Chemanex says will meet future challenges with confidence

Tuesday, 14 August 2018 00:00 - - {{hitsCtrl.values.hits}}

Chemanex PLC, the leading importer and manufacturer of industrial chemicals and intermediates, recently saw the completion of a successful restructuring process. The company, with its assets reaching Rs. 2.03 billion, has consolidated its strengths holistically and is all set to meet future challenges with sheer confidence.

Despite the decline of group turnover from last year’s Rs. 181 million to this year’s Rs. 108 million, the profit before tax (PBT) reflected a significant improvement recording Rs. 41 million this year in comparison to Rs. 8 million the previous year. This undoubtedly signifies the company’s optimistic changes indicating focused business lines and slimmer organisation. Furthermore, Chemanex was able to drop its administration expenses from Rs. 31 million to Rs. 12 million, whereas its distribution expenses dropped from Rs. 14 million to Rs. 3 million.

With an insightful approach to overcome impending obstacles, Chemanex steered its prudent restructuring process observing a number of crucial changes. The company took steps to clearly identify and terminate non-profitable or lagging operations, while fostering core competencies. It also introduced an actionable business model built on improved focus, structure and efficiency, which in turn encouraged a sustainable growth and enhanced stakeholder value. Furthermore, by disposing unutilised lands, Chemanex was able to achieve significant funds to complement its short term investments. The company is hopeful that the steps taken will help them garner higher profits through strategic operations in due course.

Expressing his views on the matter, Chemanex PLC Chairman P.R. Saldin noted, “With the successful completion of our restructuring process, we are more optimistic to face future challenges than ever before. Our next step is to leverage effective synergies with the CIC Group and incorporate their expertise to develop and expand our market strengths and presence. This approach will help us meet the rising demands of our local and international markets while providing them with full product requirements.”