FURNITURE MANUFACTURING COMPANY FOR JOINT VENTURE

[FURNITURE MANUFACTURING FACILITY]

The Company was established in the year 2000 to manufacture hard wood furniture and brush blocks for export. The Company invites local/ foreign investors to inject capital and transfer modern furniture production technology to convert the limited but valuable tropical wood resources in Sri Lanka to exportable finished products .

The Company was established in the year 2000 to manufacture hard wood furniture and brush blocks for export. With experience in the wood working industry and inspired by a century old rich heritage of local craft skills and entrepreneurial traditions we saw an opportunity to set up a factory to combine the modern with the traditional, offering opportunities to our local craftsmen, carpenters and locally grown teak, mahogany to reach world markets.

Salient Features:

a. Location: Avissawella Export Processing Zone (50 km East of Colombo).

b. Products: Tables, Chairs and other wooden for export to Europe, North America and Asia.

c. Factory area: 20,000 sqft (land available to increase area to 60,000 sqft).

d. Machinery: Consists of Wadkin, UK Rip saws, Cross cut saws, German Weining profile shaper, Belgian Bouchrie profiling machine, UK Rye Shaper, Auto Sanders. The paint section is equipped with low pressure guns to produce very high quality finishes.

e. Land extent: 03 acres (1.2 Ha)

f. Employees: 30

g. Annual Turnover: The current annual turnover is Rs 37 million (USD 300,000/-) and has an untapped capacity

• THE COMPANY HAS Board of Investment approval (BOI).

• A key market in close proximity is India. The investor will benefit by the Sri Lanka India Free Trade Agreement which permits export of furniture made in Sri Lanka at a tariff concession. The company staff will facilitate this access to the INDIAN market which is substantial.

• We are also able to link to reliable sources of FSC certificate wood from New Zealand.

• A very competitive cost structure for skilled workers is another advantage.

• Finally considering shipping routes it makes economic sense to import wood from New Zealand processed in Sri Lanka and export end products to Europe and India.

Manufacturing Facility • The production facility is located 50 km East

of Colombo in a 3 acre block of land in a modern Export Processing Zone in an Industrial Park, owned and operated by the BOI.

• With only third of the land area built up there is room to expand production area to 60,000 sq ft from the current 20,000 sq ft.

• Factory has installed kilns for drying of 70 cubic meters (cbm) of wooden planks.

• Machinery consists of Wadkin, UK Rip saws, Cross cut saws, German Weining profile shaper, Belgian Bouchrie profiling machine, UK Rye Shaper, Auto Sanders.

• The paint section is equipped with low pressure guns to produce very high quality finishes.

Present Product Lines and Performance Of The Company

• Two production lines can be set up according to the requirements of orders in hand, first, for chairs & tables and the other for brush blocks.

• The installed capacity is 200.000 brush blocks and 600 chairs or 300 chairs and tables per month. Brush blocks are made from locally sourced rubber wood. Imported FSC certified beech wood from New Zealand is used to manufacture for export dining chairs to New Zealand. Other species like mahogany, teak is available locally for furniture manufacture.

• The current annual turnover is Rs 37 million (USD 300,000/-) and has un untapped capacity to generate of Rs. 200 million (USD 1.5 million) annual turnover.

Current Status Of The Company Human Resources

The Factory is managed by a Mechanical Engineer with tertiary University level education. Staff of 25 skilled, semi-skilled operators, carpenters, supported by qualified Supervisors control production. Factory has access to educated and talented workers who are trainable and available at very competitive costs.

Export Experience At present the Company export 100 – 150,000 brush blocks a month. Brush blocks are exported directly to the USA and the first export of the brush block container to the USA was in 2002. Dining chairs made from imported beech wood were exported to New Zealand until recently. The opportunities for export of hard wood furniture exports to niche markets are substantial.

SAMPLE PRODUCTS