Dhunseri Tea - Emerging Star

  CMP-256

COMPANY PROFILE

Dhunseri Group is in Tea Business since last five decades, the Company has been a progressive, quality-focused Indian tea producer. DTIL has won the trust of its traders and consumers, in regard to the superior quality of tea it supplies. Over the years we have expanded our reach from eight estates in 2003-04 to ten estates in 2012-13 in Assam. This makes the Company one of the ten largest tea producers in India. The Company’s tea packaging and blending units are located in Dhunseri Tea Estate (Assam) and at Jaipur (Rajasthan). The Company holds the highest market share in the premium segment of packet tea in Rajasthan.The Company is also revamping these facilities so as to double the total tea sales.

 The tea produced by the Company is of superior quality Assam CTC and Orthodox teas (marketed in India through auctions and sold in packets) under LAL GHORA and KALA GHORA brands for more than 25 years. The Company has also launched another brand in the premium segment namely, BAHIPOOKRI in Rajasthan which is in 1 kg packets. The Company intends to launch a new brand-CHHOTE LAL- to cater to the lower segment of Rajasthan. The Company has always taken care to produce good quality teas at the lowest possible cost by being a progressive, quality-focused tea producer for over five decades with an advantageous location of its estates in the quality belt of Assam. In order to retain the freshness of the tea leaves, special attention is also given to the packaging.

BUSINESS EXPANSION  

To have a global reach, Dhunseri  has acquired 100% share capital of Kawalazi Estate Company Ltd and the Makandi Tea & Coffee Estates Limited (both companies based in Malawi, Africa) for a consolidated $ 22 million through its subsidiary in Singapore namely, Dhunseri Petrochem & Tea Pte Ltd. the company through its wholly owned subsidiary,  Accordingly the company has become the ultimate holding company of these two subsidiaries in Malawi, Africa. The aforesaid two subsidiaries based in Malawi, Africa in totality produce 94.50 lakh kgs of tea and 3.2 lakh kgs of Macadamia. During 2012-13, ; this marked the extension of a five-decade Indian tea company to international plantations. The two companies acquired were Makandi Tea & Coffee Estates Limited and Kawalazi Estate Company Limited. With this acquisition, Dhunseri Petrochem &Tea Ltd. has joined club of tea companies who have already made their foray in the overseas tea plantation business. With this Dhunseri group’s Tea production capacity has reached to 22 million kgs per annum. The Malawi gardens produce tea of a middling quality by tea bag manufacturers, which is a fast growing segment of the global tea segment. Besides, the Malawi acquisition has widened the Company’s offerings across the premium and middling segments, created a consistent international presence with a widening geographic footprint.

KEY FEATURES OF DE-MERGER

Demerger from Dhunseri Petrochem Limited (formerly known as Dhunseri Petrochem & Tea Limited) and Dhunseri Tea & Industries Limited (formerly known as Dhunseri Services Limited). DTIL is recently listed on BSE and NSE.

• Investor friendly company continuously  paid dividend for last 12 years.
• Low equity base - 70,04,951 share of Rs 10 FV
• High  EPS ( 9 month) Rs = 45
• Very Low Debt  around 8 Cr
• Well established in retail business with addition of new products will give further boost in EPS.
• Major acquisition and expansion is already completed so no major CAPEX in near future.
• Currently trading at P/E less than 4 as compared to industry P/E 20.8 

  

 CONCLUSION

Tea production is evergreen business in the world. The company has its own retail marketing arm with good brand name, tea estates at different locations, new products launch in different states of India, these all factors are in favor of good future growth of the company. It has all required elements to become multibagger and there is no surprise that it will trade in four figures in future. 

WATERBASE

CMP -90
 - High potential stock



I have invested in Avanti Feeds in early stage and got multiple gain. It has similar potential to give multiple gain in future. It is biggest integrated aquaculture industry in India. The company is pioneer in its field but unable to grow because no attention given by Thaper Group. After division of Thaper group, it came to Karamchand Thapar & Bros (CS)Ltd. From last one year Varun Aditya Thapar is monitoring all its business as Non Executive Director and turned it from heavy loses to good profit in one year. It is good opportunity to buy at cmp Rs 60.


Company Profile


The Waterbase Limited is an aquaculture unit located at Nellore, Andra Pradesh 170 KM North of Chennai, India.

Waterbase is promoted by ‘Thapar Group’, a well known business conglomerates in India.

