Alumex to go overseas

Alumex PLC, a subsidiary of Hayleys PLC which locally manufactures Aluminium extrusions for various industrial and architectural use, has plans to venture into the region, officials said.

"Myanmar is a place we'd like to go to," an official said adding that they aim to set up a plant there. Alumex products are exported to India, Bangladesh, Maldives and Australia accounting for about 1 per cent of its topline. The official added that they also want to export to more countries in the region.

Alumex's Q3 FY16 top line grew 15.3 per cent year on year (YoY) to Rs. 1.05 billion. All product categories witnessed similar growth levels whereas powder coated extrusions was the lead growth which makes up 40 per cent of the company turnover.

The company improved its Gross Profit and earnings before interest and tax margins for the quarter as a result of lower aluminum prices and economies of scale despite a 10 per cent YoY depreciation in the rupee against US$.

The official said that ongoing infrastructure projects and hotel and condominium construction is poised to grow the demand for Aluminium in the medium term.

The construction industry growth reduced to 4.6 per cent but low interest rates and inflation created an environment for investment in apartments, hotels and residencies continuing the high demand for aluminium profiles, industry analysts said. They said that aluminium prices dipped mid-year and premiums reduced to compensate for the depreciation of the rupee against the US dollar and this helped the industry maintain a stable pricing structure.