EMP, Puwakaramba tie-up for nail factory

Rs 300m investment:

Ramani KANGARAARACHCHI

A leading manufacturer of electrical switch boards in the country Electro Metal Pressings has diversified into manufacturing nails with an investment of Rs 300 million jointly with Puwakaramba Agencies Pvt Ltd recently.

The newly built EMP nail manufacturing factory was opened at the Templeburg Industrial Estate in Panagoda last week.

The opening ceremony at the new factory in Homagama.  Picture by Saliya Rupasinghe

EMP Chairman Chandanandana Diynuge told Daily News Business that Puwakaramba Agencies (Pvt) Ltd, which is a leading hardware distribution company has undertaken the supply of the raw materials and the purchase of the total production.

Puwakaramba Agencies (Pvt) Ltd will be responsible for the marketing of all types of wire nails, which is being manufactured at the EMP Nail Factory.

The capacity at the new factory is 400 metric tonnes of nails a month now and there will be another expansion with the emerging demand later. Out of the total value of the project the working capital component of Rs 200 million is provided by Puwakaramba Agencies (Pvt) Ltd and with Electro Metal Pressings (Pvt) Ltd component of Rs 100 million for the land, buildings and machinery (fixed assets).

The total demand for nails in the country stands at around 3000 metric tonnes per month at present and with the expected economic development it is expected to increase up to 6000 metric tonnes per month in the future and EMP is planning to meet that demand.

Diynuge said there are about five players in the local market and in addition the country imports nails from China and India to fill the gap. Once EMP starts operating its full capacity importing nails can be stopped saving a huge amount of foreign exchange.

The company has planned to design innovative products and market in the neighbouring countries in the long run as most of the countries manufacture normal nails.

Sri Lanka imports raw material required to manufacture nails from the region and 40 per cent value addition is done in Sri Lanka. The project will generate employment for more than 100 persons and the company will give them special skills training to increase productivity.