Kelani Cables PLC (KCal) is planning to centralize operations by bringing its plant in Siyambalape to the Kelaniya premises, officials said. “We manufacture building wires at the Siyambalape plant and we are contemplating to bring it to Kelaniya in order to centralize the operations. We feel this move will be cost efficient,” Hemantha Perera, Managing Director KCal told the Sunday Times FT.
He said the company has also bought an adjacent land in excess of one acre at these premises and is looking at buying some more land nearby in order to expand. “We feel that it is a wise move as we need to be geared to meet excessive demand that will inevitably arise in the post-war era,” he said.
He also said that the Rs. 3-billion firm is planning to go into new areas. “We want to broaden our range in the transmission conductor sector. This is a necessity to gear for the upcoming demand from the North and the East,” Mr. Perera noted. He said the state policy to electrify 85% of the North and East is a real opportunity in this regard.
He said the early effects of the recession have been felt with the slowdown in export industries, creating a drastic impact on the value and supply chain. A halt in new investments, pay cut; worker hour cuts, layoffs and closures have been the effects of the global economic downturn to many local industries.
“Although Sri Lanka’s economic development will be curtailed in the short term due to its dependence on the global economy, the long-awaited conclusion of the North-East conflict will pave the way for future prosperity. The opening up of the North and East of the country presents opportunities for the private sector to participate in the development of infrastructure projects in those areas,” he said.
He noted that the company managed to substitute about 75% of the imports in welding cables and submersible cables. “We have managed to do this during the last six months,” he said.
Mr. Perera noted that the company’s institutional customers dropped by about 20% since July 2008, due to the drastic drop in the construction industry. “We see them re-emerging, but it will take about six months more for the industry to boom,” he added.