Adam Investments to expand FMCG, garment operations

Adam Investments Limited which launched its Initial Public Offering last week hopes to use the funds to expand its Fast Moving Consumer Goods Market (FMCG) operation and the apparel sector.

An investment holding company Adam Investments was set up 2012. It holds shares of privately-held companies in industries such as apparel, metal, network communication and automobile and in quoted equity shares in the Colombo Stock Exchange.

The company acquired Orient Garments PLC, a manufacturer and exporter of high-end apparel early this year. It has brought all its investments under one umbrella during the past two years. Adam Investments has under its umbrella, Network Communications (Pvt) Ltd., Adams Metals (Pvt) Ltd., Adam Apparels, Adam Automobiles (Pvt) Ltd., Adam Air Conditioners (Pvt) Ltd., Orient Garments PLC, Ceylon Foreign Trades PLC and PC House Holdings PLC.

Adam Investments, Chairman Dr. Ali Asger Shabbir Gulamhusein said that by bringing all the entities under its umbrella that could strengthen operations of each company in their sectors.

He said that the company plans to set up its design centre for garments and scale up designed garments from the present 20 percent to around 40 percent.

"We hope to focus our exports on non traditional markets such as the Asian and Russian region which has a huge untapped market potential.

Our exports to the USA and Europe which are key buyers of Sri Lankan apparels are doing well," he said.

Adam Investments has operated Orient Garments for the past three years. Orient Garments recorded a profit of Rs. 113 million in the fourth quarter of 2013-14 up from 864 percent from Rs. 13 million a year earlier.

Dr. Gulamhusein said that the prospectus to the IPO is based on the value of its holding before the take over took place and it does not indicate the increase in value of its holdings nor the positive impact its policies had on reviving a loss making company.