1. Enhancing Competiveness Through Higher Productivity Sri Lanka Economic Summit 2013 Perspectives from Rubber Glove Manufacturing Dr Mahesha Ranasoma 10 th July 2013

2. Overview - DPL DPL Group is into Manufacturing, Plantations (Tea and Rubber) and Marketing. DPL Group is a member of the Hayleys PLC Focus today will be on our Global Business in Hand Protection Solutions with Latex Gloves We operate in 70+ Countries with Major markets being Europe and N+S America Cater to General Purpose HH, Medical Examination Gloves and Industrial Gloves Highly competitive industry with different cost structures based on country of manufacture, with almost all such manufacturing countries being located in East Asia

3. Our Challenges in the Global Market Cycles of economic turbulence Increase price sensitivity Reduce demand Challenging times to develop new business Varying degrees of regulatory mechanisms and enforcement Stronger Safety Regulation help the business outlook Strong enforcement of regulations enable authentic products and consumer safety Volatile raw material prices Countries with lower cost bases versus SL trigger significant price pressure and margin erosion Energy, labour cost and productivity, environmental regulations, views on societal costs of doing business

4. Strategic Responses Value Creation in the E2E Supply Chain Raw Material, Production Processes, Post-Production Processes, Delivery Logistics and Service Excellence Focus here is on Cost, Quality and Delivery OEE, QA, Lean Processes - We need to leverage the talent pool to enhance productivity as a continuous process Innovation Products, Services, Processes and Business Models Focus here is on understanding hand protection needs, R&D, Service, Continuous Improvement and Striving for Excellence as opposed to Competing Ethical Manufacturing Risk Management, Stakeholder Engagement, Care for Environment Focus here is on integrated sustainability Business Continuity, Social Responsibility and Integrating Environmental dimension into everything we do is what it means

5. Our experience with productivity and competitiveness is about…In a nutshell… Retaining and Growing Market Space E2E Supply Chain Value Creation Ethical Manufacturing Innovation

6. Thank You