Damro interested in a PPP at Elkaduwa Plantations
The Damro Group, in a bid to cater to the mounting demand for their furniture products, has identified Hapugaspitiya, Millawana and Nalanda Estates under Elkaduwa Plantations Ltd (EPL) for large-scale cultivations.
Officials said that Damro has sent a proposal pertaining to this to the Plantations Committee under the Public Enterprise Development Ministry on a Public Private Partnership (PPP) project to cultivate substantial bare lands.
Damro plans to cultivate Tabebuia in all the bare lands of each estate similar to the forestry projects implemented by the Forest Department of Sri Lanka while developing and maintaining existing crops, they added. The total land area of selected estates is around 1,370 hectares and the capacity is not fully utilised at present, they noted saying that this investment proposal is presented with the objective of cultivating Tabebuia trees in 250 hectares in these estates as bare land cultivations and intercropping Tabebuia in 280 hectares of coconut lands at an estimated capital infusion of Rs.1 200 million in first five years to tie up in the entire project.
"In recent years, the local demand for Damro products has been increasing progressively. Export demand also looks to have high potential which is the reason that the group has initiated to set up a Particle Board Manufacturing Complex in Urapola, Gampaha and two diverse Furniture Manufacturing Complexes focused on local and export markets at Thorayaya, Kurunegala District to accommodate the growing customer demand. This intended particular investment is a BOl approved project. The required land for the project has already been purchased and currently at the construction stage.
The proposed factory complexes would commence operations by next year," an official told the Business Times.
Damro uses rubber wood particles as the main raw material for manufacturing panel furniture. As there is no excess demand for rubber wood in Sri Lanka, the required wood particles are easily procured from the market without any shortfall, he said.
"Because we use wood as main raw material for furniture, the group expects to commence a large-scale Tabebuia cultivation project with the objectives of sourcing sustained supplies of wood particles while providing a significant contribution to the environment."
Damro proposes an annual lease rental of Rs.10,000 per hectare for the total land extent under selected estates. "The job security of the existing employees would be assured and overdue EPF/ETF contributions would be fully settled with immediate effect as a measure of assuring the financial stability of post-employment life of employees," the official added.