Laxapana scales down battery manufacturing; diversifies into other productsView(s):
Laxapana Batteries PLC is scaling down its “D” size battery operation (torch batteries) and eyeing diversifying into other areas, officials said.
“The market was coming down for these batteries during the last eight years. During the last three years we saw a sharp decline and now it’s not commercially viable,” an official told the Business Times, adding that these ‘dry cell’ batteries are being replaced by lithium batteries (used in mobile phones). He noted that lithium batteries are being used in a big way by electronic manufacturers.
In the company’s year ending March 2012 annual report Laxapana, now controlled by the E.B. Creasy/Lankem Group, said if the 56-year-old company is unable to make alternative economic use of its present manufacturing facility it will need to adopt an alternate for the continuity of the employees.
“Over the years, the company has gradually reduced its employee numbers to the minimum required to operate the factory as an economical unit. The company’s free hold office and factory building at Homagama, situated in close proximity to the Southern Expressway and the circular road which is currently under construction, is a valuable asset that the company holds,” the official said. The factory and office are located on 3 ½ acres with 74 persons employed.
The official added that while there are more diversification plans for the company, they are already into CSL (compact fluorescent light) bulbs, GLS (General Lighting Service) bulbs, safety matches, etc.
This week Laxapana Batteries offered a Rs. 29.8 million Voluntary Retirement Scheme to 52 employees.
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