Environmental Resources Investment PLC (ERI) the premier investment company in the country is in the process of providing financial assistance and strategic guidance to restructure valued companies.
Very recently ERI invested in two companies, Ceylon Leather Products and Dankotuwa Porcelain, which are assets to the nation.
Ceylon Leather Products (CLP) announced a 1:1 rights issue along with attached warrants in June 2010 amounting to over Rupees eight billion.
Initially, 12.5 million ordinary shares will be issued at rupees 73 per share, to raise fresh capital to payoff present debts, expansion of business and for other investment opportunities. The company recorded a strong profit during fourth quarter of 2009 and first quarter of 2010.
CLP was making significant financial losses when ERI acquired the controlling interests of the company in 2009.
During the crucial period of revamping and revitalizing the company, we were indeed fortunate, we were able to restore the company to profitability without having to retrench even a single member of the workforce, CLP Managing Director/Chief Executive Officer Sitendra Senaratne said.
CLP currently employs a workforce of over 400. CLP is known for manufacturing and selling genuine leather products such as military and industrial shoes and boots and recently ventured into high quality shoes, ladies bags, brief cases, leather bags, unique leather fashion accessories and toys for the local market.
CLP's recently revamped showroom in Colpetty has tripled its sales since launch and CLP plans to open many such showrooms with great ambience, in strategic locations soon. ERI owns 72 percent of CLP.
Dankotuwa Porcelain PLC entered into a strategic partnership with the consortium comprising ERI and CLP with the issuing of 48 million plus shares in a private placement.
The placement will infuse Rupees 433.5 million of fresh capital into Dankotuwa Porcelain, which will be utilized to restructure and expand its operations.
Dankotuwa Porcelain was on the verge of getting liquidated when ERI came into the rescue.
The company's liquidity status was very bad and was critically in need of an investor apart from the existing Japanese investor, to instill life to the company.
The fresh and timely capital infusion from ERI/CLP consortium sans downsizing proposals has brought muscle to the company.
"We will now look forward to expand our operations and fortify our position as a leading global manufacturer and exporter of high quality tableware and lifestyle products," Dankotuwa Porcelain Chairman Sunil Wijesinha said.
"We will use ERI's plan for CLP's restructuring. One main point we really value is, ERI's mindset of not retrenching our staff, as our workforce is a main factor for Dankotuwa producing such high quality products," he said.
The company has a workforce of over a thousand.
Dankotuwa Porcelain products can be found in many top department stores in the world. (CBW)
source - www.dailynews.lk
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