The company’s Chairman Louise Page says the installation of the new equipment has already commenced and the task would be completed during the ongoing financial year.
“The growth in the tourism industry with the country expected to receive 1 Mn visitors in 2012 and targeting 2.5 Mn by 2016 also augurs well for this sector”, added Louise Page, in the company’s latest annual report.
Cargills which is engaged in running a super market chain along with several other related businesses entered into soft alcohol industry during last year by acquiring the McCallum Brewery Limited.
McCallum which now comes under the Millers Brewery of Cargills is engaged in marketing the “Three Coins” beer brand.
According to Page, the ongoing investment in expanding the production capacity at the Meegoda beer plant is done via a substantial investment.
“The cost of capital, overheads and depreciation will affect the Company’s profits in 2012/2013” cautioned Page in his review made to the shareholders in the latest annual report.
However, he says, once commissioned the plant is expected to give a substantial boost to the Group.
Increase in tourism arrivals to the country and rising disposable income has helped the local malt liquor production industry to grow by 22.5% during the last financial year.