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Richard Pieris' acquire control of Namunukula Plantations
Richard Pieris' has acquired Keells Plantation Management Services
(Private.) Limited, which has a 58.74% control and management of Namunukula
Plantations, for Rs. 330 million. This follows its previous acquisition of
controlling interest of two other plantation companies from the Keells Group
in 2004. Namunukula Plantations comprise 11,700 hectares of land consisting
of tea, rubber, coconut and oil palm estates in the districts of Badulla,
Kalutara, Galle and Matara.
Namunukula Plantations produced 7.2 million Kilos of tea and 2.5 million
kilos of rubber last year. The company has planted 1000 hectares of oil palm
in 2000/01, which have come into bearing and future projections are positive
with the dominance of palm oil in the world's edible oil market.
Further the company in collaboration with Elpitiya and Agalawatte
Plantations has invested in the construction of a 10 metric ton crude palm
oil mill, scheduled to be completed next month This strategic acquisition
would further diversify Richard Pieris' crop mix and consolidate its
position as the largest Plantations Group in Sri Lanka.
The total plantation land extent now under the Group's control would be
32,110 hectares and the Group will produce 20 million kilos of tea and 8.5
million kilos of rubber, being 6.7% and 9.0% of the national output of tea
and rubber. Chief Operating Officer Pravir Samarasinghe said "this
acquisition will add four million kilos of low grown tea to our portfolio of
high and mid grown teas and further ensure a constant supply of latex to our
rubber value addition operations.
Further we have made plans to enter the value added tea business for
export with the launch of our own branded teas and this acquisition will
further augment this endeavour.
Additionally we have made plans to restructure the operational and
financial aspects of Namunukula and thereby improve its profitability and
strengthen its balance sheet", he said |
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