11th of June 2018: Leading importer and distributor of industrial chemicals and intermediaries Chemanex PLC underwent a strategic restructuring, in a bid to position the Company to effectively meet future challenges. Chemanex recorded Rs. 724 million group turnover during 2017/2018 Financial Year, reporting Rs. 230 Million profit for the same period.
Considering the challenges, Rs. 2.03 Billion worth Company faced,in the recent past a decision was made in 2017/2018 to carry out a strategic restructuring with a far-sighted vision. Chemanex took a number of salient measures including the discontinuation of non-competitive operations, placing strong emphasis on core competencies and inducinggrowth in the relevant areas.The Company alsocarried out a voluntary retirement scheme reducing the number of employees significantly and will obtain support services from within the CIC Group. Further, addressing the Company’s deliverables,Chemanex aims to support sustainable growth and enhanced stakeholder value through a holistic business model with heightened focus, efficiency and structure.
Chemanex also took steps for the disposal of unutilised assets during the same year, garnering a significant amount of cash and short term investment for the Company. Careful analysis of variousoptions available is being carried out in order to utilize the funds effectively. The Company also believes that these measures will yield greater profits via streamlined and strategic operations in the near future.
“The steps required for restructuring the organization were carried out during the Financial Year, and the Company will now focus on its core business of distributing chemicals to selected industries. It will exploit synergies with the chemical business of CIC Holdings and obtain support services within CIC Group. The Board is confident that these steps will result in the Company making a profit on operations in the near future,” Chairman – Chemanex PLC, P.R. Saldin said.
Chemanexa subsidiary of CIC Holding PLChas maintained a strong position as the industry leader in the sphere of trading chemicals and industrial intermediates backed by four decades of expertise.The Company not only delivers high quality industrial chemicals, pigments, resins and consumer chemicals, but also offers personal care products and packaging
Chairman Chemanex-Mr P R Saldin