Synonymous with pioneering advancements in manufacturing, BPPL Holdings PLC (BPPL), among the top brush makers in Asia, recently inaugurated the country’s first ever state-of-the-art polyester yarn plant.
As a future oriented company, Eco Spindles is recognised as a pioneer manufacturer, synonymous throughout the industry for producing synthetic monofilaments for cleaning tools, synthetic monofilaments for paint brushes and polyester yarn for fabric.
As a driving and innovative force continually setting new standards in the industry, Eco Spindle’s technologically advanced new yarn facility, located in the Horana BOI Zone, has an impressive 13,000 sq. meter area and a capacity to produce approximately 960 tonnes of synthetic yarn per annum for local and globally renowned fabric manufacturers.
Impressively, this is only one of two plants globally which creates yarn directly from flakes circumventing the polymerization process where flakes are first converted to chips and then to yarn.
The raw material for the plant’s yarn is sourced through post-consumer (waste) PET bottle collections. Eco Spindle’s well-established network of over 125 collection points set-up across the country ensures nearly 200-250 tonnes of PET waste is amassed each month.
The PET bottles are then sorted, hot and cold washed prior to being transformed into flakes and finally, into recycled draw textured polyester yarn. This polyester yarn is available in both raw white and dope dyed yarn forms.
Another value addition is the plant’s dope dying capabilities offering colour pigmentation insertion as part of the extrusion process.
“We are extremely proud of our accomplishment in inaugurating Sri Lanka’s first ever yarn production facility. Propelling the country towards greater recognition, the factory’s state-of-the-art spinning and texturing machinery from Europe will make it a game-changer for the industry,” said Dr. Anush Amarasinghe, BPPL Managing Director.
“Additionally, with the global apparel industry moving towards creating more sustainable products and processes, BPPL sees tremendous potential for its recycled polyester yarn offering” added Dr. Amarasinghe.
Eco Spindle’s quality compliance, including Global Recycled Standard (GRS), Restricted Substances Lists (RSL) and Oekotex Standard 100 ensures the produced yarn meets stringent international standards.
The plant is managed by an experienced workforce of over 40 staff including consultants and operators with over 15 years of experience from countries such as Germany and India.
BPPL Holdings announced its interim unaudited financial results for the eleven month period April 2016 to February 2017.
Consolidated revenue for the period was Rs2.2 billion, up 19% over the corresponding period in the previous year. Revenue continued to grow as the company pursued its dual objectives of penetrating the household market segment both through direct sales to retailers and own branded goods sales in Sri Lanka and Indonesia. Direct sales accounted for 11% of total sales for the period, up 30% year-on-year. Own branded goods also grew by 55%, again over the corresponding period in the previous year.
Gross profit was up by a faster 30% year-on-year to Rs881 million due to margin expansion amid revenue growth. Gross profit margins, which improved from 37% to 40% during the eleven month period ended February 2017, continued to benefit from higher productivity, lower costs as a result of improved raw material sourcing and Sri Lankan Rupee depreciation against the US Dollar.
Improved productivity and stringent cost controls also led to a 47% increase in operating profit to Rs472 million compared to the same period in the previous year. Moreover, margins continued to expand to 21% at a Profit-Before-Tax level due to lower interest expenses as accumulated profits were used for debt retirement. Profit-Before-Tax was Rs453 million for the period whilst Profit-After-Tax attributable to the company’s shareholders was Rs393 million, an increase of 48% year-on-year. Non-annualized EPS for the period amounted to Rs1.28 (based on number of shares as at 28th February 2017).
Meanwhile, BPPL Holdings moved ahead with its plans for extruding synthetic yarn by placing orders with machinery suppliers following successful trials conducted with its own hot washed recycled PET flakes and discussions with leading textile producers. The construction of a new factory in the Horana BOI Industrial Zone also commenced in January 2017. This yarn production facility, which involves an investment of Rs675 million, is set to come on-stream in the January to March quarter of 2018 and contribute to revenue from April 2018.
The company is also on track to commence power generation from its own 347KW solar and 200KW biomass based power plants later this month.
BPPL offered 30,685,000 ordinary shares priced at Rs12 per share to the public via an Initial Public Offering recently. The offer was fully subscribed on the first day.