Lankem to invest Rs. 2.5 b to put up fertiliser plant

Friday, 7 June 2024 02:53 - - {{hitsCtrl.values.hits}}

Lankem Ceylon PLC has embarked on establishing a fertiliser plant in Oyamaduwa in the Anuradhapura district with an investment of Rs. 2.5 billion.

A fully owned subsidiary Lankem Minerals Ltd. has been incorporated to carry out the new venture.

Lankem said the primary objective of this operation is to cater to the agricultural requirement of the non-perennial crops. The sales and distribution of the fertiliser will be carried out by Lankem Ceylon PLC and its fully owned subsidiary SunAgro LifeScience Ltd., through the companies’ existing distributor network.

Commercial operations are expected to commence by the end of the year, said Lankem in a disclosure to the Colombo Stock Exchange.

In FY23 Lankem Group’s Agro Division has successfully turned challenges into opportunities by expanding its product range to include specialty fertilisers, seeds, and yield boosters. As a result, the Division has flourished, achieving a remarkable 105% increase in turnover compared to the previous financial year of 2021/22. Additionally, the Division has demonstrated commendable financial performance, with the divisional profit exceeding the previous year by almost three-fold. Through strategic diversification, Agro has not only overcome obstacles but also capitalised on emerging market trends. By offering a wider range of specialised products, the Company has positioned itself as a leader in the agricultural industry.