Raigam Group is exploring viabilities to manufacture chemical based products such as caustic soda, soda-ash and chlorine for which crystal salt is the main input, after their subsidiary Raigam Wayamba Saltern Ltd (RWSL) goes public in early May, according to top company officials.
“We have an idea for a chemical plant in Kuchchiveli in the East in the near future and will also be expanding our focus in Industrial Vacuum Salt Supply.
We are setting up a vacuum salt plant in Bata- Atha in Hambantota,” Dr Ravi Liyanage, Chairman/CEO Raigam Group told the Business Times on the sidelines of a media conference to launch RWSL’s Initial Public Offering (IPO).
He said the company is also planning to acquire the import segment of the Value Added Salt (locally produced salt cheaper than imported salt added with Cess) market by producing adequate quantities to supply local demand. “We are also planning to seek new emerging markets overseas and we already are in negotiation with a client in Japan,” he said.
Deshan Pushparajah, Assistant Manager Corporate Finance, Capital Alliance Holdings who are placement agents to the IPO said that Raigam has potential in their supply chain integration, market expansion, product diversification in the future.
“The company is planning to raise Rs 200 million from the IPO in a bid to develop their Vanathavilluwa Saltern (with Rs 90 million), complete their Palavi Saltern with Rs 15 million and invest in their Puttalam Salt Refinery Plant with Rs 15 million,” he said, adding that Raigam will also enhance their infrastructure with Rs 8 million of the IPO proceeds. |
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