Ajanta-Orpat plans diversification

To strengthen Oreva brand, may launch food products soon

The world's largest clock manufacturer Ajanta-Orpat group has chalked out further diversification plans under the Oreva brand name.

The company aims to venture into food products besides further diversification in its existing lighting and automobile divisions.

"We plan to invest around Rs 15-20 crore in food products and will initially launch potato chips and namkeen. We plan to diversify further, once the products are established in the market," said Rakesh Nathwani, project incharge of the group's food product division.

The products will be manufactured at Morbi and will be introduced in a couple of months, he said.

The company has 213 acre in Kutch where it aims further expansion and capacity addition in the lighting, vitrified tiles, automobile and electronic segments in the next two years.

It launched its energy saver tubelights about two months ago and produces 30,000 tubes per day.

"Our tubes save nearly 50 per cent more power and we may double the capacity to 60,000 pieces at our Kutch unit in the next one year," said Jayesh Sheth, director of Ajanta-Orpat group.

The company expects a turnover of Rs 200 crore from the tubelight division in FY07 and Rs 250 crore in the following financial year.

The company forayed into the lighting segment four year ago with production of 5,000 pieces per day which has increased to 1.25 lakh pieces today. "We are also planning to double capacity in this segment in the next one year," he said.

Ajanta-Orpat has set up India's largest manufacturing facility of vitrified tiles under the brand name of Oreva with an investment of Rs 250 crore in Kutch.

"We will further invest about Rs 150 crore by next year to double capacity of vitrified tiles," Sheth said. The production capacity of the unit after the investment of Rs 400 crore will become 30,000 sq mt per day.

"The current production is 18,000 sq mt, which is about 60 per cent of the total capacity expected next year," he added. The company is also planning to export vitrified tiles to West Asia, Africa, East Europe and Asia.

"Our FY06 turnover has been about Rs 500 crore," Sheth informed. The projected turnover in FY07 is Rs 700 crore and the group aims to touch Rs 1,000 crore in FY08, Sheth said.