>SWAN ENERGY LIMITED: Acquired 104 acre plot in 2009 to develop an IT SEZ

Swan Energy (SEL) would see a terrific upmove in growth trajectory of its revenues and earnings on the back of revenue generation from Real estate business, which is at inflection point with the impending completion of its major real estate projects in the near term to generate strong cash flows in FY13.


SEL has mills located at Sewri and Kurla, where the company has under taken real estate development. The company’s two projects , namely Ashoka Gardens ( residential project) and Peninsula Technopark (commercial property) are nearing completion having total saleable area of 1.78mn sq. ft.The company has appointed reputed developer M/s Peninsula Land as the project manager for both the projects. A commercial IT park ‘Peninsula Technopark’ at Kurla consisting of 4 buildings with 0.88mn sq. ft. of saleable area. The construction work of 3 buildings have been completed and for remaining 1 building it is at the advanced stage and is expected to be completed by June 12.


A residential complex ‘Ashok Gardens’ at Sewri consisting of 2 towers of 23 floors, each housing 3 wings with 0.90 mn sq. ft. of saleable area, have nearly been completed and is ready for possession.


Proposed development of plot in Goa and Mysore
SEL had acquired 104 acre plot in 2009 to develop an IT SEZ and had obtained necessary permission from the state of Goa, but however due to change in government policies all SEZ projects have been de-notified. Since SEL had acquired the plot from a private seller, the company now plans to develop the same in to a mix of residential and hospitality projects.

The possible developable area under this project is ~ 4.5 million square feet. Though the project is at an nascent stage, we have not factored the same in our estimates, but we believe that the project has strong potential owing to the locational advantage as the plot is situated near to the proposed airport. SEL is also in negotiation to jointly develop a residential project with 197 acre plot of land in Mysore. The company is planning to develop the Mysore plot in to residential bungalows.


Completion of scheduled real estate projects to generate strong cash flows
SEL’s is expected to see an accelerated growth in revenues and profitability in FY13 on the back of completion of real estate projects. The improved financial performance would generate strong cash flows in the near term which would enable SEL to fuel the funding of its growth plans in existing real estate business and lucrative new business segment of energy and ports.


Investment in energy sector to tap humungous opportunity due to industry supply Shortfall: With the World being concerned over the impact of ill effect of the global warming &
climate change, SEL has evaluated business opportunities by taking up projects resulting in reduced green house gas emissions. It has been scouting for organic and inorganic opportunities in the clean energy projects, which once commissioned will be able to generate CERs (Carbon Credits).


To read full report: SEL
RISH TRADER