Chairman of the Raigam Wayamba Saltern PLC, Dr. Ravindranath Liyanage says, during the last financial year, the salt industry took a hit both in terms of quality and quantity owing to the above mentioned factor.
“Unexpected rains experienced throughout the concerning year, brought adverse impact to the industry by lowering the quality and the quantity of raw salt harvest” he added in the company’s latest annual report.
He said, this situation has impacted his firm as there was limited input material due to the limited supply of raw crystal salt.
According to him, Raigam Wayamba Salterns is now working on developing a business model to overcome this situation.
Under the new model, the firm is planning to establish a vertical value chain which will see the company controlling all aspects of the business from selection of raw materials to delivering the end product to the customers’ door step.
The company is also planning to establish three de-centralized distribution networks to be operated in the long run, based in three salt bases; Puttalam, Tangalle and Trincomalee.
Liyanage believes, this will help to minimize cost of transportation which has a high significance on the whole cost structure of the company.