Crude ka Khel..... Is there any alternative to Crude… Let’s Discuss!!!!

Crude ka Khel..... Is there any alternative to Crude… Let’s Discuss!!!!

BIO-FUEL COMPANIES CAN BE BIG BIG MULTIBAGGER IN LONG TERM


Crude prices has been playing an important role in the world economy, no doubt it can sink the economy of a development country.

I have written this article not to just discuss the high prices of crude in international market… JUST FORGET ABOUT THE PRICE HIKE OF CRUDE…. There are several other concerns which are forcing us to think in an unconventional way… I mean to say that unconventional energy resources will take great part in world economy in coming future.

With near record oil prices, the future of biofuel—made from plant material—is of keen interest worldwide. Global biofuel production has tripled from 4.8 billion gallons in 2000 to about 16.0 billion in 2007, but still accounts for less than 3 percent of the global transportation fuel supply. About 90 percent of production is concentrated in the United States, Brazil, and the European Union (EU).


Now a question of 1 billion…………..
What are those unconventional energy resources? Guys look around you and you will definitely find the answer. These unconventional energy resources are
1) Solar Energy
2) Bio-Fuels

In this write-up I would like to discuss BIO-FUELS ONLY……

BPCL in collaboration with construction major Shapoorji Pallonji and Nandan Biomatrix Ltd, is forming a joint venture, with an investment of Rs. 2,132 crore (US$ 533 million) over the next ten years, to cultivate, extract, and sell jatropha-based bio-diesel. India has plan to cultivate Jatropha in 11 million hectares within few next year. The Companies involved in the gold rush of Jatropha in India are D1 Oil(a UK Based Bio-fuel Leader), Godrej Agrovet Ltd, Tata Motors, Indian Oil Corporation, Kochi Refineries Ltd, Biohealthcare Pvt, The southern online Biotechnologies Ltd, Jain irrigation System Ltd, Natural Bioenergy Ltd and Reliance Energy.

Jatropa is going to be a big hit in india after few years. Mahindra & Mahindra has launched its first biofuel-powered vehicles for commercial use. Several banks are planning to finance jatropa cultivation in india, named to few are ICICI, yes Bank and SBI.

POSITIVE POINTS FAVOURING BIO-FUEL
Price: Rs 26 per litre (inclusive of all taxes) , as announced by major private sector oil firms

Bio-Diesel Credit Bank : Petroleum Conservation Research Association (PCRA), www.pcra.org, launched Bio-Diesel Credit Bank. It will co-ordinate activities relating to Carbon Credit.

Field Trials: Several Field Trials has been done commercially by some major motor companies in india.

BioFuel Policy: It is not being released yet by Indian government but this could be a turning point and deciding factor of biofuel future in india. There will be ZERO excise duty but will attract VAT. Andhra Pradesh State has Government Introduced Draft Industrial Policy

Portfolio part: Biofuels will likely be part of a portfolio of solutions to high energy prices, including conservation, more efficient energyuse, and use of other alternative fuels


PRODUCTION
Kochi Refineries Ltd (KRL) has setting up a pilot plant with a US firm to extract biodiesel from rubber seed oil

Renewable energy company Bhoruka Power Corporation Ltd, has received a grant of US$ 100,000 from the US government to conduct a detailed feasibility report for a bio-diesel project in State of Karnataka

TATA Motor , Reliance , Moser Baer are among the top shots are are ready to invest in bio fuel energy.

The Southern Online Biotechnologies Limited, has set up a bio-diesel project in Andhra Pradesh, has signed MoU with several government bodies and non-governmental organisations, for procuring raw material like Pongamia Pinnata (Karanja or Kanuga) and Jatropha seed


Some other facts..........
Cellulosic biofuels offer a chance to have an environmentally meaningful impact on petroleum use while benefiting farmers, entrepreneurs and consumers. We face an energy crisis, an environmental crisis and a terrorism crisis all related to oil. High-cost options to reduce consumption, such as hybrid and electric cars, sound good but are unlikely to materially reduce carbon emissions. To have a meaningful impact, at least half of the next billion cars manufactured on this planet must be low-carbon. The only cost-effective option likely to achieve broad market acceptance in the next 20 years is cellulosic-fuel cars.

If this happens then the companies doing production of so called bio fuels can be a big big hit.
There are some companies who are already playing in bio-fuel part
1) Nandan Biomatrix (May come with an IPO in 2009)
2) D1 oil plc
3) Southern Online bio tech
4) IKF Technologies
5) Moser Baer
6) There could be many other companies which could be existing…
India’s Warren Buffet Mr Rakesh jhunjhunwala has already bough a huge stake in Nandan Biomatrix and Mr Vinod Khosla is heavily investing in bio-fuels companies across the world.
This is purely an assumption of my mind not any BUY Call …. Just think about the future of alternative energy resources and you will know the truth. How many peoples have identified Infosys when it was of Only 100Rs Stock????????????????

Most of the times the Multibagger Doesnt VISIBLE by naked eyes... we have to think about them....... thinking is the only way to realise the potential of business of bio-fuel companies