Anant Raj partnered with Google. A significant development.
D: invested
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Ananat Raj, acquired by cash consideration of 42 cr. 11 acres land in Haryana sector 63A. Replenishing of land bank, where they have strong foot hold.
D: Invested
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One more interesting thing they mentioned in last concall was that revenue from data center business can scale up further by 4x to 5x if they also offer cloud services from its data centers at a very less incremental capex. So the revenue projection of 3300 crores excludes potential revenue from cloud.
And interestingly, they have now partenered with Google to offer cloud services only.
Looking forward to their next concall to understand on cloud business plans.
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Below article highlights how data centre industry is gathering new investment in India.
- PDG to invest $1 Billion in India in Data centre with 230 MW capacity.
- AI created surge in data consumption in last 18 months.
- Data centres will be in Mumbai and Chennai.
Industry is gathering steam.
For Anant Raj, without co-location service OPM is projected 85%.
As current OPM is 23%, it will see significant expansion in margins.
Projected Rental income for 300 MW of IT load is 2800cr/year. This assumption without cloud services.
Disclosure: Invested and biased.
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Key Points from Latest exchange filing:
- Award: Anant Raj Cloud won ‘Best Innovation in Data Center Design and Infrastructure’ at the 2024 Data Center Innovation Excellence Awards.
- Event: Ceremony held at the Data Center & Infrastructure Summit in Hyderabad on September 20.
- Market Growth: India is a rapidly growing data center market, projected to grow at 18% CAGR from 2024 to 2029.
- Capacity Demand: India consumes 30% of global data but has only 3% of global data center capacity.
- Investment: Over Rs 10,000 crore to develop 307 MW of capacity in Manesar, Rai, and Panchkula; 6 MW operational now.
- New Platform: Launching “Ashok Cloud” with Orange Business for Government Community Cloud needs.
Disclosure: Invested and Biased.
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Sharing of reddit posts as source of your information should be avoided on such a serious forum for investors.
BTW Roaring Kitty was also on Reddit. Have you heard what people on Reddit did to Gamestop.
If not see Netflix movie Dumb Money. In stock markets it is best not to be dismissive about anything and anyone.
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Absolutely nothing should be dismissed on face value. Infact that Reddit post prompted me to study about this company and I’m impressed with the situation the company is in and their aspirations to build a cloud platform, whether it justifies the current valuation or not is a different story.
One look at investor presentations answers some concerns raised in that post, there are still some doubts which linger regarding execution capabilities and so on… Co-location DC play should go fine, what are the potential margins?
This article from last year gives a top-down view of this sector’s boom.
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Can someone please explain why TARC is a separated listed company and what’s the difference in both the companies? Anant raj and TARC.
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Based on my research and limited understanding my conclusion is Anant Raj Limited and TARC are separate identities and have nothing to do with each other.
Ashok Sarin and Anil Sarin are brothers and son of Lala Anant Ram Sarin. The company was divided somewhere in 2018 and Ashok Sarin and family runs Anant Raj Limited and Anil Sarin and family runs TARC.
There are no common promoter in Anant Raj and TARC.
Promotes of Anant Raj Limited -
and promoters of TARC -
Someone who want to deep dive in the scheme of arrangement for division of the company and go through this document -
https://www.primeinfobase.in/z_ANANTRAJ/files/Annexure_3_Audit_Committee_Report.pdf
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There is no mention of how the land bank was divided among the companies. Any information regarding that?
Also I heard there was some governance issue in the company among the promoters? Was that pre-demerger group issue or post demerger issue only with anant raj?
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How does that concern you as an shareholder now in 2024?
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To decide investment between these companies which has better land bank and geographical advantage. There is no separate thread on TARC.
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If such is the case your concern should be the present land banks of the companies, not how it was divided between the family. You can start a thread on TARC. Best of luck.
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They have released the pictures of building in their latest presentation.
This gives me impression that they have physical infrastructure to execute the 300MW they are talking about.
Their business partner Orange business manages an extensive network of data centres which are integral to their global IT and cloud services infrastructure. These facilities support a wide range of services, including cloud computing, managed IT, and cybersecurity services, catering to a diverse client base from enterprises to government entities.
Given the physical infrastructure of Anant Raj and data center and cloud services of Orange I am quite confident that between the two of them, they can implement the data centres they are talking about. They have already implemented 6MW.
I think Yotta is a older player and Anant Raj is a later entry into this business line.
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I believe everyone invested in Anant Raj or data center theme should definitely watch this video.
The sophisticated infrastructure shown in this video and high standard of execution and even strict security required to build a data center put a lot of questions in my head regarding execution by Anant Raj Manangement.
