Hairy (squared) Business – Radix Industries
This company (RADIX INDUSTRIES BSE: 531412) piqued my interest as it bids and sells hair ( remy hair ) donated in South Indian temples.
Human hair sell for as much as 50 Lac INR per tonne. Industry size is roughly 2500 Crores INR.
This hairy business get more hirsute as I feel the company’s share have already been cornered by promoters and their friends and family members indirectly leaving no value. Company is growing 100% YoY but the industry size / MCAP (300 Crores) of 8 times leaves little room for appreciation for investors as promoters bought shares for 2 Rs but have artificially kept the price inflated at 300 Rs.
TTD sells human hair for Rs 77 crore
Factor this: In 2011-12, the Tirumala temple earned nearly Rs200 crore out of its total revenue of Rs1,949 crore, from auctioning human hair.
According to L.V. Subrahmanyam, executive officer of the Tirumala Tirupati Devasthanams (TTD) that manages the temple affairs, the projected revenue for 2012-13 from auctioning hair is around Rs150 crore, but going by the ever-increasing number of pilgrims flooding the temple, it is expected to surpass last year’s.
Disclosure: Not invested in Radix Industries.