ORIENT ABRASIVES

 (NSE CODE: ORIENTABRA, BSE Code: 504879) (CMP: Rs.38) (FV: Rs.1)

Orient Abrasives, an associate company of Ashapura Group was set up in 1974, in technical collaboration with Karborundum, Bentueky, Czechoslovakia by the Rajgarhia group of industries as a venture to manufacture Calcined and Fused Alumina products. The Company enjoys the position of being the largest producer of Calcined and Fused Products in India.

The Company offers a wide range of Refractory and Monolithic products for the iron and steel industry and enjoy large domestic and international clientele. An in-house R&D facility supports the division’s product development initiatives. This makes OAL the preferred choice for quality products.

Headquartered in Mumbai, India, OAL's manufacturing facilities are located in Porbandar, Gujarat and have the distinction of being ISO - 9001 quality certified.

The installed capacity of the plant for Fused Aluminum Oxide Grains has been increased recently from 21,000 MT to 36,000 MT and for Calcined products is 74,250 MT. Currently the plant draws the majority of its power requirements from two furnace oil based captive generator sets. In light of the rising cost of furnace oil the management is setting up a lignite based power plant to meet its current and future power requirements.

PRODUCTS

1.     High Alumina Raw Materials 

     OAL is India’s largest manufacturer of Calcined and Fused Alumina products. They manufacture a wide range of Aluminous raw materials including Brown Fused Alumina, White Fused Alumina, Pink Fused Alumina, White Fused Mullite, Fused Zirconia Mullite (ZIRMUL), Fused Alumina-Magnesia Spinnel, Calcined Bauxite and High Alumina Refractory Cement. All these products cater to the needs of grinding wheel and refractory manufacturers. Fused Alumina is also used for shot blasting and cleaning purposes. The key raw materials for these products are Bauxite and Calcined Alumina. Bauxite is sourced primarily from the Company’s own mines located in the Jamnagar and Bhuj districts of Gujarat. Calcined Alumina is sourced from aluminium manufacturing companies.

2.     Conventional & Low Cement Castables

     OAL produces wide range of refractory raw material which guarantees high performance conventional Castable manufactured from in-house raw material. OAL also produces superior quality Low Cement Castable which is ideal for application under critical environment of high temperature furnaces. Company can develop tailor made products with narrow focus to meet specific needs of the customer. Product line is formulated to minimize specific consumption, down time, maintenance cost etc.

Applications

·         Iron & Steel - Blast Furnace, Ladle, Reheat Furnaces, etc

·         Cement & Lime

·         Ferro Alloys

·         Glass & Ceramics

·         Boilers & Power plants

·         Aluminium

·         Foundry

·         Petroleum & Chemicals

  3. Refractory Mortars

    Mortars are basically finely ground refractory materials, which become plastic when mixed with water. These are used to bond the brickwork into solid unit, to provide cushion between the slightly irregular surfaces of the brick, to fill up spaces created by a deformed shell, and to make a wall gas-tight to prevent penetration of slag into the joints. OAL provides wide range of mortars with Alumina content from 30% - 90%.

FINANCIAL PERFORMANCE

With an equity capital of Rs. 11.97 crore and reserves of Rs.163.37 crore. Promotors hold 63.35% stake and have increased stake in the company from last two quaters , FII’s hold and 13.2% stake and 4.19% is held by HNI’s in the company. Performance of the company is increasing year after year. It has posted an EPS of  Rs 1.03 in FY15, Rs 1.97 in FY16, and till Q3 FY17, it has reported an EPS of Rs 2.47. The capacity addition done recently will have positive impact on margins and operating profit of Q4 FY17. Performance of the company is expected to be robust in FY18. It is a regular Dividend paying company.