BPL Ltd...CMP: Rs.35.95...is making a come back...

Friends,
I read two news at one internet site which says that BPLLtd management wants to turn it around.....
First I am pasting those news so that one can read and understand what they are upto:

1)   BPL's Traditional Biz Rights Lands Up With Start-Up Firm:

Ex-BPL exec Ricky Gosain's Reach Distributors has five-year rights to use the brand in seven categories including CTVs.

BPL Ltd has struck a deal giving the rights to use brand BPL, across seven categories in consumer electrnonics and durables including colour televisions, to Bangalore-based Reach Distributors India Pvt Ltd in return for royalty payment.
The five-year arrangement, running until FY14, is part of BPL's strategy to look beyond its traditional business, and focus its resources on three future markets identified in healthcare, energy and smart homes - a strategy put in place months ago to reinvent itself.
BPL, which once ruled India's fragmented colour television industry with over 25% market share, lost leadership to the rampaging chaebols like LG and Samsung who dominate the market currently.
Interestingly, Reach India's promoter group is headed by Ricky Gosain, who was a senior executive with BPL in the past. Sources directly familiar with the development said, the start-up distribution house would take BPL to the semi-urban and rural markets initially, and would tap the urban centres only after building a critical size.
Reach would be positioning BPL at a price between Videocon and LG, and could target revenue of Rs 200-300 crore by FY14, sources added. It would be sourcing products from vendors both in India as well as China.
BPL Chairman & Managing Director Ajit Nambiar's office sought more time to respond to an email sent on Thursday last week. However, a senior official involved in the royalty deal with Reach confirmed the development.
The share prices of BPL Ltd closed at Rs 35.40 today, down by nearly 1%.
It is not clear who are the other shareholders of Reach India, and if any member of the TPG Nambiar family, which controls BPL, are shareholders in their personal capacity. One source said, Reach was fully funded for the time being, but could explore growth capital fundraising next year.
The development, sources said, stemmed from BPL's decision not to play in the mainstream consumer durables market directly. BPL is in the midst of creating a new brand identity - 'Happier Living Everyday' - in healthcare, energy and smart home sectors. BPL promoters have stayed away from investing behind the consumer electronics business since its equal joint venture with Japan's Sanyo Electric wound up.
In 2006, Sanyo was saved from bankruptcy by Goldman sachs, Daiwa Securities and Sumitomo Mitsui which went on to control 70% stake in the Japanese conglomerate. After protracted discussions, a bigger rival Panasonic decided to acquire Sanyo, a process which was completed in July this year.
Reach would be hoping to leverage on BPL's residual brand equity, especially in the southern markets. BPL was the leading brand in colour television besides having respectable market shares in refrigerator and washing machines through the 90s. However, playing in the cut throat consumer electronics and durables space require strong cash flows and equity backing, especially when placing a bet on the latent equity of a yesteryear brand.
The total size of consumer durables and electronic industry is around Rs 30,000 crore, according to Consumer Electronics and Appliances Manufacturers Association (CEAMA), and the consumer durables market is growing at 30%. More than a majority of the market continues to be dominated by South Korean and Japanese players like LG, Samsung, Sony and Panasonic.
The Indian presence in the market is flagged by Videocon and Onida, which once challenged BPL. Rising income levels, double-income families, increasing consumer awareness and penetration into the rural markets are helping this sector grow.


2)  New Innings: BPL Scripts Comeback With Rs 2050Cr Rev By FY14:
 
