Record breaking production at Hingurana Sugar Factory by LOLC subsidiary
View(s):The revitalised Hingurana Sugar Factory managed under Gal Oya Plantations (Pvt) Ltd, a subsidiary of the LOLC Group, has reported sugar production of 19,960 metric tonnes for 2014/15, the highest ever in a year, through successful sugar cane cultivation spanning 3,440 ha of land.
This record breaking production has been achieved after 38 years and is by far the largest sugar production output compared with other local producers in 2014. This is a significant achievement for the factory considering its tumultuous past, LOLC said in a media statement.
Cane cutter at work.
The Hingurana factory functioned well into 1993, until it was forced to cease operations due to poor management, labour and union issues. The Sri Lankan Government at the time took over the property under its wings until an investor was found to reestablish operations. As a result, in 2009, restructuring of the once abandoned Hingurana sugar factory was begun subsequent to a joint venture between the Government of Sri Lanka and a private sector consortium led by Brown & Company PLC and LOLC. “This venture marked a milestone in history as the first public-private partnership in the country. According to this partnership, 51 per cent of the ownership of the property was retained by the Government while 49 per cent owned by the Browns Group together with LOLC,” the statement said. Under new management Gal Oya Plantations (Pvt) Ltd was formed and the factory, after initial renovations, commenced operations on 16th July 2012, for the first time after 15 years.
At present, the operations of the Hingurana factory are overseen by Chief Executive Officer of Gal Oya Plantations (Pvt) Ltd, Gamini Ratnayake and its Chief Operating Officer, Danesh Abeyrathne.
Under this new management, steps were taken towards restoring the operations of the factory from the bottom up. They reappointed skilled workers who were previously employed by the factory as they possessed vast experience and seasoned knowledge about cultivation, existing machinery etc.
Mr. Ratnayake said, “Once the Gal Oya Plantations was formed, it was an uphill battle to reinstate the Hingurana sugar factory to its former glory.
By the time we restored operations, many of the employees and farmers who had previously engaged in sugar cultivation and production had abandoned hope due to various issues they had experienced in the past. Therefore, initially, great efforts and investments were made towards creating awareness among them by way of door-to-door campaigns, group discussions, meetings etc to restore their faith and confidence once more.”
As at 30th September 2014, Gal Oya Plantations (Pvt) Ltd has invested Rs 3.2 billion towards the resuscitation of the Hingurana sugar factory. The year’s turnover has risen to Rs. 1.8 billion from the previous Rs. 938 million in 2013/14. The company says it hopes to invest Rs. 2.6 billion more towards the completion of the Distillery and Power Generation projects currently in the pipeline.