LTL Holdings set to expand and diversify in Bangladesh
Sri Lanka’s LTL Holdings is on aggressive expansion and diversification plans in Bangladesh, where it has the largest investment outside Sri Lanka through its branch Lakdhanavi in Dhaka.
Amongst these plans going public with one of the subsidiaries, and diversifying into agriculture, leisure, animal feed production, fishing, and poultry are on the cards. “Bangladesh has provided us with many investment opportunities after the decade we have been in the country,” U. Gamini Sarath, Country Director Lakdhanavi Ltd. Bangladesh told the Business Times at the company’s Head Office in Dhaka on Wednesday.
Having entered the Bangladeshi power sector in 2011 as a contractor to set up thermal power plants for Bangladeshi independent power producing (IPP) entities, the company has made a notable mark in the power sector after 12 years.
“We managed to complete two 100-megawatt (MW) power plants in record time. After gaining this experience, we developed an interest in investing in the power sector in Bangladesh. At the time, the power sector in Bangladesh was growing rapidly and there was a lot of impetus by the government for the sector’s growth,” he added.
In 2011, Bangladesh’s installed capacity of the power sector was 6000 MW and now it is at 25,000 MW. The country then floated tenders according to its master plan, inviting foreign investors to produce power for the National Grid. By 2012, the company managed to secure two tenders to set up two power plants each at 52.2 MW – one at Natore in northern Bengal and the other at Cummila near the Dhaka Chittagong Highway. Lanka Ventures participated as the investment partner for the power plants.
Thermal power has a bigger composition in Bangladesh’s power generation, but since the country is moving towards environmentally friendly sources in line with the rest of the world, Mr. Sarath pointed out that the company plans to invest in the renewable energy sector such as solar and wind in Bangladesh. “As a group, we are more focused on renewable energy now.”
Since the banking industry in Bangladesh is well aware of the company and the other financial systems are also known to them, the plan is to introduce one of their subsidiaries to the Dhaka Stock Exchange. “When we secure the next project, our plan is to introduce one of our companies for public listing. The idea is to get Bangladeshi public participation in our company and the plan will be to introduce it probably by next year,” Mr Sarath said.
He noted that Bangladesh has potential not only in the power sector but in many other sectors as well. “We have plans for diversification, and we are exploring suitable sectors. Next year we plan on investing in the agricultural, poultry, leisure, fishing industry, animal feed etc. sectors.”
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