Sri Lanka´s Ceylon Glass says exports surging

Ceylon Glass Company Thursday announced net profit for the quarter ended September 30 rose 29 percent to 44.6 million rupees and that exports were doing well.

The company´s interim results released to the Colombo bourse showed revenue for the quarter increased to 504 million rupees from 421 million in the same period last year. It also reported a sharp increase in distribution costs to 22.3 million rupees from 7.6 million over the same period. A statement from Ceylon Glass Company (CGC), a unit of India´s Gujarat Glass, said sales grew 20 percent in the quarter under review. "CGC has seen continuous growth in its export sales over the past few years," the statement said.

Export sales in the first half of the current financial year rose to 10 percent of total sales from five percent in the whole of the previous 2006/07 financial year.

"Coloured wine and liquor bottle sales to India have been a main contributor to this achievement," the statement said. "It is encouraging to note that the export growth in the first half of the current financial year is more than 290 percent as compared to 108 percent during the corresponding period of the previous year." Total sales for the first half were up 15 percent to 973 million rupees and profit after tax was up 22 percent to 88 million rupees.

The company has said growing worldwide demand for specialty glass containers has presented it an opportunity to enter niche markets for coloured glass containers. It is exploring opportunities in India, the Philippines, Mauritius and Australia.

The company recently announced a cash call of 752 million rupees from shareholders to part finance a new factory in Horana, south of Colombo. Its existing plant in Ratmalana, one of Colombo´s suburbs, will be shifted to Horana. The new plant will raise capacity to 250 tonnes from 120 tonnes a day