Sri Lanka's CIC Holdings plans to leverage an initial investment of Rs. 33 million made during its 2010 / 2011 financial year in research into ways to improve crop yields out of diminishing resources in a bid to anticipate the way forward for the agriculture industry, according to its Chairman B.R.L. Fernando. Elaborating, he noted that this would also feature "Research & Development (R&D) in areas such as new rice varieties, improved vegetable seed production, fruit cultivation and generation of planting material."
Further, he indicated the need to become less "weather-dependent" and "manage water” more, which had also facilitated the need for greater research by CIC into "water management, soil management, delivery systems, to improve fertiliser utilisation and also organic inputs."
Mr. Fernando also revealed that, of the group's "post-tax profit of Rs. 1.17 billion which represents an increase of 57% in profits in comparison to the previous year" as well as its turnover of Rs. 21.04 billion, a 26% year-on-year rise, "[animal] feed, poultry, agriculture and food oriented business provided the bulk of the increases."
Additionally, it also emerged that the first stage of a joint venture formed between Chemanex and CIC to manufacture intermediate chemicals to convert into Super Absorbent will be operational by July. Also mentioned, expansion plans were in place for the 2011 to 2013 period for CIC's profitable Feed Mill and poultry businesses. At the same time, the group also stated that it had just commissioned a seed coating facility in Dambulla.
Also highlighted, the group's dairy business was beneftting from the upgrading of a herd of buffaloes in Hingurakgoda that was "near fruition" while new farms at Siddhapura (along with a new yoghurt processing plant) and Muthuwella were now in operation.
Meanwhile, the group reported that it had more than 20,000 farmers as part of its outgrower network and that its exports, rice to Australia, France, Canada, USA, UK, Germany and the Middle East and fruit to Australia and Canada, grew by over 20% last yea. In addition, it said it sold 275,000 bushels of seed paddy last year, half of which came from its outgrower network and the balance from its three farms in Hingurakgoda, Pelwehera and Talawa, with turnover exceeding Rs. 1 billion for the first time. A plan was also mooted to double acreage used for fruit and produce 3,000 metric tonnes for local and overseas consumption.
Historically a chemical (Chemanex) and paint (Akzo Nobel Paints Lanka / Dulux) company that is now re-aligning itself to focus primarily on agri business, CIC also has businesses in consumer goods, with Johnson & Johnson, as well as in pesticides, packaging, ayurvedic products and pharmaceuticals. (JH) |
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