This mail is a little longer. Have the patience to read. Or jump to opportunities.
I thought of touching this topic of Pollution which made heal lines for almost a fortnight in the last week of 2015 & first week of 2016.
I refer to the NGT ( national green tribunal) order banning registration of diesel vehicles over 2litres capacity.
This was also followed up with the trial of Odd Even scheme in a measure to control pollution.
The air pollution is a serious issue and it is affecting the lives of all citizens leading to various diseases including cancer, silicosis etc.
Click on this to read more on air pollution.
The regulator and the government and juidiciary are taking efforts and actions to improve the quality of air we breathe. Some ot the actions planned.
a. To take off the road, vehicles which are more than 15 years old.
b. Stop registering higher capacity vehicles especially in Diesel, which are one of the causes for pollution.
c. Government, both the state and central governments, to take off the road, vehicles which are more than 5 years old.
d. Speed up the advanced Euro 4 verison of the fuel, which is emanate less poisonous or hazardous gases from the exhaust.
e. REduce the Carbon black content in tyres which cause pollution.
Given below are the approximate figures of vehicles which will be afftected
1. Implement ODD EVEN schemes which will forcibly reduce the vehicles on road daily.
2. Remove older vehicles.
3. Incentives for manufacturers, refiners, users to know and adhere on the regulations.
4. Provide alternate fuels in good supply to avoid shortage.
Other causes for Pollution
a. Power plants which use Coal extensively
b. Refrigerants especially in refrigerators and air conditioners.
c. Disposal of waste by burning tyre and plastics.
d, Carbon black in Tyres.
If these were to be implemented there will great opportunities that will be Available to investors. I list below few of them.
1. With the ban of old vehicles there will be replacement of cars taking place and hence the sale of new cars would increase.
Companies that would benefit would be Maruti , Honda, Hyundai . Mahindra only Maruti and Mahindra are listed.
2. With the ban of heavy vehicles like buses and trucks, the sale of heavy vehicles will increase.
Tata motors, Ashok leyland & Eichers.
All three are listed. However companies like Eicher Volvo. Mercedes could be new entrants.
3. With the commercial vehicle sales improving, ancillary sales will also pick up.
4. However Tyre companies will face challenge from import of tyres from China
5. This will also encourage CNG buses and vehicles and hence GAs distribution companies like Indraprastha GAs, Gujarat Gas and GSPL will stand to benefit.
6. Vehicles run on alternate fuels like battery solar are very nascent and we need to keep watch on this area of development.
7. This may also lead to aggregators growing there business and if listed, can be an opportunity. Like Uber /ola etc.
Stocks to focus on buying
b. Ashok Leyland
c. Tata Motors
f. Ramakrishna forgings
g. Mayur Uniquoters
There will be many more beneficiaries
If interested do contact me
follow me on twitter @RAJAN_VSV