Sri Lanka textile maker eyes acquisition, new energy sources

May 25, 2012 (LBO) - Sri Lanka's Textured Jersey Plc, said it wants aquire another plant in South Asia to expand production and is looking to move away from furnace oil after a tariff increase, though operating profits increased with falling cotton prices. "Acquisition of operational facilities, which may now be available at a reasonable price following last year’s industry upheavals, should provide a faster return than organic expansion and yield optimal returns on the IPO (initial public offer) funds," the firm said in a statement.

"Management is also evaluating options to set up a coal/bio mass boiler in order to offset the negative impact of the recent furnace oil price increase, while effective inventory management remains a priority with cotton prices having fallen to their lowest levels since February 2010."

Textured Jersey, a joint venture between Sri Lanka's Brandix apparel group and Hong Kong, based firm said profits fell to 218 million rupees in the March 2012 quarter from 223 million a year earlier due a 110 million rupees forex loss on a loan.

But the firm also benefitted from a depreciation of the rupee, which lowers the real cost of worker wage compared to dollar priced sales. Textured Jersey said has declared 36 cents per s