Laugfs to buy 3rd ship, lists subsidiary on Bangladesh Stock Exchange
Laugfs Holdings PLC, in rapid expansion mode in the last few months here and abroad, is awaiting its third cargo ship while gearing to go public on the Bangladesh Stock Exchange with its subsidiary over there, officials said. ”We’ll be bringing down our third cargo ship to transport downstream Liquid Petroleum Gas (LPG) by next month subject to successful negotiations,” Laugfs Holdings PLC (Laugfs) Chairman, W.K.H. Wegapitiya told the Business Times. The company had similar purchases of two cargo ships last year and in 2014 which came at a cost of US$6.9 million each. Mr. Wegapitiya said the ship acquisitions are carried out by Laugfs Maritime Services Ltd (LMS) which has plans to strike partnerships in International Shipping, Logistics and Maritime Services.
Laugfs’ new ship acquisition comes after the company incorporated a new business venture in Dubai Multi Commodity Centte (DMCC), named as SLGAL Energy DMCC, which is a fully owned trading arm of Laugfs Gas on operations international energy trading business. SLOGAL Energy DMCC offers a portfolio of maritime services focusing upon acquiring, managing, operating and chartering of vessels expected to aid the company’s international operations. ”There are only two energy hubs in this region – Dubai and Singapore and we found it best to set up in Dubai where we’ll do trading in energy with regional suppliers,” Mr. Wegapitiya added. He added that they plan to go public with Laugfs Bangladesh, the LPG business they set up last year, on the Bangladesh Stock Exchange.
“This will be done within two to three years,” he said. He said that while there’re five major LPG operators in the 180 million populated Bangladesh, there’s about half a dozen already gearing to enter that market. “LPG is used less than 2-3 per cent as their fuel is predominantly based on natural gas. Due to the inevitable depletion of Liquefied natural gas (LNG) and Compressed natural gas (CNG) the Bangladeshi Government is officially encouraging their people to shift to LPG; Mr. Wegapitiya explained noting that the now 130,000 metric tonnes (MT) annual imports to Bangladesh is predicted to increase to 1 million MT in 10 years. Laugfs starting its foray into healthcare broke ground on one of South Asia’s largest pharmaceuticals manufacturing plants in Koggala recently, making a Rs. 5 billion investment and they will start their saline manufacturing plant adjoining this factory this year with the same investment.
Mr. Wegapitiya said that this plant comes under the Laugfs Pharmaceutical (Pvt) Ltd and this facility, with a 10-year tax holiday, will employ over 400 locally and make some 58 varieties of oral solid medicines. Slated to open mid next year, the factory will have a capacity to produce 7.5 billion beta and non-beta lactam tabets, capsules, dry powders, ointments, soft gels and suppositories annually under its own, or foreign licenses, as opposed to Sri Lanka’s current consumption of nine billion units annually, he added. He added that the National Medical Drug Policy, approved in Parliament last year, has assisted this venture which with be under Laugfs Lifecare brand. Annually, Sri Lanka requires 7.5 million units of saline and of that six million is required by government hospitals. Sri Lanka imports saline from India, Malaysia, Bangladesh and China.