Vanakam TIDCO

-

Investments by Tamilnadu Industrial Development Corporation Limited (TIDCO)     


Tamilnadu Industrial Development Corporation Limited (TIDCO), a Government of Tamil Nadu Enterprise, was incorporated as a Limited Company in the year 1965, in order to identify and promote the establishment of large and medium scale industries within the State of Tamil Nadu in association with the private sector.

TIDCO has been specified as Public Financial Institution within the meaning of Section 4A of the Companies Act, 1956.

TIDCO provides facilitation services for all investors and these include multi-national and overseas investors who wish to launch new ventures in Tamil Nadu.

TIDCO’s association with private sector enterprises may be separated into four categories viz.

·     *Joint Sector
*Associate Sector
*Escort Sector
*Escort Services

Equity participation by TIDCO in the Joint Sector projects ranges from 11and upto 50% and in the associate Sector ranges 2 to 11% equity.

The Escort Sector includes ventures with 1% equity from TIDCO.

In cases where TIDCO does not take up equity participation, these projects are categorized as Escort Service projects.

TIDCO’s project cover a wide range of activities such as Iron & Steel, Fertilizers, Chemicals, Petrochemicals, Engineering, Automobiles, Agro and Food Processing, Leather, Textiles, Pharmaceuticals, Floriculture, Horticulture, Electronics & Communication, Infrastructure / Industrial parks includes Agri Export Zones (AEZs) and Special Economic Zones (SEZs).


Shareholding of TIDCO in listed companies - 

Equity participation of TIDCO in Titan Limited, Tanfac Limited, NLC Limited, Tamilnadu Petroproducts Limited and Tamilnadu Telecommunications Limited is above 11% , therefore the investments are classified as Joint Sector.

Equity participation of TIDCOin Manali Petrochemicals Limited, Southern Petrochemicals Industries Corporation Limited, SJM Egg Products Export (India) Limited and Saptarishi Agro Industries Limited is above 2% and less than 7%, therefore the investments are classified as Associate Sector.

Equity Participation in NLC India Limited and Tamilnadu Newsprints & Papers Limited is above 1% and less than 2%, therefore the investments are classified as Escort Sector.
  

Benefits of shareholding

* Dividend
* Capital Appreciation

Dividend earned during the financial year 2022-23 by TIDCO due to shareholding in the above listed companies - 

During the FY 2022-23, TIDCO earned around INR 259 Crores in dividends from listed companies, especially INR 247 Crores coming from TITAN Limited alone. This potentially reflects well on TIDCO’s investment decisions.

According to the Annual Return submitted by TIDCO in Form MGT-7, the turnover for the fiscal year 2022-23 amounted to INR 2,85,00,97,000. Dividends received from listed companies, totaling INR 2,59,45,56,204 accounted for approximately 91.03% of the total turnover.


The value of the listed share holdings considering closing price of the shares quoted as on March 28, 2024 is -
*Closing price as of the shares in the Bombay Stock Exchange (BSE) is considered for calculating the market value of the holdings.
*Closing price as on 28-03-2024 is being considered because the market remained closed from 29-03-2024 to 31-03-2024.

Market value of the listed shares held by TIDCO as on 28-03-2024 is INR 9,53,41,85,55,998 ~ INR 95,341 Crores. The market value of shares of TITAN Limited held by TIDCO is approximately INR 94,164 Cores.


Conclusion

TIDCO by facilitating large industrial and infrastructure projects in Tamilnadu involving large investments and huge employment potential is creating employment opportunities.

Access to capital is indeed a critical challenge for many businesses, especially those with promising prospects but limited financial resources. 

TIDCO functions as a cash cow due to its steady inflow of dividends. These dividends are reinvested into various large-scale industrial and infrastructure projects that require capital infusion. This strategic reinvestment of dividends allows TIDCO to support and fuel the growth of critical projects, contributing to further development and expansion within the industrial and infrastructure sectors.

According to the  Annual Return submitted by TIDCO in Form MGT-7, names of 28 companies are provided as details of subsidiary or associate companies of TIDCO.

Additionally, the sustained investment in large industrial and infrastructure projects creates a ripple effect, leading to the establishment of ancillary industries, skill development programs, and improved infrastructure, further boosting economic prosperity in both rural and urban areas. Moreover, by prioritizing sustainable and inclusive development, TIDCO's approach to capitalism ensures that the benefits of economic growth are shared more widely, contributing to social cohesion and overall well-being.


Source - 



3) Annual Return (Form MGT -7)  of TIDCO for the FY 2022-23 - https://tidco.com/wp-content/uploads/2023/12/20231219113309.pdf

* Page 2 and 3 for list of subsidiaries.
* Page 8 - Turnover

Thank You
Happy Reading !

Comments

Post a Comment

Popular posts from this blog

KTM in India: The Rise, the Ride, and the Chapri Tag

-
Image
The Beginning of My KTM Journey The year 2012 was significant for me in two ways. First, I successfully cleared my II PUC boards in Karnataka and secured a good score in the KCET exams, which earned me a merit-based seat at RV College of Engineering. Second, it was the year that the KTM Duke 200 was launched in India at an ex-showroom price of around INR 1,17,000. Since I got into college on the basis of my KCET ranking, my tuition fees were lower. I decided to use this to my advantage and convinced my parents that I would only pursue engineering if they bought me a KTM Duke 200. My father was shocked. He had a decent job and was content with his Hero Honda Splendor, yet here I was, demanding a high-performance European bike just for commuting to college. After much pleading and many promises—including a pledge not to bunk classes (which I broke on my very first day)—the "Orange Beast" arrived home in June 2012. During my college days, having a KTM Duke or an iPhone was t...
Read more

Transforming Bangalore's Urban Mobility: Facts about BMRCL

-
Image
Bangalore Metro Rail Corporation Limited (BMRCL) is a joint venture equally owned by the Government of India (GoI) and the Government of Karnataka (GoK). It is primarily responsible for the construction and operation of the metro rail project in Bangalore. The Bangalore Metro has emerged as the second-longest metro network in the country. Boarding’s at Namma Metro During the Financial Year 2022-23, the Bangalore Metro recorded an average daily ridership of 4.86 lakh passengers. The addition of the Reach 1 Extension in March 2023, along with the establishment of connectivity between Baiyappanahalli Metro Station and K.R. Pura Metro Station, as well as the opening of Challaghatta Metro Station on October 9, 2023, created a seamless 43.30 km stretch for commuters. These developments significantly boosted ridership, increasing the average daily boardings to 6.36 lakh passengers in the Financial Year 2023-24. Highest boarding and Revenue On August 14, 2024, BMRCL achieved its highest-ever d...
Read more

From Incubation to IPO: How IIT Madras Incubators are Paving the Path to Self-Sufficiency

-
Image
Imagine a young startup with innovative ideas but struggling to find its footing. This is where incubators step in, providing not just infrastructure but a launchpad for success. What is an incubator? An incubator is an organization or program designed to support early-stage startups and entrepreneurs by providing them with the resources, mentorship, and infrastructure needed to grow and succeed. Key Functions of an Incubator: Mentorship & Guidance Office Space & Infrastructure Funding & Investment Networking Opportunities Business Services Skill Development Tax exemption status of Incubators As per Section 2(15) of the Income Tax Act, 1961 (‘the Act’), charitable purpose inter-alia includes education and advancement of any other object of general public utility. An incubator promoting education, technology, and entrepreneurship can fit into the "education" or "general public utility" categories. Hence, an incubator can be register...
Read more