Laugfs imports metal cutting gas
Partnership with Bharat Petroleum:
Harshini PERERA
The Sri Lankan metal cutting gas industry is a sizeable market which
can make further cost effective and safe than current acetylene mixed
with oxygen used for metal cutting.
Laugfs Gas Ltd., signed a joint venture agreement with Bharat
Petroleum Corporation Ltd of India to import a new brand, Metal Cutting
Gas to Sri Lanka under the brand name Laugfs Bharat Metal Cutting Gas
(LBMCG), Laugfs Holdings Chairman W K H Wegapitiya told Daily News
Business.
“We have seen many opportunities for metal cutting gas in Sri Lanka
and during our demonstration stage our buyers were impressed with the
product due to its cost advantage,” Wegapitiya said.
Laugfs will cater to individual entrepreneurs and corporates such as
the Colombo Dockyard, Railways Department and companies involved with
heavy engineering work.
Metal cutting gas market per month is around currently 30,000 kgs in
weight and Laugfs expects to capture 50 percent of the market by the end
of this year.
“We have already established the network with our existing Laugfs Gas
distribution channel while distribution to corporate clients will be
done directly. There are 11 islandwide Laugfs Gas distributors and 1600
dealers. We will be reaching 1,200 acetylene agents as well with added
incentives,” he said.
“We expect to gain an annual turnover of Rs 50 million from metal
cutting gas during the first year and Rs 6.5 billion in annual turnover
from LP gas. We have linked up with a Fortune 500 company, Bharat
Petroleum which has recorded a turnovers of Rupees seven billion last
year,” Wegapitiya said.
Laugfs Gas expects to produce 200 metal cutting gas cylinders per day
when production starts in middle January at the Mabima plant.
He said that if the market captures the new product, the company
expects to invest in a separate filling plant for metal cutting gas.
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