Sanken Overseas makes strategic investment in CL Synergy Group
Daily FT: Sanken Overseas has announced that it has made inroads into the freight and logistics sector through an investment in CL Synergy.
The statement, however, didn’t disclose the value of investment or the percentage of equity stake.
Sanken Overseas is a stalwart in the construction and real estate sectors, and the penning of an agreement from their end reaffirms the importance of the logistics sector to the economy. CL Synergy is a homegrown Logistics brand that is welcoming a new shareholder for the first time since its inception 21 years ago, which indicates its resolve to scale and grow beyond boundaries.
CL Synergy recounts that the journey towards attracting an investment commenced in the aftermath of obtaining approval to list on the Main Board of the Colombo Stock Exchange. Due to turbulent economic conditions, the directorship chose to seek a private placement instead. Sanken Overseas, with its deep Sri Lankan roots, strong work ethic and disciplined approach to business was seen as an ideal partner.
CL Synergy Limited is a 100% Sri Lankan setup that has evolved into a group of companies consisting of 18 separate entities, some of which are in different verticals of the freight and logistics industry, while one is in the leisure sector. The group boasts of having tailored solutions for specific types of commodities such as pharmaceuticals, specialises in local ground transport, 4PL operations, entrepôt trade and shipping desk management. CL Synergy has been recognised as the preferred logistics service provider for numerous industries, such as tea and rubber, by their own governing associations.
CL Synergy ventured into overseas pastures over the past two to three years and is in the process of creating successful business operations in Australia, Bangladesh, India, UAE, UK and USA to serve a global clientele. The company operates a lean model with much of the back office and operational activities handled centrally through the headquarters in Sri Lanka.
Sanken Overseas Managing Director/CEO and Sanken Group Deputy CEO Mevan Gunathilake, will join the Board of CL Synergy. Commenting on the move, he said: “At Sanken, we invest in friends and look for lifetime partnerships. We see in CL Synergy a dynamic, future-ready partner. Together, we aim to build beyond geography and competency — toward legacy. Sanken Overseas has been the pioneer and front-runner in our industry in earning important foreign exchange for the country, and we take great pride in it. CL Synergy also shares the same sentiment as us, as they too had been earning valuable foreign exchange for Sri Lanka through their dedicated and young team for twenty years. Most of our overseas construction takes place in secluded and exclusive locations in the world, which carry logistical challenges that require complex solutions, and having a skillful logistics partner as CLS, helps us to better deliver our projects to our respective international clients.”
OSL take:
Sri Lanka’s ongoing economic activities have expanded to cover all key economic sectors in the country resulting in the steady growth of the country’s private sector while also opening up a host of business/investment opportunities. With Sri Lankan authorities aggressively promoting business/investment opportunities in the country among foreign businesses/investors, the increasing business confidence in Sri Lanka is evident by the increasing number of foreign businesses/investors forming collaborations with local businesses. There has been an increase in the expansion of many local businesses in key economic sectors through foreign investments, partnerships or joint ventures with foreign businesses/investors. Like Sanken Overseas’ strategic investment in CL Synergy Group, there have been more ventures reported in Sri Lanka this year alone. With Sri Lanka’s economy on a growth path and a steady increase in the country’s overall business potential in the region, foreign businesses/investors could explore the opportunities and lucrative ventures in the country. Given Sri Lanka’s strategic positioning in the Indian Ocean, strong trade ties and business conducive environment, the country would continue to witness steady growth while achieving regional hub status. An investment in Sri Lanka could therefore guarantee quick returns on investment.
| Article Code : | VBS/AT/20250813Z_7 |