It’s been a long time since you visited us, we are sure you must have learned a lot from our previous blog on SWOT Analysis of Ambuja Cement, one of the largest cement producers in India. Today let’s dive into the SWOT Analysis of Orient Cement, a household name that is well recognized for its cement quality in India.
Orient Cement is one of the leading and fastest-growing cement manufacturers in India with a total capacity of 8 MTPA in India only. Orient Cement’s product mix includes PPC – Pozzolana Portland Cement & OPC – Ordinary Portland Cement marketed under the brand name Birla A1.
One of the main reasons why Orient Cement is so well known all around India is its marketing strategy, they have always focused on getting their products familiar to the mass audiences. One of the fastest-growing fields in marketing today is digital marketing. Digital marketing is used everywhere in businesses to gain insights and target the right customer demographics.
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Do you want to learn how Orient Cement became so successful in the cement industry? In this blog, we will learn about the SWOT Analysis of Orient Cement and decode the answer. Before we begin, let us learn more about Orient Cement, funding, products, financial status, and competitors.
About Orient Cement
Founded in the year 1979, Telangana’s Orient Cement was demerged in the year 2012. It was formerly a part of Orient of Paper & Industries. Orient Cement began cement production in the year 1982 at Devapur in Adilabad District, Telangana. Orient is well known for its strong durability and quality. With a name so well recognized amongst households, Orient cement has now come a long way.
The company has ever since expanded globally and set huge benchmarks in the industry giving good competition to other cement brands in the business. Orient Cement is well known to solve its quality deviations which are detected by automated methods, through which they are addressed quickly and precisely. Orient Cement is well known for its projects which are carried out annually on a large scale.
Orient Cement has a total capacity of 8 MTPA and it serves areas in India including Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Chhattisgarh.
|Founder||Chandra Kant Birla|
|No. of Employees||20,000+|
|Market Cap||Rs3,118.10 Crore (2022)|
|Annual Revenue||Rs831.61 Crore (2021)|
|Net Income/ Profit||Rs99.87 Crore (2021)|
Products of Orient Cement
The major products which Orient Cement has been manufacturing are:
- Birla.A1 StrongCrete Cement
- Birla.A1 Premium Cement (PPC)
- Birla.A1 Premium Cement 53 Grade (OPC)
- Birla.A1 Premium Cement 43 Grade (OPC)
Competitor of Orient Cement
- Ambuja Cements Limited
- UltraTech Cement Limited
- JK Lakshmi Cement Ltd
- Bharathi Cement Corporation Private
- ACC Limited
Now that we have assessed the background of Orient Cement, let’s delve right into the SWOT Analysis of Orient Cement.
SWOT Analysis of Orient Cement
This study focuses on the internal and external factors that can affect any company. External variables include opportunities and hazards, whereas internal variables include strengths and limitations.
It’s a planning and decision-making tool for strategic planning. It is usually more useful to conduct a SWOT analysis of Orient Cement with a specific goal in mind, such as seizing a new business opportunity or adapting to new trends.
To better understand the SWOT analysis of Orient Cement, refer to the infographics below:
So let’s start with a SWOT analysis of Orient Cement:
Strengths of Orient Cement
The first tool of SWOT is the Strengths. These are the factors that place the company at the top of the industry and make it look prospective. The strength of Orient Cement is as follows:–
- Holds Construction & Contract Market: In the construction – raw materials business, Orient Cement Ltd products have great brand recognition. This has allowed the firm to charge a higher price than its competitors in the construction – raw materials market.
- Great Place to Work: Orient Cement has been declared a 2011-2022 Great Place to Work twice in a row. Life at Orient seeks a high growth career and thrives on challenges. They have a great work culture, and employee-friendly policies ensuring an enjoyable and fulfilling work-life balance.
- Strong Dealers: Orient Cement today boasts dealers and retailers across India. This far and wide distribution network ensures that Orient Cement reaches all corners of India.
- Completed Projects: Since the establishment of Orient Cement in 1982, the company has worked on various projects including government and private sector and this has given the company to make a strong presence in the market.
- Reducing Carbon Footprints: Orient Cement was one of the first Indian firms to make environmental protection a corporate goal. They’ve built this commitment into every aspect of their value chain, from mining to sales to supporting the use of alternative fuels and resources, resulting in one of the minimal carbon footprints in cement manufacturing.
- Increasing Cement Shares: Orient Cement has seen a surge of 4 to 6 per cent in cement stocks as compared to a surge of only 2% to 3% of its competitors like UltraTech Cement, Ambuja Cements, ACC, Dalmia Bharat, India Cements, Ramco Cement and Shree Cement
- CSR Activities: Orient Cement does many CSR Activities. Some of the major CSR Activities include providing high-quality education to children of employees, encouraging women from SHGs in the communities around its plant location, health and sanitization, improving livelihoods, and many more.
- Awards: Orient Cement has won many awards. Some of them are the 2021 Greentech Energy Conservation Award for outstanding achievements in Energy Conservation, Environment Award 2020, Apex India Awards for Health & Safety and many more.
