Financial Times

Kelani Cables PLC to centralise operations

By Duruthu Edirimuni Chandrasekera

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.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
> Bureaucratic bungling stalls IRD building reconstruction
> Trade union to address EU Parliament Human Rights Council on GSP+
> Gotabhaya: Sri Lanka heads for new economic goals
> Plantations getting back to normal
> Big corporate names in Jaffna as interest grows
> Aitken Spence gung-ho on hotel expansion
> COMMENT - GSP+: Unions enter the picture
> The saga of oil exploration in the Mannar Basin
> ICASL holds 30th National Conference
> Good time for rights issues
> Vasu considers legal action against ICASL Council, Ethics Committee
> People's Bank reduces interest rates
> LSE's buyout of MillenniumIT - a done deal
> Unregulated finance companies crisis forum at ST Business Club
> Sri Lankans' potential yet to be fully tapped
> GSK introduces treatment for breast cancer
> Ceylinco Finance PLC repositioned as ‘Nation Lanka Finance’
> MBAs and their perverse Bonus Schemes?
> Political risk insurance in Sri Lanka
> Day/night car care clinic from AMW
> Tea estate company losses rise due to amendment in accounts
> MTI CxO Survey on Business Technology: Findings out soon
> WSO2 Carbon wins InfoWorld award
> Lanka Princess Hotel wins TUI award
> Unemployment on increasing trend in Sri Lanka
> Lankan manufacturing base to export 4,000 computers monthly to Pakistan
> New IT-BPO workforce survey expected in December
> UAE's Etisalat bids for Sri Lanka’s Tigo
> Footwear and Leather Fair 2009 in November
> Michael Elias back as President of Sri Lanka Germany Business Council
> International University soon under public-private partnership
> Rights based approach for labour migration
> Kelani Cables PLC to centralise operations
> Czech Republic to welcome the Pope
> Sri Lankan $500 mln bond next month
> Details of forcibly acquiring property of F&G revealed in court
> CB wants independent verification on Ceylinco Shriram assets
> Global airline industry forecasts rising losses this year
> Harpo's Pizza completes one year in the Maldives
> Sri Lanka will not submit to an investigation by another country - Minister of International Trade
> Directors of F&G Property Developers (Pvt) Ltd released on bail
> Sinhala fonts not widely available
> CIMA Business Leaders Summit: The challenge – ‘Now and Ahead’
> Wage pressures could spur inflation -CB Asst. Governor
> TIENS says it’s not a pyramid scheme, operates within the law
> Biggest economies adjusting investment policies to attract investments
> New President at Sri Lanka – Italy Biz Council
> Seven -judge bench hears PBJ case
> AGM of the Sri Lanka – Australia – New Zealand Business Council
> SriLankan Catering posts Rs. 1.2 billion net profit


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution