Business Times

Acme seeks Rs 250 mln funds for expansion

By Quintus Perera

Acme Printing and Packaging PLC (APPP), riding high in the packaging market segment in Sri Lanka, is now in the process of completing an experiment of a bio-degradable foil packaging product that the company plans to put to the market soon.

APPP Chairman Dinal Peiris said the research in this regard involves highly meticulous processes, but he assured that they are almost complete. Stringent intricacies such as the discolouring, degradation commencing while the packaged product is in the shelf, have been met with, he said adding that the company has a good research laboratory where it has conducted successful experiments on the product.

APPP is a public quoted company established in 1949 and is the largest manufacturer of flexible packaging and only manufacturer of aluminum foil based packaging in Sri Lanka. The company recently announced a restructuring of the company’s equity to the Colombo Stock Exchange.

In this regard APPP has announced a rights issue ending August 20 for Rs 250 million and Mr Peiris said that they expect the issue will be oversubscribed. Mr Peiris said that they have a huge demand locally and overseas but unable to meet the total demand due to the high interest rates they are paying. The new funds from the rights issue will overcome these issues, he said.

He said that they were paying interest at the rate of 21% while the present market rate is around 12 to 13%. He said that as a result of the restructuring the equity the company is expected to improve profits and would be able to offer its shareholders a better dividend in the future.

Mr Peiris said that the difficulties they encounter is due to one single shareholder controlling 85% of the shares. He said that equity would be restructured in such a way that a major portion of these shares would be sold to the public.

Speaking to Business Times Mr Peiris said that there is enormous potential for export and they would be able to meet the spiralling local demand when they are able to manufacture them quickly and in sufficient quantities. He said that they are already exporting to Pakistan.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
T-bills, not cash for acquired lands
Mihin Air settles 60% of debt, monthly rev. $2 mln
Stock market learns to cope with price curbs
IMF team assessing Lankan economy
SEC seeks assistance of foreign regulators on ERI
Shangri-La to invest in 5-star hotel in Colombo
Comment - Waiting for budget 2011
Feature - tomorrowFITNESS: What is in store for us
Feature - Endowment envy: Investing to donate?
Feature - GSP+ loss will not be so hard: Fitch Ratings
Etisalat reaches magical figure of 3 mln customers, heads for 4 mln
SLT conducts Sinharaja workshop for Mahajana College, Jaffna
Pensioners: Grateful to be paid in Ceylinco saga
Banks reduce loan provisions to boost results
As WP controls national GDP, call for balanced growth across SL
Thonda commends Nestlé’s continued commitment to local dairy industry
World Bank country director ends term
Sampath aims to reach the top in credit cards
CB rejects accusations that it has no authority to invest EPF funds
Acme seeks Rs 250 mln funds for expansion
ADB Vice President visiting Sri Lanka
Child-resistance bottle cap being introduced by makers of Panadol
Kelaniya University bags gold in MTI start-up venture contest
Sri Lankan chicks going to Nepal
Public dialogue on Knowledge-based Development in Jaffna
CPC owes Rs 18.5 billion in oil hedging dues, to Standard Chartered Bank
Mahindra looking at opening a vehicle assembly plant here
SriLankan Airlines' first Trainee Technicians under European certification
Sri Lanka Telecom makes profits in June 2010 quarter
Business Leaders' classroom exercise for small entrepreneurs
Sri Lanka to reduce e-waste with private sector assistance
Planning buildings with concern for the environment, people’s health
Cargills moves into new headoffice from ‘grand old building’ in Fort
Asgiriya firm becomes sole agents for FENNER
Galpaditenne Tea Factory looking at 4 mln kilos of black tea output
Strike-hit Lanka Walltile threatens to sack contract workers
LOLC to spend nearly US$30mln in refurbishing
Japanese Prof. on lecture tour
Australian and Sri Lankan expatriates visit Sri Lanka
Tourism booms as room strength and hotels grow
Lanka Ashok Leyland partners SMB Leasing to serve North-East
Two new directors at Kotmale Holdings
DFCC Vardhana Bank offers housing, foreign education loans
Tropical Villas sold in larger tourism interest: Jetwing
‘Clean Power’ a new energy saving device for vehicles
Kiwi rugby stars teach safety to Air New Zealand fliers
Sparklink achieves 31 years of service excellence
JKH leads, Carsons No. 4 in the Colombo bourse
DHL launches new direct LCL services from South Asia Pacific to Slovenia
Softlogic slated to buy more into Capital Reach tomorrow
Shares inflated? Invest in the ‘real economy’
Stock market regulator plans to increase liquidity in Colombo bourse
Drop in interest rates not drawing investors to the markets
Some investors urge continuation of price curbs
EPF, Bank of Ceylon, NSB big stakes in Lighthouse Hotels Ltd
SEC's move to discourage quick buck gambler attitude comes under fire by players


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution