Pussalla moves to organic cinnamon production with Rs. 300 million investment
Daily FT: Pussalla Meat Producers Ltd., has invested around Rs. 200 million to move into the Value-Added Organic Cinnamon Production sector and a further Rs. 100 to increase their Cinnamon plantations.
The company will inaugurate a new state-of-the-art processing facility under its subsidiary, Pussalla Agriventures, on 3 July at Kosgama.
Recognizing the growing global recognition and untapped potential of Ceylon Cinnamon, Pussalla Chairman, Philip J. Wewita, spearheaded a transformative value-addition strategy.
Pussalla’s venture into organic cinnamon cultivation began six years ago and has shown steady growth since then. Today, they own over 100 acres and have invested around Rs. 100 million.
With a strong background in animal production and expertise in manufacturing organic fertilisers, the company cultivated these crops on its fields following principles of organic agriculture.
Under his visionary leadership, the company shifted from bulk exports to processing Ceylon cinnamon into a diverse range of premium consumer products under its brand.
Chairman Philip J. Wewita said: “By taking ownership of the entire value chain, we aim to elevate Sri Lanka’s heritage spice to a global standard of excellence. Today, our product line has grown to include cinnamon quills, powder, essential oil, air fresheners, hand wash, and Sri Lanka’s first 100% pure cinnamon brew—a unique non-blended beverage product. We believe that true value lies not just in what we grow, but in how we present it to the world.”
“With the opening of the Processing plant, we will engage in exports. As the company has already obtained necessary approvals and verifications we will commence exports to Gulf countries from August 2025. Our FOREX revenue target for 2025 is around $ 1 million,” the Chairman added.
The global demand for Ceylon cinnamon continues to rise, with Sri Lanka supplying nearly 90% of the world’s total output. Countries such as the United States, Mexico, and Peru are key markets, where the spice is highly valued for its distinctive aroma, flavour, and health benefits.
The EU’s GI certification has further enhanced its status, enabling Sri Lankan producers to access premium markets and achieve better export margins.
Pussalla’s new processing facility is strategically positioned to meet this rising demand, allowing for increased production, product diversification, and wider market reach.
“Our next target is to export to the EU. We have already made our submissions and are waiting for approvals which we expect at the end of the year,” Wewita revealed.
OSL take:
Sri Lanka’s commodity exports, especially cinnamon exports, have presented a growing business venture for foreign businesses/investors on the lookout for lucrative ventures in the region, especially Sri Lanka. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries and the growth as well as profits recorded by businesses engaged in the country’s exports industry, especially cinnamon exports, all indicate the increasing business potential in Sri Lanka’s cinnamon industry. With EU’s GI certification also adding to the quality of the cinnamon being exported from Sri Lanka, foreign businesses/investors could confidently explore the growing opportunities in the industry. These businesses could also look at further expanding the cinnamon export industry through value addition and diversifying the existing cinnamon export product portfolio. Businesses could also be further expanded by foreign businesses by forming partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20250704/Z_8 |