Sri Lanka brush maker Beira group goes public; to make synthetic yarn
ECONOMYNEXT – Sri Lanka’s BPPL Holdings, a brush exporter with annual revenues of Rs2.0 billion and profits of Rs306.8 million, is seeking a public listing and says it is planning to expand into synthetic yarn.
Hirdramani Investment Holdings (Pvt) Ltd, which owns a 23.4 percent stake, is selling down 30.6 million shares (10 percent stake) at Rs12.00 a share to raise Rs368.2 million though an offer for sale.
The firm is controlled by 50.3 percent share holder Infinity Capital (Pvt) Ltd, which is connected to Managing Director Anush Amarasinghe.
In the year to March 2016, the BPPL Holdings reported earnings of Rs1.01 per share.
It makes push brooms, heavy sweeping brooms, roofing brushes, cobweb brushes and wire scratch brushes. The firm exports, generic and branded brushes and components including wood and fibre. It also has a domestic brand, Tip Top.
The firm got 70 percent of its revenues from the US. It also uses recycled plastic.
The firm says it is investing Rs675 million, with Rs500 million coming from debt in a synthetic yarn factory. It will produce 600 metric tonnes of synthetic yarn for fabric makers.
Synthetic yarn production is somewhat close to monofilaments, and is now producing for the brush sector. (Colombo/Feb22/2017)