit the most from micro-irrigation, Jain says, “Water guzzlers, obviously; but there isn’t a single crop which does not benefit from it, whether it is the tea gardens of Assam, the banana belt of Jalgaon, the grapes of Nashik or the oranges of Nagpur. As for rice, “in the south we have a factory near Coimbatore, and rice farmers are gradually accepting drip irrigation; it also gives very good results for coconut.” Jain says he keeps in close touch with farmers and his doors are always open to them. “For me, interacting with farmers is a rejuvenating experience, so I’ve cut layers of bureaucracy to be in direct touch with farmers.”

What ails agriculture…

Inefficient delivery mechanisms are responsible for the agri sector’s woes, he says. “Even when allocations are made, agriculture is unable to accept/absorb them because the delivery mechanism is so lousy.” He is not excited by massive debt waiver schemes. “The policy of making farmers debt-free per se looks very good but is not a long-term solution. It cuts into our very cultural roots. You are telling them to borrow and not pay.” He feels waiver of interest and repayment of capital over easy, long-term instalments would have been better.

So, what does Indian agriculture really need to pull it out of the 2-3 per cent dismal growth rate?

The policymakers need to be farmers, which we don’t have, says Jain. “The problem is that farmers are not diplomats, they cannot speak good English; all they can do is toil. And their culture is based on hard work; sweat is all they can offer. It is difficult but the first requirement is that the policy/opinion-making level comes from the farm sector so it really feels for the farmer.”

Unfortunately, most of the time “we look only at short-term policies or quick-fix solutions; you need to be a statesman and not a politician if you are looking at the long-term interest of the country. A statesman is one who looks to the interest of the next generation; a politician is one who is interested only in the next general election. And we have many politicians but very few statesmen. Mahatma Gandhi was above even that.”

He is deeply saddened by farmers committing suicides. “It never happened before but is happening now because the gap between the haves and have-nots has widened. This is going to invite a lot of unrest.”

Jain believes that any boasting about our progress and growth rate will fall flat if we don’t take the concerns of agriculture on board.

So are we paying too less for the food we consume? “As compared to everything else, we pay much less. But to keep prices low is the national priority. But yes, these prices are pathetically low; while other prices have gone up by 10-100 times in post-Independent era, food prices have not gone up in the same ratio because this is connected to the poor man. So a paradigm shift has to take place.”

Response may be sent to rasheeda@thehindu.co.in


Bhavarial H.Jain

Jainspeak

Journey so far: This year we are targeting a sales figure of Rs 1,800 crore; last year we did Rs 1,200 crore.

Expectation: There was no time to expect or imagine; I just had a dream, and the dream had to be implemented the next morning. There was neither a blueprint nor a master plan; it was a continuously evolving process, depending on resources, we kept expanding along the way.

Dream for Indian agriculture: Water management, water treatment and increasing the area under irrigation. Of the total irrigation area, not even 1.5 per cent is under micro-irrigation. Intervention of biotechnology and applied research is required for improving agri yields.

Genetically modified crops: For fibre or non-edible oilseeds, it's a welcome development. For food crops I'm yet to make up my mind because it has very long-term ramifications yet to be studied. For crops like cotton there shouldn't be any hesitation. But they bring in a new set of diseases and pests, controlling which is a problem. A lot can be said on both sides.

What frustrates him: The youth, because it has lots of skills but is losing all its culture. And if you do not have a culture and blindly follow somebody else's culture then this kind of growth can play havoc with you, which is happening.

Dream for India: Country must and will emerge a superpower but whether it would remain homogenous and integrated, with various strata of society, the rich and the poor, different classes, being able to maintain peace. I have serious doubts. If we do not take care of that aspect, all this growth will simply evaporate or prove to be suicidal.

Concerns: I fear increasing restlessness because the gap will grow between the section that is not getting enough and that which is getting more than enough. This is a mismatch. Our greatest challenge is to achieve a balance between retaining our culture while still growing. Growth is inevitable and must happen; I'm sure we'll become a superpower sooner than the world thinks but internally we must take care of these cultural shocks.

Relaxing: Oh, I do that by constantly finding a different subject to talk/think about. Food habits: Pure vegetarian, not even eggs; more emphasis on fruits and vegetables than grains and I think that has kept me alive.

Music: Never really developed ear for good music.

Preferred reading: Management or philosophy.

Movies: Not anymore; saw so many movies when young that I feel fed up with the kind of noisy and violent movies we get these days. My favourite remains Awara.

