Shrimp Farming – A sound Investment in the Current Scenario

Industrial diversification is nothing new for an investor. By choosing to structure company operations in a manner that promotes involvement in a spread of revenue-producing activities, he not only increases chances of returns but also minimizes the potential for failure or loss.

After a finger in diverse pies as Coal Logistics and Commercial Real Estate, aquaculture hardly comes as a surprise. The choice of businesses to invest follow a pattern of attempting to maximize returns through investment in areas that appear favorable in the current business environment.

Aquaculture – A Lucrative Business Venture

As a business of raising fish commercially in tanks and ponds for nutritive and tasty food, Aquaculture is an indulgence made by most countries of the world. Fish being a great source of food and protein, both the demand and price of fish and fish-related products are on the rise. Waterbase Limited, established in 1993 and led by Varun Thapar, have been a resounding name in the aquaculture and shrimp farming industry.

Aquaculture is one business that allows for large supplies of fish. Catching fish from the wild is not always the best source of nutrition that consumers today are looking for. Shrimp farming is a part of aquaculture meant to produce shrimp or prawns for human consumption, with The Waterbase Limited being the foremost in this field in India.

Why Shrimp?

Enriched with protein and easily fitting in any balanced diet across continents, shrimp is a recognized delicacy in most cuisines of the world. And with more and more people enjoying its consumption, appropriate technologies and logistics have developed alongside to support an industry that has grown by leaps and bounds.

The Infrastructure for Such Shrimp Farms

When you undertake to create a facility that shall provide training, guidance for set-up, expertise to run, for others in a smaller league wishing to start their own business, then you have to be an all-comprehensive establishment, with the needed equipment, qualified personnel, more than requisite knowledge to inspire confidence all around.

The infrastructure would have to consist of the following:

• Specially grown aqua feeds under computer-controlled conditions that are converted into pellets for feeding the fish.
• Formulations designed by nutritional experts on shrimp feed are tested before supplying the feeds.
• Quality Assurance ensures stringent protocols are followed to create feeds of quality and specifications.  
• Dedicated staff to monitor processes and ensure Quality Assurance.
• A well-designed research lab for continuous R & D activities to ensure maintenance and improvement of the feed.

Shrimp Farming cannot be established on a huge scale to cater to the needs of a whole lot of smaller players unless one has proper know-how, the resources, sound business sense, is willing to take risks .

The Interlinked Connection between Coal logistics And Aquaculture

One of the most celebrated businesses in the food industry is the marine market. The trading of fishes, aquatic plant life and organisms to fulfil the dietary requirements of the population is called aquaculture. Done on a large scale in artificial water bodies or tanks, under optimal conditions for their sustenance, ensures good upkeep and breeding activities.

In the light of the modern scenario of living, unhealthy lifestyle, mundane schedule and neglected diet, the companies like KCT Group have brought about revolutionary changes in the market with their due diligence. The technologically advanced tools, better equipment, and the rise in calibre to meet the growing demand is a fine method of increasing production.

Owing to the sumptuous scope of coverage many of its related aquatic farming methods include Mariculture, Algaculture, Fish Farming, integrated multi-trophic aquaculture etc., the level of employment generation also sees a rise over time. As a rapidly growing sector, it accounts for more than 50% of the world’s fish. Amongst the various factors affecting the ecosystem and aquaculture or biodiversity, coal logistics is a considerably marked segment. It is comprehensive coal transportation, and shipment model that solves for coal flows with cost minimization. The means of coal transportation are cars, trucks, rails or conveyor belts.

But the environmental impacts are hazardous with respect to such an occupation.

On Water Bodies

The mining and extraction of coal involve ground excavation and heavy machinery usage. This is called coal logistics. The soil depletes, and a large area is cleared to carry this task. As a result, the water level faces a sharp decline, and the aquatic creatures bear the brunt. Oxygen level decreases, fishes die or get choked from the pollutants and dust wafted from the ground, settling in water bodies. Water bodies also get polluted by the dead bodies that carry the propensity to infect and sicken otherwise healthy beings.

