Coco Lanka enters F&B sector

H.D.H Senewiratne

Coco Lanka Plc, an agribusiness firm will be expanding into the food and beverage sector. They will merge with Renuka Holdings Plc, which has already acquired Shaw Wallace Ceylon Limited.

Renuka Holdings Plc Project Development Manager Niroshan Nadarajah said this Fast Moving Consumer Goods (FMCG) sector would merge with Coco Lanka Plc. Coco Lanka sources said its newly formed subsidiary; Renuka Consumer Foods Limited will spearhead its FMCG operation.

“As an integrated food and beverage organization, the company has ambitious plans to develop its product portfolio and distribution capabilities with its investment in Renuka Consumer Foods Ltd,” Executive Director of the Company Shamindra Rajiyah told Daily News Business.

He said that with these developments, Coco Lanka Plc is also planning to rename the firm as Renuka Shaw Wallace PLC and will rise over a Rs. 1 billion by way of a Rights Issue.

Further, Coco Lanka Plc had already invested Rs 2.5 billion out of which Rs 1 billion was invested in the FMCG sector, Rajiyah said.

The company, in the future is aiming to extend its existing brands to new food and beverage products, build an international coconut water brand, and increase its general trade outlet coverage among several other moves. Now Coco Lanka has more than 65,000 outlets throughout the country and exports its products to more than 61 countries.

The company wants to be the leading food manufacture and producer in the country with these projects, Raajiyah said

“We are quite optimistic and bullish with the country’s FMCG sector, which was growing fast. This had prompted us to enter the FMCG sector since we are into the whole spectrum of food business,“ he said. Renuka Conusmer Foods Limited has already acquired 59.76 % of the Shaw Wallace Ceylon Limited . Coco Lanka is a listed firm in the Colombo Stock Exchange.

“Today the business encompasses the complete value chain including plantations, manufacturing, international marketing and local distribution of food and beverage products. It will also look to either invest in or acquire new FMCG brands or companies to come under the group.

The Colombo Stock Exchange released also sated that Coco Lanka Plc, will raise Rs 1,008 million by way of a right issue of five new voting and non voting shares held in the capital market of the company and post right subdivide every one existing voting and non voting shares respectively.