March 20, 2008

M’rashtra scraps octroi in 15 municipal areas

Link: M’rashtra scraps octroi in 15 municipal areas.

Mumbai, Mar 19 Presenting a revenue surplus budget of Rs 964 crore for 2008-09, the Maharashtra government on Wednesday proposed abolition of Octroi Duty in 15 “D” class municipal corporations by replacing account based cess. The annual Octroi Duty collection of these civic bodies are over Rs 1,100 crore.

The state government has assured to compensate revenue loss due to the shifting to account base cess from the Octroi Duty regime. State finance minister Jayant Patil made this announcement in his annual budget in the state legislature. There are in all 22 municipal corporations in the state with the annual Octroi Duty collection of Rs 6,500 crore. Mumbai civic body tops the list with the Octroi Duty collection of over Rs 3,500 crore.

Patil has not touched seven municipal corporations including Mumbai, Pune, Nagpur, Nashik, Pimpri-Chinchwad, Navi Mumbai and Thane. However, the 15 D class civic bodies covered are Aurangabad, Ahmednagar, Ulhasnagar, Bhiwandi, Mira Bhayander, Malegaon, Kalyan-Dombivli, Sangli, Kolhapur, Sholapur, Akola, Nanded, Amravati, Jalgaon and Dhule.

Patil’s announcement comes after the state chief minister Vilasrao Deshmukh had announced on January 11 that the government was in the midst of abolition of Octroi Duty as per the recommendations made by several committees.

As reported by FE, Deshmukh had quoted that account based cess was one of the options being considered by the state government to replace Octroi Duty. The account based cess is currently levied in the Navi Mumbai.

A committee chaired by the state finance secretary Subodh Kumar had recommended imposition of profession tax by municipal bodies, levy of additional Vat and increased property tax to compensate for Octroi losses.


March 02, 2008

'Our focus is on speciality products'

SMART TALK/ M P Taparia, managing director, Supreme Industries

 

Priya Kansara / Mumbai March 03, 2008

 

Amid spiralling prices of metals, the need to conserve natural resources and attain energy efficiency amongst other cost saving measures, many sectors such as electronics, automobiles and construction are increasingly and alternatively using plastics as their raw material.

 

And, the requirement is only expected to grow considering India's high GDP growth rates and limited natural resources. This will give a much needed push to plastic consumption and for players like Supreme Industries among others, it will be continuing business.

 

The Rs 1161-crore company is an acknowledged leader in the Indian plastics industry producing more than 15,000 varieties of plastic products and handling volumes of over 2.7 lakh tonnes of polymers annually.

 

Its products are broadly classified into categories like plastic piping system, cross laminated films, plastic furniture, material handling systems (including crates), protective packaging and industrial products, used across industries.

 

Going ahead, the company plans to increase the application of its products in agriculture, housing and infrastructure, which is one of the key thrust areas of growth, for the government. M P Taparia, managing director Supreme Industries spoke to Priya Kansara on the company's future growth strategies.

 

What is the scope for growth in Indian plastics consumption?

 

Consumption of plastics has tremendous potential in India due to lower per capita consumption (including recycled plastics) of around 6 kg as compared to China's 42 kg and the world average of 28 kg. According to industry estimates, the consumption of plastics in 2007-08 which is estimated at around 6 million tons, can double in the next five years if adequate supporting measures are taken by the government.

 

What has restricted the growth in consumption of plastics?

 

The Indian plastics industry has not been given adequate support by the government which has imposed high indirect taxes on plastic products. The combined rate of excise duty and value added taxes (VAT) constitute around 28 per cent on plastics products in India as compared to ASEAN’s, which range between 5 per cent and 10 per cent.

 

The government must further reduce the general excise duty from 14 per cent to 8 per cent. They may unfold the road-map of implementation of goods & services tax (GST) throughout the country by April 2010. Considering our per capita income, GST on plastics products should be around 12 per cent against the current 28 per cent.

 

In this scenario, how is the company expected to fare?

 

We hope to clock a turnover of Rs 2,000 crore by 2009-10. If the government promotes the plastics industry, we could reach Rs 5,000 crore turnover in less than five years. This year (June ending), we hope to clock a turnover of around Rs 1,300 crore with an operating profit margin of 12.3-12.5 per cent. Next year, we expect a turnover of Rs 1,700 crore, with an operating profit margin of 13 per cent.

 

What is the reason for this high growth in sales and improved profitability?

