Floriculture Analysis in Sri Lanka

Topics: Strategic management, Sri Lanka, Economics Pages: 11 (2910 words) Published: October 29, 2012
Front Page
1. Introduction
A Dumindu industry is a large salt base industry in Hambantota district. The company was established under the government registration number N (PVS) 31768 as private limited and commenced operations on 02st October 2002. It was inaugurated with just 10 employees and now it is functioning smoothly with 110 direct employees. Now the company produces the several salt base products to market under brand name of “Dumindu” and average monthly capacity is more than 500 Metric Tonnes. Its’ revenue was Rs. 348 million in last year. Dumindu Industry takes required salt from Hambantota and Puttalam saltern at an agreement price. The demand for both household and industrial consumption in Sri Lanka is estimated to be 150,000 Metric Tonnes (MT) per annum. The actual average production was approximately 110,000 MT and the balance demand was met by imports where the imports were carried out by private parties. Dumindu Industry contribution was 4% in last year from the country annual requirement. Recently Dumindu Industry had an agreement with “Cargills” to produce 500g and 1kg crystal salt packets, 400g and 1kg of table salt packets under brand name of Cargills for one year contract. This is good opportunity to the company to expand their production. However, recently company sales decline and company is experiencing financially unstable situation. It badly affects to continue their productions properly. Here we analyze the reason for decline and give remedial solution. 1.1. Vision

Be a nationally recognized Salt production company.

1.2. Mission
Our mission is to intensify quality of life through produce high class product by using state of the art technology which will ensure highest level of consumer satisfaction and give benefit to society at large. 1.3. Objectives

* We want to expand distribution network at every corner of Sri Lanka to make the quality product available at consumers’ door steps. * We want to create more employment opportunity for the common people of the country by inflating our business. * We want to augment the skill and strength of the organization that will contribute in economic development of the country.

1.4. Industry & Competitive Conditions
Sri Lanka consumes approximately 150,000 metric tonnes of Salt per annum out of which about 120,000 metric tonnes go for human consumption. Due to insufficient local production, between 10,000 to 40,000 metric tonnes of salt are imported each year. Being the most uniformly consumed food additive known to humans, Salt is the single most important agent in the fight against the prevalent Iodine Deficiency Disorders in Sri Lanka. By manufacturing Iodated Table Salt, Dumindu Industry is contributing in a very meaningful way to eradicate IDD in Sri Lanka. It also helps to bring down unemployment by offering number of job opportunities to the people of the salt producing areas. Enough Salt to go round will mean that Salt will be available to each and everyone at the lowest possible price. According to Dr. Liyanage (Raigam Wayamba Salterns PLC Chairman and CEO) the salt industry has significant potential to develop as the country is surrounded by the sea and the tropical weather is conducive for the production of salt. "But this year the weather was not all that good for salt harvesting,” he added, explaining that salt production is sensitive towards the weather conditions and that any unfavorable weather conditions will affect the production of the company in inverse manner. One of the most important jewels of our Mother Lanka’s crown is her salterns that are spread right round the island, producing solar salt of the highest quality. Salt as we know it has been with man since the day he became civilized, eating prepared food. Without Salt, no food or drink will taste the same now that we have come to know Salt! With the world now using more and more Table Salt, due to convenience...
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