Sector Reviews
Hand Protection
Business Domain
The Hand Protection sector consists of businesses in value added latex glove manufacturing, distribution and marketing of branded glove products. DPL operations span across the world with manufacturing facilities located in Sri Lanka and Thailand, distribution of gloves into more than 70 countries in the world and an Italy based marketing company for gloves.
Key Performance Indicators
| Indicator | Measure | Unit | FYE 31st March | ||
| 2013 | 2012 | 2011 | |||
| Growth | Revenue | Rs. mn | 14,675 | 13,499 | 11,700 |
| Earnings Before Interest and Tax | Rs. mn | 1,372 | 2,052* | 455 | |
| Profit After Tax | Rs. mn | 1,077 | 1,694* | 243 | |
| Assets (Avg) | Rs. mn | 9,501 | 9,354 | 8,584 | |
| Capital Employed | Rs. mn | 5,870 | 6,787 | 5,848 | |
| Profitability | Return on Average Capital Employed* | % | 22 | 32 | 8 |
| Liquidity | Current Ratio | Times | 1.5 | 1.7 | 1.1 |
| Stability | Gearing | % | 39 | 50 | 66 |
| Asset Utilisation | Asset Turnover Ratio | Times | 1.5 | 1.4 | 1.4 |
| Productivity | Ebit per Employee | Rs. mn | 1.0 | 1.5 | 0.3 |
* Includes Capital Gains
Operations
Almost entirely export driven, we were exposed to the sluggish macroeconomic conditions that prevailed in our Western markets, while rising costs of factors of production posed internal challenges. In turn, we closely monitored market movements and customer preferences and adjusted our offerings accordingly. Accounting for 5% of global market share for industrial and general purpose rubber gloves, the DPL’s Manufacturing Business crossed the Rs. 1 bn milestone in profit before tax during the year under review while the DPL Group passed Rs. 2 bn milestone in PBT inclusive of Plantation and Tea marketing businesses.
Strategies in Action
DPL continues to strengthen its core capabilities to deliver high quality world class glove products meeting dynamic customer needs whilst addressing cost challenges to support our customers facing macro-economic turbulence, especially in the Eurozone. At the same time, we recognise the importance of continuing to strengthen the foundations that DPL is built on, namely, its ethical manufacturing legacy. For its efforts to strengthen communities and operate integrated supply chains for natural rubber, linking the rubber farmers through its unique FIRSTLIGHT programme, DPL was awarded winner status in the AREA awards.
Outlook
New plant capacity is planned during the course of FY 2013/14 to cater to demand growth specially for industrial hand protection products. Several innovative products that have been developed over the year under review will be commercialised in the course of the new financial year. Combining these with leaner manufacturing efforts will, we believe, continue to deliver growth and profits. Dipped Products (Thailand) is expected to turnaround as its major infrastructure bottleneck has been resolved with commissioning of an additional bio-mass heater.
