Surgical Gloves from Local Supplier(DIPD?)

About 6 months ago there was a supply shortage of surgical gloves at all government hospitals.
http://www.colombopage.com/archive_11A/Aug06_1312641007KA.php
Apparently government hospitals need 2-3 million gloves per month and we are spending about 1 billion rupees per year to import surgical gloves.
What is so frustrating is, this all happened while we have one of the world best & largest gloves manufacturer right here in SL.
Finally the Ministry of Health seems be taking corrective measures and they are considering local suppliers.
http://newsfirst.lk/english-news/?view=news_more&id=10882
If they go ahead with the plan, most probably the supplier will be DIPD and we can expect a price appreciation in the long run.

@Dileepa,

I think Surgical Gloves and Medical examination gloves are different. Am I right? Do Dipped products produce surgical gloves?

greedy wrote:@Dileepa,

I think Surgical Gloves and Medical examination gloves are different. Am I right? Do Dipped products produce surgical gloves?

They are producing medical examination gloves with 8 versions. [ Annual Report 2011 ]

Dileepa wrote:About 6 months ago there was a supply shortage of surgical gloves at all government hospitals.
http://www.colombopage.com/archive_11A/Aug06_1312641007KA.php
Apparently government hospitals need 2-3 million gloves per month and we are spending about 1 billion rupees per year to import surgical gloves.
What is so frustrating is, this all happened while we have one of the world best & largest gloves manufacturer right here in SL.
Finally the Ministry of Health seems be taking corrective measures and they are considering local suppliers.
http://newsfirst.lk/english-news/?view=news_more&id=10882
If they go ahead with the plan, most probably the supplier will be DIPD and we can expect a price appreciation in the long run.

Yes this is how they could cut back on unnecessary foriegn imports. I aqm sure if they look hard enough there are other places where they can cut back on imports . Several smaller things can add up to big. They should not always pass the whole burden to small people and let them cut back on little luxuries of life due to planning issues the administrators make.

DIPD is a sole property of a perera. It doesn't matter if it makes profits or not, the company works for the interests of the big owner just like many other listed companies whether the owner is a perera or a raja or a harry. If perera says buy HAYL for me, they will buy. If perera says sell HAYL to me at this price, they will sell. If perera says buy my house for this price, they will buy. Minor shareholders will only get the annual report CD and a few rupees if lucky.

aj wrote:DIPD is a sole property of a perera. It doesn't matter if it makes profits or not, the company works for the interests of the big owner just like many other listed companies whether the owner is a perera or a raja or a harry. If perera says buy HAYL for me, they will buy. If perera says sell HAYL to me at this price, they will sell. If perera says buy my house for this price, they will buy. Minor shareholders will only get the annual report CD and a few rupees if lucky.

There is a point in your statement. I hope major shareholder run companies sees this and takes heart to treats their minority holders better.

aj wrote:DIPD is a sole property of a perera. It doesn't matter if it makes profits or not, the company works for the interests of the big owner just like many other listed companies whether the owner is a perera or a raja or a harry. If perera says buy HAYL for me, they will buy. If perera says sell HAYL to me at this price, they will sell. If perera says buy my house for this price, they will buy. Minor shareholders will only get the annual report CD and a few rupees if lucky.

that's why many Fund managers, Foreign investors usually stay away from such companies like VONE,RCL,LFIN,LOLC,LCEY etc. They more concentrate on stocks with wider shareholder base like JKH,COMB,NDB etc

sanjeewa88 wrote:

greedy wrote:@Dileepa,

I think Surgical Gloves and Medical examination gloves are different. Am I right? Do Dipped products produce surgical gloves?

They are producing medical examination gloves with 8 versions. [ Annual Report 2011 ]

Surgical Gloves production needs sophisticated technology to avoid contamination. If some thing goes wrong, that's the end of many lives as well as the company.Medical examination gloves are of different, they should not necessarily be sterile.

WildBear wrote:

sanjeewa88 wrote:

greedy wrote:@Dileepa,

I think Surgical Gloves and Medical examination gloves are different. Am I right? Do Dipped products produce surgical gloves?

They are producing medical examination gloves with 8 versions. [ Annual Report 2011 ]

Surgical Gloves production needs sophisticated technology to avoid contamination. If some thing goes wrong, that's the end of many lives as well as the company.Medical examination gloves are of different, they should not necessarily be sterile.

You are correct, DIPD is supplying only Medical gloves. May be they will get a quota for that from government.
By the way other local supplier is Ansell.

Dileepa wrote:

WildBear wrote:

sanjeewa88 wrote:

greedy wrote:@Dileepa,

I think Surgical Gloves and Medical examination gloves are different. Am I right? Do Dipped products produce surgical gloves?

They are producing medical examination gloves with 8 versions. [ Annual Report 2011 ]

Surgical Gloves production needs sophisticated technology to avoid contamination. If some thing goes wrong, that's the end of many lives as well as the company.Medical examination gloves are of different, they should not necessarily be sterile.

You are correct, DIPD is supplying only Medical gloves. May be they will get a quota for that from government.
By the way other local supplier is Ansell.

This is what I suspected. DIPD produces only medical examination gloves and not surgical gloves. May be they have a plan to invest in that sector.

Political pet poodle in the fray?
By Suresh Perera

With ongoing moves by the Health Ministry to procure locally latex examination gloves, the biggest supplier of this vital medical product to government hospitals, has complained of covert attempts to block its entry to foist a "one horse race" by blocking its entry.

Machinations to edge out this company — the market leader in this segment — which had been supplying a top quality imported brand for many years, has raised suspicions that a political favorite is being groomed to take over this lucrative tender, industry officials said.

With an annual demand for 22 million pairs of examination gloves, there are big bucks involved, they pointed out. "So far, there is only a solitary bidder".

"We applied to the Cosmetic Devices and Drug Authority (CDDA) on November 4, 2011 for registration as a supplier of latex gloves produced by a domestic manufacturer but the go-ahead has still not been given", the company says in a letter to Health Secretary, Dr. Ravindra Ruberu.

"All necessary documents were furnished by us and the necessary formalities completed, but five months have gone by but the registration has still not been forthcoming", it noted. "CDDA officials even inspected our suppliers’ factory".

"We cannot deviate from the accepted procedure in registration", CDDA Director, Dr. Hemantha Beneragama said.

"There is nothing hanky-panky. We treat everybody alike and ensure justice", he noted. "Some of these suppliers are very selfish – they think only about themselves".

Asked whether the process of registration generally takes more than five months, he replied, "There are evaluations to be done. It is a transparent system. All this cannot be done in a hurry".

"When we try to supply gloves domestically, boosting production and saving foreign exchange, it is not fair to leave us out", the company protested. "Otherwise, it will smack of favoritism and lack of transparency depriving an equal opportunity to all suppliers".

"We know through experience that a political pet poodle is in the fray", industry officials claimed. "That’s why they are dragging their feet — five months to grant registration is ridiculous".

"We won’t allow anyone to be affected due to any undue delay or injustice", Dr. Beneragama shot back. "We have a procedure to adhere to".

"When our company is elbowed out, naturally the other contenders will benefit", the company says. "We were the top supplier and it seems there is somebody keen to take over our slot with the blessings of the high and mighty".
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=49294