“Following the introduction of the metal cutting gas operation, we are planning to enter the industrial gas market end of this year or early 2012. Along with it, we’ll be also considering listing the entity in the stock market” Laugfs Chairman W.K.H Wegapitiya said.
The company has already set up the metal cutting gas plant in Mabima, and production is to commence shortly. Laugfs Gas Limited recently signed a joint venture agreement with Bharat Petroleum Corporation Ltd of India to introduce a new Metal Cutting Gas to Sri Lanka under the brand name “Laugfs Bharat Metal Cutting Gas” (LBMCG).
According to Wegapitiya, local metal cutting gas requirement per month currently stands around 30,000 kgs in weight, and Laugfs expects to capture 50 percent of the market end of this year.
When asked about product distribution, Wegapitiya said they will use their already established LP Gas distribution network, and will reach out to about 1200 acetylene agents in the country.
“For corporate clients, a mechanism will be established to deal directly,” he pointed out.
Wegapitiya also said, they expect an annual turnover of Rs 50 million from metal cutting gas during first year’s operations. The Mabima plant has a capacity to produce 200 metal cutting gas cylinders per day. The company will officially introduce LBMCG to the local market tomorrow.
Industry sources also revealed that Laugfs is also planning to expand its LP Gas business into the South Asian region.
source - www.dailymirror.lk
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