Hayleys Advantis gains success by diversifying revenue avenues
Despite the present unpredictable economic situation, Hayleys Advantis Ltd, the transportation and logistics arm of Hayleys PLC, is quite confident it will weather the storm as the company has been diversifying its revenue avenues over the years, Managing Director of the company Ruwan Waidyaratne said.
In a conversation with Business Times on the sidelines of a media conference recently, he went on to say, “the company has made a lasting impact towards uplifting the logistics industry in Sri Lanka, by investing in people and technology development”.
Mr. Waidyaratne, armed with an MBA from the Edith Cowan University of Western Australia, is the front- liner of the Hayleys Advantis team for more than two decades.
Backed by the blue chip multinational conglomerate Hayleys PLC, the Advantis will continue to focus on developing local expertise to facilitate the government initiative of establishing Sri Lanka as a logistics hub for the Asian region, he added.
Driven by a new purpose to “Inspire, Connect and Enrich”, the company is making significant changes in the logistics landscape across Sri Lanka.
The investments made by 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, he disclosed.
Investments were made in acquiring equipment to facilitate infrastructure projects in Sri Lanka and the Maldives.
Some of these projects include the movement of heavy transformers and windmills for national electrification projects and the movement of construction equipment to rural parts of Sri Lanka for national infrastructure development projects.
In recent years, the company has expanded its service offering to diverse countries across the region with the aim of solving complex logistics needs of the region.
Widening the regional presence is a key strategic priority of the Hayleys Group and during the year the company has strengthened its presence in Indonesia and Myanmar. The sector also entered Bangladesh, catering to a multinational organisation, he revealed.
Advantis has invested a sum of Rs.2 billion in the construction of a mega distribution centre, with the objective of consolidating and expanding its foot-print in Third Party Logistics services. The centre is expected to be completed in the second half of 2018.
The company has 22 sea-going assets, which includes a tanker that provides bunkering services, he said adding that they have acquired a 94.8 per cent stake in the Sri Lanka Shipping Co for Rs. 4.9 billion
With the Government initiating major development projects to enhance the competitiveness and productivity of port and logistics activities, the revenue of Hayleys Advantis has increased to Rs.35.65 billion in 2017/2018 from Rs.24.24 billion in 2016/2017 financial year.
Profit before Tax (PBT) also increased to Rs.2.34 billion from Rs. 1.78 billion during the same period.
The company recorded a Profit after Tax (PAT) of Rs. 1.42 billion from Rs. 1.19 billion during this period.
The international freight management division continues to be a large contributor to the sector’s profits, Mr. Waidyaratne said.