Sri Lanka’s Cargills Group to set up centralized logistics center to meet future demands
Cargills (Ceylon) of Sri Lanka, which operates Sri Lanka’s largest supermarket chain, is reportedly investing Rs. 3 billion on a new centralized logistics centre in order to meet its future islandwide supply chain requirements.
“To support our growth, the business commenced construction of a new centralized logistics centre,” Group Chairman Louis Page has told shareholders in the company’s annual report for last year.
The logistics centre will eventually centralize all logistics operations of the business with the Cargills ‘Food City’ supermarket chain expanding to 400 outlets this year.
Cargills has reportedly stated that its investment for the first phase of the project is estimated at three billion rupees with operations scheduled to start in the first half of the 2020/21 financial year.
“The location has sufficient space for expansion, and we expect this site to meet our distribution and logistics needs for the foreseeable future,” the report has stated.
“The planned state-of-the-art logistics centre will allow us to meet the requirements of the Cargills Food City channel for the foreseeable future, and allow us to continue our expansion throughout the country.
The retail operation expects to open its 400th outlet during the coming year, and sees good growth potential to continue expansion. Cargills now has 380 supermarkets in all districts of the island, having added 27 outlets in 2018/19.”
OSL take:
The decision by Sri Lanka’s Cargills Group to set up a centralized logistics center targeting the future expansion of its massive retail supermarket chain is indicative of the overall growth and expansion of the country’s economy. It is a sign of expanding business/investment opportunities as well. The continuous improvements in the country’s ease of doing business environment and island’s geographical positioning in the Indian Ocean makes Sri Lanka the ideal business/investment destination.
| Article Code : | VBS/AT/05072019/Z_2 |