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Mounting food inflation is a serious threat to the economies worldwide. But some companies are benefiting from this situation .All governments are forced to take steps to improve food production using scientific methods and most modern techniques. Companies from the agri- related sectors are the major beneficiaries of government’s such efforts.In India micro irrigation sector is getting very big boost in every budget .Even though fertilizer companies are also important in this perspective ,government control on fertilizer prices limiting their potential. Along with fertilizers, micronutrients are also gaining acceptance among Indian farmers. Moreover micronutrients are not subject to the regulatory constraints that fertilizers face. The micronutrients business has considerable potential in the Indian context. Factors such as low yields of major food grains and horticultural crops, high soil alkalinity and intensive cultivation are the key demand drivers for micronutrients. The market for micronutrients such as zinc, iron and copper in India, is expected to double over the next two decades. ARIES AGRO is the largest player in micronutrients from the organised sector in India. The other two players in this sector(from organized space) is Ranade Nutrients and Karnataka Agrochem ,but both are only regional players. Aries has 65 branded products coming from six manufacturing units in India , one each at Mumbai, Kolkatta, Hyderabad , Bangalore ,Ahmedabad ,Lucknow and one new factory in UAE which is mainly for catering middle east region and North Africa .Aries is in the process of launching new products which include Natural amino acid chelates,Boidegradable chelates and Boidegradable plant protection products. With the inauguration of its Ahmedabad factory company entered into a new space of Bio fertilizers too. Company’s largest distribution network of 5500 distributors and 76500 (seventy six thousand five hundred) retail outlets across India is the main attraction for a rural centric business like this. In future company can easily roll out allied products throughout this network without much marketing efforts. In addition to this distribution points company has added a fleet of 100 rural retail vehicles called ‘Krishi Vinjan Vahan ‘ in 9 states in India.This is mainly for improving company’s rural reach and advisory services.
Going forward big corporates are expected to coming into the farming sector of India in a big way. This will surely improve the prospects of the products of companies like Aries along with the initiatives of governments to increase food production.
Hi VP,
ReplyDeleteI can't stop salute to you, Many of your blog readers asked abt your view on karuturi & And u said you are skeptical abt karuturi management. That has been proved today.Truth always wins but takes time as value investing. Kudos to you. keep on doing what you're doing ..
Thanks
Sudhir raj
I am holding this as you said from 125 levels... Lost half of my money. :(
ReplyDeleteWhat do u say now??
Nothing special to say now.I can only points out the positives and negative points of a stock,and it is not possible to rig the price beyond your purchasing price to give you profit.If you are expecting profit from every stock you purchase, I don't think you can succeed in stock market.It is not practical to take the responsibility of all failed calls .What I can do is - Never mislead investors to buy a stock after knowing there is something negative in a company .I am neither asking for a share of profits from all succeeded calls nor taking the responsibility of loss due to any failed calls.It is the duty of all investors to do home work and take decision .In case of Aries Agro, I still feels this stock is undervalued and worth investing but I can't guarantee that this will move from next day onwards.
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