Forbes Gokak - A Gem owned by Shapoorji Pallonji

[VINAYAK SHARES]

Respected Sir,

Im mentioning below a company which i have been researching for the past 4 months. After 4 months of going through the limited information available I have come to this conclusion that it maybe a pick to be remembered. In my short but highly educative career of 5 years in research I have not come across such a fantastic conglomeration of companies under one Holding company known as Forbes Gokak. Below im highlighting my reasons for what some might call as irrational exuberance. But when you have a look at the company Im sure even you would come to the conclusion that i still might be understating the potential of this magnificent stock. Before reading the report do understand there might be more real estate which cannot be valued as there is a lack of information from the management about the same.Company is 200 year old and prime office space owned and occupied by it has not been valued by us.We have simply valued its swadeshi mills stake,Euraka forbes (100% stake) and its other known subsidaries.

Forbes is the oldest surviving company in India and one of the oldest in the world, established in 1767 by John Forbes of Aberdeenshire, Scotland. Forbes started as a trading and agency company and then ventured into manufacturing. The Forbes Management shifted hands from the Forbes Family to the Campbells to The Tata Group and now finally taken over by the well-known Shapoorji Pallonji Group - Leaders in the infrastructure and real estate business.

Today The Forbes Group has a diverse portfolio comprising of Textiles, Shipping, Business Automation, Light Engineering, Freight Forwarding, and Consumer Durables etc under the able leadership of Shapoorji Pallonji Group.

• Forbes Gokak owns 100 per cent of Eureka Forbes, which has reported turnover of Rs 740 crore and net profit of Rs 24.91 crore in the year ended March 2007. Ion Exchange, which is in a similar space, is valued at a P/E of 55. With an EPS of Rs 26 on a consolidated balance sheet, Eureka Forbes is worth Rs 1,430. The company has set up container freight stations in Veshvi and Mundra and the gains will start flowing this year.

• Company also holds 22% in swadeshi mills which owns 22 acres of prime land in kurla mumbai. It also holds prime real estate in chandivali estate and thane in mumbai and in baroda and pune also holds office spaces in all major cities in India in its shipping .
  Value of forbes stake in swadeshi mills  kurla land is pegged above of 1200 cr.Moreover a 200 year old cos land holdings is best guessed by the markets.

• Also holds prime real estate in Chandivali and Thane in mumbai and in baroda and pune also holds office spaces in all major cities in India.
  
  

• Recognising the growing dominance of retail and its pervasive approach, FIL has ventured into retail services solutions. Combining efficacy and intelligence of IT along with convenience of space, FIL is developing projects to address consumer conveniences. The approach would be through retail outlets set up across the country. Each outlet would be working on the support of technology based solutions developed by FIL. The project is slated to initiate in the secod half of the year . Services which would be tapped under this umbrella are: travel, utility payments, entertainment, telecom, logistics and financial services.

• 49% in forbes infotainment which will be venturing in retail financial services (Forbes infotainment is currently in dhanadhan loterry).

• Forbes Patvolk Shipping Division : Joint venture with S.C.I. It owns and operates Normal bulk cargo vessels

• Forbes Precision Tools Division : Presence in Automobile ancillary and Dies & Moulds segments Non-auto sectors like Defence, Aerospace, Export Oriented Units and Light Engineering.

• Forbes Facit Engineering Division: Manufacture of Vacuum cleaners

• Forbes Bradma Automation Division: Banking automation products viz. Currency Note Counting Machines and Note Banding Machines.
  

• Forbes Energy Systems Division: Exclusive Distributor of Dresser Rand Steam Turbine products in India.
• Upmarket Brands Division: Savile Row (Marketing tieup with Daks Simpson, British apparel major, to manufacture & market Daks range of brands in India.)

Also, here is the list of its numerous subsidiaries and associate companies

A) Subsidiary Companies :

1 Aquamall Water Solutions Limited

2 Eureka Forbes Limited

3 Euro Forbes International Pte. Limited

4 Forbes Abans Cleaning Solutions Private Limited

5 Forbes Aquamall Limited

6 Forbes Doris & Naess Maritime Limited

7 Forbes Finance Limited

8 Forbes Sterling Star Limited

9 Latham India Limited

10 Next Gen Publishing Limited

11 Volkart Fleming Shipping & Services Limited

12 Forbes Services Ltd.

13 Forbes Technosys Ltd.

14 Forbes Tinsley Co. Ltd.

15 Warrior (Investment) Ltd.
16 Forbes Campbell Holdings

 

B) Associate Companies :

1 Forbes Aquatech Limited (Associate of a Subsidiary)

2 The Svadeshi Mills Company Limited

3 Warrior Logistic & Shipping Services Limited

4 P T Gokak Indonesia

5 Sea-Speed Shipping Agencies Ltd. (Associate of a Subsidiary)

6 Trident Shipping Agencies Ltd. (Associate of a Subsidiary)

7 High Point Properties Ltd. (Associate of a Subsidiary)

8 Sea-Falcon Shipping Services Ltd. (Associate of a Subsidiary)

C) Joint Ventures :

1 Barwil Forbes Shipping Services Limited

2 Forbes Infotainment Limited

3 Nypro Forbes Moulds Private Limited

4 Nypro Forbes Products Private Limited

5 Forbes Edumetry Ltd.

6 Edu Metary Inc.


Regards,

Aditya Deorah

Varun Jain





--
Money is nothing in life,But have so much of it before you can say this about it.

Aditya Deorah.

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VINAYAK

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