Business Times

RPC looking at acquiring rubber, palm oil land in Cambodia, Vietnam

The Richard Peiris Group (RPC) which has turned around the corner in the current financial year and heading for its biggest profit in history, says it’s looking to acquire assets overseas and build a plantation base in countries like Cambodia and Vietnam, official sources said.

“We find there is insufficient land here for expansion in rubber and palm oil,” one source said.
RPC’s Director/Chief Operating Officer Pravir Samarasinghe, declined to comment on profitability and results in the next few months in line with Colombo Stock Exchange requirements, but confirmed that the company was looking for land assets in these two countries.

“The problem in Sri Lanka is that there are no large portions of land in the region of 5,000 to 10,000 acres which we need for replanting or new planting in rubber and palm oil. Hence we are looking at options here and abroad and in countries like Cambodia or Vietnam where the entry costs are cheaper,” he told the Business Times, a day after the group announced its 6-month results to September 2010.
It had recorded a turnover of Rs.12.7 billion and a pre-tax profit of Rs.1.1 billion for the six months at end September 2010.

The other (earlier quoted) sources said that RPC is expecting larger profits in the third quarter ending December 2010, taking it to substantial profitability by year’s end (end March 2011). In a separate statement, the group said although it’s focused on core businesses, diversification into financial services during the fourth quarter is planned.

The group would continue to place importance on overhead, working capital and cash flow management and to further reduce borrowings, it said. Mr Samarasinghe said that the group was keen to expand overseas and have assets in another country because “it’s useful to have exposure to another currency particularly in the sectors that we deal in.”

RPC core businesses are in retailing, plantations, rubber production and adding value, and plastics. The group plans to invest $15 million (over Rs 1.5 billion) in expansion over the next 24 months essentially in ‘aggressively expanding on retailing: doubling sales and doubling space’, according to Mr Samarasinghe.

The group plans to take its current 10 large super centres to 24 in during this period with the latest store (the second largest after Hyde Park), coming up in Wattala next month.

“We are much stronger and healthier (in our balance sheet) now,” the RPC CEO said, reflecting on previous years when the group struggled along under a huge debt. He said third quarter performance should also be good for retailing with the December season which traditionally brings in three time the monthly revenue of an average month.

On the leisure sector, he said the company was looking as some options but no serious decisions have been made. “We were lucky we didn’t invest four or five years back (when the war had escalated). The entry costs however are now high and options we are looking at are either acquiring or developing new properties.”

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Controversy over proposed CCC property deal
RPC looking at acquiring rubber, palm oil land in Cambodia, Vietnam
SEC stands firm on non-credit rule in Jan.
FCCISL AGM tomorrow amidst dispute
SIMs for free!
Christmas parties in Nov.
Tea in a pod
No power cuts till 2020:Power Minister
Short-cut to development-2
Collateral free micro finance: Will the proposed Micro Finance Act kill it?
IMF advises the government to tighten its fiscal policy
Cinnamon Grand launches ‘Diabetic Menu’ on World Diabetes Day
Informatics listed as partner of ICAO
Economic growth not reflected in share market
36% fall in after tax profits for DFCC in 2Q11
Renuka Holdings post-tax group profits up 168% in 1H11
Unit Trust code to be ready by 2011
Hayleys post-tax profits up marginally in 1st half 2011
NDB Group’s Q3 profits grow significantly
High latex rubber prices hurt Dipped Products margins
United Motors Lanka Group says strong half-year performance
Hemas reports 85% 1H11 earnings growth
Major tech expansion by Dialog to cover entire Sri Lanka
‘New questions over Lanka's bid to strike oil’ -- Right of Reply
SL can one day earn 15% of GDP from BPOs
Quick approvals, better infrastructure urged as SL grows
Attracting tourists and other foreigners to Ayurvedic medicine
Aitken Spence to manage 5th Indian hotel
BSA pushes for IPR compliance through SAM
‘Sun shines’ on Sunshine Co. profits
Tea Trails become Sri Lanka’s first Relais and Chateaux resort
Caltex scholarships for automobile workers
Laugfs Gas grew faster than LPG market growth
SLT, Dialog, Singer, Abans and others to collect e-waste for CEA
Weliamuna elected to global anti-corruption Board
Strengthening BOI to spur FDI
Energy-More power play from small timers in the future
SEC’s special ‘eye’ on-line
Sri Lankan-born chef leads Canadian team at world culinary event
Milestone as SLT reaches 200,000 ADSL Broadband customers
Declining interest rates and provident fund holders -- Letter
YESL initiates Entrepreneur Education for children of the war-torn East
More banks, but industry still to operate in Jaffna
ICT4D Java World Congress starts Nov 19
MicroChem gets international accreditation
Maldives wants more tourism with Sri Lanka
Seminar on ‘Proposed Education Reforms’
Sri Lanka Design Festival 2010 to offset carbon


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution