CLPL Management plans to shift Gampaha factory in April

07 Mar '08

2 min read

Subsequent to the sale of land (extent 544 perches) in October 2007, which infused Rs 307 million, CLPL is a virtually a Debt free company.

CLPL purchased on 20th December 2007 a land and a factory at Balummahara, Gampaha with a Rs 50 million investment to re-locate the footwear and leather products operation.

However the Company expects the value of this property to double in the event of a revaluation. Refurbishment of this premises which commenced end of January 2008 is expected to be completed by end of March 2008. The Management is planning to shift the factory in April 2008.

CLPL has signed an agreement for the Consultancy Services with the Footwear and Design Development Institute (FDDI) in India for the re-location, restructuring and modernizing the footwear and leather products operations.

The shifting of the tannery will free up 760 perches of land at a prime location in Mattakuliya enabling the management to look at options of development.

The value of this land is expected to considerably appreciate in light of the proposed new Colombo-Wattala-Negombo four lane highway.

It is likely that once the highway is developed the land could fetch in excess of Rs 1 million per perch in the market which would amount to Rs 760 million (Rs 60.80 per share).

CLPL has identified premium priced, high quality leather footwear and leather products as an area for future growth. The Company will not compete with large scale local suppliers on volume footwear but compete with high priced imported footwear.

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