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| Sunday, 30 May 2004 |
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Business |  |
| News Business Features Editorial
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Malwatte turns round after restructuring Malwatte Valley Plantations Limited (MVPL) which was restructured consequent to a change in the Board of Directors during the financial year has turned round a loss of Rs. 96.74 Mn. last year to a profit of Rs. 16.79 Mn. during the current season showing a growth of Rs. 113.5 Mn. or 117%. The company's teas are getting unprecedented prices even before the onset of the Uva flavour season which is well known to bring high prices for these teas. Innovations and changes in manufacture have resulted in these pre-season top prices being achieved by the company's estates. As a matter of fact the company was awarded the Award of Excellence for outstanding performance in the Uva Region for small leaf grades and continue to receive premium prices for their teas, a spokesman said. Malwatte usually earns approximately 35% of its revenue during the 'flavour season' in the months of July/August/September, when record prices are received for these teas. With the good prices now being received it is expected that Malwatte flavour prices will also be unprecedented resulting in an extremely favourable trading position in regard to the tea sector of this company. Malwatte also produces approximately 2 Mn. Kgs. of rubber, both Crepe and Centrifuged Latex, and has received the record price of Rs. 152 per kilo for the latter - an all time record price for rubber. It is hoped that these prices even at present levels will result in an operating profit of around Rs. 100 Mn. for the year in the rubber sector. The company is also taking a leading role in the establishment of Technically Specialized Lankaprene Rubber for export to the United States at premium prices which it is hoped will enhance the profitability of the rubber sector even further. The company has also converted its logging operations into lumber and have imported a portable sawmill to achieve this. The company has vast reserves of Class 1 timber which is now being exploited as lumber. The balance sheet of the company has been strengthened by Rs. 347 Mn. being the value of the timber reserves which have been capitalized. MVPL has also commenced negotiations with Japanese buyers to market its teas under a brand name identifying estate mark that have found ready buyers in the past due to its unique flavour found only in the Malwatte area of Uva. The Company is being funded to promote this campaign of branded tea products by the Asian Development Bank. |
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