Lanka Milk Foods to invest Rs. 2 b more to boost dairy biz

Thursday, 23 August 2018 00:01 - - {{hitsCtrl.values.hits}}

Lanka Milk Foods (CWE) PLC is to invest Rs. 2 billion to boost the Group’s dairy business further.

The company has floated a new subsidiary, United Dairies Lanka Ltd., at Ambewela in the Nuwara Eliya District.

The venture plans to rear 2,000 cows in four new cow barns and two ultra-modern milking parlours.

The purpose of this subsidiary is to increase the quantity of good quality milk to be utilised in the production of fresh milk and milk-based products, focusing on developing marketing strategies to meet the ever-increasing demand.

The company’s flagship brand, ‘Lakspray’ is a household name in Sri Lanka which has nourished generations of Sri Lankans for over 50 years. In addition, the Company markets many other leading brands, including Ambewela, Daily and My Juicee.

In FY2017, the Group reported a revenue of Rs. 5.25 billion, up by 4% from the previous year, and pre-tax profit was Rs. 548.7 million, up by 359%.

In the Company’s last Annual Report, Chairman Harry Jayawardena said the Ambewela brand is driving the trend of liquid milk consumption in the country. “This not only benefits our business, but also supports the nation to become self-sufficient in liquid milk in time to come,” he said.

Jayawardena also emphasised that every government needs to reiterate its unconditional support for the dairy industry, since it saves foreign exchange, contributes to jobs, investment and, most important of all, an industry which provides the nation with a wide range of nutritious foods.

“The total national milk production continued to expand, mainly due to government efforts to achieve self-sufficiency in liquid milk. However, the domestic milk production is not yet sufficient to meet the total demand at present,” he added.

The Group’s ultra-modern, sophisticated dairy factory, Ambewela Products Ltd., built in the farm premises at a cost of Rs. 1 billion, adds value to the farm milk, producing Ambewela Yoghurt, Ambewela Cheese and flavoured milk. Ambewela Fresh Milk 1l and 200ml packs are the market leaders in Sri Lanka in the fresh milk category. In addition, the Daily 200ml flavoured milk pack, which is also UHT processed and packed in tetra paper, is a popular value-added product of Ambewela milk.