Is Water the Next Big Thing????

Water To Trade on Bourses

Off Late there are news where the MLA’s Making fun in their speeches speard across all ovear India. Where yesterday there were reports stating Inida is facing the one of the biggest drought situation after 1970. Water is not a commodity till date but as the days are passing by my intuition says it is the next big thing!!! Here in metros where we get 24 hrs water we feel not bothered to look what is happening across the country. India’s past decade made huge progress in all sectors but the major contributor in the past has been agriculture and without water no one can survive nor the crops. The situation  has worsen so much (Names Changed) Mr Rajesh was flying to Mumbai from U.S to meet his family who stays in one of the villages in Maharashtra ,Rajesh asked his father to what he should bring his father replied please “Get some water if you can” Its not exaggeration ,the situation which in many parts of India is  .

We might have done many technological advances,have the world at tip of our fingures yet can anyone claim  to have the technology to make water.There is also a simple formula to it ie – Two parts of Hydrogen and one part of oxygen , Yet anyone can play god and create Water?. We will always gonna be depended on mercy of the rain Gods. This time round is no different ,Maharashtra is already reeling under major drought crisis and the summers for 2013 jus started. Reports say a lot of migration can happen to cities The effects for the same

·         If the migration happens the less farmers dependency of farmers will increase

·         Shortage of foodgrains

·         Import of Food articles

·         Current account Deficit

·         Price rise of food articles

·         Inflation to go up

The above are few effects of it  the major will come if it happens

The current drought in the state is worse than faced in 1970 -72’s with 11,801 villages affected,crops are affected cattle are affected there is no fodder to feed cattles how are the things gonna work??.There is scarcity in Gujrat Where Mr Narendraji is hosting Investor summit where only rich get richer but what about us.(Farmers ,Middle class family etc) ,over 100 villages are affected in the state.Reports State that out of 202 Reserviors in Saurashtra  region ,72 are totally dried up 89 are almost empty and in another 41 water level has gone down as low as 25%.Tamil Nadu is also facing huge water  supply deficit by 11%.

Water and power are the two necessities of life and there is a deficit of both. As the years will roll , water will become as precious as oil in India it is expected as a new commodity will start getting traded. It would be no exaggeration to say that water  will get transported through pipelines ,not just in India as it is already being done but like oil getting imported .Tankers will travel mare to transport water and may be across the sea too as like for oil. Water is just not endemic to India but all over the world .There are very few countries in the world which can call themselves  “  water  abundant “ and Canada ranks on the top. It has same amount of water as China has for just 2.3% population .In turkey they export water to Israel and Cyprus in large balloons that can hold upto five gallons of water .Singapore buys 10% of its water requirement from private sector suppliers who have built desalini station   plants in order to reduce its dependence on Malaysia.

Where there is a scarcity there lies the opportunity. There is shortage of supply  and demand  is only expected to grow in simple economics the difference in demand and supply is gonna grow AT Brings A Smile Even In A bleak Market it makes sense as an investment opportunity.

Investment

Taking a horizon of 7 – 10 years and investing in water stocks makes perfect bet

Interesting Bets

Thermax:  The best and well known water management company .It might be low on order book off late past 6-12 months stock had corrected a bit but future for the sector thus for the company ,given its expertise is extremely bright.

Ion Exchange: This company has been around for years and  pioneered water treatment when no companies was even thinking about it. It is one of the bets when it comes to water treatment, supplying just   not to the companies but to homes also .Indian Railways water ,Railneer ,which is pure and safe drinking water is supplied by this company

  Jain Irrigation: The stars are not shining for the co at this moment co is submerge ,burdened with huge debt but its presence in drip irrigation facility and the expertise they have ,is the way ahead and also given its dominance ,Co is one of the under dogs in this sector.

Finolex Industries: Pipes, Transportation as said earlier in the article, It makes PVC pipes  and as stated earlier water expected to get transported through pipes this co becomes a preferred choice.

VA Tech Wabag: Desalination is going to be the way ahead and this company has got the expertise and experience .Chennai’s second Desalination plant was recently started by VA Tech.

Tata Chemicals : This co has gone the Nano way ,you dint understand ..ok let me explain  in the water purifying sectors with its tata swatch water purifiers .With price starting at Rs 899 ang upto as high as Rs 2000,the product is distributed all across India Tata Networks.

Listed Mineral water Co: Guess which one ….. It is now one of the subsidiary of Tata Global Beverages Ltd     and thus also has got assured market of Starbucks for selling of their distilled Mineral water.The title brand under which they sell is Himalaya…. Its Mount Everest Minerals Ltd

You can always give your suggestion and feedback we will be delighted to hear from you

---Nimit Jalan