Ill Consequences of Coal Logistics On Humans

Due to the consumption of seafood for the beneficial result on health, humans consume the sea creatures without realizing the hidden ailments in them that indirectly affect us owing to the lack of care and concern on quality and coallogistics.

Remedial Strategy in the Form of Fish Farming

Aquaculture is one remedial outcome to avoid the significant damage that’s caused by ill practices and human activities. It’s a practice of fish breeding under controlled conditions and quality maintenance of the same. Ensuring a healthy balance of their needs and necessities for growth, aquaculture helps with the nutritious diet enriched in essential vitamins entailed in each meal. So the artificial bodies sustaining the aquatic organisms and their constant care makes aquaculture one of the most looked upon markets in mercenary terms also. Aquaculture, thereby, is a safe and effective employment sector that has a backup of the rich culture of fish intake in coastal regions and across the globe. It helps to preserve the natural ecosystem and indemnify the unhealthy intake without compromising with the human taste and needs.

Commercial Real Estate – Throbbing with Opportunities

Infrastructure follows a cycle of hot and lean periods. Those who keenly tail opportunities are sure to benefit when the market is ripe for cashing in. As of now, commercial real estate is where one should put one’s money.

The KCT Group with diversified interests, It would now move aggressively into premium commercial property dealings where the money lies. Properties able to raise profit from capital gains or rental income constitute the chunk of commercial real estate.  

What Comprises Commercial Real Estate?

Let us see what constitutes this lucrative section of the industry that has suddenly become ‘hot property’ for the KCT Group, which already has tasted success in the field of Coal Logistics.

Office Buildings

One finds office buildings in both urban and suburban areas. In urban areas skyscrapers, high rise buildings, vast properties spread across several million square feet provide commercial space for all nature of businesses. Suburban areas provide similar type of infrastructure but considerably smaller.

Industrial Structures

Industries operate close to urban limits but just outside, with their operations run within industrial structures designed to serve their purpose like coal sheds for Coal Logistics. Close to national or state highways, for a host of conveniences, they could be grouped in clusters in industrial parks.

Retail Housing

If a business house has successfully involved itself in investment as diverse but with rich returns as Aquaculture, retail housing is no challenge at all. Retail housing broadly constitutes single-use, multi-tenanted and standalone buildings where multi-tenanted could have a lead tenant to drive traffic towards the property.

But going further, even a regional mall, a shopping centre or a community gathering place come under retail housing where metrics like size, concept type, no. of tenants, trade area take precedence.

Multi-Family Establishments

These are beyond the single-family and constitute all types of residential and commercial real estate constructions such as apartments, townships or condos.

Special purpose

These fall under commercial real estate but have a theme or purpose for which they exist like amusement parks, bowling alleys, churches etc. One wonders whether breeding aquariums for Aquaculture would fit in here.

Why Commercial Real Estate?

The very purpose of commercial real estate is to benefit from property to be used for a business purpose. The property, let’s say could be an office, a warehouse or a retail shop. From this property, one could get superior returns if the business runs properly. Even otherwise it is an investment in an asset that would fetch something in return.

Another concept that is gaining for pickers is ‘fractional ownership’. That means investors pool in their finances to buy a property that they would jointly own. The sole purpose of such investment is to get superior returns over time.  The bottom line – “Strike while the sector is hot”

Aquaculture And Its Importance

It is predicted that 62% of the seafood which is produced for humans to consume will come from aquaculture by 2030. As on today aquaculture contributes to 50% of the human seafood consumption.

What is Aquaculture?

When fish, algae, shellfish such as lobster and shrimp and other water organisms are bred, reared and harvested in various water environments it is known to be Aquaculture.

