Sri Lanka's DIMO enters Myanmar, Uganda power sector
Jun 12, 2019 14:37 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's Diesel & Motor Engineering Plc, which has local power generation and transmission equipment operations, has expanded the business into Myanmar and Uganda, an official said.
"The successful joint bid for a CEB project with our principals, Siemens, our first venture in Myanmar in the power sector and our entry into Uganda could be considered as milestones in our growth phase," Chairman Ranjith Pandithage told shareholders in the firm's annual report.
DIMO has a history in power engineering with the supply of equipment for power transmission, but has newly entered into the power generation business.
DIMO secured a tender for a 1 megawatt solar plant in Embilipitiya in 2018, which will be focused on in the current financial year, the firm said. It will also be installing rooftop solar plants at its operations in Weliweriya and Siyambalape.
It has also secured a contract for electrical balance of the 104 megawatt wind power project in the Mannar wind park which is being constructed by Denmark's Vestas in the year ended March 2019.
With a consortium bidding with Siemens India, DIMO secured CEB (Ceylon Electricity Board) contracts for variable shunt reactors in Anuradhapura and Mannar and a breaker switched capacitor bank in Pannipitiya.
"Advancing the electromechanical engineering business to a higher level is one of the strategies that we have adopted to reduce our dependence on the automobile business," Pandithage said.
"Overall, this segment is expected to make a significant contribution to the group's profitability in the current financial year," he said.
In 2019, DIMO's revenue from the power engineering segment contributed 8.3 percent to the total, while segment profits contributed 11.8 percent to the group.
Automobile sales and after-sales service made up more than half of group revenue and segment-level profits.
Dimo's power engineering revenue grew 22.4 percent to 3.3 billion rupees in 2019 from a year earlier, while segment profits grew 40.1 percent to 365.7 million rupees. (Colombo/Jun12/2019)