HVA goes for new extraction plant
IPO to open on January 12:
Charumini DE SILVA
HVA will set up an unique tea extraction plant, one of its kind in
Sri Lanka with an investment of Rs 100 million.
HVA Lanka Exports Chairman Rohan Fernando told Daily News Business
the company plans to invest Rs 100 million to upgrade the tea extraction
plant to a high end commercial venture, Heladiv Innovative Centre, as
well as increase the capacity in the tea packaging factory.
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Rohan
Fernando |
The company is planning to officially open the commercial venture
Heladiv Innovative Centre during the first quarter of next year.
The tea extraction plant is a novel concept to Sri Lanka as there are
no such extraction models available in the country.
HVA is expecting to achieve a 10 to 20 percent growth compared to
this year’s performance. “We are targeting to be in a strong and an
enviable position on tea exports by mid of 2011,” Fernando said.
The company is fully focused on expanding businesses, while upgrading
manufacturing and increasing the capacity.
HVA is expecting to capture new markets with tea based products such
as iced tea, body care, horticulture, pharmaceuticals and other
healthcare products, as the demand for tea based healthcare products are
increasing rapidly and it is a niche market.
Fernando said there are many opportunities to develop new products
based on tea. However, most industrialists engaged in the tea industry
have not thought of this side as they have only focused on traditional
tea export markets.
“Value-added tea products have a huge potential in the international
arena. HVA has done research and development on, product profiles,
feasibility studies on markets and the consumer behaviour,” he said.
They are also planning to launch a tea boutique franchise in Colombo
under the tagline of Heladiv Infini-t. The company has high end tea
products in Heladiv tea parlours in China, which caters to a wide range
of customers. “The tea parlours in China is a successful business
concept of Heladiv and we want to develop a similar atmosphere with Tea
boutique concept in Sri Lanka and worldwide,” he said.
At present the company is looking for an ideal format of locations to
setup these tea boutiques. “We expect that this concept will emerge in
Sri Lanka well in 2011,” Fernando said.
HVA Foods Ltd, a subsidiary of HVA Lanka Exporters will open the
Initial Public Offering (IPO) on January 12. The company is all set for
the IPO, while expecting that it will have a good response from the
public.
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