Orange to invest Rs. 250m on expansion

INVESTMENT: Orange Electric System Pvt. Ltd., will invest Rs. 250 million for their 2006 and 2007 expansions to acquire new technologies and for new machinery. The investments would increase to Rs. 500 million for their 2007/2008 financial year.

The company has been increasing their investments in the previous years mainly to meet the growing demand both locally and internationally.

The investments for the company in 2004/05 had been Rs. 70 million while it increased to Rs. 136 million in 2005/06.

Orange Electric caters to over 85% of the Sri Lankan market demand of Electrical Switches and Sockets. By end of 2007 Orange Electric will be able to cater the total demand in Sri Lanka for switches and sockets thus saving large amounts of foreign exchange to the country.

Presently Orange saves over Rs. 100 million a month by way of foreign exchange for the people of Sri Lanka.

Orange Electric employs 852 skilled and semi-skilled Sri Lankans in the two factories in Maharagama and Boralesgamuwa and the offices in Colombo, Matara, Ratnapura, Kandy, Kurunegala, Badulla, Anuradhapura and Gampaha and Pitipana Central Warehouse.

With the on going production expansions in 2007 and 2008 Orange will create over 400 new skilled and semi-skilled jobs for Sri Lankans in their new factories.

Orange has been able to create a global presence for this local brand in a very short time of 2 years. In 2005/06 Orange Exported USD750,000 (Over SL Rs.75 Million) worth electrical switches and sockets to Australia, Europe, Maldives and Pakistan.

The company has made plans to export over US$ 2 million in 2007 and in 2008 to exceed the US$ 5 million mark.

The new export countries for Orange Electric are Middle East, Singapore, Malaysia, Italy, Belgium and Africa.

Orange has purchased a 14 acre land at Meegoda and obtained approval from BOI to start an industrial Estate to manufacture electrical accessories for export.

Sri Lankan graduates lead Orange Research and Development teams from Moratuwa and Peradeniya universities. All Engineers employed by Orange Electric are Sri Lankans. Orange Electric has been able to exceed the expectations of the Sri Lankan consumer.

Orange annually collects large sums of money for the Government as VAT.

VAT contributions by Orange increased from Rs. 67 million in 2004/05 to Rs. 125 million the following year.

For 2006/07 it is projected at Rs. 264 million.

In recognition of the contribution Orange Electric has made to the local economy and the people of Sri Lanka, the Federation of Chambers of Commerce and Industry (FCCISL) in January 2006 awarded the National Gold Medal to Orange Electric owner Kushan Kodituwakku.