Since the seafood demand has gone up, the introduction of technology has made it possible to cultivate food in the open ocean and coastal marine waters. The idea behind aquaculture is to rebuild the population of endangered and threatened species via the production of seafood and other commercial products, habitat restoration and wild stocks replenishment.

A controlled process, aquaculture cultivates aquatic organisms primarily for humans to consumer. Aquaculture and agriculture are quite similar; agriculture uses plants or livestock and aquaculture is with fish. It is popularly referred to as fish farming and take place globally in any water body like rivers, freshwater ponds and coastal oceans. There are two main types of aquacultures—marine and freshwater.

Waterbase was founded in 1987 by KCT Group who are the Aquaculture pioneers in India.

How does Aquaculture work?

The method to deliver aquaculture’s farm-to-table produce varies from species to species. The common stages of production chain start in hatcheries and end at the seafood section of your grocery story.  There are 4 stages of production – Hatchery, Feed mill, Farm and processor.

Each stage can differ depending on the effect it has on the environment and the safety and quality of the seafood being produced. The first step in the aquaculture production chain is known as hatchery. Here is where the fish is bred and reared and hatching of eggs in the early life stages takes place. Once the animals have reached a certain level of maturity, they are relocated to the farm. Here they grow to their harvest size by consuming feed mills’ produced feed. This is also one of the stages of aquaculture. Post this the fish is transported to a processing facility – this is where the seafood is packaged and the transported to grocery stores and food retailers from where consumers make the final purchase.

KCT group believes that quality feed is directly correlated to the growth of shrimp. Their seafood processing involves research around making high highly nutritive Feeds using quality ingredients available. These are sourced from every part of the world they hire globally renowned nutritionists ensuring good quality feed to enable various farming techniques.

Importance of Aquaculture

To satisfy the growing consumption of the ever-increasing population leading to overfishing alternate sources for seafood are imperative. For generations wild fish have been exploited leading to the decline of the ocean’s natural production of seafood for the planet. Now oceans and waterbodies cannot naturally provide for the growing demand of seafood. Here is where Aquaculture steps in to fill in the gap of seafood supply. Responsible and sustainable fish Farming is the only solution to provide future generations with healthy and environmentally friendly sea protein.

Compared to chicken and pork seafood has the highest protein content and is deemed one of the healthiest foods, making aquaculture necessary and also sustainable. Compared to other types of farming, aquaculture has the lowest feed conversion ratio and lower greenhouse gas emissions.

It is anticipated that 10 billion people will occupy the planet by 2050 increasing the demand for animal protein by over 52 percent. This increases the need for sustainable and healthy approaches  to providing for the world making aquaculture super critical.  To prove the world’s ever-increasing population with a sustainable feed of healthy and lean protein, aquaculture’s role is increasingly becoming important.

The KCT Group: An Overview

The KCT Group has its hands widespread on Coal Logistics, Aquaculture, and commercial real estate. The company is well-known for its diversification in various fields and the success rate across the nation. It has its business line spanning all over the country.

Coal Handling

The KCT Group is India’s largest coal logistics and operates over 50 locations across the nation. The company’s operation involves around 60 million metric tons of coal per annum. The KCT Group offers transportation of coal using roads, rails, and overseas. Their services extend along with the paper mills, thermal power stations, cement plants, and several industrial customers, extending its service for both the private and public sector. The coal logistics services, handling in the port, supply chain management makes sure that the customers get the most effective service right from the time of loading to the time of delivery.

Aquaculture

The KCT group aquaculture business line was set up in 1987 and called The Waterbase Limited. It is the pioneer of aquaculture in India and stands reputed for more than two decades. The success of this company is that they understand the needs of the customers and satisfy them by implementing a series of perfect manufacturing practices. Food safety and quality remain their first priority. Its product hit the market after going through all the proper test series by the R&D department. It also ensures the rate of maintenance at its best without any loophole as it is concerned with health. Hence there is no need to worry about the health conditions, and it is not required to give a second thought when you are associated with the KCT group.

