Orient, the manufacturer of the ubiquitous PSPO fans, has undergone a major rebranding exercise consolidating its electric appliances business under a single brand name in a bid to leverage its brand better.
The CK Birla Group company has been manufacturing fans for over 60 years and in the last few years has entered the lighting and domestic appliance space and all three would be brought under the 'Orient Electric' brand, which remains a subsidiary of Orient Paper & Industries .
Also read: Orient Paper standalone Dec '13 sales at Rs 361.19 crore
Shares in Orient Papers have been on the run, about tripling in value in the last six months.
In an interview with CNBC-TV18's Latha Venkatesh and Ekta Batra, the parent company's MD ML Pachisia outlined the company's plans in the electric appliances and power businesses as also what it plans to do with a defunct mill in Odisha.
Below is the edited transcript of the interview on CNBC-TV18.
Latha: You have done something dramatic. Can you take us through this new brand?
A: Our focus in the company is on growing the electric business and there we have added several new products. We have also launched new brand identity and that part of the business is doing reasonably well and we are expecting substantial growth in that part of the business.
We added domestic appliances, home appliances last year and now we are going ahead with switchgear project.
Therefore, we do expect the electrical business to go up. I cannot comment on why the stock price has gone up but that is the main focus of the company.
Ekta: We understand that there is a plant in Brajrajnagar which is not operational since way back in 1999. What are you doing with that land? Is it up for sale?
A: No, it is not up for sale. We are still contemplating on what we shall do there. We have few ideas in mind which we are trying to come to a conclusion on but right now there is no proposal for sale of that land.
Ekta: What are these ideas you are contemplating for the land?
A: To start some manufacturing activity there.
Latha: What might it be?
A: It is difficult for me [to comment]. There are two or three ideas; there is a power project that we are working on, there is also a possibility to revise some of the old activities there. So, we are looking at various options. It is very difficult for me to exactly say what it is.
Latha: Your electrical, consumer durable business is almost double your paper business. But how is the [general] business? The macro numbers [from the economy] we get and even micro numbers from several consumer companies is quite discouraging. Have you seen any demand uptick?
A: At least we have seen a substantial growth in that part of the business, almost 25 percent growth in that business from previous year to this year partly because of addition of products.
On the same products, there has not been a large growth but because we have had additional product where our starting base was small. We have seen reasonably good growth and we have done fairly well in exports of our traditional items like fans.
Latha: Brajrajnagar was electrical appliances company or was that one of your paper mills?
A: It was a paper mill.
Latha: So you make convert into consumer durables?
A: Not in consumer durable. That is not the plan
Ekta: What about your paper business. You expect that to recover anytime soon and how are the international paper prices affecting you?
A: Paper industry as such is not doing all that well as of now but we have made some internal improvements in our efficiencies so the paper business also is showing signs of a turnaround. Not that it is adding very much to the bottomline as yet but we do expect paper business to do much better in '14-15.
Latha: Will Brajrajnagar's power plant be something to similar to what you have done at Amlai?
A: We are looking at a slightly larger power plant as a merchant power plant.
Latha: It will be hydel or it will be coal?
A: It will be coal because we are next to a coal mine.
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