Sunshine Packaging to expand with US$ 2 m investment

Sunshine Packaging Lanka Ltd will expand its operations with an investment of US$ 2 million from Primeco Holdings Limited, a conglomerate incorporated in Hong Kong.

"The investment from Primeco Holdings reflects the strong confidence of international investors in the companies of the Sunshine Holdings Group," Sunshine Holdings Group Managing Director (GMD) Vish Govindasamy said.

The FDI infusion is via an issue of new shares amounting to a 40% stake in Sunshine Packaging by Primeco Holdings which has interests in steel, coal and other commodities. Following the equity capital infusion, Sunshine Holdings holds a 60% stake in Sunshine Packaging, a company press release said.

The funds from the new investment will be used for further enhancement and expansion of the operations of Sunshine Packaging - which at present manufactures tea caddies, confectionery tins and printed tin sheets.

With the new investment, Sunshine Packaging expects to step up its focus on the lucrative export market and significantly increase its business volumes - particularly by expanding its international orders via the partnership with Primeco Holdings. Sunshine Packaging also hopes to convert its printing plant to the newer and more cost-effective UV printing technology.

The Foreign Direct Investment (FDI) of US$ 2 million by Primeco Holdings increases the total amount of FDI attracted by companies of the Sunshine Holdings Group thus far in 2016 to US$ 5 million.

Earlier this year, Watawala Dairy Ltd. attracted USD 3 million in FDI from Duxton Asset Management, a Singapore-based international and boutique asset manager, for a commercial dairy operation.

"While strengthening our own operations with capital infusion and global expertise, we take pride in facilitating FDI to the country - which has been identified as a key economic priority," Govindasamy said.

Sunshine Packaging Lanka Ltd. has a monthly capacity of 680,000 cans and employs 150 staff at present. In 2005, the company was acquired by Sunshine Holdings which also has interests in healthcare, plantations, tea, FMCG and renewable energy.