Commercial Real EstateThe KCT group commercial real estate business line, the Indian City Properties Ltd, was set up in 1939 and is a boutique developer of ultra-premium commercial properties. It owns and manages above five lac sq. ft. of well-developed real estate areas in many cities across the nation. The properties owned by the Indian City Properties Ltd are historical, heritage, and landmark buildings that define the city of Mumbai, Delhi, and Kolkata. It also has its pipeline projects in Nagpur, Bangalore, and Kolkata that include commercial complexes.  

Cost Control in Coal Logistics

Mining coal from its raw materials, processing it and importing to power-plants, cement production and other coal-oriented businesses is painful and expensive. KCT Group, led by Varun Thapar, have been at the helm of coal logistics in India for over 80 years. It may cost a bit more for the buyers (consumers) and fall on the loss side of companies. The competition is also an all-time high.

Roadway Transport

It is the most common and effective mode of transport. This mode is preferred the most if the amount of coal and the distance are small. Companies can use vehicles like on-highway trucks and conveyors for transporting through roads.

On-highway trucks can carry a comparatively smaller quantity of coal, but they can still bring in good business since they cost minimal and fetch great profit. Conveyors can’t be used for carrying loads to longer distances, but transporters can use them for coal logistics nearby. They can travel through narrow and curved roads easier than on-highway trucks.

Rail Transport

While thinking of transporting a large amount of coal over to more considerable distances, rail transport sounds like an efficient transportation mode. Rail trucks can reach large spaces without other vehicles’ interference, making them get sooner to their destined places.

They are a trustworthy and cost-effective mode of transport too. They cut down the cost of diesel or petrol we use on trucks while doing the job thrice efficiently than them.

Pipes

Slurry pipelines are specially made for transporting liquid, consisting of a mixture of coal with water, oil, or methanol. These liquid coal slurries consist of coals in higher proportion and the liquid consistencies in lower ratios, so they are heavy.

Usually, these are transported through pipelines to the consumer, who later separate the coal from the mixture for burning purposes. Sometimes, they are sent to the boilers directly to be burned as fuels.

Sea Transport

Like railroad transport, ships also act as an effective mode of transportation. A massive amount of shipments can be made in a single boat, and since it could again go overseas, they fetch a significant saving than any other mode of transport. With the above-mentioned tricks in mind, you can definitely save considerably. However, it boils down to your requirements in the end.

Industries Making Use of Coal or Coal Based Products

Coal is primarily associated with fuel generation and people tend to limit their knowledge to only this. However, this carbon rich fossil provides you with a myriad of applications that act as the basic necessity for multiple industries. It is an element that fuelled the growth of the Industrial Revolution back in the 15^th and 16^th centuries and it continues to do so till date.

Coal serves as the backbone for industries like cement, steel and even electricity. Even though we are now focussing on renewable sources of energy such as water, wind and solar, coal without a doubt, leads the way with its contribution in the industrial world. KCT Group, one of India’s oldest and largest coal logistics companies, led by Varun Thapar have contributed to the way coal is transported to different industries across the country. Let’s take a look at some of the industries that are supported by coal and its products.

Electricity Production: Electricity production is one of the most common use of coal. Popularly known as thermal coal or steam coal, it is used in almost all power stations across the country to produce electricity.

Steel Industry: This is the second largest coal using industry in India. Coal is one of the basic and most essential raw material for steel production. It is also used for the manufacturing of other metal products.

Paper and Aluminium Industry: Both paper and aluminium industries require a huge quantity of energy and fuel for their functioning and only coal can match this requirement. Coal is also the cheapest form of energy that makes it an essential part for the industries growth.

Cement Industry: Production of cement is a very high energy consuming industry. This is why coal is used for the source of energy in these production units. Powdered form of coal is burnt which produces fly ash that plays the role of concrete in the cement. Although the use of coal in cement is comparatively less, it makes for an essential component that most production units cannot function without.  

