Laugfs Gas Ltd Informed that Join ventured with Bharat Petroleum Corporation Ltd [BPCL] of India on 4th January 2011 to introduce metal cutting gas in Srilanka.
The Metal cutting gas will brand “Laugfs Bharat metal cutting gas” [LBMCG]. The initial agreement made with Bharat Petroleum Corporation Ltd [BPCL] to pay a Royalty fee of US$ 250 per Metric ton or part thereof on LBMCG sold under the license from Bharat Petroleum Corporation Ltd [BPCL]
Srilanka Cutting Gas Market
Cutting gas has a good demand from the constructions, companies which involve in heavy engineering, Colombo Dockyard and railway department and so on.
Laugfs Bharat metal cutting gas [LBMCG] Forecast
The current cutting gas demand is about 30,000kg per Month, and Laugfs focus on 50% market by end of 2011. This target can be achieved by their 11 island wide gas distributors and 1600 dealers.
And Laugfs focus to contribute their total turnover by 50 million from the metal cutting gas.
Share market effects
After the announcement made by the Laugfs Gas Ltd the investors expect to rapid improvement on share price, but the most of the investors are consider this is a functional decision making rather than a strategic decision making, Still the Prices are affordable to buy a good company which will perfume better in future.
Laugfs Gas announced yesterday evening that they get into Mini Hydro Power Project with the investment of Rs. 500 Million.
Still I personally recommend to people Laugfs will be one of the blue-chip company in Srilanka.