DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Managing Director’s Review
“Our commitment
to provide customers
close attention and care
and deliver on their
expectations is another
area earmarked for
greater focus.”
“…“cause-related
marketing” campaigns
authenticate DPL as a
socially responsive hand
protection provider.”
“KVPL has never
flinched from maintaining
its agricultural assets…”
In contrast, the consumer and
industrial markets catered by the Sri
Lankan facilities are showing signs of
softening demand, the latter being
the most affected and least expected
to recover in the immediate future.
To sustain demand, DPL is well
poised to leverage the newly
developed products and take
them actively to the market. We
have begun work to determine
and provide users additional
performance data on the existing
range of industrial gloves so as to
convince them of our products’
superior features, benefits and quality.
Our commitment to provide
customers close attention and care
and deliver on their expectations is
another area earmarked for greater
focus.
Teams are being trained in Lean
Production systems at all locations to
eliminate waste, streamline the work
flow, incorporate manufacturing
flexibility and thereby save cost
and improve performance. The
enthusiasm shown by employees
at all levels towards this initiative
assures worthwhile results.
Though energy costs have eased,
they will rise again. While further
investments are on hold, designs
are being developed to be in
preparedness to move away
from liquid fuel with minimum of
delay. Use of solar power for low
temperature applications are under
study, to seek funding for trial and
eventual implementation.
The foremost strategy to deal with
the prevailing situation is to conserve
cash. Until definite indications of
economic resurgence are seen, no
investment on capacity expansions
or major capital expenditure is
proposed in Sri Lanka. Measures
taken to tightly manage inventory of
input materials and expenditure have
begun to yield results.
This report provides glimpses of our
“Firstlight” programme which cares
for the small rubber farmers in the
remote villages of Sri Lanka. This
strategic initiative has now gathered
considerable momentum to
disburse meaningful benefits to their
communities. Based on “Firstlight”,
BM Polyco Limited, UK featured
on page 16 of this report, one of
DPL’s larger customers counting an
association exceeding 30 years, have
launched the first “Fair Trade Rubber
Gloves” with accreditation from
“Traidcraft” UK. Such “cause-related
marketing” campaigns authenticate
DPL as a socially responsive hand
protection provider.
Plantations
The commodity prices which fell
since late 2008 are not expected to
recover in the near term. Rubber
prices which have normally moved in
tandem with oil prices will be slower
to recover particularly as automobile
manufacturers continue to curtail
production. Tea may pick up sooner
as the economic tsunami recedes.
KVPL has never flinched from
maintaining its agricultural assets
even over lean times in the past.
This strategy has paid rich dividends
whenever the commodity cycle
peaked and we intend to continue
this practice.
The large investments of recent
years on upgrading factory buildings,
machinery and other infrastructure
forestalls the need for more infusion
14
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