Sri Lanka’s Diesel & Motor Engineering Plc expands power projects to Myanmar and Uganda
Diesel & Motor Engineering Plc (DIMO) of Sri Lanka, which has local power generation and transmission equipment operations, has reportedly expanded its business into Myanmar and Uganda.
“The successful joint bid for a CEB project with our principals, Siemens, our first venture in Myanmar in the power sector and our entry into Uganda could be considered as milestones in our growth phase,” Chairman Ranjith Pandithage has reportedly told its shareholders in the company’s annual report.
DIMO has a history in power engineering with the supply of equipment for power transmission, but has newly entered into the power generation business, the report states.
DIMO secured a tender for a 1 megawatt solar plant in Embilipitiya in 2018, which will be focused on in the current financial year, the firm said. It will also be installing rooftop solar plants at its operations in Weliweriya and Siyambalape., the report further notes.
It has also secured a contract for electrical balance of the 104 megawatt wind power project in the Mannar wind park which is being constructed by Denmark’s Vestas in the year ended March 2019, the report has added.
Also, with a consortium bidding with Siemens India, DIMO secured CEB (Ceylon Electricity Board) contracts for variable shunt reactors in Anuradhapura and Mannar and a breaker switched capacitor bank in Pannipitiya.
“Advancing the electromechanical engineering business to a higher level is one of the strategies that we have adopted to reduce our dependence on the automobile business,” Pandithage has said.
“Overall, this segment is expected to make a significant contribution to the group’s profitability in the current financial year,” he has said.
OSL take:
The expansion of Sri Lankan based DIMO into the power and energy sectors of Myanmar and Uganda is indicative of the growth and strength of Sri Lanka’s private sector. It further indicates the business conducive environment set up in the country. The government of Sri Lanka has taken many steps to ensure the continuous improvement of the ease of doing business environment in the island nation. Also, the country’s key economic indicators show that Sri Lanka is on a continuous growth path. Therefore, foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/14062019/Z_1 |