Diesel & Motor Engineering PLC (DIMO) last week said it acquired the control of two firms, which are in the business of importing, processing and distribution of agri inputs such as fertilizers and seeds.
DIMO in a stock exchange filing said it bought 51 percent of shares in Plant Seeds (Private) Limited and 6.42 million shares in Plantchem Private Limited for Rs.345.5 million. “Plantchem Private Limited and Plant Seeds Private Limited are engaged in import, processing and distribution of agri inputs such as crops protection products, specialized fertilizers and seeds,” the disclosure said.Both these firms were privately held by a group of individual owners.
DIMO is the local agent for Mercedes Benz and Tata vehicles in Sri Lanka.
But for the last couple of years DIMO was seen expanding its presence in the country’s agriculture sector, creating a new identity for itself under ‘DIMO Agri.’
DIMO has long been in the business selling agriculture related machinery in Sri Lanka. Slower vehicle sales saw the profits of DIMO sliding over 35 percent during the December quarter (3Q18) compared to the corresponding quarter of the previous year (3Q17), the interim financial accounts released to the Colombo bourse showed.
DIMO reported earnings of Rs.21.08 a share or Rs.188.3 million for 3Q18, against Rs.32.23 a share or earnings of Rs.286.1 million in 3Q17.
Revenue for the quarter under review fell 9 percent year-on-year (YoY) to Rs.11.4 billion.