CIC eyes Kenya, Ethiopia and Uganda for agri investments
View(s):CIC Holdings PLC is in the process of finalising joint venture partners in Africa to invest in agricultural farming, officials said.
“We’re planning to go to Kenya, Ethiopia and Uganda with horticulture and rice production through our partners in the Middle East,” Samantha Ranatunga Managing Director/CEO CIC told the Business Times. He said this is at the preliminary stage and the company is trying to first identify land in these countries. Mr. Ranatunga said CIC wants to start the projects by next year.
He said that CIC is discussing with two partners – one in Qatar and another in Saudi Arabia – in this regard.
CIC’s agriculture and livestock sector stands as the core business contributing nearly 64 per cent of total revenue and 72 per cent of total net earnings in financial year 2012/13. This sector is involved in producing agricultural inputs such as seeds, planting material, livestock products, distribution of machineries plus blending and marketing fertilizer.
Mr. Ranatunga said that in a bid to beat the uncertainties of the weather, the company has made a strategic decision to shift to value addition in their products and large dairy projects. “We are the largest exporter of high quality rice. We also increased exports in banana and other fruits. We’re going into other areas such as fruit varieties, mangoes, pineapples, etc.”
The company’s Rs 600 million dairy milk processing operation in Dambulla will be commissioned in July. “We’re trying to set up a production facility in Dambulla for dairy products,” Mr. Ranatunga said, adding that this facility will have around 25,000 litre capacity per day and all the products will be used for local consumption.
He also said that CIC’s Hingurakgoda Farms and newly commissioned Siddapura and Muthuwella farms are expected to cater to the growing demand of the dairy industry in the country.
The group recorded a net earnings dip of 53 per cent year on year to Rs 55.3 million in the last quarter of the 2012/13 financial year and 73 per cent to Rs 230.9 million for the whole year largely due to a poor performance from its agriculture sector.
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