Sri Lanka’s MAS Holdings and Hellman Worldwide to expand joint venture for logistics with new unit
Sri Lanka’s state investment promotions agency, the Board of Investment (BOI) has stated that MAS Holdings, which is a Sri Lankan apparel exporter, and Hellmann Worldwide Logistics are to expand their joint venture for logistics and supply chain related activities by setting up a new unit.
The BOI has reportedly announced that it has signed an agreement with Hellman MAS Supply Chain Private Ltd. for an expansion unit and also provide additional services to their partnership supporting a leading global sports and active wear brand.
“I am optimistic that the demand continues to increase as is seen,” Anton Grebener, Chief Executive for Hellmann MAS Supply Chain has been quoted as saying.
“We will not only require a further expansion unit in early 2020 for the current activities that we provide, but also expand in building a comprehensive end to end validated supply chain solution for the fashion sector from Sri Lanka.”
The joint venture aims to provide the same services to apparel exporters beyond MAS who would leverage on its capabilities, a statement from the BOI has noted.
Shirendra Lawrence, Group Chief Operating Officer for MAS Holdings, has been quoted as saying that the firm is happy with the progress of the logistics business which has added value to services provided to customers and provides a competitive advantage.
The logistics Value Added Service center could eventually be expanded to operate under the hub act, a new which encourages logistics businesses.
“Apart from providing value added services, HMSC provides warehouse capacity enabling MAS Group to expand their core competency in manufacturing by releasing previously utilized warehouse capacity for a globally recognized leader in the sports and activewear space,” Lawrence has observed.
Hellmann Worldwide Logistics and MAS Holdings signed an agreement in January 2018 to set up a joint venture for logistics and supply chain related activities.
OSL take:
The plan to expand the logistics business of Hellman MAS Supply Chain by setting up a new unit is indicative of the growth and strength of local companies as well as the business potential in the country’s logistics sector. The successful joint venture between MAS Holdings and Hellmann Worldwide could be taken as a case study by foreign companies looking at forming business partnerships in Sri Lanka. Sri Lanka’s logistics sector is a continuously expanding sector given the increasing trade in Sri Lanka. The country’s manufacturing and exports sectors are on the rise and are expected to record further growth. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country has helped expand the island’s manufacturing, exports and logistics sectors. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/11072019/Z_4 |