Sunshine Holdings ventures into metal packaging

Sunshine Holdings Limited (SHL) a listed company on the Colombo Stock Exchange and the parent company of the renowned tea producer Watawala Plantations and Swiss Biogenics one of the largest pharmaceutical distributors, has ventured into the manufacture of metal containers and other allied products in a move to further diversify the company's current business portfolio.

This is subsequent to an acquisition by SHL of Land, Buildings, Plant and Machinery and other assets from DFCC Bank for the manufacture of metal and other metal-related products.

The acquisition entailed an investment of Rs 136 million and has been financed from internally generated funds and loans from banks. The move to venture into the manufacture of metal was initiated by the Group Chairman G. Sathasivam and strategically implemented by Vish Govindasamy, the Managing Director of the Company.

SHL has set up a new company, Sunshine Packaging Ltd., a subsidiary of the Group which will be responsible for the new venture.

SHL's 2004-05 revenue of Rs 4.7 billion is expected to top the Rs 5 billion mark with the launch of the new business, the company said. Of the company's two principal businesses, Watawala Plantations Limited is a Rs 2.7 billion turnover company and Swiss Biogenics Limited is a Rs 2 billion company. SHL also has interests in the travel industry.

For the last financial year - Sunshine Holdings reported a post-tax profit of Rs 264.9 million up from Rs 107.5 million last year, a spectacular growth of 146 per cent. Pre-tax profit was up from Rs 129.7 million to Rs 309.5 million, another significant increase of 138 per cent. Profit from operating activities of the company rose a healthy 79 per cent to Rs 410.1 million from Rs 229.7 million.