DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Managing Director’s Review
“KVPL …received
accreditation as
GLOBALG.A.P
compliant…”
“KVPL’s
performance and
its contribution…
were recognised
with the National
Business Excellence
Award and the
Export Gold
Award…”
“…recovery of
DPTL is timely
and vindicates our
conviction to stay
in this business…”
Capacity & Production Index
Hand Protection - Sri Lanka
(Base - 1991 Capacity)
700
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Capacity
Productions
The rehabilitation of the Dunedin
scrap rubber factory was completed
enhancing its capacity to process the
skim output from the centrifuging
operations of the Group. The
effluent treatment plants of
Urumiwela skim factory and Lavant
scrap factory were redesigned and
upgraded to be in full compliance
with the Central Environment
Authority regulations.
The capital expenditure of the
Plantation sector during the year
amounted to Rs 581 million with
substantial portion spent on replanting
of rubber and tea. The balance
outlay was directed at upgrading
plant and machinery, factories and
effluent systems as mentioned in the
foregoing paragraphs. Grants from
ADB and other funding agencies
provided Rs 111 million towards this
investment.
KVPL completed the audit of
all nineteen tea plantations
and received accreditation as
GLOBALG.A.P compliant by SGS,
New Zealand and was admitted as
a member of the GLOBALG.A.P
producer, supplier partnership. This
standard assures the consumer that
the agricultural operations of KVPL
meet relevant food, product safety
parameters with minimal impact on
the environment, whilst ensuring the
safety and health of the employees.
KVPL is the first plantation
company in Sri Lanka to receive this
accreditation for all its tea estates.
This membership together with the
HACCP, ISO 22000:2005 and TASL-
SGS accreditations of all our black
tea factories positions the company
as a sought after tea producer.
Adding credence to our
environmental management
strategy, a team of scientists was
commissioned to carry out a
comprehensive assessment which
mapped and documented the
waterways, indigenous fauna and
flora and the bio diversity specifically
identifying the endangered species
on all KVPL plantations.
KVPL’s performance and its
contribution to the agriculture and
plantation sector were recognized
with the National Business
Excellence Award and the Export
Gold Award under the Service
Providers to Exporters – Extra
Large Category in 2008 by the
National Chamber of Exporters of
Sri Lanka.
STRATEGIC DIRECTION
Hand Protection
Many large global businesses long
regarded as unassailable are today
seeking state assistance or are near
bankruptcy. Closure of factories,
layoff of employees and the shake
up in the financial systems are yet to
stop. It will be naive to expect DPL
to be insulated from the adverse
impacts of this meltdown.
In this backdrop, the recovery of
DPTL is timely and vindicates our
conviction to stay in this business
despite the initial setbacks. In
reviews of recent years, we have
stated that this project will and must
turn profitable for DPL to realize
its long term goals. The medical
glove business being less prone
to recession should survive the
downturn and create avenues for
growth. As DPTL consolidates its
operations more into the new year,
we will look to move to the next
phase of expansion.
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D I P P E D P R O D U C T S P L C A N N U A L R E P O R T 2 0 0 8 – 2 0 0 9