Raigam Saltern to go for IPO to raise Rs 200 m
Raigam Wayamba Saltern (Ltd), a fully owned subsidiary of the Kingdom
of Raigam will be going for Initial Public Offering (IPO) by the first
quarter of this year. It is after Colombo Stock Exchange (CSE) approval
expected in the following weeks, Wayamba Saltern Chairman/CEO Dr. Ravi
Liyanage said in Palavi, Puttalam recently.
The IPO expects to generate Rs 200 million and sell a share at a Rs
2.50 worth Rs 800 million. It is expected to strengthen the local
industry of salt while producing hygienically packed salt made to
The Wayamba Saltern has been a marshy land in the past but it was
developed to a productive saltern within a span of four years.
“It is the first refinery plant and produces 50 percent of the table
salt market,” he said.
“Our turnover for 2008/09 was Rs 382 million and the profit was Rs
172 million compared with the turnover of Rs 157 million and profit of
Rs 12 million the previous year,” he said.
Wayamba Raigam Saltern in Puttalam produces table salt for the Sri
Lankan market which was once imported from India.
“The salt industry is an industry which can be easily expanded as
there is enough natural resources such as sunlight and lagoon water.
Therefore, the salt industry became popular and we have been able to
specialize with iodized table salt a few of years ago,” he said.
Wayamba Saltern with more than 300 acres, is the largest and the
productive among salterns in Sri Lanka. It has the capacity to produce
60,000 kgs of table salt per a day.
There are around 200 workers in the factory and could take a daily
harvest of 1500 metric tons a day.
“Many improvements in the company have been arranged. New machinery
worth Rs 50 million was invested on the saltern.
A new technology called pure vaccum dried technology will be
introduced to manufacture pure salt that can be used for the
manufacturing industry in Sri Lanka such as biscuits and other products
which at present are imported from other countries,” he said.
Crystal salt has been popular in Sri Lanka and has a good potential
market. Thus, we expect to establish a plant in Trincomalee adding to
the saltern bases in Puttlam and Hambantota.
It is expected to set two new salterns in Puttalam and one in
Wanathavilluwa and one in Hambantota.
“These salterns stretch upto 110 acres, 350 acres and 210 acres
respectively. The expansion will take place with the IPO and the
management expects to create a second generation of management after the
IPO,” Raigam Joint Managing Director Ganaka Amarasinghe said.