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A few details that can help us understand if the management is building data centers as per the standard-
- Strict security levels (vehicle under belly check, face detection cameras, etc)
- Building monitoring systems(BMS) room
- Management system room
- Diesel Generators and fuel storage for emergency power backup
- Multiple sources of HVAC for cooling server halls
- PAHUs must have UPS power backup
- Water distribution system, chillers and thermal tanks
- Gas fire suppression system
- N+N redundancy for power supply and fiber network supply
- Administration building for customers
ARL Tech park, Manesar
Located at IMT Manesar industrial estate area, at the center of the manufacturing hub, right next Maruti’s largest manufacturing plant.
1. Security and 2. building monitoring system upto standard as shared by the management
3. Management system room dedicated
4. Diesel generators already built in Tech Park infrastructure
5. Multiple sources of HVAC both air and water cooling systems
6. UPS for power backup
(note - mitsubishi plant is also located in manesar)
7. Water distribution system and thermal tanks no information available
8. Gas Fire suppression system
9. N+N redundancy for power supply and fiber network supply
10. Administration building for customers functioning hotel inside the facility
A few other small details -
- The infrastructure of the building must be stronger than normal corporate buildings to bear the heavy load of all the equipment.
This process is already completed, and the company needs to just set up the required equipment Q2 FY 2024 concall.
-
Setting up data centers in already established IT buildings with the required equipment.
-
Management expects undercutting in the long run.
- 10-15 year long tenures with clients
- Robust demand and partnership for securing clients
ARL Tech Park, Panchkula -
Existing infrastructure similar to IMT Manesar. No major developments required in this facility as well except for strengthening and equipments.
ARL Center, Rai
The largest data center of the company to be. I’m estimating a set up of 50+ (2.2 MW) diesel generators would be required as the yotta facility which was operating @ 100 MW had 32 diesel generators with underground fuel storage for backup power. Along with huge water distribution system and chillers on the roof. This facility seems to be requiring a lot more work than the Manesar and Panchkula facilities simply because of the large 200 MW operational capacity. But they also have a lot of empty land for all the required development.
Hoping for management’s execution excellence. But it’s definitely possible in the time frame guided by them.
Source - Presentation by the management.
4cf4ac34-8edb-4a36-991f-d16b6f8811e1_compressed.pdf (1.8 MB)
Disc - invested and have significantly increased my portfolio exposure in this company.
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Many data center management features already exist in industrial settings like petrochemical plants. Substations and instrument shelters provide a solid foundation, making it easier to adapt those systems for data centers. The real challenge is tailoring these established solutions to meet the specific needs of data centers, but leveraging existing ecosystems could lead to efficient, innovative solutions.
I Do not see any challenge to meet these requirements. It can be done by many companies. IMHO, Anant Raj’s moat is ready buildings and certification.
D: Invested
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I’m planning to visit ARL Manesar this week. Will share the pics and whatever information I find here. If anyone from NCR would like to tag along do let me know?
Also I couldn’t find their contact number anywhere, so if anyone can help out with that I’d really appreciate it.
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My visit on 13th October, Sunday -
Even though, it is clearly mentioned on Google that the tech park remains closed on Sunday which is quite obv. but still I decided to visit them on a Sunday because the data centers are supposed to be running 24/7.
Well guess what, the whole tech park was empty, only 2-3 security guards were there at the main gate and not even a single employee because of Sunday holiday and the day before was also a holiday because of Dusshera. The suspicion was right that there are no employees working in the data center right now. They told me that work at the data center is still going on and is not yet completed.
Now a few questions arise -
- Is the company reporting false rentals from its data center because there are no employees operating it?
No, whatever capacity they’re claiming is operational and running in the data center in automated mode.
- How is the data center operational without emplyees?
There is no requirement of employees YET, because the operational capacity is very small and does not require 24/7 monitoring and maintenance.
- When are they planning to hire the employees to monitor and maintain the data center?
They’ve already started the hiring process, everyone can check that on LinkedIn.
Furthermore, there was one more guy (not a guard) in a uniform who told me that more capacity would be operational from 1st November. He also mentioned the entire facility inside is secured by 15 guards, and asked me to visit them the next day (today) and he’ll get me in contact with the senior employees there.
Now, I’m contemplating whether to visit them this week again or the next month when more capacity would be operational as it takes quite a lot of travel for me. It would be really great if someone living near Gurgaon side could make a visit and share it with us.
Important note - I found this guy, running his own Equity firm, claim that he has visited Anant Raj data center. I tried to contact him but there was no response from his side, if anyone with contacts can reach out to him then please do.
Just sharing the exterior snapshots of the infrastrusture until my next visit.
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