Coal Gas or Liquid: These are the two things used as transportation fuel and almost all the modern day functions are dependent on these substances.

Pharma and Chemical Industry: There are a number of chemical products, such as coal tar, that are a by-product of coal and are used in manufacturing other coal related products. It is a common raw material in the pharma world as well given its acidic properties that produce salicylic acid, nitro phenol and picric acid. Some of the chemicals produced by coal are phenol, benzene and creosote oil.

Commercial Real Estate Investment Pointers You Should Know!

The real estate sector is one of the most popular avenues for investment. It is divided into two arenas, namely commercial real estate and residential real estate. While commercial real estate entails retail buildings, office buildings, industrial establishments and warehouses, residential real estate deals with residential properties such as housing societies, luxury apartments and flats among other things.

The commercial sector is an interesting prospect for investors who are looking forward to maximum returns, passive income, and potential for growth. Although, all of this is only possible if the investment is a smart one and well thought of. KCT Group, with Varun Thapar at the helm, have been developing commercial properties across the country that have been extremely beneficial for real estate investors. There are certain elements that you need to figure out and verify before you put in your hard earned money into the property. Indian city properties that you might be looking at need to be surveyed in terms of their location, the demand in the area, future growth and the market condition of the place.

To help you pay heed to the essential points, we have listed down the factors that you should consider before the investment.

Location: Location is one of the prime variables for any property. The returns from commercial properties come through two avenues – rent and capital appreciation. Both these avenues are highly dependent on the location of the property. It is best to look for properties that have a vacancy less than 5%. This will ensure that the residents are likely to stay around which in turn would result in higher rent and capital appreciation.

Demand and Supply: This is one of the first steps taken by a savy investor in the analysis of a property. Every city has its own micro market with different trends ruling the commercial space. Mumbai has areas such as Nariman Point, Parel and BKC while Bangalore has Electronic City, Whitefield and ORR. Each of these markets have their own stock and upcoming supply of projects. If the annual supply of the next 2-3 years exceeds the demand history in the area, it is likely that the rent in the areas are going to shoot up.

Tenant: Who and how the tenants of the area are can have a lasting impact on the property and its value. It is best to look for bluechip multinational tenants rather than small scale companies. Having a good and reliable tenant ensures timely payment of rent, higher deposits, rise in the value of the property and longer stays.

Things To Be Checked Before Buying A Property

Property transactions take time. But there are times when people don’t take care of the process that is followed behind buying a property & rush into the process. However it is crucial to assess the situation because there have been many cases where buyers have had to let go of the property as it was either an agricultural land or the title was disputed or there were pending dues.

Shockingly, even in the urban cities, people fall prey to sellers leading to a risky deal where the buyer ends up losing his money and peace of mind. It is important to not get attracted to offers by property brokers such as new launches. Thus, buyers must look at every factor related to a property deal before taking a final call.

Let’s understand what all needs to be checked when buying a property:

Approval & Licenses

It’s is imperative to check the builder’s paperwork so that you don’t face any problems in the future. Paperwork like commencement certificate for work, environmental clearance, and approved building plans needs to be seen by you as a buyer. Also, documents like title deed, release certificate, verify land use, approvals by the local body, property tax receipts are important when buying a property. Moreover, ask for the status of the land title and look if the builder has bought the land or has just development rights for it.

Calculate the Cost

There are many cases where brokers just tell you the basic cost and not other aspects. Don’t just trust everything that your buyers tell. Factors such as internal/external development fees, preferential location charges, parking/club/statutory charges, and service tax, also add up which raise the total cost. Keep in mind all these factors and then ask for a final price.

Verify the Builder

You never know if the property you are buying is under litigation. Therefore, it is advised that buyers must do a comprehensive verification of the builder. You could ascertain its past or current projects, post questions on the various online real estate portals, ask somebody who knows the field & know about the builder. To conclude, go with a trusted & well-known builder. For example, Indian City Properties, a chain of KCT group.

