Month: December 2008

Rosa Phase I is the first of the 13 power plants being developed by Reliance Power. It will be a 600 MW (2×300 MW) plant, which, as per the agreement is likely to be commissioned by March 2010. The estimated cost of the plant is Rs27 bn and it is being funded in a debt:equity mix of 80:20. Until now, the company has spent approximately Rs12 bn on its construction. The power produced from the project will be sold to the Uttar Pradesh Electricity Regulatory Commission (UPERC) on a cost plus basis.

Shanghai Electric Corporation (SEC) is the EPC contractor for the plant and is supplying the BTG equipment while the BOP works are subcontracted to various players in India. (more…)

Polymer costs for JISL have declined by around 25% over the past three months which includes cut in excise duty, this implies a margin expansion of ~700 bps. JISL has wound down its capex plans for F09 and now plans to invest around Rs2.0 bn (Rs3.0 bn earlier). Certain corporate capital expenditure has been deferred, and the company plans to outsource non-critical MIS component manufacturing.

JISL intends to reduce its working capital requirement by around 30%. This reduction will be driven by a combination of lower polymer cost, low raw material inventory, and de-bottlenecking. (more…)

Kansai Nerolac Paints Ltd – KNPL is the 2nd largest paints company in India with a market share of approximately 21%. It is the largest in the industrial paint segment with a 45% market share and has a substantial market share of 14% in the decorative segment. Sales contribution from both the segments for KNPL is almost equal.

For Q2 FY09, Net Sales grew 12% to Rs.390cr – another quarter of weak performance given the impact of high raw material costs and subdued demand from the crucial (more…)