The $760-million SRF Ltd is planning on a major restructuring of all portfolios, by significantly reducing dependence on tyre cord production, their core business, as the company aims to become a $1-billion conglomerate by 2013-2014. Tyre cord accounts for half the company’s total revenue. The plan is to reduce this to 25 per cent within three to four years, within the plan to consolidate and expand its other businesses by investing around Rs 1,400 crore in a phased manner till March 2013. The company is also facing considerable margin pressure in the tyre cord business, a highly commoditised product catering to a huge customer base. It is expanding production of coated and laminated fabrics and developing a vast chemical complex at Dahej in Gujarat. It has already commissioned seven multipurpose speciality chemicals plants there, with a total capex of Rs 900 crore.
For its packaging films business, the company is opening two manufacturing units, with an annual capacity of 25,000 tonnes and 28,500 tonnes in South Africa and Thailand, respectively. However, plans to open a plant in Bangladesh seem to have run into troubled waters. SRF also commissioned a laminated fabrics plant at Kashipur in 2009-10, used for making signages and hoardings. All these initiatives were aimed at reducing dependence on the tyre cord business. Nylon tyre cord has been the group’s traditional business, essentially used in trucks and buses. Two years earlier, SRF also went into making polyester tyre cord, for passenger cars. SRF has also stepped up research to discover and develop molecules for some of the world’s leading pharmaceutical and agro-chemicals manufacturers. It posted a 49 per cent growth in net profit for 2010-11 at Rs 484 crore; net sales grew 36 per cent to Rs 3,391 crore.
| Company Name | CMP |
|---|---|
| Tata Chemicals | 1003.95 |
| SRF | 2334.55 |
| Pidilite Inds. | 2879.30 |
| Aarti Inds | 391.00 |
| Atul | 6822.00 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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