Sri Lanka's Piramal Glass sees strong export growth if fuel is formula-priced
Feb 21, 2019 06:08 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's Piramal Glass Ceylon Plc says it can compete better with foreign producers and boost exports if furnace oil is priced on a formula linked to crude oil.
Furnace oil now costs 92 Sri Lanka rupees a litre, and it is not linked to crude oil prices.
Chief Executive Sanjay Tiwari says the comparable cost in India is 72 rupees.
"Furnace oil prices linked to crude oil will make exports more competitive," Tiwari said.
"We are not asking for subsidies."
Piramal Glass now exports approximately 150 containers a month with around 45 containers going to India. It also exports to the USA, Canada, Australia, New Zealand, and Myanmar.
"We are working to increase our exports percentage to total capacity up to 40 percent," he said. "This may take two years."
The company is now building a fifth production line with an investment of 1.3 billion rupees.
The new line will increase capacity to 300 tonnes per day from the current 260 tonnes.
In the nine months to December, Piramal increased exports revenues 31 percent to 2.123 million rupees amid as domestic sales fell 3 percent to 3,362 million rupees.