Whats the news why stock is on fire from last 2-3 days?
Could not find āManagement Discussionā in latest annual report (2015-16). Did I miss something.
Pioneer Jellice has agreed to acquire the 75% stake of the existing promoters. With this acquisition Pioneer Jellice might become one of the top manufacturers of gelatin in India.
@RajeevJ
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@Jay_Shah
The sector is clearly hotting up!!
Jellice, like Nitta Gelatin, is a Japanese Co n among the top ten global Gelatin companies. The Indian Gelatin, perhaps more so the Collagen market is set expand meaningfully, both in domestic as well as exports markets. As more n more multinational players set up shop here, India is likely to become some sort of a global hub. Its good tidings for the sector/ industry as a whole.
Narmada was waiting to be acquired for the last many years! I also gather that it is sitting on a sizeable land parcel at the plant n future expansion going forward seems to be very much on the cards.
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Rajeevji, why existing promoter didnāt do the Capex on the land parcel or tried to monetise the land before selling it to new promoters?
My thinking is that the Gelatin Co.'s for the last several years were not going any where so there was no motivation for the promoters to put in money. I also think that Collagen has changed the game somewhat & have given the Gelatin Co.'s a fresh lease of life. I have written my investment thesis in some detail on the Nitta Gelatin thread. The thesis is still to play out & only time will tell how things unfold.
If the thesis plays out well, then all companies Gelatin Co.'s would do well, as the gelatin prices continue to remain inflated, but those selling branded collagen would do particularly well. Nitta Gelatin, to my mind, should do well due to having access to the latest technologies for the Japanese parent. A safer strategy could be to buy a basket of Gelatin Co.'s, though I prefer to take a focused bet on a Co. as the joy of getting a call right is hugely satisfying!! One could ofcourse hedge ones bets & buy the whole basket.
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Jellice, being the world leader in the Collagen Tripeptide industry and having a patented technology for hydro electrolysis of Gelatin, make a big change in the prospectus of Narmada, being only a Gelatin manufacturer right now. A commodity player into a niche product producer, with world wide opportunity to sell their product, with Brand name Jellice.
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