PNN
New Delhi [India] August 24: Oriental Trimex Ltd (BSE - 532817), a leading processor and trader of natural stones in India announces a series of strategic developments that are set to redefine its operational capabilities, expand its market presence, and solidify its financial standing. These initiatives underscore the company's unwavering commitment to innovation, growth, and customer satisfaction.
Highlights:
Company announces significant debt reduction and path to become debt-free.
Company announces revolutionary leap forward for processing in the stone industry.
Company is coming up with a 21,000 sq ft showroom in the Building Materials Market in Greater Noida.
Secures Jet Black Granite Quarry in Orissa, Boosting Revenue and Profitability Prospects.
Expands Product Portfolio with Related Product Lines, Enhancing Customer Offerings.
1. Revolutionary Leap in Stone Processing with Wire-Based Gangsaw Machine
Oriental Trimex Limited is poised to revolutionize the stone industry with the importation and installation of a cutting-edge wire-based gangsaw machine, commonly referred to as a "Cable Machine for Slab Cutting." This state-of-the-art technology, sourced from Changsha Beto New Material Technology Co. Ltd. in China, will be the first of its kind in India and is set to be installed at OTL's plant in Gummidipoondi, near Chennai.
Unlike traditional gangsaws that utilize multiple blades, this advanced machine employs a series of diamond-coated cables with diameters of 0.4-0.6mm, enabling precise cuts and setting a new benchmark for accuracy and efficiency. With features such as pneumatic wire tensioning, hydraulic cylinder support, and bellow-protected linear rails, the wire-based gangsaw significantly reduces waste, enhances durability, and speeds up the cutting process by approximately three times compared to conventional machines.
This strategic investment, expected to be operational by December 2024, is a testament to OTL's dedication to embracing innovative technologies that enhance operational excellence. It will allow the company to deliver unparalleled quality to its clients, particularly in the high-end residential and commercial construction segments.
2. Expansion in Greater Noida with a 21,000 Sq. Ft. Showroom
In a move to strengthen its market presence, Oriental Trimex Limited is excited to announce the upcoming launch of a sprawling 21,000 sq. ft. showroom in the building materials market at Site-4, Greater Noida. Strategically located in the heart of Gautam Budh Nagar District, this showroom-cum-warehouse is poised to become a one-stop destination for all flooring solutions.
Scheduled to be operational by the end of September 2024, the showroom will showcase an extensive range of finished marbles sourced from OTL's state-of-the-art processing plant in Chennai. In addition, the company will procure high-quality granites from processors in Rajasthan and Southern India, ensuring a comprehensive portfolio of flooring solutions.
The location of this showroom is particularly strategic, given the upcoming Jewar Airport and the envisioned Aerocity in Greater Noida. These developments are expected to drive exponential growth in the region, and OTL is committed to catering to the increasing demands of the area. The company also plans to expand its footprint with a new showroom in Delhi, post-raising funds through a Right Issue, further reinforcing its position in the market.
3. Securing a 30-Year Lease for Jet Black Granite Quarry in Orissa
Oriental Trimex Limited is pleased to announce the securing of a 30-year lease for a Jet Black Granite Quarry spanning 12.260 acres (4.961 hectares) in Village Poteru, Malkangiri district, Orissa. This quarry, allocated by the Government of Orissa, is a significant addition to OTL's portfolio, boasting a massive deposit of decorative stones and Jet Black-colored granite with substantial export potential.
The mining plan for the quarry has been approved by the state government, with an independent valuation by Er M K Mehta estimating the total mineral deposit value at approximately INR 258.77 crores. With the Environmental Clearance (EC) expected by November 2024, OTL plans to operationalize the quarry shortly thereafter. This development is expected to significantly boost the company's revenue and profitability, further cementing its leadership in the natural stone industry.
4. Diversification of Product Portfolio
In an effort to enhance its customer offerings and create new revenue streams, Oriental Trimex Limited announces plans to diversify its product portfolio by venturing into additional related product lines. Starting from December 2024, the company will introduce:
Low-cost Indian granites
Designed porcelain tiles in similar colors to imported marbles
Nano stones from China
Marble-designed quartz stones and quartzites
This expanded product mix will cater to a broader customer base, including various socioeconomic groups, and provide more options to suit different budgets. OTL's strong sourcing abilities, deep understanding of local customer preferences, and established infrastructure will support the marketing of these new products. The company's presence in Greater Noida and focus on Tier 2 and Tier 3 cities, particularly in Uttar Pradesh under the Central Government's 'Smart City' plan, positions it for significant growth.
5. Significant Debt Reduction and Path to Becoming Debt-Free
Oriental Trimex Limited is pleased to announce a significant milestone in its financial journey. The company has successfully made a payment of INR 38.25 crores to Edelweiss Asset Reconstruction Company Limited ("Edelweiss ARC") as part of a One-Time Settlement ("OTS") agreement entered into on January 30, 2024. This payment has substantially reduced OTL's debt obligations, putting the company on the path to becoming debt-free.
With only a nominal interest amount remaining, which is expected to be paid by September 2024, Oriental Trimex Limited is on the verge of achieving debt-free status. This development is expected to enhance the company's credibility and reputation among stakeholders, further strengthening its position in the industry.
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