News
Two State-owned fertiliser companies to be amalgamated to cut down costs
View(s):As part of the Government’s ongoing restructuring process of loss-making State-owned Enterprises (SoEs), two such bodies, Ceylon Fertiliser Company Limited and Colombo Commercial Fertilisers Limited, are to be amalgamated into a single fully State-owned entity.
Since both SoEs are engaged in identical businesses, it was proposed to amalgamate these two entities into a single company on the basis of a Cabinet decision made last year.
“The new amalgamated State-owned company is expected to “increase efficiencies in the utilisation of assets, reduce operational costs, increase market share and maximise the competencies of human resources to transfer the overall benefits of the amalgamation to the agricultural sector,” a Cabinet memorandum said.
Agriculture Ministry Secretary Gunadasa Samarasinghe said the move was part of cost-cutting strategies of the Ministry to reduce separate expenditures on both entities and make it as a profit-making one.
“However, the amalgamated company will continue to remain as a fully State-owned company as well,” he said.
Currently, both companies are engaged in the importation of chemical fertiliser, producing quality chemical and organic fertiliser, fertiliser mixtures and marketing and distributing through an island-wide network of warehouses and a dealer network, thereby catering to the fertiliser needs of the country’s agriculture sector.
The Agriculture Ministry issued a tender notice this week to select consultative companies, teams or individuals to create multiple business-related strategies and plans for the amalgamation process.
The Sunday Times learned the amalgamation process of both companies which had a long history and market dominance, with a monopoly in the country, would enable more private fertiliser companies to enter into the market.
(SR)
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