Amandeep, Group Executive Director and Joint CEO, OCL India
OCL India owns one of the most modern dry process cement plants in India. Presently, it has an installed capacity of 5.35 million tonnes per annum. Apart from its two cement plants, the Rajgangpur Cement Works and Kapilas Cement Works, OCL has a Refractory plant at Rajgangpur with a total installed capacity of 106.4 billion tonnes per annum. OCL was the first to initiate cement export from eastern region to countries like Bangladesh and Nepal. Amandeep, in an interaction with ICR, shares the success story of the company. Excerpts from the interview.
Please brief us about your company and the markets served?
OCL India is the flagship of the Dalmia Group of Companies, having set up plants operating in four states of India – Odisha, West Bengal, Bihar and Jharkhand. Our first cement plant was set up at Rajgangpur during 1950-51 at the request of the Government of Odisha to manufacture super grade cement for use in the construction of the prestigious Hirakud Dam. At that time it was known as Orissa Cement Ltd.
OCL commissioned its Refractory plant in the year 1954, which today has grown into one of the largest composite refractory plants in the country. It manufactures silica, basic burnt magnesia carbon, fireclay, high alumina bricks, continuous casting, slide gate refractories, castables and precast blocks, etc. OCLs Refractory division is the first Indian refractory manufacturer to have secured the coveted ISO 9001 certification for all its refractory products. Globally OCL is amongst the few select producers of coke oven silica bricks.
The company changed its name from Orissa Cement Ltd to OCL India in1996 to reflect its multifarious activities such as manufacture of iron and steel.
How has the company performed during the last five years in terms of growth and product launches?
The company had added a capacity of 1.35 million tonnes (MnT) in 2008 and has continued growing at an average rate of 19 per cent in subsequent three years. OCL maintained its volume in the 2012-2014 period. We expect another growth burst in cement demand the coming years and we have added another 1.35 MnT to our production capacity.
OCL sells its product under brand name Konark and has two variants of the product, PSC and PPC. Recently, OCL launched a premium product named DSP in the market.
How is the brand recognition of Konark in the market?
Konark is leading brand in the state of Odisha commanding highest premium and largest market share. In markets of West Bengal, Bihar and Jharkhand, Konark is seen as a reputed brand and is rated high on quality by all its consumers.
Konark brand has been extensively used in the construction of the prestigious Hirakud Dam in Odisha and in building some of Indias largest roads, bridges and industrial plants, including the Vidyasagar Setu in Kolkata, the Gandhi Sagar Bridge in Patna, as well as in the construction of port facilities at Haldia and Paradip. Konark was used in construction of 2.2 million tonnes integrated steel plant of Electro Steel Integrated in Bokaro, Jharkhand; in a 3 million tonnes integrated steel plant of Jindal Steel & Power at Angul, Odisha; and in construction of an all weather new private port at Dhamara near Bhadrak in Odisha.
Apart from strong brand recall what else attracts customers to Konark?
Quality, service and innovation in packaging are the three key areas that keep our customers coming back to us. Good service is equally important to meet the ever growing expectations of the channel. We also have to keep improving our supply chain for ensuring timely availability of cement to our customers.
We keep ourselves constantly updated about the needs of the market and try to meet them through new innovative products. This has led us to come up with DSP, a premium product for high strength applications such as foundation for multi-storey buildings, etc. Innovation in package design has helped in setting the product apart from traditional products, and project it as a modern contemporary brand that appeals to the young as well as to the older generation
Please share a percentage wise break up of revenue earned from different product lines?
OCL has two different products – cement and refractory. Cement accounts for the 82 per cent of our revenue while refractory brings in the remaining 18 per cent revenue.
What are your plans for further expansion?
We have recently set up a grinding unit in West Medinipur, West Bengal. OCL does not have any further expansion plans at least for the near foreseeable future.
Are you planning to launch any new product in the near future?
We have launched DSP a premium product in April 2014. This product will be launched in West Bengal very soon.
Tell us about your CSR activities?
OCL has undertaken various developmental activities in peripheral areas of its plant at Rajgangpur and the captive mines at Lanjiberna. Our CSR program is based on four pillars: Education, Skill Development, Health and Infrastructure development to support the other three.
Education:
We have started a Remedial Centre for the underprivileged students of 9th and 10th class studying in government schools. We have seen an improvement in the grades of last batch, which passed out. 34 per cent of the students scored 1st division in the board exams. We have also opened a centre for 4th and 5th class students for helping them study well in Navodaya Schools. We are also operating thirty "One Teacher Schools" called "Ekala Vidayalaya" in villages in collaboration with "Friends of Tribal Society."
Health:
Our aim is to provide free healthcare services to poor tribal people of this locality and create awareness among them about health and hygiene. We provide mobile medical units for local community and organising health camps with a special focus on mother and child healthcare.
Skill Development:
The company has been providing training for the unemployed youth at an ITI. OCL is operating a training centre "Swayamprabha" in Lanjiberna where poor and destitute tribal ladies are provided free training on tailoring, embroidery, dress designing, etc. After completion of training, each of them is given a sewing machine at 50 per cent of its cost. The centre has so far imparted training to 80 ladies. Most of them are earning their livelihood by stitching garments.
Infrastructure Development
Some of the initiatives taken by us include:
- Hari Chatravaas, a hostel for underprivileged and meritorious students
- An eye treatment hospital
- An ITI centre for training youth
- Construction of a 900-metre long concrete road in Rajgangpur
- Construction of a three storied building, kitchen, Namasankirtan Mandap, toilet, etc., for the inmates of Kalpataru Ashram, Lamloi, where poor orphan children are residing
- Renovation and maintenance of a Theme Park at Sundargarh. The park depicts rich cultural heritage of local tribals and is one of the best of its type in Odisha
- Construction of thirteen Community Centres in villages. Also supplied furniture, utensils, etc., to these centres where villagers conduct community meetings and social/cultural functions, and
- Providing electricity to villages.
First and Foremost
OCL has been a market leader in Odisha for more than 60 years. Its drive for modernisation, right from its inception, has allowed the company to pioneer in several areas. OCL installed the first auto kiln control system based on fuzzy logic in India, the worlds largest cement and slag grinding Vertical Roller Mill during 1997, the second such cement Vertical Roller Mill during 2001, the third cement Vertical Roller Mill again with 60 per cent additional capacity and first in the world market in 2005. The target centric investments in R&D and application specific product development have both enabled OCL to enlarge and include in its product range various grades of ordinary Portland cement (OPC) like 43 and 53 grades; 53-S grade cement for use in the manufacture of railway sleepers; Portland slag cement (PSC); fly ash based Portland pozzolana cement (PPC), sulphate resisting Portland cement (SRPC); masonry cement, etc. For a short time OCL also ventured into manufacture of a wide range of cement allied products including spun pipes, etc., in early sixties of the last millennium and became a prime source of high strength reinforced spun pipes and pre-stressed concrete poles. It was the first manufacturer of pre-stressed concrete railway sleepers. Decades later, the company is still a leading a supplier of railway sleeper grade cement in India. OCL was one of the first to develop and produce slag-blended cement, utilising steel plant waste for high strength cement and IRST-40 cement for railway sleepers. Its other innovative range includes sulphate resistant Portland cement, oil well cement and masonry cement.
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