Buy vs Rent

People purchase property thinking they will use the rent to pay EMIs but this is a wrong approach. Don’t keep your hopes high that rental income will pay for the EMI. You must keep in mind that the property may remain vacant for months before you can find a tenant.

The Right Plan

It’s recommended that a buyer must choose the right payment option as mostly there is a cost for every convenience. Payment choices such as down-payment plan, flexible-payment plan, construction-linked plan, and possession-linked plan are available in the market. Choose the right plan.

Check the Infrastructure Plans

Factors like metro connectivity or any other big construction project in the future nearby the location of the property you plan to buy can increase the return on investment. Another important point to note is confirming beforehand that the property you are buying is not close to any polluting industry.

Check the Site

A picture tells the story but not the exact details. Therefore it is advised that don’t just stick to the layout in the brochure. Do a detailed site visit before you close the deal. Get to know the people around, talk with them as they call to fill you up with all sort of information related to the property.

Things You Need To Know When Investing In Commercial Real Estate

We all know that one of the most common forms of investment is in the real estate sector which is divided into two categories – residential and commercial real estate. 

If we talk about Commercial Real Estate, it includes constructions such as retail buildings, office buildings, industrial buildings, apartment buildings, and mixed-use buildings. It is an attractive investment choice as it offers so many advantages like consistent returns, passive income, and growth potential.

So, it is not as difficult as it may appear. Keep some of these points in mind while investing in commercial real estate:

Location Is Everything

Location is most important when it comes to funding in commercial real estate. Many aspects come into play such as accessibility to roads and public transport, distance to neighboring cities, and infrastructure projects currently in development in the area. Investors should also conduct an in-depth verification of the property to gain a better understanding of the potential or liabilities it comes with.

Commercial properties offer a return on two things – rent and capital appreciation. Both are strongly dependent on the location. Search for places where the vacancy rate is less than 5%.

Quality Of The Property
There can be two-three buildings in a particular location, but one with the highest quality will always get rented first. It will also appeal to good tenants. Multinational tenants are always inclined to pay a premium for quality. So, if you are looking for boutique ultra-premium commercial properties or prime developed real estate areas to invest in, ICP, the real estate arm of KCT group.

Additionally, look for certifications like LEED gold or platinum ratings or buildings that have beautiful looking lobbies, more elevators, higher ceiling height, and scenic views.

 Quality Of Tenant
An excellent tenant has the potential to relatively increase the cost of a commercial property. If your tenant is good, s/he will pay rents on time, pay higher deposits, stay longer, and increase the value of the property.

There are various factors you must consider when investing in a building with existing tenants like their sales on a monthly and annual basis & the rental period, which is another important factor that one needs to assess.

 Interior Fit-Outs
Make it a note to always ask who has done the interior fit- outs in the property. Most of the time when an office is constructed, it is delivered bare shell. It is the tenant who has to do the flooring, ceiling, air conditioning, wiring, interior cabins, and so on depending on the requirements. Some tenants like to do their set-ups on their own while others ask the developer to do it for them.

Property Documentation

Go through all the documents very carefully. It is necessary because it will help you in understanding all the legal work to be undertaken by the investor. It has documents related to mortgage and ownership transfer in case there is re-selling of the property.

Do not forget to check the hidden charges (if any) in the property papers and sale agreements by the seller and broker.

Security deposit
Security deposits differ between 10 and 12 months’ rent in commercial properties. Pay attention when a tenant proposes 6 months or less because that means they might consider a short-term option or have cash flow problems.

Market Dynamics

It is significant to look at the dynamics of the type of property you choose. So if you’re seeking to invest in retail, consideration should be given to the short-term & long-term impacts of e-commerce on tenant and consumer demand. Ideally, you must invest in commercial property in an environment with low-interest rate, which supports your demand for both property and borrowing.