Jaishree Industries is a company experienced in the production of granite tiles and slabs. They are trying for an IPO of Rs 56.86 Cr. Out of this money; Rs 28.65 Cr will be used for Soybean Solvent Extraction Plants and Ancillary Units, Rs 20.96 Cr for Marble & Soybean Extraction Project. They had filed a draft red hearing prospectus with the market regulator SEBI. For the six month ending Sep 2010, company reported net sales of Rs 24.96 Cr and a net profit of Rs 1.97 Cr.
Company is producing granite tiles and slabs with an annual installed capacity of 2,00,000 Square Meters. Company also produces cobbles and curbstones. Company is also concentrated in the trading of agri- commodities. India is a leading country in the mining and export of granites. Indian states like Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Orissa, Meghalaya, and Madhya Pradesh have enriched with a large quantity of granite reserves. India is one of the largest producers of stones like granite and marble. Indian stone industry is growing at a rate of 10%. India has the 20% of the world granite reserve.
Agriculture has become India’s largest private enterprise. Agriculture contributed 15.7% of the India’s total GDP and 10.23% of the total exports in FY 2009. According to FICCI, Indian Food industry will grow 42.5% by 2015 and 76% by 2020. India is standing in the fifth position by the Soybean production. Soybean oil is extensively used worldwide. It is very good due to the absence of saturated fat. It is main
source omega-3 fatty acids.
Company is also concentrating in the business of importing marble and its trade in the local market. Imported marble is a parallel product of marbles and other stones. They are bringing diversification in their business and it will increase their profitability in an emerging market like India. In 2009, company
started the trading of agri- commodities. Indian food grain industry is a promising one with the large number of buyers and sellers. The company has understood the potential of agri- commodity sector and trying to give more emphasis to the particular sector. Company is aggressively trying to concentrate in the manufacture of Soybean oil and Soybean products.
Let us compare Indian oil seed production from 2005-06 to 2009-10. Indian oil seed production has been decreased in that time. But good growth rate can be seen in the production of Soybean. Indian Soybean production in FY 2006 was 8.27 Million Tones. In FY 2010, it went to 8.75 Million Tones. Import of vegetable oils to India was 45.29 Lakhs Tones in FY 2006. It went to 100.46 Lakhs Tones in FY 2010. These statistics gives an exact idea that Indian agri- commodity sector is safe for long term investors. Company will be in good profit in the coming years. Investors can gain from the particular market condition.
