Beneficial interest AvH: 50%
AvH Contact: John-Eric Bertrand
OQM was operating three quarries at the end of 2015: in Mau and Bilaua (in the Gwalior region in northern India) and in Bidadi (Bangalore, southern India). Aggregates from OQM’s quarries in northern India are used for infrastructure works such as the large-scale National Highway Project, railways and airfields. The Bidadi quarry focuses primarily on the market of ready-made concrete and major real estate projects.
2015 was a challenging year for OQM in a difficult market environment. The company was confronted with a weak infrastructure market in Mau and Bilaua as a result of the limited progress of road-building projects and a temporary state-wide ban on the use of explosives. This led to a major production downtime for both stone crushers. Operations in the Bidadi quarry were adversely affected by a temporary breakdown of the stone crusher and by exceptional rainfall in the last quarter of the year. Despite the significant decrease in sales, OQM realized a break-even result, while the working capital requirement was kept under control.
The company expects a positive impact from the increased infrastructure investments by the central government in 2016 and from the implementation of the Land Acquisition Bill, which should accelerate road-building activity. OQM will further improve its operational performance in 2016 and continue to build on the progress made in the past few years. The group will also further diversify its customer base and continue to focus on the acquisition of land stock.