Ceylon Glass Company, a subsidiary of India’s Gujarat Glass, has announced plans to put a prime property on the market, valued at 700 million rupees. This land, where the company has recently moved its production facility from, is located near Colombo and spans across 21 acres.
In a statement from the company, it was specified, "The land is strategically located, surrounded by roads on three sides and its proximity to the Galle Road (the main road into Colombo) gives an advantage to any potential developer or industrialist."
The investment property is recorded at a carrying value of 703 million rupees on the company’s balance sheet. Ceylon Glass has reported a drop in net profit for the year ending 31st March 2008, declining to 35 million rupees from a re-stated profit of 104 million rupees the previous year, despite a significant rise in exports.
This profit figure emerges post the capitalization of 176.8 million rupees in interest charges related to the relocation of its production plant to Horana, situated south of Colombo, from the previous Ratmalana location. Costs associated with this relocation will be amortized over several years.
As per the statement, turnover grew by 8.5 %, reaching 2,014 million rupees, although gross margins decreased to 23 % from the previous year's 25 %. The decline in margins is attributed to the necessity of importing bottles, a move the company had to make due to capacity limitations at the start of this fiscal year, which compelled them to import at marginal or even negative rates to meet domestic demand and maintain customer loyalty.
Last year, exports surged by an impressive 160 %, now constituting 10 % of total turnover, more than double the previous year’s figure of four percent. "Having more than doubled capacity with the new plant, the company is now able to meet the demands of the local market as well as pursue lucrative export markets," the firm mentioned.
Furthermore, in terms of exports, the focus will be on specialty beverage and food bottles, particularly short-run options with coloring or decoration aimed at adding value. The company states that it is strategically positioned within the Asian market, exporting boutique wine and specialty liquor bottles for prominent brands across India.