Browns Investments expands plantation empire with another Rs. 4.8 billion acquisition
Daily FT: Browns Investments PLC (BIL), the investment arm of the LOLC Group, yesterday announced a significant expansion of its plantation portfolio with the acquisition of FLMC Plantations Ltd., (FLMC).
The acquisition was completed yesterday through a Share Sale and Purchase Agreement with Damro Manufacturing Ltd., and Piyestra Furniture Ltd., for a total consideration of Rs. 4.8 billion.
FLMC Plantations serves as the holding company and managing agent for Pussellawa Plantations Ltd. (PPL) and Melfort Green Teas Ltd.
PPL operates over 11,500 hectares of land across 24 estates, managing 5,400 hectares of tea, 5,900 hectares of rubber, and 200 hectares of minor crops. The estates collectively produce 4.3 million kilograms of made tea and 2.3 million kilograms of rubber annually.
Strategically located in Sri Lanka’s renowned tea-growing regions, including Pussellawa, Udupussellawa, Nuwara Eliya, Kandy, Ruhuna, and Sabaragamuwa, these estates will further enhance BIL’s presence in the country’s agricultural landscape.
LOLC Group Managing Director/CEO Kapila Jayawardena said: “Over the past two decades, LOLC Group has been guided by a bold vision of expansion and diversification, positioning ourselves as a global powerhouse across multiple sectors. Our acquisition of FLMC Plantations through BIL is another key milestone in strengthening our leadership in agriculture and plantations. With the addition of Pussellawa Plantations and Melfort Green Teas, we are not only expanding our footprint in Sri Lanka’s premier tea-growing regions but also enhancing our ability to supply premium-quality tea to global markets. This acquisition further solidifies our position as the largest tea producer and exporter, both in Sri Lanka and globally, strengthening our commitment to growth, sustainability, and excellence in the tea industry.”
This acquisition is part of BIL’s ongoing strategy to consolidate and expand its plantation operations. It complements the Group’s existing ownerships, including Maturata Plantations Ltd., Udapussellawa Plantations PLC, Hapugastenne Plantations PLC, and the recently acquired Tea Smallholder Factories PLC. With the addition of FLMC Plantations, the Group further solidifies its position as Sri Lanka’s largest tea producer, with an annual production capacity of approximately 17.5 million kilograms of made tea.
OSL take:
The growing business potential in Sri Lanka’s plantation industry is evident by the latest move by Browns Investments to expand its business in the industry. Sri Lanka’s overall economy has shown great resilience and strength through the years, with the latest being the economic crisis experienced by Sri Lanka in 2022. The growth, profits and expansions currently being recorded by many businesses in the country’s private sector serves as a conference booster for foreign businesses/investors to explore the many business/investment opportunities in all key economic sectors in the country. With Sri Lanka’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many foreign countries as the country targets on becoming a regional hub, Sri Lanka presents the ideal business/investment destination for foreign businesses/investors. These foreign businesses/investors could also look at expanding operations through local collaborations.
| Article Code : | VBS/AT/20250508/Z_4 |