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| Sunday, 24 February 2002 |
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Touchwood mahogany bear high returns Mahogany bear high returns - this was a hitherto unknown fact till Touchwood Investment Ltd., a public company registered in Sri Lanka and approved by the Board of Investment was granted to farm 2000 acres of Mahogany. The project was researched for the last five years and has obtained the advice from experts in many fields around the world. The big leaf Mahogany - the plant chosen by Touchwood Investments - has been identified by the CITES (Convention on International Trade on Endangered Species) as one of the ten species that, despite national and international protection are particularly threatened by illegal and unsuitable trade. Chairman & Managing Director, Touchwood Investments Ltd., Mr. Roscoe Maloney explained that they have taken investments into a new dimension by moving out of the conventional investment systems. Unlike in other methods, through Touchwood's investment scheme the investor sees the growth of their investment, throughout the investment period, which is 17.5 years. This, Maloney explained is nothing new in other parts of the world. Touchwood Investments supplies the land and plant the investor's Mahogany trees per lot, manage and safeguard the investment till maturity. The objective of the project is to reduce pressure on natural rainforests, give employment opportunities to fellow Sri Lankans and also to provide solid earning opportunities to people in Sri Lanka and abroad. Already over Rs. 50 million have been invested by the public & TIL has completed planting over 30,000 trees in over 120 acres in the Ratnapura District. Maloney also stated that Touchwood will be responsible for the total management of plantation, from initial planting, fertilizing, weeding, pruning and felling 17 1/2 years later. At any stage after one year the investors could withdraw the investment by calling upon Touchwood to buy back the trees for the full amount the investor has outlaid for the Mahogany investment certificate. Maloney said that even if something goes wrong with a tree the gross earnings will remain the same. To overcome such problems Maloney explained that the company always plants a 20% additional acreage and then plant 100% additional plants within the plot. Therefore, there are always additional trees to compensate any loss. In addition plantations are insured against political & agricultural risks. He also stated that the investment outlay is so low for such a high return as the cost of labour, machinery, fertilizing, technology, security, etc. is shared over thousands of plots. When asked whether an unstable economy could affect the investors in anyway in the future, Maloney stated the company will be undeterred by the local economy as the company concentrates on the international market to sell the harvest. The harvest will be exported as a semi-finished product. Maloney said that at present 1 cubic metre of sawn Mahogany collects US$ 1,200 in the international market. Touchwood's Budgeted turnover for the current financial year is Rs. 38 million & expected to record a pretax profit of Rs. 6.4 million. Touchwood project Rs. 58 million turnover for financial year 2002/2003 which is 50% increase from current financial year & budgeted profit for the next financial year is Rs. 15 million. As such shareholders of Touchwood can expect a good return, while helping to save our precious rainforest. |
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