Sri Lanka’s Watawala Plantations to invest Rs. 365 million to boost local dairy business.
Sri Lanka’s Watawala Dairy Ltd. (WDL), which is a subsidiary of Watawala Plantations (WPL), is to receive an investment of Rs. 365 million into its capital from WPL.
According to reports, WDL will capitalise the investment amount by issuing of 31.96 million fully paid ordinary shares at Rs. 11.42 per share. WPL currently owns an 89% stake amounting to 277 million shares in WDL.
In FY22, WDL’s dairy production had reportedly recorded 5.1 million liters with the milk produced being utilised for milk as well as milk-based products such as cheese, butter and ghee. The business line had reported a revenue of Rs. 694 million during the year, and a profit after tax (PAT) of Rs. 27.7 million which is 38% growth from PAT of Rs. 20.1 million reported in FY21.
WDL’s dairy farm, which is home to 1,811 Australian and New Zealand cattle breeds, produces fresh cow milk.
With Sri Lanka focused on becoming self sufficient in fresh milk, the country’s dairy industry has presented many business/investment opportunities ranging from the supply of milch cows to introducing the latest technologies in the dairy industry. The government of Sri Lanka has also received foreign funding to uplift the country’s dairy industry resulting in fund availability for work in the industry. Local businesses are also looking at investments in the country’s dairy industry due to the increasing demand in the country resulting in a steadily growing business potential in the industry. Foreign businesses could therefore also look at the business/investment opportunities in Sri Lanka’s dairy industry as they guarantee definite quick returns on investments.
|Article Code :||VBS/AT/27092022/X_7|