Sri Lanka’s Bukit Darah PLC, a diversified Investment Holding Company says, it has invested Rs. 1.35 billion during the year 2011/2012 financial year to expand its beer business in anticipation of the booming demand due to tourism and access to new markets.
The Group’s Chairman Harry Selvanathan in his review to the company’s 2011 / 2012 annual report said, the investments were directed at capacity enhancement and to provide working capital.
The beer production capacity of the company have been increased up to 800,000hl during the year under review.
Bukit Darah, a listed firm in the Colombo bourse, owns Lion Brewery (Ceylon) PLC, which is coming under the group’s beverage arm.
According to Selvanathan, the group has also invested almost Rs. 900 million as seed capital into new growth segments like private equity.
“Our in house country fund and unit trusts floated through a joint venture partnership, to build up these businesses for the future”, added Selvanathan.
He says, both the above sectors are in the initial stages of their life cycle and therefore well positioned to benefit from the medium to long term growth of the economy.
The Chairman also disclosed that its Singapore based Goodhope Asia Holdings Limited, which is engaged in palm oil business will increasingly plough back a major part of its returns to new business development.
This strategy, the Selvanathan says is aimed at securing more value addition to the business through integration within the palm oil value chain.
“as an industry, we yet assess palm oil to be at an initial phase of growth as the developing world consumes more edible commodities due to growing affluence and changes in lifestyles”, he further added in his review to the annual report.
Bukit Darah, during the year 2011/ 2012 has recorded a profit after tax of Rs. 10.7 billion, a 7% growth over the previous year.
While, the firm which also owns Carson Cumberbatch Group saw its revenues increasing by 92% to reach Rs. 69 billion, during the year under review.
Group says, the revenue jump was partly driven by the newly introduced Oil and Fats segment, which has contributed 28% to the group revenue.
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