BAM ventures out in East with agri project
Even if we don’t get the GSP+facility garment factories will not be
closed down but if we get the facility it will be a bonus point and we
should be ready to face the situation and find efficient methods to
manage the factories, said Chairman BAM Group B. A. Mahipala.
 If the factories have to close down it is due to bad management, he
said.
The government should minimize placing the burdens on entrepreneurs
by reducing of taxes and also improve infrastructure facilities.
The number of holidays in the country is far too much and it has
become a problem when dealing with international buyers.
He said, to continue with the textile business it should be
vertically integrated and therefore the group has started to manufacture
collars as well as fabric dyeing. The group plans to go in for fabric
production by mid next year.
We will initially produce fabric for childrens wear. Our prices will
not be the cheapest but it will be of high quality.’ He said after the
financial crisis the buyers go for small quantities. Based on that they
will place the order for the bulk. The buyers need a quick response from
the manufacturers and therefore the factories have to be vertically
integrated to supply the order.
Mahipala said, that the initial expansion will cost Rs 100 mn while
the upgrading of machines will cost another Rs 500,000.
BAM group is also planning an agri based project in the Eastern
Province. The pilot project is estimated to cost Rs 75 mn.
We plan to grow fruits such as lemon to make juices.
All the profits we get from the project will be invested for the
well-being of the people in that area, said Mahipala. In addition the
group will also build an eco-friendly resort, in Nilaveli for which 10
acres have already been leased. The project is expected to cost Rs 350
mn.
He said, that after a certain stage he didn’t want to further expand
the business but now as the family members are getting involved and
shouldering the burden we as a group decided to expand for stability.
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