Distilleries Company of Sri Lanka PLC
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| Distilleries Company of Sri Lanka PLC | |
|---|---|
| Type | Public (Colombo Stock Exchange) |
| Founded | 1917 |
| Headquarters | Colombo, Sri Lanka |
| Key people | Harry Jayawardena (Chairman) |
| Industry | Diversified |
| Products | Food and beverage, financial services, health care, telecommunication |
| Revenue | $500 Million (2006/2007) |
| Employees | 44,200 |
| Website | www.dcslgroup.com |
The Distilleries Company of Sri Lanka PLC is a Sri Lankan diversified conglomerate listed in the Colombo Stock Exchange with a market capitalization of US$ 300 Million.[1] It was one of the first two Sri Lankan companies to be listed in the Forbes Best Managed companies outside USA under a USD billion.[2] The company has also featured as one of the Top 10 listed companies in Sri Lanka ranked by the business magazine Business Today from the inception of the ranking system, twice becoming the No 1 listed company [3].
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[edit] Privatization
Distilleries Company of Sri Lanka PLC has been called "a landmark success in privatization".[3] A state owned company producing liqour that was privatised by the state in 1992, after less than two decades has become a conglomerate with diversified interestes in many areas of the country's economy.
[edit] History
[edit] Under State ownership
Established in 1917 as the liquor producing division of the Excise Department of Ceylon. In 1974 the State Distilleries Corporation was established to take over the liquor distilling and producing activities of the Excise Department of Ceylon. On November 17, 1989 State Distilleries Corporation was converted into a company with shares, namely the Distilleries Company of Sri Lanka Limited, under the Conversion of Public Corporations Act No: 23 of 1983. On February 20, 1992, 60% of the company were sold in the Colombo Stock Exchange to the highest bidder, a consortium of investors comprised of Milford Exports Ceylon Limited, Lanka Milk Foods (CWE) Limited (both companies controlled by Sri Lankan businessman Harry Jayawardena) together with Smith New Court Investors from Singapore.
[edit] Acquisitions since privatization
In 1995 the company entered into a joint venture with Pernod Ricard of France, one of the top 5 liquor producers in the world, to incorporate Periceyl Limited to produce whiskeys, brandies, and other international liquor in Sri Lanka for the Sri Lankan market. To date the company represents world renowned brands such as Chivas Regal and Jameson Irish Whiskey in Sri Lanka. Also in 1995 the company acquired the century old Beruwala Distillery Limited.
In 1996 the company signalled its intention of diversifying into non liqour sectors and accquired tea and rubber plantations by purchasing significant stakes in Madulsima Plantations PLC and Balangoda Plantations PLC under the government's privatization program. In 1999 the company acquired a significant state in highly diversified Aitken Spence & Company Limited that has existed in Sri Lanka since 1856 with interests in the leisure sector, hotel holdings and hotel management in Sri Lanka and the Maldives, and power generation. In 2003 the company acquired 90% stake in Sri Lanka Insurance Corporation Limited when the Sri Lankan government sold the state owned insurer.[4] Sri Lanka Insurance is a composite insurer with life and non life insurance portfolios and over US$ 500 million in assets and assets under management. Under the new management Sri Lanka Insurance converted from a state owned operator to a dynamic private sector player by introducing innovative products and schemes such as Formula Plus and Formula World, a car insurance coupled with repair facilities.[5].
In 2005 the company acquired a 99% stake in Lanka Bell Limited, a fixed line telecom operator in Sri Lanka.[6] Under the new management the company transformed the telecommunication landscape in the country by introducing CDMA technology to Sri Lankan. Lanka Bell Limited is also credited with invigorating the telecommunication market by innovative communication campaigns that stole the hearts of the Sri Lankans.[citation needed] Restricted by not having a mobile operator license other operators capitalized on the communication and the hype created by Lanka Bell Limited.
In 2006, Distilleries subsidiary Sri Lanka Insurance acquired the majority stake in Lanka Hospitals Corporation Limited, owner of Apollo Colombo hospital, subsequent to a mandatory offer accepted by the Indian Hospitals Corporation Limited of Dr. Prathap C. Reddy.[7]
[edit] Conglomerate in the making
Distilleries Company of Sri Lanka PLC started as a liquor producer, but has now grown into a diversified conglomerate and is the holding company of Sri Lanka Insurance Corporation Limited, Lanka Bell Limited, Periceyl Private Limited, Lanka Hospitals Corporation PLC, National Assets Management Limited, Balangoda Plantations PLC, Madulsima Plantations PLC, Texpro Industries Limited and associate company Aitken Spence & Company PLC. Deshamanya Harry Jayawardena is the Chairman of Distilleries Company of Sri Lanka PLC.
[edit] References
- ^ Colombo Stock Exchange
- ^ Forbes: Asia's 200 Best under a billion, September 27, 2007
- ^ a b Business Today: Top 10, financial year 2005 - 2006
- ^ Sri Lanka Treasury, Public Enterprises Reform Commission annual report 2002, pg. 10
- ^ The Island Online: 200 vehicles repaired monthly at Formual World, April 21, 2008
- ^ Lanka Newspapers: Lanka Bell to enhance CDMA leadership with 100,000 more lines, August 6, 2005
- ^ The Economic Times: Apollo Hospital sells Sri Lankan unit, September 16, 2006
