Initially 12.5 million ordinary shares will be issued at Rs. 73 per share for the purpose of raising fresh capital to payoff present debts, expansion of business and for various investment opportunities in both publicly listed as well as private assets in Sri Lanka.
The subsequent tranches in the form of warrants will focus on the various investment opportunities. The company recorded strong profits during 4th quarter of 2009 and 1st quarter of 2010.
The company is known for manufacturing and selling genuine leather goods such as military and industrial shoes and boots, but has recently expanded into high quality shoes, ladies bags, brief cases, unique leather fashion accessories and toys for the local market.
CLP's recently revamped showroom in Colpetty has tripled its sales since the launch. The company plans to open many such showrooms at strategic locations in the near future with the next one in Galle Face Court in Colombo with state of the art architecture and tastefully designed interior creating a magnificent ambience.
Ceylon Leather Products Ltd currently employs a workforce of over 400 people. When Environmental Resources Investment PLC (ERI) acquired the controlling interest of Ceylon Leather Products Ltd in 2009, it was making significant financial losses.
ERI has since restored the company's financial health with careful planning and far-sighted management. As a result, the company was able to increase its production and sales which made it not only a viable business entity but also a thriving one.
"During this crucial period of revamping and revitalising the company, we were indeed fortunate that we were able to restore the company to profitability without having to retrench even a single member of the workforce" said Sitendra Senaratne - MD/Chief Executive Officer of Ceylon Leather Products Ltd.
"This feat was possible due to the good governance policies and strategic approach that ERI steadfastly adopted for the restructuring of the company, and as a result we are now blessed with a highly motivated work force which will be a positive factor in progressing to our next phase of accelerated growth," he added. Environmental Resources Investment PLC owns 72% of Ceylon Leather PLC and strives to be a socially responsible business entity which firmly believes in the positive and far-reaching effects of good governance policies.
ERI provides financial management, strategic guidance and strong management discipline to help re-structure companies.
"ERI was the driving force behind the restructuring and resurgence of Ceylon Leather PLC to make it profitable, and continues to provide vision for our newly-revived company in Sri Lanka. We are very excited for the prospects of our future," continued Senaratne.
source - www.dailymirror.lk
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