 

We are expanding our capacity for material handling system, cross laminated films products, plastics piping system, furniture and protective packaging products. Out of our total capital expenditure programme of Rs 415 crore between 2006-07 to 2008-09 at different locations, we are investing a sum of Rs 260 crore at Gadegaon, Jalgaon district of Maharashtra for the same.

 

A sum of Rs 120 crore has already been spent and the rest will be invested over the next 18 months. This expansion will ensure a sales volume growth of 20 per cent to around 1.44 lakh tonnes in the current year. By 2008-09, our production and sales volume will go up by 25 per cent to 1.80 lakh tonnes.

 

Profitability will improve due to higher contribution of specialty products, tax incentives for Gadegaon complex (including power rebates), stable outlook on raw material prices and overall operating efficiency with increased volumes. Currently, about 25 per cent of sales and 45 per cent of gross profit comes from cross laminated film and specialty products in each of other product segments. We expect this share to further improve in 2008-09. Our aim is to increase the volume and variety of specialty products in every product segment.

 

Further, polymer prices, which were firm until now, are expected to remain stable in the near future due to slackness in US economy and expected addition of new capacities. We expect raw material prices to decline slightly from the third quarter of the current calendar year.

 

How will the company fund its expansion plan?

 

We will fund the expansion plan from divestments, internal accruals and debt. We have divested some of the product segments (rigid PVC and food serviceware) and idle real estate. We are further negotiating to divest in product segments where we are unable to differentiate. This will generate a sum of Rs 105 crore in 2006-07 & 2007-08. The balance will come from internal accruals and debt.

 

What is the threat from the unorganised segment and imports?

 

Our product range does not face any import threat. Also, many of our products, except plastic piping systems, do not compete with those made by the unorganised players. However, our plastic piping systems are differentiated vis-à-vis players in unorganised sector.

 

The market has pegged a value of Rs 65-70 per share for the company’s Andheri property. What is your comment?

 

We are constructing an office complex at our Andheri property, which will have a saleable area of around 270,000 square feet and will be ready by March 2009. The complex will cost us around Rs 85 crore. According to the current market rates of Rs 16,000 per square feet and considering the tax on the real estate gain, the valuation may be in the range of Rs 85 to 90 per share.

February 29, 2008

The Hindu Business Line : Plough-back time

Link: The Hindu Business Line : Plough-back time.

The banana farmers of Jalgaon want more “permanent solutions” from the Finance Minister rather than just loan waivers                                                                           

 

                                 
                                                
                            Kisan’s share: Jain Irrigation Systems Chairman Bhavarlal Jain (extreme right) at a farmers mela.                                                     
                                           

Rasheeda Bhagat

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It’s Budget time once again and though not as voluble as corporate India, India’s farmers are expecting a huge bonanza from what is perceived an election-year Budget.

In the Jalgaon belt of Maharashtra, the man who has pioneered drip irrigation in India and can take credit for the popular farm slogan in this belt — jaha keli waha nali (where there is banana there is a tube), has a simple an swer for the continuing distress of Indian farmers. “For the lot of farmers to improve, the policymakers need to be farmers… but they are from Harvard and other business schools, where they don’t teach farming.”

Bhavarlal H. Jain, Chairman of Jain Irrigation Systems Ltd, comes from an agri background; last year his company clocked a turnover of Rs 1,200 crore (this year’s target is Rs 1,800 crore), but he has never lost touch with farmers. At the lush green Jain Hills, the company’s headquarters in Jalgaon, about 400 km from Mumbai, he greets a group of farmers led by V.K. Mahajan, who has bagged an award from the All India Banana Research Institute. Jain sets great store by direct contact with farmers; “my doors are always open to farmers, traders, dealers. For me, talking to them is a rejuvenating experience. I’ve cut short layers of bureaucracy and am in direct contact with them.”

He feels that if Indian agriculture is to grow at a robust rate like other sectors, “we need a farmer prime minister, and you know we’ve had only one farmer PM who was thrown out in no time.”

In 1985 after seeing the benefits of drip irrigation while attending an exhibition in the US, Jain introduced the concept to India, though scepticism was all he got from the policymakers; today 54 other players have come into the field of micro-irrigation but Jain Irrigation enjoys a nearly 50 per cent market share.

In a bid to provide integrated agricultural services, Jain has set up Gurukul, a spanking training-cum-hostel facility for farmers. A busload of farmers from Nanderbad, about 180 km away, has just come in for a five-day training; “we’ll teach them about water management, drip irrigation, hi-tech cultivation like tissue culture and fertigation (injecting fertilisers through drip),” says V.B. Patil, Senior Manager (Agronomy and Training). For a nominal charge — paid by the Agriculture Department — these farmers will stay in the hostel, which can house about 100. For the company the training makes business sense; apart from selling them the drip system it can procure their quality produce for its food-processing division with an annual capacity to handle nearly 58,000 tonnes. It makes juice, juice concentrates, pulp, dehydrated onions, peppers etc.

                Double yield                                                                                                          

Patil says 98 per cent of banana in Jalgaon district is under drip and along with tissue culture has helped double yield from 15 kg per plant to nearly 30 kg; some like Mahajan even manage 35 kg. “In cotton we have put over 10,000 hectares under drip in one district; drip irrigation has a 30 per cent annual growth rate and covers over 60 different crops — fruits and vegetables, sugarcane, coffee, rubber, cotton and tea and we educate 10,000-15,000 farmers on the need to embrace modern technology,” he says.

While most Indian farmers don’t want to move away from rice, “in Maharashtra many farmers have switched over to value crops such as fruits — grapes, banana, oranges, mosambi, chiku — and commercial crops like sugarcane and cotton.”

Mahajan cultivates nearly 100 acres — half his own and the other half leased — in Wakod, about 60 km from Jalgaon. He also grows cotton, juwar, etc. and for Jain irrigation he is a brand ambassador, being the first banana-grower in this region to embrace drip technology in 1990 as the water table went down. This was done gradually; the cost of putting drip irrigation in one acre is Rs 15,000, of which half comes from the government. Starting with 5,000 banana plants, today he grows over 50,000, each acre taking about 1,500 plants. Says Mahajan, “Unless Indian farmers are helped to use the latest technology, they cannot prosper as technology helps you extract maximum benefits from the land.”

He is a large and prosperous farmer and a savvy one at that, with meticulous records of input prices, labour cost and profits for the last 10 years. Of his three sons, the eldest, a graduate, helps the father, the second is a software engineer working in New York and the youngest is a third-year MBBS student. While the eldest uses a swank mobile phone, the youngest has an imported Japanese motor bike. Even while indulging them, the father frowns on such expensive habits.

Commenting on the distress of Indian farmers, particularly the small and marginal farmer, he says that apart from lack of encouragement and incentives from the government, changing aspirations and lifestyles are also to blame. “The media focuses all the time on globalisation and luxuries; and what is shown on TV we want in our home the next day. But with what the land can give us, can we afford those luxuries? Agar hamari aadatey badal gayi tau hamey bada nuksaan honga (if we change our habits, we’ll suffer). Agriculture can give us a comfortable life but not the kind of glamorous life shown on TV. Professionals in cities earn Rs 30,000 or 50,000; we can’t live like them.”

Vasantrao Mahajan, an M.Sc in agriculture, and secretary of the All India Banana Growers Association and the Maharashtra chapter of Farmers Forum of India, agrees. He owns 10 acres and is passionately involved in helping small farmers with transfer of technology to improve yield. “In my village and district 99 per cent of banana cultivation is under drip,” he says.

But convincing smaller farmers to adopt modern water management techniques like drip or sprinkler irrigation is not easy. Prakash R. Khodpe is a large farmer and Jain Irrigation dealer for drip irrigation systems in Neri, 20 km from Jalgaon. His younger brother is constantly travelling around this region trying to educate the smaller farmers — with landholding of 5-10 acres — to change to drip irrigation. “We help them get finance and show them the advantages of drip, and slowly they are responding. Last year we got 500 farmers to go in for drip and they are happy with the results, as the water they need is cut by half,” says Khodpe. Whether it is Khodpe or Sajay Patil and Kishore Pawar, who are his friends and associates, all of them admit that it is now more profitable to grow banana than cotton and are slowly switching over. “We are also looking at floriculture, as that will give us more profits,” says Khodpe.

But Mahajan admits that not all farms are smart enough to switch over to new technology and more profitable crops. He rues that while the other Indian sectors are growing rapidly agriculture is stagnating, and challenges the government to find out why. They do believe that the farmer should get more for what he grows “but the problem is that even if prices go up a little in food, the general public start screaming, and koi bhi party ho, government ko jeena hei logo ke vote sey (be it any party, its government survives only on votes),” says Mahajan.

                Budget relief                                                                                                          

So do they expect major relief for farmers in the budget?

