Oriental Trimex Ltd Announces Strategic Developments to Revolutionize Stone Industry, Expand Market Presence and Achieve Financial Milestones

New Delhi (India), August 31: Oriental Trimex Ltd (BSE – 532817), one of India’s leading natural stone processors and traders, announces a series of strategic developments aimed at redefining its operational capabilities, expanding its market presence and strengthening its financial position. These initiatives underscore the company’s unwavering commitment to innovation, growth and customer satisfaction.

Highlights:

• The company announces a significant reduction in its debt and a path towards its complete elimination of debt.

• The company announces a revolutionary advance in stone processing.

• The company is building a 21,000 sq. ft. showroom in the Greater Noida building materials market.

• Secures jet black granite quarry in Orissa, thereby increasing revenue and profitability prospects.

• Expands the product portfolio with related product lines, thereby improving customer offerings.

1. Revolutionary leap in stone processing with wire saw machine

Oriental Trimex Limited is set to revolutionise the stone industry with the import and installation of a state-of-the-art wire saw machine, popularly known as the ‘cable slab cutting machine’. This cutting-edge technology, sourced from Changsha Beto New Material Technology Co. Ltd. in China, will be the first of its kind in India and is expected to be installed at OTL’s plant in Gummidipoondi, near Chennai.

Unlike traditional bandsaws that use multiple blades, this advanced machine uses a series of diamond-coated wires with a diameter of 0.4 to 0.6 mm, enabling precise cuts and setting a new benchmark for accuracy and efficiency. With features such as pneumatic wire tension, hydraulic cylinder support and bellows-protected linear rails, the wire bandsaw significantly reduces waste, improves durability and speeds up the cutting process by approximately three times compared to conventional machines.

This strategic investment, which is expected to be operational by December 2024, demonstrates OTL’s commitment to adopting innovative technologies that enhance operational excellence. It will enable the company to deliver unmatched quality to its customers, particularly in the high-end residential and commercial construction segments.

2. Expansion in Greater Noida with a 21,000 sq. ft. showroom

With an aim to strengthen its presence in the market, Oriental Trimex Limited is delighted 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 warehouse showroom is set to become a one-stop destination for all flooring solutions.

Scheduled to be operational by the end of September 2024, the showroom will showcase a wide range of finished marbles sourced from OTL’s state-of-the-art processing plant in Chennai. In addition, the company will source high-quality granites from processors in Rajasthan and South India, ensuring a comprehensive portfolio of flooring solutions.

The location of this showroom is particularly strategic, considering the upcoming Jewar airport and the proposed Aerocity in Greater Noida. These developments are expected to drive exponential growth in the region, and OTL is committed to meeting the growing demands of the region. The company also plans to expand its presence with a new showroom in Delhi, after raising funds through a rights issue, strengthening its position in the market.

3. Obtaining a 30-year lease for Jet Black granite quarry in Orissa

Oriental Trimex Limited is pleased to announce that it has been awarded a 30-year lease for a 12,260-acre (4,961-hectare) jet black granite quarry at Village Poteru, Malkangiri District, Orissa. This quarry, awarded by the Government of Orissa, is a significant addition to OTL’s portfolio, boasting a massive deposit of decorative stones and jet black granite with substantial export potential.

The quarry operation plan has been approved by the state government, with an independent valuation by Er MK Mehta estimating the total value of the mineral deposit at approximately INR 258.77 crore. With the environmental clearance (EC) expected by November 2024, OTL plans to make the quarry operational shortly thereafter. This development is expected to significantly increase the company’s revenue and profitability, further consolidating its leadership in the natural stone industry.

4. Diversification of the product portfolio

In a bid to enhance its customer offering and create new revenue streams, Oriental Trimex Limited announces its intention to diversify its product portfolio by venturing into additional related product lines. Starting December 2024, the company will introduce:

• Indian Granite at Low Prices

• Porcelain tiles designed in colors similar to imported marbles

• Nano stones from China

• Marbled pattern quartz and quartzite stones

This expanded product range will cater to a wider customer base, including diverse socio-economic groups, and offer more options that fit different budgets. OTL’s strong sourcing capabilities, deep understanding of local customer preferences and established infrastructure will support the commercialization of these new products. The company’s presence in Greater Noida and its focus on Tier 2 and 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 total debt elimination

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”) under a One-Time Settlement Agreement (“OTS”) entered into on January 30, 2024. This payment has significantly reduced OTL’s debt obligations, thereby putting the Company on a path to debt elimination.

With only a nominal interest amount remaining to be paid, 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.

(Disclaimer: The above press release is being brought to you under an arrangement with PNN and PTI assumes no editorial responsibility for it.) PTI PWR
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