Piramal Glass Sri Lanka unit in Rs3bn expansion
ECONOMYNEXT – Piramal Glass Ceylon said June 2016 quarter net profit fell 25% to Rs110 million from a year ago as it built inventory ahead of a factory closure for an expansion project costing Rs3 billion.
Sales rose 11% to Rs1.7 billion over the period, a stock exchange filing said. Earnings per share fell to 12 cents from 15 cents.
“Currently the relining of the furnace with an expansion of capacity to 300 tonnes a day, refurbishment and repair work on downstream facility is in progress,” a statement said.
The company is investing Rs 3 billion for the modernization and expansion.
“We would be back in operation by end of the 2nd Quarter with enhanced capacity and are confident in giving our customers a better choice of bottles in more exciting designs shapes,” said Sanjay Tiwari, chief executive and Managing Director of Piramal Glass Ceylon.
During the June quarter a substantial portion of the domestic sale was met through imports from its parent company Piramal Glass Limited ,India, which eroded profit margins.
“The company’s objective was to ensure that the customer requirement would be catered with the least disruption during the coming period,” the statement said.