Sushil Jhunjhunwala, Managing Director, La Opala RG

What factors helped you to register consistent performance over the years?
There are two major factors that have played a key role for the the consistent growth of La Opala RG. First of all, the demand for Crockery was growing in the market of modern India. On the other hand, constant innovation has led to the growth of La Opala’s market share. These two factors together have helped us sustain our growth rate over the years. I feel that when the market is growing, one should aim to grow at a rate higher than the growth rate of market. We, in La Opala, have been able to do so.

What have been the thrust areas for the company in the recent times?
We have been continuously emphasizing on four key thrust areas. They are: (a) quality- where our focus is on product improvisation on a regular basis, (b) technology-lot of investments are made in enhancing the technology involved in the last three years, (c) marketing drive, and (d) introduction of innovative and attractive designs. The combination of all these four factors has helped us in achieving our goal.

What is your export revenue? What initiatives are being taken to enhance your overseas presence?
Our major market is in East Africa and Middle East. Solitaire line is mainly exported to Europe and USA in a big way.  It is also popular in Middle East. In Europe, Solitaire is exported to UK, France, Italy, Spain and Germany. On the other hand, Opalware has a good market in African countries like Egypt, Tanzania, Kenya and Uganda. We are exporting to Saudi Arabia and Australia, too.

Tell us about your R&D division with terms of coming up with new designs. Are you getting desired result?
New innovations are experimented by the design department in terms of introducing new colour, shapes and sizes. Our team of Designers, under the guidance of Ms. Nidhi Jhunjhunwala, alongwith overseas design consultants, endeavours to create new elegant designs for the products.
R&D, at plant level focuses on two major areas: improvement in cost saving and improvement of the quality of the product.
We have adopted modern technologies for conservation of energy. There is considerable reduction in the usage of fuel oils thus reducing the emission to the environment. This has also helped the company in its drive for cost reduction. We are the first company to introduce Electric Melting Technology, i.e. electric melting furnace which completely eradicates the emission of flue gases into the environment. The set up of this technology has enabled us to get registered for Carbon Credits.

Is there any plan for further diversification of your product portfolio?
There are plans for diversifying in the field of “Clear glasses” because India still doesn’t have high quality glasses that can match up to world class quality. But it is yet to be finalized.

Tell us about the risks and challenges lie ahead for the company.
All challenges faced were adventures too. When we started the company, we had to learn by trial and error method, as the technology involved was always very closely guarded in the industry. When I started La Opala 24 years ago, it was a big challenge for me. Starting Solitaire was another big challenge again. The launching of the Diva range was similarly an exciting and adventurous journey to me. Manufacturing, marketing and branding – all are big challenges. Our teams’ hard work and dedication have helped us to cross all hurdles and win over all challenges.

What kind of financial roadmap is prepared for this FY?
Our aim is to increase our market-share as well as make remarkable penetration in the international market. No SPO etc is planned for the moment.

How are you creating value for your investors?
Value for investors is being created through high visibility of the brand, company and quality products, then by making profit and by paying regular dividends. Last year dividend was 7.5 per cent and this year board has recommended 15 per cent.  Company has given 1:1 bonus shares, twice in the past, in the last 18 years. It is NSE listed now. Share price has doubled in last one year (June to June) from Rs 35 -40 level to Rs 80 level.