CK Birla Group flagship Orient Cement posts volume growth of 43% for quarter; stabilisation of new greenfield plant progressing well

New Delhi, August 03, 2016 – Orient Cement Limited, a part of the USD 1.6 billion diversified CK Birla Group, announced its financial results for the quarter ended June 30, 2016. The company has reported volume growth of 43% over the corresponding quarter last year on account of increasing volumes from both old operations and the newly commissioned plant at Chittapur in Gulbarga district, Karnataka. The Company has recorded Net Sales of Rs. 436 crores and EBITDA of Rs. 44 crores for this quarter.

The new capacity is continuing to extend the Company’s reach into new markets in south India, most notably AP and Karnataka, while strengthening its position in Telangana and Maharashtra. The new plant is expected fully stabilize operations in the next couple of quarters, thus driving increased profitability as well as deeper and farther access to markets going forward.

Deepak Khetrapal, Managing Director and Chief Executive Officer, Orient Cement said, Volumes across all our markets are higher versus the corresponding quarter last year due to the increased utilization of our new capacity at Chittapur, which is now operating at close to 60%. However, the quarter ended June 30 has seen an overall slowdown of volume growth versus the previous quarter. In particular, lower volumes in AP/Telangana and parts of Maharashtra have been partially compensated by the rapid growth of volume into Karnataka, west Maharashtra and MP/Chattisgarh, enabled by our new capacity. The old operations achieved a capacity utilization of 82% in Q1FY17.

The low price environment in our core markets continues to persist. On average, cement net sale realisations have been flat compared to the previous quarter and around 10% lower than the same period last year.

Amidst these difficult external developments, we continue to focus on our operating efficiencies. The high costs related to the commissioning/stabilization of our new integrated unit at Chittapur affected our operating and net profit numbers in the quarter. However, most of these challenges have now been addressed and with improving capacity utilization at this unit, the costs are expected to be normalised soon.

The Company expects demand to be subdued in the July-September quarter due to ongoing heavy monsoon. However, good rainfall is expected to provide a strong boost to cement demand in the post monsoon months. Various government projects for low cost housing, roads, irrigation, metros as well as new initiatives like “Smart Cities” & “Swachh Bharat” are still expected to result in improved demand for cement in Telangana, AP and Maharashtra. The construction of the new capital of AP at Amravathi is also expected to contribute to higher cement appetite in Southern India.

About the CK Birla Group
The CK Birla Group is a US$1.6 billion diversified conglomerate that over the years has developed a strong footprint in manufacturing, engineering, technology, hospitals and education. With over 20,000 employees, 27 manufacturing facilities and a customer base that includes some of the world’s best-known companies, CK Birla Group’s businesses are present across five continents.

The Group’s companies operate in the sectors of Technology and Automotive, Home and Building, and Healthcare and Education. Companies in the Technology and Automotive cluster comprise AVTEC, Birlasoft, GMMCO, NEI and Neosym. These companies are leaders in manufacturing products for the automotive and related industries globally. The Group’s manufacturing capability is further strengthened through its Home and Building solutions companies: HIL, Orient Cement, Orient Electric and Orient Paper. These companies manufacture everyday usage products like paper, fans, kitchen and home appliances, building materials like cement, low weight blocks and panels, pipes and fibre roofing sheets.

CK Birla Group also has two hospitals in Kolkata: CMRI, a multi-specialty hospital with and BM Birla Heart Research Centre, the first NABH-accredited research and treatment centre for heart disease. The CK Birla Group has a presence in the Education sector through the Birla Institute of Technology, Mesra, Ranchi, Modern High School for Girls, Kolkata and Rukmani Birla Modern High School, Jaipur.

