Sierra Cables PLC in a strategic move decreased its
holding in pipe manufacture by disposing off a little over 20% of its
investment in Central Industries PLC last Thursday. Thus the stake of
Sierra in Central Industries the maker of ‘National’ PVC (poly vinyl
chloride) products fell from almost 39% to 16.6% after the sale. With
this decrease in stake, Sierra Cables PLC would cease to consolidate the
profits of its associate, Central Industries PLC with immediate effect.
The balance investment has been re-classified as a portfolio investment
and will be held for medium to long term capital appreciation.
With the company’s strong growth outlook, the proceeds
of the sale will be utilized to fund the company’s planned expansion of
its range of telecommunications and power cable products to cater to new
opportunities in the North and East of the country. Diversification into
power generation is yet another avenue that is presently being explored.
A subsidiary of Sierra Holdings Ltd., Sierra Cables is the second
largest wire and cable manufacturer in Sri Lanka. Today, as the only BOI
approved cable manufacturing business in the country the company has
continued to grow and expand the product line and now maintains an
excellent market position with some of the largest construction
companies in its permanent customer base.
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