up for C.W.Mackie on buoyant rubber prices
By Duruthu Edirimuni
C.W. Mackie and Co Ltd. has capitalised on rising rubber prices
in the international market to record a 40 million-rupee profit
in the first quarter for the financial year of 2004, company officials
shares are now trading at Rs.17.50 in the market, up from Rs. 3.25
in February. The prices moved up in May this year. Lal Pinto, Executive
Director, C.W. Mackie sees a shortage of rubber in the international
market as the main reason for rubber prices to soar.
production has declined in the international market because prices
plummeted during 1995 to 2001," he said. Suddenly when production
fell there was a demand, this led to a surge in prices.
said that a kilo of rubber during that period fluctuated from Rs.
35 to Rs. 40. Currently it is trading at Rs. 115 a kilo. "The
petroleum price hike and the artificial rubber price hike had additionally
contributed to high rubber prices in the international market,"
also said that stock holding of rubber in the US market has fallen
and there is a need for them to replenish their rubber stocks, which
in turn has resulted in the increase of rubber prices in the international
Mackie, now 104 years old, trades mainly in rubber with three rubber
manufacturing factories producing block rubber, crepe rubber and
company is the largest rubber exporter in the country mainly to
Europe and have started exporting to Syria, Iran and Ethiopia. Apart
from rubber, the company has a profitable subsidiary, Scan Products
Holding Company Ltd, manufacturing Sunquick, a bottled fruit drink.
United AS of Denmark, and IFU (International Fund for Developing
Countries) of Denmark are the majority shareholders of the company
with the former holding 60 percent and the latter owning 27 percent
said that C.W. Mackie's underwent a restructuring two years ago
where the company discontinued its loss making lines such as retail
sugar trading business. The company at present has no plans for
expansion but wants to concentrate on rubber, which is the main
profit-making line. "At present we are trying to consolidate
on our rubber production as we feel it is the right time,"