CIC steps up agriculture, health care businesses
Joint ventures with Pakistan and Israel:
CIC Holdings Plc is working on joint ventures with Israel and
Pakistan to strengthen two of the company’s main business sectors –
agriculture and healthcare/pharmaceutical products.
The company is investing Rs. 1 billion to launch the cultivation of
vegetables in greenhouses using the latest technology. “The company is
tying up with an Israeli partner to share the latest technologies in
agriculture and have signed an agreement already,” Managing
Director/CEO, CIC, Samantha Ranatunga told the Business Observer. Higher
value vegetables will be grown for export supporting the country’s
export drive and building CIC’s reputation as an exporter of high
The investment in greenhouses seeks to mitigate the impact of adverse
weather, land and labour shortages which regularly hamper the output of
the agriculture sector.
“We want to export to the region and currently we are in the process
of setting up of greenhouses on a 25-hectare land owned by the company
closer to the airport.
It is going to be a totally weather controlled, extremely
sophisticated agri project,” he said.
As a diversified conglomerate with a strong presence in the
agricultural and manufacturing sectors of the economy, we are
significantly impacted by both local and global economic trends, he
The company is also planning to expand its pharmaceutical business
sector with a Pakistani supplier, who has been a partner with the
company for some time now. “We will bring out the second phase of
expansion with the same business partner.”
The company’s performance review for the financial year ended 31st
March 2016 said the pharmaceuticals manufacturing cluster changed
direction moving from antibiotics to produce lifestyle medications which
are necessary for control of diabetes, hypertension, cholesterol and
acid reflux providing a stable source of income for the company.
Its subsidiary, Link Natural Products continues to maintain its
unique growth momentum through strong distribution networks and product
innovation to cater to strong demand for its popular products Samahan,
Link Sudantha and Pas Panguwa as renewed interest in alternative
medicines drives demand. Medical Devices also experienced strong growth
reaching revenues of over Rs.1 billion supported by strong growth in
demand for healthcare coupled with increased disposable income and
increased government expenditure, the financial report stated.
“Samahan and Sudantha products are doing great in the export market
with foreign earnings totalling US$ 300 million. Samahan is now sold in
Europe, Australia, Canada and Japan,” Kulatunga said.
“We are also trying to get our product supply chain organised by
getting supplies from our own farms in the future.”
The company is also trying out new, neutral tastes and bases such as
coffee for Samahan to promote it as a healthy drink among people across
the globe. “We are doing trials with research groups on Samahan as an
immunity builder- some research has already confirmed improved health
among those who used the product on a daily basis,” he claimed.
CIC Holdings PLC recorded a profit after tax of Rs. 1,633.83 million
reflecting a strong growth of 57% YoY. The encouraging performance was
largely attributable to the Group-wide re-structuring undertaken to
refocus on our core competencies and the rigorous performance review
processes established by the Board in 2014.
Revenue growth was 13% propelled by increased production capacity,
improved distribution, high levels of brand recognition and customer
loyalty in most sectors.
Growth in profits is largely attributable to re-aligning of
businesses, streamlined processes, increasing economies of scale and
disciplined cost management.