Browns mulls diversification

by Shirajiv SIRIMANE

Browns Group of companies would look at several areas of opportunity to diversify, said Group Managing Director/Chief CEO Browns Group Murali Prakash.

Speaking to the Sunday Observer he said that Sri Lanka is expected to have a big ageing population by 2025 and to meet their requirements they are looking at entering the healthcare sector.

"In Singapore modern trade is around 90 percent and in Sri Lanka it is still around 12 percent and is expected to grow." He also said that with rapid development taking place and with the change of mindset of the people Sri Lanka too is moving towards modern trade. Brown sees many opportunities and is looking at investing in this sector too.

With permanent peace Sri Lanka is surging ahead in tourism and with LOLC Browns wants to further consolidate in this segment. He however said that they have no plans to invest overseas as there are tremendous opportunities in Sri Lanka.

Another area he identified was the infrastructure sector where Browns would look to assisting the government along with Siera Holdings. "We are really keen on the power sector," he said.

Prakash said that they are a diversified company and last year all sectors performed well. This was the reason for the company for the first time in its history to record a phenomenal Profit Before Tax (PBT) of Rs. 3.6 billon which is a growth of 184 percent compared to last year and a Net Profit of Rs.3.26 b which is a growth of 185 percent.

The Group also posted revenue of Rs.12.18 b for the financial year ended March 31 which was an increase of 36 percent as against last year.

He said that the economic situation of the country too attributed to company profits. "Three years ago we had a comprehensive strategy to reshape our core business of trading and also diversify into investing in Sunshine Industries. This has paid us great dividends. Browns Group will continue with its journey in keeping its core competencies of engineering excellence and customer care.

We are assured of long-term sustainability of our strategic direction and the viability of the investments and expansions we are engaged in".

Equity attributable to equity holders of the company grew by 50 percent from Rs.9.6 billon to Rs.14.4 billon, as a result net assets per share grew to Rs.203.65 as against Rs.135.51 for the previous year.

In the Trading segment the Group grew its revenue by as much as 49 percent to Rs.8.46 billon for the year.

In the sector of manufacturing the Group recorded revenue of Rs.1.29 b which is an increase of 76 percent as against the previous year.

The new investments made by the group have also paid great dividends with revenue growing to over Rs.3 billon.

Browns Investments has a 30 percent shareholding in LOLC Leisure with the balance 70 percent held by LOLC. Browns Investments invested an additional sum of Rs.849 million during the year in LOLC Leisure. LOLC Leisure is carrying out a major upgrading program of the Riverina, Palm Garden and Tropical Villas hotels. They are also discussing with a number of overseas parties in relation to management contracts.