Mackwoods to harness renewable energy

Sanjeevi JAYASURIYA

The Mackwoods Group has strategically focused on power and energy sector through its subsidiary Mackwoods Energy Ltd, recognizing the sector as an essential driver of socio-economic development of the country.

Our aim is to harness the available sources of energy particularly renewable energy, to supplement the company's operations in the thermal energy sector. This will contribute to meet the fast growing energy needs of the country through the provision of cost effective energy solutions. In this context we see this IPO as a timely and far reaching step, Mackwoods Group and Mackwoods Energy Ltd Co Chairman Nirmali Samaratunga said at the Mackwoods Energy Ltd IPO launch held on Monday. The Mackwoods Group invites the public to participate in its 170 year heritage, through this IPO of Mackwoods Energy. The share issue will opens on March 22 and Mackwoods Energy Ltd seeks to raise Rs 350 million by issuing 25 million ordinary voting shares at Rs 14 each , to be listed on the Main Board of the Colombo Stock Exchange. This would represent 25% of the company's post IPO equity. Mackwoods Energy, today positioned as a total energy solutions provider, is a leader in thermal energy solutions for well over a decade. This IPO will enable the company to diversify its present operations and expand its activities in the renewable energy sector, initially through several small hydro power projects.

We have placed particular emphasis on the small hydro power sector with the dual objective of, over the long term, reducing the country's dependence on costly fuel imports, as well as pursuing our vision to reduce the carbon footprint and effects of greenhouse gases leading to sustainability of the environment, she said.

The proceeds of the IPO will be utilized to finance the working capital requirements of the core business of providing thermal energy solutions, as well as to finance the diversification into small hydro projects by way of construction and upgrading and to finance the future expansion plans in the new product and service lines.

Building upon the solid foundation of its parent company, Mackwoods Energy, an ISO certified company, has, today, a proven track record in effectively meeting the energy needs of diverse sectors of the economy, accompanied by a strong brand image in the market which is enhanced by strategic alliances with global business partners. Whilst broad basing the ownership of the company to that of a public listed company, this IPO will further strengthen the identity of Mackwoods Energy through increased visibility and brand image amongst the public.

We are confident that the IPO being launched today is a step in the right direction at this critical time where energy security is both a global as well as a country priority. We invite the public to participate in the growth proposals of Mackwoods Energy and join hands with us in this journey to reach energy security for the country and achieve greater growth and prosperity for all, Samaratunga said.

The Mackwoods Group, established in 1841, and with a business experience of over 170 years, has, over this period, consolidated its position as a diversified conglomerate, with a strong presence in key sectors of the economy, whilst building a network of partners both local and global, at all levels of stratification. Today the Group provides employment to over 8,000 employees and has a land base of 27,000 acres, empowering Sri Lanka through its core business areas of Power and Energy, agri business, plantations, healthcare, industry, information technology, leisure, infrastructure development, real estate and financial services, engaging in import and export trading, manufacturing and as a service provider.