Sri Lanka’s Hemas Holdings to expand regionally with its new logistics centre including a container yard and a big modern warehouse
Sri Lankan conglomerate Hemas Holdings is looking at a regional expansion with its new logistics centre housing a container yard and a large modern warehouse to be commissioned shortly, the local media has reported.
The centre, operated by Spectra, its logistics joint venture with GAC and McLarens, has shown improved results, mainly driven by the third party logistics or 3PL business, the Hemas Holdings has reportedly told its shareholders.
“Expanding its retail and modern trade distribution, and inland container depot operations, it is keen to establish leadership domestically and leverage this to expand internationally, focusing mainly on the Indian subcontinent and the Asian region,” the Company’s annual report has stated.
According to the reports, Spectra Logistics has strengthened its position as one of the biggest integrated logistics providers with a regional focus having opened the new container yard in the Muthurajawela Industrial Zone in January, 2018 and construction of a new warehousing complex to be commissioned soon.
The Hemas Group’s logistics and maritime business has been growing fast with sales up 46% last year to Rs. 2.8 bilion, mainly supported by 3PL operations.
Hemas has told shareholders that the joint venture partners gives Spectra access to global expertise and service levels.
The 10-acre container yard in Muthurajawela has doubled its capacity to serve shipping lines, the report has further stated.
The new premises will house one of the largest distribution centres in Sri Lanka, targeting pharmaceuticals, white goods and retail trade with the warehouse having a capacity of nearly 25,000 pallet positions, the report has added.
OSL take:
The expansion of its operations by the Hemas Group is an indication of the levels of growth recorded by Sri Lankan companies. Given the growth potential of Sri Lankan companies, foreign companies/investors could look at forming partnerships/joint ventures with local business entities to further expand their operations in the Asian region.
| Article Code : | VBS/AT/20180629/Z_5 |