(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.
