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26 June 2009

WATER, WATER.....

The heat is killing me and the electricity provider is not helping either, what with the power cuts and all that. To top that the Bhakra Nangal Board has said that it is going to either reduce or completely cut the water supply to Delhi, Harayana and Punjab as its reservoir is drying up for want of water. What do we have next? Water rationing? What impact does it have on our GDP and specific businesses?

We had initiated a discussion on this issue in Dec 08 in the post WATER, WATER EVERYWHERE BUT.....  with a view to explore the business opportunities available in the field. There are a few available today and many for a truly long term investor. This was followed by a detailed analysis of the situation in the post THE FROWN OF TETHYS AND OTHER STORIES, the premise being that a commodity which is essential for life itself and in such short supply shall exhibit tremendous business potential. That month being a december, not many throats were parched and probably hence a tepid reaction. Perhaps things would be different this time!

Now companies like Ion Exchange, L&T and Thermax come to mind easily. Worth a hard look.


2 comments:

ajay said...

Great idea. Just extending it further...You may also consider companies in the water bottling business. Brands like Himalaya, aquafina etc. are popular.

Also, how about irrigation companies? Or companies making sprinklers?

Puneet said...

Yes, like Jain Irrigation, IVRCL in the irrigation sector.

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