Plans to consolidate on construction, agriculture:

Lankem to introduce polymer bitumen

Ravi LADDUWAHETTY

Lankem Ceylon PLC has planned to introduce polymer modified bitumen to local roads which will improve the durability and ease the laying of local roads.

“We are very strong in the construction sector and we will be fortifying in this area ourselves and one of the new areas will be the introduction of polymer bitumen to local roads to ensure durability and easing the laying of local roads, Lankem Managing Director Anushman Rajaratnam told Daily News Business yesterday.

Lankem will also consolidate its performance in the local market for 2011/2012 with the wave of success it has enjoyed in the areas of construction and agriculture.

This will also add to the construction portfolio of the Group which is already engaged in road construction, waterproofing, industrial flooring, sports courts flooring, epoxy flooring and painting contracts as well.

“While we will consolidate in our core activities in the agricultural sector such as in the areas of our seed paddy production, agro-chemicals, we want to make it a one stop shop for the farmers,” he said.

Sun Agro, which is a Lankem Group member, has also pioneered the cultivation of asparagus in Sri Lanka and plans are underway for commercial agriculture in this arena, he said.

Meanwhile, Lankem Ceylon PLC has reported the highest growth and profits in its history for the year ended March 31, 2011 with a consolidated revenue of Rs 23.03 billion for the period ended March 31, 2011, 108.5 percent over the Rs 11.05 billion a year ago and which is also an average growth rate of 27.69 percent over the last five years.

The Post tax profits also increased 241.2 percent to Rs 1,871.5 million over the previous year’s Rs 548.58 million.

Meanwhile, Rajaratnam has told shareholders in his Annual Report for 2010/2011 that increased levels of economic activity in the country has helped ensure that the industrial chemicals division of the company maintained steady growth in the year under review.

With the government encouraging industrialization and with the new chemicals from the foreign principals in line to be introduced locally, he has expressed confidence of the growth prospects for the division as excellent.

He has also said that the Group’s performances were not limited to the core operations of the company but also many other companies of the Group.

The financial results of CW Mackie PLC had also been consolidated into the Group and the profitability of CW Mackie had also grown to Rs 223 million.

The mix of operations at CW Mackie as a Fast Moving Consumer Goods operator has also given the Lankem group, many growth opportunities, he has told shareholders.

Plans are also underway to refurbish extensively the recently acquired property Weligama Bay Beach Hotel that the company acquired recently through its holding company B.O.T. Hotel Services (Pvt) Ltd.