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May 25, 2011, 11.06 AM IST
Cerebra is setting up the biggest plant in India for e-based processing, says Mehraboon Irani, Nirmal Bang Securities.
Cerebra Integrated Tech is setting up the biggest plant in India for e-based processing, says Mehraboon Irani, Nirmal Bang Securities.
Irani told CNBC-TV18, " Cerebra Integrated Technologies - I think the conviction of mine is very high, I have visited Singapore where the company’s technical collaborators Cemelia is. Cerebra is setting up the biggest plant in India for e-based processing. e-Wasted basically 8 lakh tones is generated in India every year. Bangalore alone where the company is setting up a plant generates over one lakh tones. The company is setting up a plant for 30,000 tones along with technical collaborators, Cemelia which ultimately put in around 20-30% of the equity into this company with a three years lock in.”
He further added, “Cemelia is basically a good company in Singapore, it has it’s as far as e-Waste goes because e-Waste is not easily available in Singapore. It is setting up a unit along with Cerebra in Bangalore; land has been allocated by the Karnataka government, 10 acres of land to Cerebra. They have already paid 25% of it. Private equity investors have invested in it in Cerebra. The company which was having a lot of problem in the balance sheet now has cleaned its balance sheet completely; it has not debt in the books.”
“Now e-Waste as a business has a very high profit margin of around 25-30%, I expect this company to start its plant over the next 6 months. The company will be working in three shifts after six months. For the time being the company has already started sending e-Waste, which is having along with tie ups with e-Waste collection centre’s, it is already sending to Cemilia in Singapore because Cemilia needs it over there. But it is going to replicate its business in India.”
“Once this business sets up, I think Cerebra is going to be a very different story. A company which started with hardware had its own problems; the promoters had their own problems they have come out of it completely. The company has a LPO business with representative offices in UK and US right now but more important is the e-Waste processing.”
“Cemilia is a big name, Cerebra is tied up with them, Cemilia is providing the technical collaboration, and it’s taking equity with three year lock in. So all said and done once this unit takes shape, I promise you that this stock has the potential, of course you will have to watch the progress of its unit in Bangalore but has the potential to become a multibagger over the next one-three years.”
May 21 2013, 13:56
- in Results Boardroom
May 21 2013, 11:05
- in MARKET OUTLOOK