“They are saying ki karja maaf karengey (debts will be waived), but that is only a temporary relief. To really help the farmer, pay him higher prices for what he grows,” says Vasantrao.

Though what is incensing them at the moment more than Finance Minister P. Chidambaram’s plans, is “Railway Minister Lalu Prasad’s decision to cancel railway wagons for transporting banana.” This year, points out V.K. Mahajan, has been a terrible year for banana as it is afflicted by a vicious disease, “the worst in 50 years”, which will destroy half the crop. “Kum daam tau kisan saha jata hei (the farmer can somehow bear lower rates) but when his crop is damaged he is devastated. Do you know about 2 lakh labourers are linked to the banana economy in this belt? If some factory/industry that gives such employment is in trouble, doesn’t the government bail it out? Then why does it not come to the rescue of farmers in troubled times when their crop is damaged by pest or disease,” he asks.

Vasantrao explains that the Railways has levied a penalty of Rs 15 lakh for cancellation of nine wagons in December 2007, “but this is normal and happens every year. This year a lot of banana crop was lost to disease and the Railways have cancelled remaining wagons and since December 17, farmers have been moving bananas to the north Indian markets by trucks at exorbitant prices.”

Mahajan adds that penalty is not the issue; “we’ll pay it somehow. But they have to understand that this is the only fruit that is transported round the year and every year banana-growers use 125-150 racks, and sometimes a few wagons are not used and till now cancellations were allowed. This year only 18 wagons were cancelled; after all, this is not a factory product and fluctuates with more or less rain. How can they apply goods traffic rules on farmers?”

As we talk, parts of Maharashtra are gripped by violence thanks to Raj Thackeray’s diatribe against north Indians. Perhaps with this in mind, Mahajan warns that of the 70,000-odd hectares under banana cultivation, 50,000 hectares are in the Jalgaon belt. “Almost all the farmers’ roti-rozi (livelihood) is linked to the banana. Look, till your hand or leg doesn’t ache you don’t realise its importance. People here are peaceful because banana gives them livelihood, but if this economy is disrupted by any insensitive act by the Railways, trouble might erupt.”

                Farmers are not diplomats!                                                                                                          

Bhavarlal Jain has his own take on the neglected agri sector. “The problem is that farmers are not diplomats. They cannot speak good English or any other language. All they can do is toil. And their culture is based on hard work; sweat is all they can offer. They can’t offer you a smooth delivery in English or a slick World Bank presentation to borrow more.” But a positive, he adds, is that Agriculture Minister Shard Pawar is an exception and “he has retained his contact with the farming community”.

On the expected Budget proposal to write off debts, he says, “Per se, the policy of making farmers debt-free looks very good but cannot be a long-term solution. It cuts into your culture; you’re telling them to borrow and not pay. You can waive the interest component, give them instalments drawn over long years —10 – 20 years— to pay the principal amount but the basic tenet that if you borrow you must pay back, must be maintained. But unfortunately we look only at short-term policies.”

Another problem, Jain adds, is that of delivery; “even if you have the money and a credit line, and a prime minister and finance minister who understand the right priorities as we do have now, the agriculture sector is unable to accept or absorb the allocated money because of lousy delivery mechanisms.

His take on farmers’ suicides: “The heart bleeds… the farmer who is supposed to be the foundation of your civilisation is driven to suicide. It never happened before and is happening now because the gap between the haves and have-nots has widened. This will lead to unrest and the younger generation moving away from farming, as is already happening. But money cannot feed you, can it?”


                Defying cliches, customs                                                     

                                                    
                                 
