Date:06/01/2007 URL: http://www.thehindubusinessline.com/2007/01/06/stories/2007010604180500.htm

Back Orient Ceramics plans exclusive showrooms in major cities

R. Ravikumar

To expand product portfolio

Orient is also expanding its product portfolio with long-term contract manufacturing agreements in India and China.

Chennai , Jan. 5

Orient Ceramics plans to expand its retail horizon with exclusive outlets planned in major cities across the country. The company, to cash in on the construction boom, also plans to increase its production capacity to 14.75 sq.m from the present 9.75 sq. m. a year at its facility at Sikandrabad, U.P.

According to Mr Sanjay Monga, Vice-President, Sales and Marketing, though the company has been marketing vitrified tiles sourced from a manufacturer in Gujarat, with the capacity expansion plan, it is all set to manufacture vitrified tiles on its own.

However, Orient is also expanding its product portfolio with long-term contract manufacturing agreements in India and China. Within this fiscal, Orient is expected to add approximately 20 per cent of its topline via outsourced products including ceramic, vitrified tiles and bathroom fittings under the brand name Iris.

Turnover

For the year 2006-07, the company expects to cross the Rs 200-crore turnover mark. "We have been growing at 40 per cent per annum against the industry growth of 15 per cent and we are sure of sustaining the growth if not more in the next fiscal as well," said Mr Monga.

Retailer network

To focus more on the South, the company opened a regional distribution centre in Bangalore recently. "We are also planning to expand our primary retailer network to 750 and secondary retailers to 2,500 by March from the present 600 and 2,000 respectively."

5:4 bonus issue

Meanwhile, the board of Orient Ceramics, in its extraordinary general body meeting held on December 27, 2006 approved the issue of five bonus shares for every four shares held and also fixed January 16 as record date for the purpose.

The board also approved increase in authorised share capital from the existing Rs 10 crore to Rs 15 crore.

"We appointed Grey Worldwide as our agency and a new ad campaign is expected to break soon across media," Mr Monga said.

The company is currently listed on the Bombay Stock Exchange. Now, it proposes to list its shares on the National Stock Exchange as well.

On Friday, Orient Ceramics closed at Rs 162.05 with out any change from the previous day's close.