China and ‘power’ were two key 2006 investment themes, while India is shaping as the new ‘Asian Tiger’ for 2007, with a number of Indian IPOs on their way.

Already upon us is this power project developer with interests in multiple Indian power plants. KSK, which raised a bumper �30.9m at float in November, works with Indian, international and distribution businesses to ensure they have access to dependable and cost-effective electrical power, with huge power-generating capacity necessary to support the Indian Government’s economic growth projections, which have risen from 8% to more than 9% per annum.

Maiden interims for the half to September revealed revenues of US$3.12m (�1.6m) and a $1.3m (�659,000) loss after all expenses and taxes. However, the deficit reflects the long lead-in times of these projects, with KSK bearing project development costs on its P&L and significant contracts set to start in the second half.

Highlights of the past six months include the completion of the 43 MW Arasmeta captive power plant for Lafarge India, which has become operational, as well as the further development of the group’s first hydro-electric plant initiative. KSK shortly expects to commission its 58 MW Sai Regency power plant, supplying industrial customers in the state of Tamil Nadu, as well as the 43 MW plant fuelling cement production units in the state of Andhra Pradesh.

This sector traditionally boasts strong cash flow characteristics, and KSK is forecasting profits of between US$4-5m (up to �2.5m) for the year, though dividends are off the menu short-term while there’s a call to be made through further investment in the Indian power growth story. If you are willing to bear risks associated with overseas ventures, be intrigued.