OCIL to invest Rs 100 crore in capacity expansion
Orient Ceramics and Industries Limited (OCIL), one of the largest manufacturers of Non-Vitrified, Vitrified, Ultra Vitrified and 3rd Fired Decorative Tiles for walls, floors & facades have announced growth of 14% in gross sales at Rs 6465 lacs for the quarter ended June 30, 2010. The net profit for first quarter stood at Rs 531 lacs, up 249% from Rs 152 lacs in Q1FY10.
Commenting on the numbers posted for Q1FY11, Mr. Madhur Daga, Executive Director, OCIL, said, “While the industry has been growing at CAGR of approx 15% in past years, the positive sentiment with regard to growth in India particularly in real estate sector is going to help all the companies in the space to show robust growth. While the market is increasing, we at OCIL have decided to focus on visibility expansion and eyeing 100,000 sq ft of retail area in the current fiscal via company owned company operated showrooms, opening new franchisees including shop-in-shop stores etc.”
Commenting on the company’s performance for the first quarter, Mr. Vijay Shankar Sharma, CFO, OCIL, said, “While we have got a pan-India distribution network I feel that going forward we could see a strong earnings growth to be largely triggered by volume growth, better realisations and emphasizing more on high margin product mix. We are also looking at putting control on raw material management. OCIL has set up International Business Division (IBD) in the last quarter of FY10 and has already started exporting to more than 5 countries. Export volumes are expected to increase manifold in 2010-11. Currently, we are exporting our products in Dubai, Muscat, Oman, Srilanka, Maldives, and Mauritius markets. During the first quarter of current fiscal OCIL has spent additional Rs. 150 lacs towards marketing expenditure for branding and product display.”
Commenting on OCIL, expansion plans, Mr. Daga added, “While we have always been growing our markets, to cater to the increase demand, we at OCIL have finalized our plans for investing Rs 100 crore in expanding manufacturing capacity. The expansion will be done not only for green-field project but we will also go for some kind of joint venture agreement”.
About Orient Ceramics and Industries Ltd:
Orient Ceramics and Industries Ltd (OCIL) pioneers in manufacturing Ultra Vitrified Tiles in India was formed in 1977 as a public limited company and has been at the forefront of innovation in home décor ever since. The company is accredited with ISO 9001:2008 for quality control management systems, ISO 14001:2004 for environmental management systems and ISO 18001:2007 certifications for Occupational health and safety management systems. Having a base of more than 1500 retail outlets and more than 4000 secondary retailers spread all over the country and also a wide customer base ranging from Middle East to Europe. For more details about OCIL please visit www.orienttiles.com.
Forward Looking Statement
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. OCIL will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.