Orind Exports, promoted by Orissa Industries, has set up a wholly owned subsidiary, Orind Far East Ltd, Hong Kong, to "take up international trading in a big way," a company press release said. The new unit is Orind Exports' second overseas venture and follows its Chinese venture which went onstream in January.
After earning $7.5 million in the first nine months, Orind projects a turnover of about $12 million (around Rs 42 crore) for the entire first year of its wholly-owned Chinese subsidiary, Yingkou Orind Refractories.
Yingkou started production from January 1996. With a capacity to manufacture 20,000 metric tonnes per year, the company has so far achieved a turnover of $7.5 million in the first nine months of its operations. Of the total output, 95 per cent is earmarked for exports, and 5 per cent for domestic use in China. "So far we have a return of about 20 per cent from sales, around $1.5 million," said Ravin Jhunjhunwala of Orind Exports, at a press conference in Calcutta on Saturday.
Jhunjhunwala added that Orind also charges technical fees from its Chinese subsidiary, at around 5 per cent of the turnover.
From China the company supplies to countries like Mexico, Italy, Korea, Japan, Ireland, Canada, Germany and CIS countries.
Orind Exports was supposed to have a joint-venture for this project with Xiyang Trading Company of China. But after the Chinese partner withdrew, the company was converted into a wholly owned subsidiary of Orind Exports. Under the original plan, the Chinese partner held 49 per cent of the stake in the company, while Orind held 51 per cent.
Orind Tami Refractories is another of the group's subsidiaries, situated in Mumbai, manufacturing monolithic quality of refractories. Jhunjhunwala said the company is looking at several possibilities of joint-ventures and strategic alliances.
"They will mostly be in Asia, as we intend to be the number one refractory company in Asia. Currently we are in the top 10 bracket," claimed Jhunjhunwala.
At present the total equity base of Orind Exports stands at Rs 14.4 crore. Orissa Industries last year had a turnover of Rs 110 crore. "This year it expects around Rs 140 crore," Jhunjhunwala said.
