Natura Hue Chem Ltd to diversify into Power Sector

Natura Hue Chem Ltd has announced that the Company has decided to diversify into well growing and majors thrust area of Economy of the Power Sector, Company is planning to established manufacturing unit for manufacture of components and spares like, CRGO lamination core, which is basically used for in power distribution products. Management is expecting huge continuous demand of this product.

Further, the Company plans to set up a manufacturing unit in the state of Jammu & Kashmir at Kathua. The Company has already identified land for establishing this unit. Kathua has been declared as important industrial area by the state government. The Industrial plot has been identified. The Company will enjoy a number of state sponsored benefits like allotment of land at concessional rates. 100% subsidy on project report, 30% capital subsidy, rebate on working capital loans, transport subsidy, exemption from income tax, sales tax, toll tax, octroi and other benefits. The new project will compete very well due to these subsidies. Due to 90% transport subsidy, the location of the unit in the J&K state will add to the profitability of the Company and ultimately benefit the investors.

The Power Sector is declared as a thrust area by Central and all the State Government. Power sector is no longer conventional. Besides hydel and thermal, other modes of generation like wind, solar, gas, biomas are under fast development. India liberalised its economic policies and the Power sector was the first to be globalised. As per the official estimates, the present capacity of generation of 1.35 lacs MW will get increased by 1.07 MW in the next five years, thereby achieving a growth of nearly 180% in the next five years. Thus there will be a huge demands for components and spares not only for the new units but also for the existing units as a replacement market. The power sector is bound to expand its capacities both in public and private sector. There will be a continuous need for auxiliary equipments required in the generation of power and power distribution.

Mr. Ravindra Pokharna, Managing Director of the Company says, "Diversifying into Power sector product will be a turn around for the Company. We are looking for robust growth in this sector. We expect 20-25 Crore Turnover and hope for 8.10% Net Profit ratio. Even we are trying for product purchase guarantee from some private power Company. We foresee a bright future of the Company."

The stock was trading at Rs.30.55, up by Rs.1.45 or 4.98%. The stock hit an intraday high of Rs.30.55 and low of Rs.29. The total traded quantity was 8373 compared to 2 week average of 10495.

Source : Equity Bulls

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