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by Ravi Ladduwahetty

Lanka Salusala Ltd (LSL) aims to dominate the Rs.4 billion uniforma market by tying up with a private sector collaborator.

The LSL- private sector joint venture will supply the defence uniforms to the three armed forces, health uniforms to the nurses in Government hospitals and also educational uniforms to school children.

"We have called for invitations from the private sector so that we could form a joint venture which will serve as a buying office for all the key state institutions in their need for uniforms.

The Government is spending Rs. 1 billion for the uniforms for the three armed forces. The school uniforms fabric market is Rs. 600 million and the nurses uniform fabric market is Rs. 500 million," LSL Chairman Faizal Hameed told the Daily News yesterday.

This is the cost of the fabric and if we could provide the tailoring as well, then the value is double at Rs. 4 billion, Hameed said.

LSL will make use of the existing infrastructure at its three factories at Galagedara, Gonulla in the North Western Province and Mulleriyawa for the manufacture of these uniforms and one of the principal objectives of the joint venture is also to explore the possibilities of subcontracting the manufacture of uniforms to ailing garment factories which are threatened with closure or have closed down without quotas, he said.

What we are looking for is an investor who has a well known name and a proven track record who could bring in the working capital to expand the wholesale base of the company.

LSL is equipped with an effective marketing network and there are merchandisers in each of the sectors who could assist in the allocation of uniform orders to local manufacturers, he said.

According to the LSL Chairman, there are also possibilities of either for LSL to import and manufacture the uniforms or for the import of the fabric and sell it to the market so that the local manufacturers could make use of the fabric to sell the finished product.

He also said that moves were afoot to increase the production of handlooms, a sector which had much promise, if promoted the right way. There is unlimited potential in export markets and this is one area which could be promoted.

What has happened is that the handloom industry has been dominated some private sector companies who are enjoying exorbitant profits, a market which can be broken into, he said.

He also said that LSL had also received a very positive inquiry from a Chinese manufacturer who has expressed interest in equity participation in the LSL's Ratmalana factory to manufacture accessories for the military such as badges, boots, epaulettes and insignia.

LSL will provide the land and the buildings and the Chinese collaborator will invest in the working capital for the manufacturer of these products.

Cabinet approval has also been given for the LSL Voluntary Retirement Scheme for which a Rs. 90 million allocation has been made. We hope reduce the numbers from 800 to 600, he said.

The financial performance of the company has also improved from the turnover of Rs. 89 million for the year ended April 2002 to the Rs. 113 million for the seven month period April- December 2002.

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Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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