- Good Research & Development: Orient Cement has a good track record of consumer-driven innovation, even though most competitors in the capital goods industry attempt to innovate.
Weaknesses of Orient Cement
Weaknesses are aspects of a business or brand that should be improved. Orient Cement’s major flaws are as follows:
- Replicable Business Model: Cement is counted as raw materials in the construction market and competitors can readily replicate Orient Cement’s business model. The company must develop a model capable of integrating suppliers, vendors, and end-users.
- Lack of Promotional Activities: Other cement manufacturing companies are taking away the market with their ads. Ambuja’s ad with the great Khali was appreciated all over. Similarly, Ultratech is taking away the market with its tagline “Engineers Ki Pasand”. Overall, Orient Cement’s production strength is solid, but still, its marketing and push strategy is mediocre.
- Only in India: Orient Cement’s footprint in India is limited to South India, and as a result, it faces competition from Aditya Birla’s Ultratech, which cover pan India and exports large quantities of cement. Ultratech is enhancing its turnover by a significant percentage by exporting.
- High Transportation Cost: They have a huge transportation cost to transport cement to different retail shops. Also with the increasing fuel prices, it will further increase.
- Lack of Awareness Programs: To protect the interest of consumers, awareness programs are necessary.
- Losing Brand Equity: Orient Cement is losing its brand equity as Ultratech, Ambuja and ACC are gaining brand equity.
Opportunities for Orient Cement
Like weaknesses, opportunities are the areas where a company needs to focus, on improving results, increasing sales, and, ultimately, profits.
- An Increase in Government Regulation: The un-organized firms that have not registered themselves operating in construction services are out of the competitive game due to government regulation. This will increase the customer base of Orient Cement.
- Branding Activities: It can initiate comprehensive branding in the country, which may help them enhance brand memory and, as a result, help the brand expand as a whole. By investing in branding campaigns for one or two years, Orient Cement may easily restore market share and brand equity, and become India’s leading brand.
The best and most cost-effective way to do brand campaigns is social media marketing. Orient Cement can create targeted organic & paid social media marketing campaigns to boost brand awareness, acquire quality leads and get repeat sales. If you are at the initial stages of your business then you must learn this one of the digital marketing skills to save your extra cost which is spent on traditional ways of marketing.
- Global Expansion: Orient Cement can make use of India’s market supremacy to expand to other regions of the world.
- Improving Infrastructure: One of the most huge advantages of Orient Cement is that it is a prominent brand in the cement industry, which is expanding in India owing to an increase in infrastructure demand. This need will not diminish any time soon, given the growing population and improving economic conditions.
- Increasing Demand: People are opting for more stable structures and intensive use of cement is taking place, even the government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets.
Threats to Orient Cement
Last, under the segment of SWOT Analysis of Orient Cement, we have the Threat. These factors are important to consider as it protects the organization from dealing with potential losses and more.
- Higher Input Costs: Cement makers like Orient, Birla, Ramco and Dalmia are facing difficulties to mitigate higher input costs due to labour shortages caused by the Holi holiday and elections in some regions. This has led to an increase in average cement price by a marginal 2% in March over February passing on some portion of the increase to consumers.
- A Huge Number of Participants: The cement industry’s high number of companies makes it difficult for Orient Cement to set a competitive price for its product.
- Threat From Global Players: It faces stiff competition in Indian markets from global players. Due to India’s rapid expansion, many new multinational cement businesses are projected to emerge in the future years, ushering in a wave of change and potentially igniting a price war.
- Price Competition: When a business engages in price competition, its bottom line suffers. The threat to Orient Cement is just the same. Orient Cement is obliged to compete on price due to the enormous number of brands offered, which has a detrimental impact on its bottom line.
- Threat From Local Players: The emergence of small players in this market may increase the competition and start malpractices, and heavy discounts to retailers. One of the challenges to Orient Cement and the business is a slew of local brands offering cheap products.
This ends our detailed SWOT analysis of Orient Cement. Let us conclude our learning below.
Orient Cement is one of the Country’s top cement producers. We discovered that Orient Cement has a unique track record of innovative research, product development, and specialized consultancy services. It has a strong and extensive network infrastructure, but brand recognition and marketing efforts are missing.
Orient Cement focuses on offering a lot of offline marketing support to its customers. Thus to conclude it can be said that Orient Cement has its branches spread all over India Orient Cement company products are profitable not only in India but also in the whole world. While talking about digital marketing, the social media presence of Orient Cement is nearly equal to null. They have not taken much effort to market their services and products so that it reaches the audience.
Digital marketing is the future. Brands need to explore the wide spectrum of digital media and be more conscious of their branding, advertising, and also their engagement on social media platforms. The brand’s social media platform forms its identity in the minds of customers.
So, being well knowledgeable about the field is a must for marketing enthusiasts. If you are interested in learning digital marketing, check out IIDE’s 3 Month Advance Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Orient Cement has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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