Renuka Shaw Wallace (formerly known as Coco Lanka PLC) will utilize its Rs. 1 billion rights issue together with its own funds to expand the portfolio and build infrastructure, officials said. “This transformation takes the company’s focus from being solely in the Agri Business sector into a fully – fledged Food and Beverage (F & [...]

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The Sundaytimes Sri Lanka

Renuka Shaw Wallace Rs. 1bln rights issue for growth

By Duruthu Edirimuni Chandrasekera
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Renuka Shaw Wallace (formerly known as Coco Lanka PLC) will utilize its Rs. 1 billion rights issue together with its own funds to expand the portfolio and build infrastructure, officials said.

“This transformation takes the company’s focus from being solely in the Agri Business sector into a fully – fledged Food and Beverage (F & B) company and the company is focusing on each Sri Lankan having one of Renuka brands at least for one meal,” Shamindra Rajiyah, CEO/Executive Director of Renuka Shaw Wallace told the Business Times on the sidelines of a media conference to announce their growth plans and change of its name. He added that they are trying to expand their product portfolio to get local consumers to consume at least one of Renuka brands for one meal.

Though not committing, Mr. Rajiyah hinted that the company might launch products that supplement a Sri Lankan meal. “Our new name better reflects the complete spectrum of businesses we are in and the opportunities we are unleashing,” he said, noting that Renuka Shaw Wallace brings together a portfolio of food and beverage companies which are respective leaders in their segments.
“We have planned 10 brand extensions within the top four brands with planned investments of over Rs. 200 million by 2015,” he said, adding that for the Captain (tin fish) brand, four brand extensions are expected for 2015 with a planned investment of Rs. 77 million in the first year.

Mr. Rajiyah said Captain Soya was introduced to the market in the second quarter of the financial year 2012 and that the next new category will be out in stores by the next quarter of the current financial year. He said that Renuka coconut milk products will see two brand extensions for 2015 with a planned investment of Rs. 52 million in the first year.

Richlife (milk) and Sun Gold have two brand extensions planned for each with a planned investment of Rs. 28 million and Rs. 60 million respectively in the first year. “Currently we have over 65,000 outlets covered which we hope to raise to 100,000 by 2015,” he said, noting that with the expected growth in the tourism sector, the company wants to be the one-stop shop for the hotels, restaurants and cafes by the said year.

He said that what Renuka Shaw Wallace hopes to achieve is to consolidate direction, unlock synergies by controlling the value chain from raw material to shelf. Elaborating on the rights issue and the future direction Mr. Rajiyah said, “Renuka Shaw Wallace’s aggressive expansion in the food and beverage space is to seize the growth opportunities the country offers.

Our future plans include the extension of existing brands to new food and beverage products by manufacturing in response to evolving consumer needs. These include the processing of value-added fish, innovative dairy products while increasing our general trade outlet coverage and efficiently through the sales force automation system currently under implementation.” The company has fast moving consumer goods (FMCG), food service, dairy and agri-exports. These operate under Renuka Consumer Foods Ltd, Shaw Wallace Ceylon Ltd, Shaw Wallace Food Services Ltd, Renuka Products (Pvt) Ltd, Renuka Agri Foods PLC, Renuka Organics (Pvt) Ltd, Renuka Teas Ceylon (Pvt) Ltd and Kandy Plantations Ltd.

Renuka Shaw Wallace operates five factories, nine processing centres, two plantations, an out-grower network exceeding 5000 farmer families, a state-of-the-art warehouse and a logistics centre. It exports to 61 countries, and locally distributes to 65000 grocery outlets island-wide as well as to hotel, restaurants catering establishments among others.




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