                                                
Dreaming big: Zainab with mother Nafisa (left). RASHEEDA BHAGAT                                                     
                                           

                                                     She certainly does not fit the stereotype image of a farmer from Madhya Pradesh. But at 28, Zainab Sabir Husain is virtually running the agri-business of her father, and this includes growing cotton, chillies and wheat on the family farm of 50 acres in Badwani, near Indore, which has the good fortune of having the Narmada flow by.                                                      But Zainab, a postgraduate in chemical science with specialisation in pesticides and agro chemicals, is a young woman in a hurry to adopt modern techniques of water and soil management, cropping patterns and switch from traditional patterns of agriculture to the more profitable horticulture and even floriculture. She lives in Jalgaon with her grandparents; "I sent her here as a child because education standards are better; she was very bright and I wanted her to study," says her mother Nafisa.                                                      A member of the Krishak Samaj, she has been in touch with Jain Irrigation Systems for the last five years. "As a student, I did my project in drip irrigation and got the model from them. I am now ready to switch to drip irrigation in a gradual manner," she says. Meanwhile she also wants to do her PhD in floriculture.                                                      The only daughter of her parents, as a child Zainab would go along with her father to their fields as well as to the shop where he sells agro products like pesticides and fertilisers. As ill-health plagued him, she gradually took charge, and now sees a great future in "growing fruits like chikuand sitafal as they consume less water." But V.B. Patil, Senior Manager (Agronomy and Training), Jain Irrigation, urges her to go in for banana with tissue culture as "it is more profitable. And you must look at floriculture too; we'll organise your training, the future lies only in such crops."                                                      Interestingly, Zainab has never thought of shifting away from agriculture to any other profession; "I certainly see a future in farming in India, provided we keep up with the latest technology and innovate all the time."                                                      But isn't there pressure from her family to get married?                                                      "There is, from my grandparents, but my parents have backed me; and till I finish my PhD, no marriage for me," she grins.

February 25, 2008

Indian Stock Market: Tulsi Extrusions to List today

Link: Indian Stock Market: Tulsi Extrusions to List today.

Equity shares of Tulsi Extrusions, a manufacturer of agricultural polyvinyl chloride (PVC) pipes and fittings, will be listed for trading at the bourses today (Feb. 25, 2008).

The initial public offering (IPO) of the company received moderate response from investors which was subscribed 2.08 times. The company received 11.85 million bids as against issue size of 5.70 million shares. The company fixed issue price at Rs 85 a share compared with price band of Rs 80 to Rs 85 a share.

Almondz Global Securities helped the company to raise funds via this public issue.

Tulsi Extrusions was incorporated as a private limited company on Sept. 16, 1994 and converted into a public limited company on Jun. 05, 1995. The ISO 9001:2000 certified company has a product list including soil waste and rain water pipes and fittings; polyvinyl chloride pipes, molded and fabricated fittings; linear low density polyethylene pipes; ASTM pipes; casing pipes; high density polyethylene pipes; and elastomeric sealing pipes. The three manufacturing units are located in the Jalgaon district of Maharashtra with a total installed capacity of 10,483 MTPA PVC pipes and fabricated fittings. The products are sold under brand name Tulsi.


January 28, 2008

Tulsi Extrusions Limited

Incorporated in 1994, Tulsi Extrusions Limited is a manufacture of various types of PVC pipes and fabricated fittings. They have also procured one elastomeric sealing machine along with mandrels enabling to manufacture elastomeric sealing pipes. Compant sell their products under brand name “Tulsi”. They have ISO 9001:2000 certificate in respect of quality management systems since 2002. Company has marketing presence in the states of Maharashtra, Madhya Pradesh, Chattisgarh, West Bengal and Rajasthan.

The PVC pipe products manufactured by Company are to suit the requirements of application in agriculture, potable water supply schemes, sewerage and drainage systems, construction industry, telecom industry, bore well for underground water suction, etc., ranging from 20 mm diameter to 315 mm diameters in all pressure ratings.

Pursuant to the take-over of the specified assets and liabilities of M/s. Tulsi Pipe Industries, Narvada Industries and Gopal Extrusions Private Limited, Company’s manufacturing facilities are being operated at three different locations in MIDC, Jalgaon, Maharashtra. The total installed capacity as on March 31, 2007 is now 10,483 metric tonnes for PVC pipes & fabricated fittings.
Objects of the Issue:

1. The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital Expansion of our manufacturing facilities at Jalgaon, Maharashtra;
  2. Meeting long term working capital requirements;
  3. Purchase of branch offices;
  4. Provision for Contingencies;
  5. To meet the expenses of the Issue;
  6. For General Corporate Purpose;

Tulsi Extrusions Limited IPO Information

»»   Public Issue Open: February 01, 2008 to February 05, 2008
»»   Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
»»   Public Issue Size: 57,00,000 Equity Shares of Rs. 10/-
»»   Face Value: Rs. 10/-
»»   Public Issue Price: Rs. 80/- to Rs. 85/- Per Equity Share
»»   Maximum Subscription Amount for Retail Investor: Rs 100,000/-
»»   Listing: BSE, NSE
»»   Lead Manager:Almondz Global Securities Limited
»»   Registrar: Intime Spectrum Registry Limited (Ph: +91-22-2596 0320 Email: tulsiipo@intimespectrum.com)

Source : Moneycontrol.com

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