LASCO Manufacturing Limited (LASM) recently completed the construction of a 65,000-square foot warehouse at its White Marl complex, at an approximate cost of US$5.2 million.

The new warehouse will be used as a storage space for raw and packing materials as well as finished products of Lasco’s liquid beverage manufacturing operations. Lasco’s liquid beverage segment has experienced significant growth over the last three years, spurred also by the introduction of several new products. The growth has since fuelled the need for additional warehousing space.

According to Lasco, the commissioning of the warehouse has streamlined and simplified internal logistics operations, eliminating the need for external storage and costly double handling. The warehouse is already generating significant efficiency improvements and cost reductions.

The construction of the warehouse was a part of the company’s medium-term strategic master plan, following its entry into the liquid beverage business and signals Lasco’s continued optimism in the future growth of the segment.

In line with the increased warehouse space, Lasco is also expanding its dry products manufacturing plant by 12,000 square feet. Completion is slated for May 2019. From an expected spend of US$1.7 million, the manufacturing company aims to streamline additional processes and significantly reduce costs.

For the nine months ending December 2018, LASM reported a net profit of $700.5 million, an increase of 32 per cent on the net profit for the corresponding period of the previous year. Sales revenue for the nine months was $5.6 billion or 6 per cent above the $5.27-million revenue for the nine months of the year before.

The principal activities of LASM are the manufacturing of powder-based products, juice, drinks, water and the export of various Lasco branded products.

The company has multiple production lines in its liquid plant — the Lasco iCool range of water and juice drinks, hydration drink Lasco iDrade, carbonated beverage line Lyrix, and energy drink Konka. The dry division features the complete range of Lasco Food Drinks, Lasco LaSoy, Lasco enriched milk powder, Lasco Oats Porridge mixes and high protein — meal replacement Lasco Nutrify.