Hayleys to expand in fibre sector and join air cargo markets
View(s):Hayleys PLC has announced plans to increase its plant capacity in the fibre sector, looking at overcoming challenges in the purification sector and aiming for an entry into new air cargo markets.
In the company’s Annual Report 2013/14 it was stated that Hayleys would be adding plant capacity for the next financial year 2014/15 to cater to the increased demand in the Bio-engineering and Brushware product segments.
While the primary objective in the fibre sector was to remain profitable having faced a challenging year due to setbacks in key markets coupled with rising manufacturing cost. Currently the sector is said to be undergoing restructuring and this is expected to create stronger results in the next financial year, it was stated.
In the purification sector the company aims at overcoming the competitive challenges of India’s position in the market as against Sri Lanka that faced a setback in terms of pricing since the coconut based charcoal manufacturing processes were affected in the last financial year.
It was stated that there were serious challenges to charcoal supplies in Sri Lanka and India that was expected to continue. In addition, Haycarb expects pricing pressure in the raw materials supplies sector in Thailand and Indonesia that would ensure thegroup revises pricing and to reduce their efficiencies and reduce costs, the report stated.
In addition, Haycarb is looking at an intense marketing campaign to establish the brand in Europe, US and Asia. Moreover, the key strategies would be to expand their manufacturing capacity and maintain a technically superior manufacturer of coconut shell-based activated carbon. In this regard, it was noted that the newly commissioned factory of PT Haycarb Palu Mitra in Indonesia would further contribute to capacity increases from the second quarter in the next financial year, the company stated.
Moreover, in the leisure sector the company is currently looking at entering new air cargo markets and vies to remain profitable in their destination management operations since its inception three years back, the annual report stated.
It was also noted that last year Hayleys had recorded the passenger GSAs and travel agency business handled passenger numbers in excess of 65,000 while on the inbound tourism side there was an approximately 45 per cent increase in the number of guests over the previous year.
The aviation business is expected to grow during the next financial year driven by increased sales and marketing activities focused on the corporate client base for passenger sales and a possible entry into new air cargo markets, the company announced.
In the agriculture sector of Hayleys the company has recently ventured into seaweed cultivation, which provides supplementary income to fishing communities in the Mannar and Kilinochchi districts.
In the organisation’s power and energy sector aims to expand further by adding capacity to the national grid, it was stated.
But it was noted that raw materials and energy cost increases was expected to have an impact on the product margins going forward. It was noted that mergers and demergers of suppliers and principals, as well as those arising from suppliers moving towards working direct instead of going through an agent were notable issues that were affecting the sector.