Malwatte Valley to diversify

Malwatte Valley will diversify into tourism this year and is looking for investments, both at home and abroad. For this purpose, it is tying up with a well-known hotel chain, who will manage its investments in the tourism sector, said Chairman and Managing Director Malwatte Valley Plantations W.L. Bogastra.

Malwatte Valley Plantations PLC has seen its sustained net profit soar over the past few years. Its strategy to rationalise tea manufacture to better garden marks and the buoyant rubber prices have brought about this year's profits.

However, the Company is not ready to relax and new strategies are in the pipeline.

Sarnia estate was a leading performer. Tea Brokers John Keells PLC said: "This performance could possibly be a record feat achieved by any estate/factory in the history of tea plantations in the country".

The Company has recorded a net profit before tax of nearly Rs.470 million for the financial year ended December 30.

This is an increase of 476 percent on the previous year and computes at approx. Rs.1.3. million per day.

"Malwatte Valley is now among the key players in the industry. With an E.P.S. of 18.98 it is among the highest earners in the industry" said Chairman/Managing Director W L Bogtstra.

The Company considers diversification to exploit Sri Lanka's rapidly expanding economy. Construction, IT, health and tourism are some of the fast growing industries with short gestation periods, said Bogtstra.

Management of plantations will continue and with the fine mix of tea and rubber estates the Company has, 2011 should also be a successful year in the event prices are favourable with wages being related to performance.