Financial Times

Laugfs into supermarkets
By Ruwanthi de Silva
Laugfs Gas, the second entrant in the gas market, which broke the Shell monopoly, is now shifting gears and setting up a chain of supermarkets as the gas market is too volatile.

"We have realised the danger of being an only LPG company," Laugfs chairman W.K.H Wegapitiya told The Sunday Times FT. "The gas market is too volatile and controversial. With the supermarkets we want to consolidate our position in the market."

He said that it seems the market for supermarkets is "booming" and that there is "more money in supermarkets than in LPG." Speaking about the supermarkets he said, the company is investing a total of Rs. 25 million on each supermarket and that within the next six months hopes to have a total of ten supermarkets. Wegapitiya said that the supermarkets are based on the 24-hour shopping concept and that there would be a Laugfs fuel retail outlet alongside the supermarkets.

The fourth addition to the Laugfs supermarket chain was opened recently in Boralesgamuwa. Wegapitiya said, "The Laugfs supermarket chain is growing very fast. Within the course of this year we hope to open outlets in Kohuwela, Battaramulla, Borella and other parts of the country." He also said since they have eliminated the use of middlemen and buy goods directly from farmers, the prices of goods on offer will be competitive.

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