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Saturday, July 2, 2011

CIND to setup new manufacturing plant

By Jithendra Antonio

A subsidiary of Central Finance PLC (CFIN), Central Industries PLC (CIND) says the company is considering to setup a new manufacturing facility outside Colombo, in order to benefit from the booming construction industry.

“Due to capacity constraints   in the only manufacturing facility in Kerawalapitiya, we are exploring several options to set up a new manufacturing facility outside the Colombo district,” Chairman CIND Stanley Wanigasekera says in the company’s latest financial review.

He further goes on to explain that, as a major supplier of several locally manufactured specialized products for the construction industry, the Company has a product base which is accepted by discerning customers and professionals.

“We are thus confident that the demand for the Company’s products will continue to increase” he says adding that CIND continues to explore possibilities of expanding the product portfolio offered to the construction industry, creating synergies within the Company and value to its customers.

Wanigasekera outlines that during   t h e   l a s t   financial   ye a r,    t h e   Comp a n y was appointed the Authorized Distributor for ‘HITACHI’ power tools in Sri Lanka. Due to the availability of cheaper/low quality products, the revenue expected from ‘Hitachi’ products was not achieved during the year.

He further welcomed reforms in the tax structure introduced by the l a s t   b u d g e t ,   specially the   revocation o f Provincial Council Turnover Tax, the reduction in the Corporate Income tax rate, the reduction in the NBT rate, the removal of the 85% ceiling on VAT input claims,

and the relaxation of punitive provisions for disallowing two-thirds of NBT and one-half of all advertising expenditure for   income tax purposes.

According to him, the relative stability of the rupee and US dollar exchange rate in the recent past, single digit inflation and stable interest rates enabled businesses to plan and implement future action with a greater degree of certainty.

“We anticipate that this will aid the revival of the construction industry, and hopes government policies would further drive the business environment” he notes in his review.

source - www.dailymirror.lk