Hayleys Group consolidates to deliver better results
Sri Lankan multinational, diversified conglomerate, Hayleys PLC is continuing its consolidation process amidst competition and volatile economic conditions in the country trading at fair value while celebrating 140 years of its business excellence and innovation this year, top officials of the company asserted at a media round table in Colombo recently.
Extruded aluminum tubes automatically stacked at the new Alumex factory.
“Hayleys Group remains number one in the performance of almost all of its subsidiaries with business interests spanning over 16 sectors which account for 3.3 per cent of the country’s export earnings,” Chairman and Chief Executive of the company Mohan Pandithage said.
One of the reasons of achieving organic growth across all businesses of the group despite challenging times was one of localised value addition, to capture increasingly globalised markets, he pointed out.
Revenue within the consumer and retail segment expanded substantially bolstered by the contributions of Singer (Sri Lanka) Group which was acquired by Hayleys at end of 2Q 2018, generating Rs. 1.3 billion in operating profits.
“Our organisation is geared towards seeking out new methods to sustainably harness this nation’s potential and transform it into lasting value that will lend vital support to the aspirations of our country and all of our fellow Sri Lankans from every walk of life,” he added.
Looking at the growth rates, earnings, revenue, and cash flow gives a better idea of the true operational results that the company has delivered over the years.
Today it stands out as one of Sri Lanka’s most prominent success stories, having been the first listed Sri Lankan corporate to surpass US$ 1billion in revenue.
Hayleys group net profit fell 37 per cent to Rs. 827 million in the March 2018 quarter from a year ago while sales rose 74 per cent to almost Rs. 51 billion, interim accounts filed with the stock exchange showed.
A company statement said the group posted strong operating profits which expanded by 18 per cent to Rs. 11.4 billion during the year.
Sri Lanka’s industrial and manufacturing sector has been seeing large declines so far due to varied reasons; rupee depreciation, interest rate hikes, inconsistent economic policies and labour shortage were hurting local businesses.
Sri Lanka’s economy is slowing and the stock market is not prospering not even responding at present.
But even under these circumstances, catering to over 7.6 million customers worldwide, the Hayleys Group at present stands as one of Sri Lanka’s most crucial economic centrepiece, providing direct employment to 32,000 Sri Lankans, in addition to indirect employment to over 20,000 people, officials said.
The group’s Eco-Solutions sector has become one of the leading manufacturers and exporters of value-added coconut fibre products, distributing over 105 products locally and internationally.
One of the group’s subsidiaries, Dipped Products represents one of the largest glove manufacturers in Sri Lanka, maintaining a global market share of 5 per cent through a product portfolio that spans 109 categories of gloves and 240 versions of natural and synthetic latex.
The group’s Purification segment stands as the world’s number one in coconut shell-based activated carbon solutions. The segment currently produces 42,500 tonnes of activated carbon and currently retains a 16 per cent global market share for high quality activated carbon, Mr. Pandithage revealed.
The group’s Textile Manufacturing business supplies fabric to some of the world’s leading clientele, including global fashion and sportswear brands, producing over 2.8 million metres of fabric per month.
Hayleys subsidiary Alumex is set to expand production of Aluminium extrusions in a big way with the opening of world class largest factory in the South Asian region recently.
The company has invested over Rs. 2 billion to set up this modern state of the art factory to upgrade manufacturing infrastructure and technology constantly supplying unique combinations of aluminum profile, he added.
It is offering a wide range of architectural, residential and industrial products, catering to the top and middle tiers in the construction industry.
The Hayleys Group’s Transportation and Logistics represents one of the country’s most influential industry players straddling diverse areas such as international freight management, terminals and engineering, marine, and integrated logistics services.
The investments made by Hayleys Advantis over the years in terms of facilities development, acquisition of unique equipment and skill enhancement, has enabled the local logistics industry to facilitate large scale logistics projects, which would otherwise have required foreign expertise, said Managing Director of the company Ruwan Waidyaratne .
The company has 22 sea-going assets, which includes a tanker that provides bunkering services, he said adding that they have acquired 94.8 per cent stake in the Sri Lanka Shipping Co. for Rs. 4.9 billion.
The group’s leisure sector offers end-to-end tourism solutions spanning tour operator and destination management services to the management of 8 resort properties – including one property in the Maldives – through the Amaya Resort chain and its five-star city hotel, The Kingsbury.
Lalin Samarawickrama, Managing Director, The Kingsbury PLC noted that they would be investing in six plantation bungalows including Langdale in Nuwara Eliya and another ancient mansion in Oliphant Plantations.
| South Asia’s biggest aluminium factory opens at Ekala | |
| By Quintus Perera A group of media personnel from Colombo were taken to the latest, fully automated – South Asia’s first aluminium extrusion producing factory at Ekala, Ja-Ela, on Tuesday. After the media was briefed about the facility the group was taken a round the factory, and while on tour of the factory, Pramuk Dediwela, Managing Director, Alumex PLC made the above comment to the Business Times. He said that if a door is manufactured with traditionally accepted timber such as teak it would cost around Rs. 150,000 while the same if manufactured with aluminium would cost only around Rs. 50,000 and still give the same rich texture and appearance of traditionally accepted timber. “If aluminium is used there is no corrosion, decaying and no weevils or termites would attack the aluminum and it lasts forever,” he said. He told the Business Times that aluminium is identified as ‘green metal’ and nature friendly as only 30 per cent of the raw material extracted from the earth is used to manufacture aluminum extrusion and the balance 70 per cent of the manufacture is used from recycled aluminium. At the media briefing of the country’s recently unveiled first fully automated, front-loading aluminium extrusion plan and South Asia’s first vertical power coating facility, Mr. Dediwela said that the facility is a Rs. 2 billion investment and is located at 138/4 Minuwangoda Road, Ekala, Ja Ela. It is the largest aluminium extruder in Sri Lanka in terms of scale and output. He said that it is a Hayleys Group subsidiary, run with a workforce of 185 and the factory could produce around 2,000 aluminium extrusions per month totaling 24,000 metric tons per annum, indicating that the current requirement is around 15,000 metric tons. Currently, he said that around 2 per cent of their output is exported and said that they expect to increase the export target to at least 10 per cent. They are currently exporting to countries like India, Nepal, Maldives and Seashells. He said that the Italian made Presezzi 23 mega newton extruder will consume far less energy compared to other extruders currently available in the market. Alumex will also benefit from its automated downstream equipment and long run-out tables with infrared and Bluetooth technology controls. He said that the highlight of the plant is in its reduction of waste water and purification system which ensures the water discharge has zero impact on the local environment. With eco-friendly non-chrome chemicals in the mix, proprietary systems will help ensure that Alumex products are tested for water penetration, air infiltration, wind pressure (deflection) and sound to facilitate the firm’s 30 year presence.
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