Ceylon Biscuit Limited (CBL), the country’s largest manufacturer and exporter of biscuits and confectionary products is in the process of expanding its manufacturing operations to Bangladesh and Myanmar.
It appears that the latest development is a move by the company to take advantage of relatively less production costs in these markets.
According to some analysts, the expansion will also allow the company to gain footprint in the region to become a leading regional player in the years to come.
Once operational, the two plants will become the only manufacturing facilities operating outside Sri Lanka by the company. CBL has had a manufacturing plant in India, but was shut down for various reasons.
Although the company is currently in the process of setting up the plants, how much has been invested is yet to be known.
From recent times, the South East Asian nation Myanmar, has come under the radar of investors from and outside the region as a viable investment destination. Myanmar’s renewed relations with the United States since last December has turned investor attention to Myanmar, which was plagued with communal violence and political hostilities for decades.
CBL is planning its manufacturing facility in Myanmar as a green field project where the facility will be started from scratch.
At present CBL exports its wide range of confectionary products to about 45 countries, which includes Bangladesh and Myanmar.
Recently a number of Sri Lankan companies including leading banks such as Commercial Bank of Ceylon PLC, Sampath Bank PLC announced plans to commence operations in Myanmar. (DK)