The CK Birla Group is deeply committed to creating sustainable positive impact. The Group allocates significant resources to philanthropic initiatives; including those in science and technology, art and culture, and heritage preservation. The Group also works to improve the livelihoods of rural and underprivileged communities. For more information visit us at www.ckbirlagroup.com

About Orient Cement

Orient Cement Limited is part of the USD 1.6 billion diversified CK Birla Group. Earlier a division of the multi-product, multi-unit Orient Paper and Industries Limited, Orient Cement was de-merged with effect from April 1st, 2012 and became a public limited company. The company produces 5 MTPA cement annually from its two plants in Andhra Pradesh and Maharashtra. Its first Greenfield project at Devapur in Adilabad District, Andhra Pradesh began cement production in the year 1982. In the year 1997, a split-grinding unit (also a Greenfield project) at Nashirabad, in Jalgaon, Maharashtra was added. With the new plant at Chittarpur in Gulbarga district, Karnataka having been commissioned in September 2015, Orient Cement Limited now has a total installed capacity of 8 million tons.

Orient Cement is certified for both ISO 9001:2008, and ISO 14001:2004 and also OHSAS 18001:2007 from Det Norske Veritas, Netherlands. The company sells cement under its popular brand Birla A1 Premium Cement in Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Tamil Nadu, Chattisgarh, Gujarat and MP.

Media contact:
Shankar Radhakrishnan; +919999384812; Shankar.Radhakrishnan@bm.com

Awards section

Awards

  • 1995

    National Award For Energy Efficiency

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    1996

    Raasi Cement Silver Rolling Trophy

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  • 1996

    National Award For Energy Efficiency In Indian Cement Industry

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    1997

    International Greenland Society National Award

    a

    1997

    National Productivity Council of India

    – Certificate Of Merit

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  • 2001

    Award For TPM Excellence

    – First Category

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    2001

    National Award For Energy Efficiency

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    2001

    National Award For Energy Efficiency In Indian Cement Industry

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  • 2003

    Award For Excellence In Consistent TPM Commitment.

    First Category

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    2003

    Total Productive Maintenance Award

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    2003

    World Environment Day Award for cleaner production technologies

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  • 2005

    Andhra Pradesh Pollution Control Board

    – Certificate

    a

    2006

    Mines Environment & Mineral Conservation Week

    – 2nd reclamation & rehabilitation

    a

    2006

    Group – first prize.

    Publicity Prop aganda and Innovations

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  • 2007

    May Day

    – Best Management Award

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    2007

    Greentech Safety Award

    – Silver award for safety management

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    2007

    Silver Jublee Year 1 Stprize Group A2 Mines Environment & Mineral Conservation Week

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  • 2008

    1 St Prize Overall Performance

    – Large Mechanised Mines

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    2008

    1 st Water Quality Management

    – Large Mechanised Mines

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    2008

    Mines Safty & Productivity Council Hyderabad

    – 2nd Prize Logistics & Transporrtation

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  • 2008

    Det Norske Veritas For Orient Cement

    -Manufacture of Cement- ISO 14001_2004

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    2008

    Det Norske Veritas For Orient Cement

    -Manufacture of Cement OHSAS – 18001_2007

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    2008

    Indira Gandhi Memorial National Award

    – Best Organisation Gold Award

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  • 2009

    Mines Safety Week by Macherial Cement Company

    – 2 st Prize Mine Working

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    2009

    NABL Certificate

    – Mechanical Testing. ISO / IEC 17025:2005

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    2009

    Nabl Certificate For Orient Cement Quality Control Laboratory

    – Chemical Testing. ISO _ IEC 17025_2005

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  • 2010

    2nd Water Quality Management

    – Large Mechanised Mines

    a

    2010

    Det Norske Veritas For Orient Cement

    -Manufacture and Supply of Cement- ISO 9001_2008

    a

    2011

    1 st Management Of Subgrade Minerals

    – Large Mechanised Mines

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  • 2012

    Golden Peacock Occupational Health & Safety Award Winner AP

    a

    2013

    Greentech Silver Award in Cement Sector for Safety Management

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    2013

    Golden peacock occupational health & safety award

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  • 2015

    Home Magazine- Product of the year

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    2015

    Asiamoney best managed companies

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    2015

    India s top challenge

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  • 2015

    The economic times AD Top-100

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