Mar 24, 2016 (LBO) – Sri Lanka’s Watawala Plantations, one of the largest tea plantation companies in the island has entered into a Joint Venture Agreement with PADC Holdings in Cayman to set up a new dairy farm.
As per the agreement entered between the two parties today, the dairy farm will be set up in one of their estates through a new BoI approved venture and subsidiary namely Watawala Dairy Ltd.
The expected equity investment in Watawala Dairy would be around 1.0 billion rupees of which 59 percent would be contributed by Watawala Plantations.
With the new investments, once it is in full operation, Watawala Dairy will expand its herd to 1,000 dairy cattle and is forecast to generate over 1 billion rupees in revenue from the fourth year of operation.
The present small-scale dairy farm operated by Watawala Plantations consisting of 75 dairy cattle and generating annual sales of 30 million rupees has been brought under Watawala Dairy Ltd.
PADC Holdings is a fully owned subsidiary of Duxton Asset Management Singapore.
Duxton manages assets of about 690 million US dollars, of which 460 million US dollars comprises agricultural investments, Watawala Plantations said.
“We see significant potential in Sri Lanka, particularly in the agriculture and dairy industry of the country, and therefore take pleasure in making this our first of hopefully many agricultural investments in Sri Lanka,” Duxton Asset Management CIO, Desmond Sheehy told reporters Thursday.
“It has operating investments on five continents and is currently working on live projects in Latin America, Australia, the Pacific, the Caribbean and Africa for its existing client base,” the company said.
“The company is regulated by the Monetary Authority of Singapore and has offices in Singapore, Australia and Germany.”
Watawala Plantations is a member of the diversified Sunshine Holdings conglomerate and one of Sri Lanka’s largest Regional Plantation Companies.