Sri Lankan unit of Piramal Glass invests Rs.1.3bn to expand export production
Jul 05, 2019 15:05 PM GMT+0530 | 0 Comment(s)
EXPANSION: The Sri Lankan unit of Piramal Glass said that it is investing in a new bottling line to expand its export business. Source: Piramal Glass Ceylon Plc Photo.
ECONOMYNEXT- Piramal Glass Ceylon Plc (PGC), Sri Lanka's glass bottle manufacturer, has invested 1.3 billion rupees on a new bottling line to cater to its export orders, a top official said.
"We are looking forward with much expectations to support our export strategy in the new year expecting to reap the harvest on the new investment done by the company on its 6th bottle production line," Chairman Vijay Shah said.
"This investment of 1.3 billion rupees was done with the objective of expanding its downstream capacities to support exports," he said.
"During the coming year, the company wishes to focus more on its strategy of doing business in the niche high value added specialty segment of glass bottles in the international market," Shah said.
PGC is exporting to India, Australia, Malaysia, Africa, Pakistan, Vietnam, USA and Canada.
There is currently sluggish domestic economic growth, following political unrest and the Easter Sunday terror attack.
Shah said that in 2018/19 the firm's revenue grew 9 percent from a year earlier to 7.4 billion rupees. However, domestic revenue had remained flat at 4.7 billion rupees.
He said the firm had grown despite domestic challenges with a focus on exports, which grew 27 percent to 2.7 billion rupees from a year earlier.
The state had recognized PGC as the leading foreign exchange earner in 2018 in the ceramic, porcelain and glass segment, Shah said.
However, the state continuing to control furnace oil prices instead of allowing market prices to prevail is hurting the firm's competitiveness, he said.
"The company has made several representation to all relevant authorities to link the price of furnace oil to global crude oil prices, as followed in all neighboring countries as a fair and transparent practice," he said.
"This will provide a level playing field for PGC to compete and further grow volumes in the export market."
" Currently due to administered price of furnace oil by CPC with no linkage to international crude oil prices, PGC has a huge competitive disadvantage as compared to all global players in the industry."
PGC is a part of India's Piramal Group, which has interests in pharmaceuticals, glass packaging, real estate and financial services.
(COLOMBO, 05 July, 2019)