Financial Times

Vallibel Holdings Ltd, run by dynamic entrepreneur Dhammika Perera, has changed its operating model from acquiring companies to setting up its own businesses.

Nimal Perera, Jt. Managing Director, Royal Ceramics Lank – part of the Vallibel group, told The Sunday Times FT that this was because there were no more ‘good’ businesses to acquire.

“We have changed the business model, because we do not have anything lucrative to acquire. We are setting up businesses and expanding our existing portfolios. This was a natural transition, because we want to grow and setting up and expansion was the next best thing,” he said.

When asked whether the company had missed any business opportunities, he said the telecom sector was one. “We are still looking at the sector and the moment there is an opportunity, we will pursue it,” he added.

Perera said the company was interested in an airline a year ago, but the deal fell through. “We had a proposal from an Australian party but the proposal was not very attractive,” he said. Vallibel is interested in a low cost airline operation and is looking at it as well. “When there is an opportunity we are certainly going to explore it,” Perera added.

He said the decision to buy both Rupee Finance Company and L B Finance was because it was difficult to obtain a license for a start up company from the regulator.

He said the luxury up market hotel – The Fortress has been a good proposition because already the company has had a lot of web bookings. “When we had initial discussions with Per Aquum Resorts and Spas, there was an unfilled demand for ultra-luxury hotel rooms in the country. The project cost, which was originally estimated at Rs 700 million, is now estimated at Rs 1.3 billion. The managing company of the hotel, Per Aquum Resorts and Spas, is confident of marketing the hotel at premium rates such as IS$450 to 1500,” he explained.