3 June 2019 09:00 am
From left: LREG Director Menaka Athukorala, G&G Group Chairman Gary Seaton, Lotus Hydro Power PLC Director Indrajith Fernando and LREG Director Gowri Shankar
G&G Group of Companies, Singapore, the parent of Lotus Renewable Energy Group (LREG) says they have “mega plans” in Sri Lanka despite “overall risk-laden market prognosis”.
LREG last week bought 51 percent of Hatton Plantations PLC from Sunshine Holdings PLC (HPL) for Rs.1 billion via a crossing on the Colombo Stock Exchange.
“Lotus will acquire the HPL assets, its top pool of talent and continue its practice of volume and effective management practices, along with crop rotation and management of timber assets. The business will operate under the Lotus brand,” LREG said in a press release.
“We have long admired HPL as a world-renowned and highly respected tea company that is by some distance the market-leader in its field.
HPL will be an excellent strategic fit within the G&G group as we invest to capture the very significant opportunities provided by the tea industry,” G&G Group Chairman Gary Seaton said.
LREG previously acquired Lotus Hydro Power (formerly Browns) and Zyrex Power, in a rapid expansions spree within just three years.
“We have been doing these types of acquisitions despite the volatility in the agricultural sector and despite the disappointing overall risk laden market prognosis, due to the Easter Sunday attacks.
“G&G specialises in unblocking underutilized companies and their potential, which is why we made this acquisition despite the current risk perceptions,” LREG Director
Gowri Shankar said. .
HPL, with 14 estates and 11 factories, is one of Sri Lanka’s frontline tea producing companies, with plantations in 7,206 hectares of arable land, at elevations reaching 4,800 feet above sea level. 8-9 million kilogrammes of tea are produced per annum in its factories and the company employs upwards of 7000 workers.
“Lotus’s acquisition of Hatton Plantations is another in a series of potential major investments in Sri Lanka,” said Lotus Hydro Power PLC Director Indrajith Fernando.
“This investment also marks our strong commitment to Sri Lanka and the competitive advantage provided by the deep pool of talent in Sri Lanka,” said LREG Director Menaka Athukorala.