Mumbai, Chennai and Bangalore initially under
Alufab goes to India
Alufab PLC, among Sri Lanka’s frontline manufacturers of Aluminium
facades, will soon establish a regional presence in the Indian
Subcontinent, under the aegis of the Indo Lanka Free Trade Agreement.
“We are looking at Mumbai, Bangalore and Chennai and we will be
moving into those premium Indian market under the Indo-Lanka Free trade
Agreement and spread to other Indian cities and all these developments
will be seen within the current financial year,” Alufab Managing
Director and CEO Bernie Dole told Daily News Business yesterday.
Alufab Managing Director Bernie Dole
deliberating a point with Swedish Director Victor Press on
the company’s entry into the Indian market. Picture by
“The operational strategy which we would be operating would be
getting the core components of the products from Fletcher Aluminium of
New Zealand and other components such as from Europe, assemble in Sri
Lanka and export it to India where the value addition in Sri Lanka would
be over 60 percent,” Dole said.
There will be all round advantages to the Indian contractor cum
importer who gets it at reduced duty rates by virtue of the conditions
laid out by the Indo-Lanka FTA, while it is also price competitive for
the New Zealand exporter to send the products here rather than export it
directly to India, Dole explained Alufab has also seen the increased
demand in the overall Sri Lankan market as well- both the North and the
East as well as the rest of the country itself as a result of
sustainable and durable peace.
The company’s Rs 305 million Rights Issue which was approved by the
shareholders at the Extraordinary General Meeting held at the Kotugoda
factory yesterday saw the Swiss Chairman Johann Claesson and other Swiss
expatriate director Victor Press investing US $ 250,000 each while the
market invested US$ 2 million.
The Rights Issue was to fund working capital of the company which
will be used for the benefit of the expansion plans and the entry into
overseas market-India and we will be able to raise the capital even at
future dates as and when the need arises through the Chairman and the
other expatriate Director, Dole said.
Dole also explained that the production capacity of the Kotugoda
factory would be sufficient for the planned production even for the
Indian market for the next three years and added that there was
sufficient space in the two and a half acre factory premises even if the
demands increased with the expanded local and overseas markets. However,
if there was further space required, we could go to Hambantota.
We see very string growth potential both in Sri Lanka and overseas in
the Indian market due to the effectiveness and the quality of the
product where we will be putting the best components into the product,”
Alufab’s Swedish Director Victor Press said.