Sunshine Holdings’ packaging arm attracts US $ 2bn FDI from Hong Kong firm

The packaging arm of the diversified Sunshine Holdings group – Sunshine Packaging Lanka Ltd. said it is poised for further expansion, following the receipt of US$ 2 million in foreign direct investment (FDI) from Primeco Holdings Limited, a conglomerate incorporated in Hong Kong. The FDI infusion is via an issue of new shares amounting to 40 percent stake in Sunshine Packaging by Primeco Holdings which has interests in steel, coal and other commodities.

Following the equity capital infusion, Sunshine Holdings holds 60 percent stake in Sunshine Packaging. The funds from the new investment will be used for further enhancement and expansion of Sunshine Packaging operations which at present manufactures tea caddies, confectionary tins and printed tin sheets.

With the new investment, Sunshine Packaging expects to step up its focus on the lucrative export market and significantly increase its business volumes, particularly by expanding its international orders via the partnership with Primeco Holdings. Sunshine Packaging also intends to convert its printing plant to a newer and more cost-effective UV printing technology. Meanwhile, FDI of US$ 2 million by Primeco Holdings increased the total amount of FDI attracted by companies of the Sunshine Holdings group thus far in 2016 to US$ 5 million. Earlier this year, Watawala Dairy Ltd. attracted US $3 million in FDI from Duxton Asset Management, a leading Singapore-based international and boutique asset manager, for commercial dairy operation. Sunshine Packaging Lanka Ltd. currently has a monthly capacity of 680,000 cans and employs 150 staff at present. In 2005, the company was acquired by Sunshine Holdings which also has interests in healthcare, plantations, tea FMCG and renewable energy. For the 2015 financial year, which concluded on 31st March, 2015, Sunshine Packaging reported revenue of Rs. 270 million.