Sunshine in milestone deal to consolidate stake in branded tea, plantations units
View(s):Sunshine Holdings PLC has announced that it would be further consolidating its stake in Estate Management Services Ltd (EMS), the holding company for Watawala Plantations PLC, Hatton Plantations PLC and Watawala Tea Ceylon Ltd (WTCL) – two of Sri Lanka’s most profitable plantations and leading tea brands.
Previously managed under tripartite ownership between Sunshine Holdings PLC, Pyramid Wilmar, and Tata Global Beverages, with each party holding an equal share in EMS, Sunshine’s stake in EMS will increase up to 60 per cent of its issued share capital while Pyramid Wilmar will hold the remaining 40per cent, the company said in a media release.
Meanwhile, Tata Global Beverages will continue its collaborative partnership with Sunshine Holdings, but with a revised strategy that places greater emphasis on international branding and marketing of TATA Tea which will continue to be sourced from Watawala Plantations.
“Our close partnership with Tata Global Beverages has resulted in numerous achievements, milestones and accolades for Watawala Plantations and WTCL over the past two decades. This long and fruitful relationship with Tata Global Beverages is underpinned by an unblemished legacy of trust, excellence, and innovation and moving forward, we will continue to draw on these strengths as we continue to adapt and grow,” said Sunshine Holdings Group Managing Director, Vish Govindasamy.
“We also see this moment as an opportunity to take more direct action aimed at reforming and rejuvenating less profitable sectors of our tea business while emulating and enhancing the examples, practices and techniques utilized in our best performing tea estates,” he added.
Sunshine Holdings has an investment in Tata Communications Lanka Ltd, of which Mr. Govindasamy is the Chairman, and he noted that Sunshine would continue to seek out synergistic branding and marketing opportunities, particularly with regard to international markets, leveraging on the immense resources and global reach of Tata Global Beverages.