August 30 2010, 16:44:51 IST

BOBY KURIAN
Focus on healthcare, energy & smart homes as blockbuster yesteryear brand spins 'Happier Living Everyday' story.
Ajit Nambiar, the scion of BPL Ltd, is re-inventing himself, and the business he inherited. When he helmed BPL, which his father established back in the 60s, the brand was a dominant force in India's consumer electronics industry, especially in colour televisions. Then, the chaebols arrived at his doors. The Korean brands LG and Samsung stormed the market at a time when BPL was caught in a liquidity whirlpool following its ambitious diversification and heavy investments made in manufacturing.
The brand soon disappeared from the metros and the top cities, with its partner Sanyo's travails in Japan adding to the woes. Sanyo shut its Indian operations rather quietly when it was being sold to Panasonic globally, in 2008. BPL and its founding TPG Nambiar family went into business oblivion thereafter.
Last year, in October, Ajit Nambiar shifted BPL's operational headquarters from Dynamic House, located at the heart of Bangalore's business district, to the city's outskirts near Bannarghetta. And he soon unveiled an internal business strategy aimed at overhauling BPL. It has two parts. First, it involved jettisoning any direct revival plans in the mainstream consumer electronics space, and giving up on manufacturing story as the key differentiator (a belief that Nambiars held on tightly for forty long years).
Secondly, he along with a core team of advisors embarked on re-shaping business portfolio searching for potential future markets that can be leveraged on BPL's strengths. They looked hard at businesses and started transitioning. What emerged was a new storyboard, a fresh theme, and a new positioning (in the making) for brand BPL.
Nambiar wrote in an internal dossier earlier this year: "The world has changed beyond recognition from the time BPL came into being four decades ago. We have to therefore change the way we look at the world around us and how we conduct our business in it. The new age Indians have aspirations for a happier, healthier and a more secure life. Our purpose lies in helping people fulfill these simple dreams - Happier Living Everyday. To us happier living means improving the quality of peoples lives through focusing on their health, their comfort, their security and their enjoyment. Our business focus today is on three sectors - healthcare, energy and smart homes."
They are together projected to bring in Rs 2050 crore revenue by FY14. Energy generation and management solutions will bring around Rs 1,465 crore, while healthcare management solutions will show up with Rs 425 crore and smart home solutions will be Rs 60 crore.
The energy business will operate in two domains - power generating assets and energy efficient solutions. BPL Power Projects (AP) Private Ltd is implementing the flagship 600MW project at Ramagundam in Andhra Pradesh. Interestingly, this project has been given a fresh lease of life by the AP State Government and the United Progressive Alliance (UPA) Government at the Centre after the company missed several deadlines to achieve financial closure. Bharat Energy Ventures, another group firm, has signed up MoU with Chhatisgarh State Government for 300MW power project. The revenue from these projects, especially Ramagundam, is expected to start flowing by late FY13 and touch Rs 950 crore by FY14.
Two group companies BPL Telecom Private Ltd and BPL Techno Vision Pvt Ltd will play in energy management solutions for "always-on" energy in the digital information age. The first one will be working with power utilities to reduce transmission and distribution losses, essentially creating a smart grid that is fast healing, more efficient and operates increasingly like today's Internet. BPL Techno Vision will be focused on rechargeable lighting products, solar lanterns, LED lighting systems and studylites. Revenue from the two entities could be crossing Rs 515 crore by FY14 from Rs 147 crore in FY10.
Healthcare Management Solutions under BPL Ltd has evolved from the group's traditional presence in the medical electronics business. With revenue of Rs 108 crore in FY10, it provides innovative products and solutions - like patient monitoring systems, electrocardiographs, defibrillators, foetal monitors and point of care equipment - for early detection of diseases at affordable cost.
Smart Home Solutions, also parked with BPL Ltd, is seen as the more futuristic of all the three businesses. It will tap the emerging opportunity for home energy management systems, home security systems, home network systems and home entertainment systems through a slew of products. BPL has made a beginning here with a portfolio of home security and comfort products that brought in Rs 3 crore in FY10.
Nambiar believes brand BPL can take upon the task of building 'Happier Living Everyday' leveraging on its core strength of applying technology. The task is challenging, as in his own words, the world has changed dramatically from the days when BPL rather optimistically claimed 'Believe In The Best'. Does anyone remember BPL Oye! that brought Amitabh Bachchan to television for the first time in the early 90s?
If four decades of highs and lows in business life has convinced the Nambiar household of anything, it is probably the need to be nimble-footed and agile in thinking. In hindsight, BPL spent some of India's best growth years in rediscovering itself.

My Analysis:

Well, It seems that management wants to bring back the lost glory back.BPL Ltd was a blue chip Co in 90's.
How it went back and become a lagagared is already written in the above article.
But what catches my eyes is , management says that they wants to make it a 2050 cr Co by 2014! That is huge......the Mcap now is 174 cr and if the Co becomes a 2050 cr Co by 2014 then we are going to see BPL Ltd becoming a huge huge multibagger by 2014.
Well, it will all depends on how the things will fall in place and needs to be on constant vigil on BPL Ltd if someone wants to invest BIG in it..because at 174 cr Mcap and becoming a 2050 cr Co , means,it can be atleast a ten bagger from here on.........
Well, I feel that one can take a small exposer in  BPL Ltd now and keep on adding as news unfolds....that should be the strategy...but one should follow what is good for them....
Well, as I use to write many times....I do not know anything about statistics( Cash flow/RONW , Debt ratio, etc etc) but I am good at analysing things correctly and quickly....and I read a lot and pick the finer prints written quickly...I am able to read between the lines...I may prove wrong and I may prove right ........but untill one do not come on any conclusion , one never knows whether you were right or wrong.....and stock market is taking decision.....picking stocks at very early stage...that is very important in stock market and that is what I am doing here.Bringing undiscovered stocks to small investor and that too cheap.....picking them up before someone pick it up or identify it ,we become first to take a stake........
What I want to suggest is, become sharp.Become vigil.No news on stock needs to go unnoticed.One need to have passion in what you are doing.When one is investing your hard earned money in stocks then one need to search everything on where you have invested and needs to be updated on it .......