THE JUST-RELEASED FY2014 annual report of TriTech Group contains fascinating pictures of its marble quarry in Kelantan, Malaysia, where commercial production is being stepped up.

More significantly, TriTech is on the verge of launching the IPO of its subsidiary, Terratech Group, under which the marble quarry business is parked.


quary7.14Independent valuer Censere is of the opinion that the fair market value of the Kelantan Marble Quarry as at 31 March 2014 is in the S$170 million - S$420 million range, with a preferred value of approximately S$260 million, according to the preliminary IPO prospectus.

2quary7.14Much of the marble available for excavation at the Kelantan Marble Quarry is visibly and dramatically exposed as high cliffs above the plain and above the forest reserve, according to the preliminary IPO prospectus.
Terratech Group has the right to possess and operate its Kelantan Marble Quarry up to 26 January 2044.

According to its preliminary IPO prospectus, the quarry produces marble products which are suitable for high-end commercial and public buildings, such as hotels, office buildings, museums, memorial halls and mosques, and residential uses.

"Our marble products, being foreign imports, should generally enjoy a premium in the PRC market."
 
Its current production capacity is sufficient to support its order book of approximately S$23.46 million, a significant proportion of which it expects to fulfil in FY2015 (source: Page 76 of prospectus).

In Malaysia, there are only three other marble quarries, two of which are located in Ipoh, Perak and one in Sabah.
 
"However, these quarries are on a much smaller scale compared to our Kelantan Marble Quarry, with a combined production capacity which is significantly lower than our Kelantan Marble Quarry, 
and moreover most of the marble blocks produced from such quarries are consumed domestically,"
 said Terratech in its preliminary IPO prospectus (page 141). 
 

3quary7.14Terratech intends to sell its products primarily to end-user customers such as property developers and construction companies. Separately, it may enter into distribution agreements with marble distributors and wholesalers.


Recent story: 5 Key Points About Impending IPO of TERRATECH


 

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Comments  

#1 Dave Singh 2015-08-06 16:25
Dear Sir,

Im interested in Marble lumps or marble chips (20-90mm). I have a client in India who is looking to purchase this product. They are looking at 1,000 tonne a month. If u have this product pls revert asap. Thank you.

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