Right of Reply
View(s):“Dipped Products, Sri Lanka’s biggest medical gloves exporters, heading for worst-ever year?” With reference to the article with the above title published in the 14th August 2016 edition of the Sunday Times Business, Dipped Products has sent the following response:.
1. The statement that we are a medical gloves exporter as stated in the headline is incorrect. The body of the article meanwhile states “Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 per cent share of the global market” which contradicts your headline. DPL is a fully integrated rubber glove manufacturer that produces a continuing stream of high-value new-product innovations in protective hand wear. These have clearly differentiated us in the world market as a leading supplier of natural and synthetic latex-based domestic, industrial and medical gloves. Our Sri Lankan facilities primarily manufacture household and industrial gloves and therefore only export products under these two categories from Sri Lanka.
2. The opening sentence “Dipped Products, once the Hayleys Group’s best performers, is going through one of its worst years with the first quarter (April-June) in the new 2016/17 financial year showing a post-tax loss of Rs. 54 million compared to a profit of Rs. 144 million in the same 2015 quarter” is misleading and is a negative forward looking assumption. There is no factual evidence in the article to establish that Dipped Products is going through one if it’s worst years nor has any such statement been made in the interim financial statements or by any DPL Official. The loss in profitability in Q1 results mainly reflect the challenges faced by DPL’s Plantation Sector, which are in fact common to the plantation industry as a whole at present.
3. The statement “The tax figures may have also got affected by the May 2016 investment of 3.24 million Euros (Rs. 535 million) in ICOGUANTI S.p.A, a company in which DPL had a 60 per cent stake. With the new investment, DPL has taken full control of the company” is inaccurate and misleading. The investment in ICOGUANTI S.p.A has had no bearing on taxation.
4. The statement “The issues that the company faced in 2014/15 like the Rathupaswala debacle and falling tea prices, appeared to spill over into the new financial year though no reasons were given for the poor April-June 2016 quarter performance. The company faced accusations that the water table in the village had been polluted triggering bloody protests” is misleading. The incident in reference took place in 2013 and was reflected in our 2014/2015 Financial Report.