By Jithendra Antonio
Sri Lanka’s largest Diamond studded Gold jewellery exporter Blue Diamonds Jewellery Worldwide PLC (BLUE) said yesterday that it has prevented four of its directors leaving the company, to safeguard its interest in the local market.
In a filing stock exchange, Blue Diamonds Executive Director Godfrey de Kretser said to safeguard and protect the interest of Blue Diamonds, four separate agreements were entered into with four Executive Directors of the company namely Bandula Ranaweera, Godfrey de Kretser, K.V.D.D.A. Dias and M.M.N. Priyantha who possess the expertise in jewellery manufacturing process that uses Carbonlokd or Floating Diamonds.
“As per the conditions of the said agreement, none of the said directors could leave the organization for a minimum period of three years from the date of signing, nor can the company remove them for a period of three years except for the reasons set out in the agreement” the statements said.
Explaining about the company’s move, Head of Blue Diamonds (BLUE) Group Bandula Ranaweera said, as Blue Diamonds cannot cater to the local market, it setup an associate company named Frior Drissage Jewellers Ltd with Directors subscribing for equity and BLUE investing Rs.10 million (16.67%) in Frior Drissage Jewellery via funds raised from Blue Diamonds rights issue last year.
“We as Blue Diamonds saw immense potential in manufacturing to the local market.
But since we cannot release it to the local market without duty, we setup the associate company” Ranaweera said adding that there are only two directors in the company who have mastered the technical know-how of the manufacturing process that uses Carbonlokd or Floating Diamonds.
He said that BLUE executed an agreement with its associate company Frior Drissage Jewellers for a period of 15 years, authorizing the said company to manufacture jewellery using the Carbonlokd (Floating Diamonds) setting concept, to exclusively cater to the local market.
“This would facilitate Blue Diamonds to earn a minimum of 5% of the labour value earned on the jewellery manufactured and sold in SriLanka” he said adding that losing the two directors of the company will ultimately affect Blue Diamonds reaching the local market.
He further stressed that safeguarding the Directors is vital since the exclusive jewellery manufacturing process has not been patented. “If we patent it, our competitors will easily get to know the process, so we don’t want that to happen” Ranaweera pointed out. The statement to Colombo Stock exchange further said that the failure to comply by either Directors or Blue Diamonds will result in having to settle the other party the applicable remuneration at the time of leaving the organization for the remaining period as compensation.
Further the said directors are precluded from divulging the aforesaid secret processes for a period of three years after leaving the services of the company.
“This would not only strengthen the company, but would also enable the company to maintain and safeguard its secret process. We have bounded the Directors tight” Ranaweera noted.
The move came at a time when state-owned insure Sri Lanka Insurance Corporation (SLIC) became the largest shareholder of Blue Diamonds, grabbing its ownership from leading private insurer Ceylinco Insurance PLC. While SLIC bought BLUE stake from its subsidiary E-Channelling PLC (ECL) early this month, market sources also outline that a Chief Executive Officer of ECL who has interest in a another leading jewellery company is eyeing to combine Blue Diamonds business with the other jewellery manufacturer.
source - www.dailymirror.lk
No comments:
Post a Comment