Passenger vehicle assembly plant, component manufacture under negotiation

DIMO is currently negotiating with one of its principals to assemble passenger vehicles in Sri Lanka as well as backward integration into component manufacturer all part of enhancing value additional locally.

These plans were disclosed in DIMO’s 2012 Annual Report released last week though no specific parties or plans were disclosed since negotiations are underway.

“We are currently negotiating with our principals to assemble passenger vehicles in Sri Lanka. Another option is to look at backward integration into component manufacture where we see fit. DIMO is closely studying its business domain, or playing field, to manage its future in a sustainable manner. Times change, and we with them. Business boundaries can expand or contract, or undergo a paradigm shift,” DIMO Chairman and Managing Director Ranjith Pandithage said.

The new strategies planned are part of DIMO’s response to proactively manage the risks inherent in its business and product portfolio mix. “We need to hedge the dual risks of tariff revisions and the depreciation of the currency,” Pandithage said adding that “one option is to create greater value addition locally.”