BCC revival through new alliance to meet coconut oil demand
BCC Lanka Ltd, state-controlled and one of the oldest coconut oil producing and marketing companies in the island, has formed a strategic alliance with LHSP Natural Food Products Pvt Ltd, a private company, towards reviving it, the Industries Ministry said in a statement.
The two companies recently entered into an agreement to meet the coconut oil demand in the country providing an opportunity for consumers to buy high quality pure coconut oil without any carcinogenic substances.
BCC Lanka has taken this initiative as an interim measure under its 5-year strategic development plan with the aim of finding an immediate solution to the present coconut oil crisis arising out of the ban on edible oil imports.
The company will be given a new lease of life with modern technology and high tech machinery to get back into business in a bigger way, a senior official of the ministry said. At present, BCC produces around 250 metric tons of refined coconut oil and 160 metric tons of soap and other items per year.
The new strategic alliance will harness the maximum production capacity of the BCC and also make more productive use of BCCs underutilised machinery and storage facilities improving revenue avenues.
Until the establishment of the central oil milling facility and modern factory with a new investment proposed under the current strategic plan, the base coconut oil will be supplied by LHSP to BCC’s refinery unit for the manufacture of refined oil
After the value-addition process at this unit, BCC will take over labeling, packaging, marketing and sales of pure coconut oil bottles.
Chairman of BCC Lanka Ltd Chaminda Welegama told the Business Times that an agreement has been signed with LHSP to obtain stocks of coconut oil for three years and this company was selected after a streamlined and transparent procurement process.
According to the agreement, the coconut oil production process will be carried out under the supervision of the BCC ensuring consumer confidence and to market the product with the Coconut Development Board and Sri Lanka Standard Institution certification and international quality certifications, he said.
The production capacity will also be increased within a short period; he said adding that a modern, 7-storey multi-purpose commercial centre will be built using a 6-acre plot of land at BCC’s current premises in Meeraniya Street, Colombo. BCC was established in the country in the 1830’s.