Raigam Wayamba Saltern begins industrial chlorine production
In the wake of large potential and high demand for industrial salt, Raigam Wayamba Saltern PLC, a subsidiary of the Raigam Group, will be diversifying its range of products to include Caustic soda (sodium hydroxide or NaOH), Chlorine and Hydrochloric acid in the near future, Raigam Chairman Ravi Liyanage told a media conference in Colombo recently.
Sri Lanka can easily produce chlorine and caustic soda at a very low cost as the country is surrounded by sea; he said adding that around 70 per cent of the total salt production comes from sea water.
Caustic soda is used in the production of polyester, other synthetic fibers and soda ash is used in the manufacture of glass, pulp and paper. It is also used in the soap production process.
Caustic soda and chlorine are normally manufactured by the electrolysis of sodium chloride (NaCl) solution.
Mr. Liyanage noted that Raigam Wayamba Salterns PLC engages in manufacturing, refining, packeting and marketing salt products.
The company offers iodated table salt: vacuum dried salt for use in the pharmaceutical and food industries: fertiliser salt for agricultural applications: agri-salt, which is used as manure for coconut, rubber, banana, and pine-apple plantations; and industrial salt that is used in the textile, paint and tanning industries.
According to available data, total annual consumption of local salt is 150,000 metric tonnes(MT) including 120,000 for domestic and rest for industrial.
Sri Lanka’s salt harvest up to October 2017 was 85,000 MT and by end 2018 it will increase to 96, 000 MT and keep on the momentum and gradually increase to meet Sri Lanka’s demand for 2020, he disclosed.
However, he noted, his company can also set up plants to produce chlorine and caustic soda, but the government should provide import duty protection to have a captive market.
He disclosed that the country’s salt production has been badly affected by floods during the past two years and the country has experienced a severe salt shortage in 2016.
Although salt production came to a near standstill due to bad weather conditions, Raigam managed to service the market due to prudent stock management practices of the company, he revealed.
He said “the salt refinery and the Pure Vacuum Dried (PVD) salt plant located in Palavi, Puttalam is used to harvest raw salt and directly distributed from Western Region to Northern Region enjoying the comparative advantage of low distribution cost”.
New salt fields have been introduced in their three salterns, in Hambantota, Bundala and Palatupana and also deep tanks have also been established during the last few years, he said.
Raw material requirement for all salt products are from the company’s three strategic locations in Puttalam, Tangalle and Trincomalee.
Nihal Vijendra, General manger of the Company told the Business Times that the Wayamba Salterns PLC has recorded a turnover of Rs.778.7 million during the financial year 2016/2017 compared to Rs.435.1 million in 2015/2016.
This was an increase of 79 per cent, he said pointing out that its turnover during the six month period of 2017/2018 was Rs. 340 million.
He said that Raigam Wayamba Salterns has been able to gain a considerable financial growth of 85 per cent during the financial year 2016/2017 with a gross profit of Rs.272.7 million in comparison to Rs. 147.2 million in 2015/2016.
Profit before tax increased to Rs.170 million from Rs 58 million while profit after tax also recorded an increase of 193 per cent to Rs.108.6 million from Rs. 45.8 million during the same period, he disclosed.
RaigamWayamba Salterns PLC recently walked away as a winner at the National Business Excellence Awards –NBEA 2017 proving its excellence in Manufacturing-Food and Beverage Sector, he revealed.
He said since the company recorded remarkable progress within a short period in 2010 it was listed at the Colombo Stock Exchange as Raigam Wayamba Salterns PLC.
“We wanted to give the opportunity even to the general public to become owners of this venture,” he pointed out.