Our mission is to give customers the best value for money with our quality feed and processed Products.

Waterbase started operations in 1993 and have stood committed to following and disseminating the best aquaculture techniques. Today, we are one of the leading entrepreneurs in India with facilities that comprise a Shrimp feed plant, grow-out farms and a Shrimp processing facility.

Waterbase has played a key role in dissemination of scientific shrimp farming in India and provided training and support in farming techniques for successful crops.

Waterbase is equipped with shrimp feed mill which produces world class shrimp feed. Our latest achievement is in the production of organic feed.

Waterbase exports shrimps in different forms to quality conscious markets of Japan, USA and Europe - IQF, Block Frozen and Cooked. We also supply value-added shrimps to the customer needs. Our process plant is FDA listed, EU approved and Processing is as per HACCP guidelines.


FARMING

Waterbase is well known as pioneers in Indian Aquaculture Industry.

Model ponds are developed in Nellore for all kinds of Shrimp Farming.

Training is provided to farmers and general awareness programmes are conducted to disseminate the farming techniques: 

* Pond Preparation
* Maintenance
* Water Management
* Feeding Cycles
* Use of Probiotics
* Harvesting Method

Research and Development


The Company gives great emphasis to Research and Development to ensure that farmers are provided with tested quality of Inputs to obtain Optimum Food Conversion Ratio (FCR) and help in good farm management.

Waterbase has dedicated Research and Development Farms to study the growth of Shrimps under various conditions.

Applied trials are conducted on:

* New Ingredients 
* Advanced formulations 
* Application of Probiotics and additives 
* Ascertain ideal feeding cycles 

FEED MILL

The Shrimp Feed Mill Started its commercial production in 1993. The Feed was well received by the Shrimp growing farmers in Coastal Districts of India. The salient feature of Feed Mill is

 ISO 9001 Certified Shrimp Feed Mill.
 Capacity 30,000 T.P.A.
 Feeds for Black Tiger, White (Vannamei), Macrobrachium Rosenbergii (Scampi)
 Continuous Research and Development to enhance quality of the Feed.


Waterbase believes that Shrimps growth is directly related with quality Feed. Our research facilities is engaged in creating highly nutritive Feeds with quality ingredients sourced from all over the world. Waterbase employs internationally renowned nutritionists to ensure that farmers get quality feed to suit variety of farming techniques such as extensive, modified – extensive and intensive.

Quality Assurance
* Exclusive Shrimp Feed producer with ISO certification.
* Raw material sourced from World / Indian renowned suppliers.
* Strict raw material inspection and purchase norms as per ISO Standards.
* Imported raw material certified by World-renowned certification agencies.
* Feed production is monitored at every stage to meet aquaculture needs of farmers.
* Unique method to test and ensure optimum Water Stability and Durability.
* Special equipments to test digestible proteins.
* Ensures excellent Feed Conversion Ratio (FCR)
Feed Marketing Network
Waterbase has a Feed distribution network of over 100 distributors and dealers, along the Coastal belt of India. The distribution network is supported by qualified and trained personnel who provide 24x7 services. They also assist farmers in farming techniques and advise the farmers on various developments in the Industry.

Organic Feed
The Government of India through MPEDA is planning to develop Indian Aquaculture Industry as a major ‘Organic Aquaculture Industry’ in Asia. Waterbase has been selected as the Indian Partner in implementing the ‘Organic Feed Programme’ . Our Feed Mill is certified for Organic Feed Production by Naturland, Germany, the only one company to produce Organic Feed in India at present.

PROCESS PLANT

Processed Under HACCP guidelines
FDA Listed 
EU Approved

Conveyorised washing and Grading lines.
Plate Freezers - APV Baker, UK.
IQF Freezers - Koppens, Holland.
Cooking Line - Frigoscandia - Seamac, Denmark.
Quality Control Laboratory staffed with skilled and approved inspectors.
Effluent Treatment Plant for waste water disposal.
Processing Capacity 20MT - per day.
Cold Storage capacity - 400MT.
Product Range

Head on - Shell on - Block Frozen
Headless shell - on Block Frozen
IQF
Peeled Deveined Tail - on (PDTO)
Cooked value Added Products

CONCLUSION

Company is in evergreen business and  all factors are in favor of good future growth of the company. It has all required elements to become big multi-bagger stock. Investors can buy and hold for long term.