Murali to set up US$ 63 mn beverage can manufacturing plant

Ex-cricketer Muttiah Muralitharan will be setting up the country’s first aluminium beverage can manufacturing facility in the near future, with an investment of US$ 63 million.

“It’s for all beverages. My family will own 60-70 percent of the shares,” Muralitharan said.

He added that the rest of the company would be owned by two foreign partners.

The company will come under the Board of Investment, and Investments Promotion and Highways Minister Eran Wickramaratne said that there would be no hiccups.

“I was surprised. Yesterday Murali walked into the BOI saying he wanted to invest, but he had some problems. We sorted it out then and there,” Wickramaratne said.

Piramal Glass Ceylon PLC CEO Sanjay Thiwari, whose company is the market leader in beverage bottle manufacturing said that cans cater to a niche segment, which will always remain.

“It has limited space in soft drinks and beer. It’s a fashion among the younger generations,” he said.

However, he added that profitability of companies rest in bottles, instead of cans. “All the major clubs and hotels use bottles,” he added. This is due to cans carrying lesser volumes of liquid than glass or plastic bottles, yet being priced nearly the same or even higher in certain cases, giving the beverage manufacturers larger margins.

However, Lion Brewery Ceylon PLC CEO Suresh Shah said that in terms of operations, cans cost slightly more.

“If it’s a bottle, you can reuse it a few times before recycling. Cans are a one shot,” he said.

Shah also added that there is a fairly successful process of collecting used cans in the country, which are exported back to the manufacturer for recycling.

Muralitharan is no stranger to business, with his family owning and operating Luckyland Biscuit Manufacturers in Kandy for over 60 years.

(CW)