Think outside the Common Frame…. Don’t go on the brokerage calls and tips… do your own analysis.. Try to find out the stars of futures…. I am trying the same…. Thanks, Deepak….
In this article I will emphasis the importance of WATER BUSINESS in coming years… The companies who are planning to play with water OR already playing are going to be a sure winner…..
A catastrophic water shortage could prove an even bigger threat to mankind this century than soaring food prices and the relentless exhaustion of energy reserves. "Demand for water will continue to escalate at unsustainable rates (even beyond our imagination)
No Doubt Crude Oil played a substantial role in world’s financial charts and political charts as well. What if WATER will play same role in 21st Century?
Many Wars have been fought due to this Crude Oil only; several major political changes we have seen in past due to power of oil and many countries have changed their perspective about crude oil (like Brazil, a country which is no more dependent on the import of crude)
"Water's unique characteristics mean that no other industry has a more compelling -- or more sustainable -- business model. Water remains virtually immune to business cycles. Economists say that demand for water is virtually inelastic-as prices rise, consumption does not decrease. Nor does water have a substitute.
"Investment in adequate water and sanitation facilities may be the safest and the most profitable way to play the rise of India. Indeed, India has more than 18% of the world's population and only 8% of its water. "If we think we can see a lot of opportunities for WATER BUSINESS in India, across the board, whether it's water, energy, public transportation, or waste treatment -- and can expect its business there to grow by 20% to 25% per annum as far as the eye can see.
Big Question:
Who is biggest player in WATER BUSINESS in world?
Answer is: VEOLIA
"Veolia, the largest provider of water and wastewater services in the world, supplies drinking water and wastewater treatment services to nearly 117 million around the world in 59 countries.
"Veolia signs long-term contracts with its customers, some as long as 50 years. The contracts start generating positive cash flow after six or seven years. With contract-renewal rates hovering at 93%, the business is a model of stability that provides Veolia with reliable cash flows even in troubled times.
The per capita availability of water in India has declined to ~1,150 m3 /year, which makes India a water stressed country.
As of now there are only few companies that you can count on your finger who are player of WATER BUSINESS….Water industry in india is in nascent stage so right now only few investors know the great power of water industry in future. Investor confidence is likely to increase once the charts of water business comes in front.
The best option is to spread investments across a basket of "potential takeout candidates" such as
1. Hindustan Dorr Oliver
2. Thermax
3. Patel Engineering
4. Himalaya International
5. Ion Exchange (india)
6. Larsen and Toubro
7. Degremont
8. Aquatech
9. Fontus Water
Top 5 Water Consumers in India
1. Thermal Power plants
2. Engineering
3. Pulp and Paper
4. Textiles
5. Steel
6. Sugar
As water has become scarce, agricultural, industrial, and domestic demand is competing more for a limited supply. The agriculture sector continues to dominate water use owing to its importance in the Indian economy, while industrial demands are increasing as the sector continues to grow.
I believe the water sector story in India is a long drawn one and while the potential for the same is immense given the factors explained above, the current exposure to water industry in the listed space is rather limited.
My Dear Friends, I request you to please look at the future gem WATER BUSINESS……..
YOUR COMMENTS ARE WELCOME....... IF I AM WRONG ANYWHERE I WILL CORRECT MYSELF.... THANKS
Hey, thanks for the information. your posts are informative and useful.
ReplyDeleteMidcaps