CIC to export pharmaceuticals, discussing JV
CIC Holdings PLC is aiming to strike a joint venture (JV) partnership with a foreign party to manufacture and export pharmaceuticals for the region, officials said.
“This (pharmaceuticals) is one of our thrust sectors. We are currently in discussion with a foreign party on a JV,” Samantha Ranatunga, Managing Director/CEO CIC Holdings told the Business Times.
He added that Healthcare is a core area in which CIC sees considerable future growth and strong business potential. He added that with the changing economic and regulatory landscape, for healthcare and pharmaceuticals companies, lies in domestic manufacturing and distribution. “We are currently negotiating with various third-party manufacturers to create our own brands in order to be ready for these changes when they occur; this is in addition to our own manufacturing facility in CIC subsidiary, CIC Lifesciences.” He added that CIC is now working with a consulting firm in India to introduce the technology to manufacture non-penicillin based pharmaceuticals in Sri Lanka.
Mr. Ranatunga added that CIC wants to do a similar venture with its ‘Link’ and ‘Sudantha’ brands (in Link Natural Products (Pvt) Ltd. “We want to export our products (branded products) to the Middle East, China and the European Union.
” He added that CIC has an interesting pipeline of breakthrough products, which will be launched in the ensuing years. “Streamlining of distribution and launching a new hair oil range, continuing clinical trials to test efficacy of key products with the medical community, were some of the main initiatives during this year. The products have also attracted a lot of overseas interest which is now being looked at through an internationalisation strategy.”
CIC’s agriculture and livestock arm which contributes nearly 63 per cent of the group’s revenue is also looking to participate in a liquid milk revolution in the country. CIC Holdings will go to African locations with Middle East partnerships for agricultural farming, Mr. Ranatunga added.
“We’re planning to go to Kenya, Ethiopia and Tanzania with horticulture and rice production through our partners in the Middle East,” he said, adding that they want to grow cereals and vegetables in these projects by next year.
He said that CIC is discussing with two partners – one in Qatar and another in Saudi Arabia – in this regard. 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 now has around 25,000 litre capacity per day and all the products are be used for local consumption.
He also said that CIC’s Hingurakgoda Farm and newly commissioned Siddapura and Muthuwella farms are expected to cater the growing demand of dairy industry in the country.