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Touchwood investments :

Advocates planet, people, profits

"Touchwood pioneered, agro forestry investment in the country 11 years ago to counter the country's dwindling forest cover, specialising in growing high value exotic tropical timber, vegetables and fruits as an alternative and sustainable source for forest products.

Asitha Koralage

With inspired action and foresight Touchwood Investments shows the promise of a good harvest to those who believed in the credibility, integrity and capability of the company with a global presence," said Deputy Chairman Asitha Koralage.

The prospects for Touchwood in the long-term seem promising as cited by Hancock Natural Resources Group, a unit of Hancock Financial Services, Boston, USA, which predicts that the main appeal of the sector is its long-term profitability.

Over the last 30 years annualised returns from timber have averaged 15.2 percent compared with 13.2 percent for Standard & Poor's 500 stock index. speculating a greater return on investment for agro-forestry as an investment tool.

Agro forestry is a sector that analysts the world over forecast to remain resilient in the face of an economic meltdown due to its sheer lack of correlation to the global commodity stocks and bond markets, said Koralage.

Innovation and expertise from global resource personnel fuel our growth momentum.

We collaborate with institutions across the world to further our agro-forestry management practices and plans and adopt the latest techniques and technologies throughout our plantations with research and development initiatives.

By offering an investment option that goes beyond financial gain to ecological and environmental gain, the company has empowered investors with a choice to invest responsibly.

The communities in which Touchwood operates appreciate the benefits of our commitment and we continue to invest in and develop the skills of touchwood people who work tirelessly to ensure that stakeholders expectations are met, he said.

Mahogany Project, Gomaragala Estate

The only quoted forestry management company in the island, Touchwood's brand differentiation is unique and its branch network spreads to Australia, Hong Kong and Thailand.

The expansion program encompasses 3,000 acres spread across five districts in the country.

In the formative years the brand focused on research and development and fine tuning the business model for agro forestry management while also educating people about the investment instrument.

Touchwood Investments is a long-term sustainable business that advocates the triple bottom line of the planet, people and profit.

"By investing in our plans to expand the country's forestry and plantation cover, investors can derive profits besides having made an environmentally responsible decision."

Koralage said that unlike stocks, that rise and fall with unpredictable shifts in the market, forestry trends are consistent enjoying the same relatively low level of volatility as commercial real estate.

Since there is no correlation with other assets, forestry offers a hedge against inflation.

The company began paying returns to its investors in 2007.

The plantations owned by the company are in 35 locations.

They are insured, including the trees owned by the clients.

He said that even if 67 percent is damaged the balance is sufficient to meet the liabilities but it is an extreme situation as all trees have been planted using the best scientific methods.

Globally, Mahogany plantations have been severely affected by the shoot borer pest.

While the threat of pest infestation remains high in Sri Lanka, Touchwood through innovative agro-practices during the year curtailed the infestation to a below two percent affliction rate as against a norm of 30-35 percent.

Touchwood is the only agro plantation company in the region to stall the propagation of the pest affliction.

The company is investigating the viability of patenting its integrated pest control system.

Vanilla Processing Centre - Seelani Estate

Touchwood's professionalism and adherence to forestry guidelines resulted in a certification of validation for systems and processes by a fortune 500 independent consultancy firm in 2008.

"We are an ISO certified system dependent, transparent company," Koralage said. Touchwood's presence in rural and often economically underprivileged areas of the country has enhanced the lives of those communities.

It has created livelihoods, accelerated road construction and improved water and sanitation facilities.

To nurture the planting habit in children the company started a national project together with the Environment

Ministry to distribute sandun plants to places of worship.

Already we have given over 50,000 plants under the Sandun Arana project. To educate children on the value of trees we have started the project Parisara Niyamuwo.

Koralage said that they have the potential for carbon trading as well as becoming an active participant in eco tourism.

Plans are under-way to establish a timber flooring plant which will start operations this year.

SG

 

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