Hemas focuses on inorganic growth

Inorganic growth in the form of acquisitions, joint ventures and strategic alliances are likely to feature in most of Hemas Holdings Ltd’s (HHL) business expansions over the medium term, according to the company’s CEO, Hussein Esufally.

In his annual statement for 2006/07 Esufally has said that in the past Hemas has enjoyed earnings growth mainly through organic growth, with a few exceptions such as power and relatively small-scale acquisitions and partnerships and that almost all of the past growth has come from business interests in Sri Lanka.

“Whilst organic growth would remain a key growth mode for the existing business, from a group perspective a greater emphasis on inorganic growth and internationalisation would add a new dimension to the Hemas’ corporate strategy in the coming years,” he has said.

In this regard the company is venturing into multi specialty hospitals in Colombo and other key towns through a technical collaboration with Columbia Asia (a regional healthcare provider, operating in Malaysia, in Vietnam, and in India), focusing on quality and affordable healthcare to middle income groups.

Esufally said the total investment for this project is US$ 25 million.

Also, the company has acquired a hospital in Galle, which it acquired last Friday for Rs.400 million.

Esufally said that Hemas will collaborate with the Minor Group in Thailand who invested in a 20 percent stake in Serendib (HHL’s leisure arm), by injecting Rs.137 million to its equity capital despite the rebranding of Hotel Serendib being postponed due to the prevailing situation in the country.

HHL posted a profit of Rs.1.019 million for the year compared to Rs.965 million the year before.