Managing Director Gujarat Glass Ltd, holding company of Ceylon Glass, Vijay Shah said a General Meeting was held yesterday to consider and to pass a resolution on the company's proposed Rights Issue. "Shareholders had approved the move," he said.
He said the demand for their products has increased both locally and internationally and they are compelled to import glass to meet this demand.
"Therefore it is necessary to expand and we would be investing Rs 3.7 billion. This would be for a new furnace and expansion project at the Horana manufacturing capacity," he said.
With the expansion, their capacity is expected to more than double and will look for new markets. The company is already exporting to India, Mauritius and the Maldives.
"We would be looking at new markets in South Africa, Europe and the Middle East," he said.
He said they have high overheads for power, which are increasing their overheads. "Ceylon Glass consumes four megawatts of power daily".
"Therefore we have decided to look for alternative power. With this the company will be investing on either a mini hydro, coal power or waste power plant in the near future," he said.
Ceylon Glass To Raise Rs. 752 m In Rights Issue
Ceylon Glass Company is to raise Rs. 752 million through a rights issue to induce capital for their future expansions. The rights issue will commence on November 12 and conclude on November 23.