Indygo (WA:IDGP) is a Polish investment holding, which has invested in promising companies that operate in the area of ceramic technology. The products, which its subsidiaries already produce or will soon manufacture, are complementary and make the production, consumption and transport of energy much more efficient. All subsidiaries are listed, which makes them more transparent and ensures a market-based valuation.
IDG has three fully-consolidated subsidiaries: Baltic Ceramics Investments S.A. (BCI), LZMO S.A. (LZMO) and Electroceramics S.A. (EC). In the last years, they have raised more than PLN 50m of EU money, which along with equity and debt has been used for investments relating to R&D of innovative ceramic products for the oil & gas, construction and energy industry. While LZMO has already been generating sales in the last years, Baltic Ceramics Investments and Electroceramics, which through SPVs are currently constructing their production facilities, will likely report first revenues in 2016. Both have already signed letters-of-intent with first potential clients.
IDG’s subsidiaries are targeting areas, which are expected to develop very well over the next years. BCI will offer own patented ceramic proppants, which are required in hydraulic fracturing, a process, which is used in the exploration of unconventional gas sources. According to Grand View Research and ResearchandMarkets, the market for proppants will grow from 45.1m tons in 2013 to 96m tons in 2020. The International Energy Agency IEA expects the share of production of gas from unconventional sources to increase from 14% in 2010 to 32% by 2035. LZMO (isostatic ceramic chimneys) and Electroceramics (ceramic insulators and corps) will likely benefit from EU legislation, whose aim is to reduce energy consumption by 27% until 2030 and CO2 emissions from the energy sector by 80-95% until 2050.
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