By Hiran H. Senewiratne
Pelawatte Sugar Industries PLC will perform well in the future with global sugar prices expected to rise and the company has ambitious plans to expand its operations, the company’s Director A. Wickramanayake said. Speaking to The Island Financial Review Wickramanayake said he was happy with the company’s performance because with the increase of world sugar prices the company could position itself as one of the top trading companies in the market.
Sugar prices in the world market continued to demonstrate an upward momentum in the recent months where prices moved up by 3.2 percent in January 2011 alone. Retaining this drive sugar prices may continuously climb in markets in New York and London with rising demand for sugar cane based bio-fuel, considering the interest towards the use of ethanol as an alternative fuel.
"We expect demand side pressure will set lucrative prices for sugar thus enabling the company to attract healthy investor interest," Wickramanayake said.
With these developments, strong buying was seen on Pelawatte Sugar Industries PLC shares yesterday (22) in the Colombo Stock Market with two business tycoons showing interested in taking over the company shares, brokers said.
"One of the main attractions was that they produce 70 percent of local alcohol requirement, produced by using molasses, a by product of sugar," a broker said not wanting to be named.
Wickramanayake said he has not interested in disposing controlling stakes of the company right now because the company was heading towards a good future.
The share price of Pelawatte Sugar Industries shot up to Rs 42.90 from Rs 35.80.
The company is hoping to increase sugar production within the range of 25,500 to 45,500 metric tones, within the next few years.
source - www.island.lk
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