Tag Archives: Aitken Spence Plantations

Aitken Spence-Managed Elpitiya Plantations Posts Highest Ever Profits

20 Jun

Aitken Spence-managed Elpitiya Plantations PLC recorded Rs. 507mn as net profit before management fees for the 2012/13 financial year, its highest ever recorded. Profits soared by 194% from the previous year’s figure of Rs. 172mn while revenue grew by 13% to Rs. 2.83bn. The Company’s earnings per share rose by 201% to Rs. 6.20 and net assets per share recorded a growth of 23% to Rs. 33.51, from the previous year.

 

Elpitiya Plantations PLC consists of 13 estates, situated in the upper, mid and low country regions of Sri Lanka, cultivating tea, rubber, oil palm and coconut. The company has a significant stake in Sri Lanka’s only privately-owned palm oil mill and operates several mini-hydro power plants on its own estates.

 

At the point of takeover by blue-chip conglomerate Aitken Spence in 1997, Elpitiya Plantations was dependent on tea and facilities were in a dilapidated state. The new management embarked on a strategy of crop diversification, efficiency improvement and human resources development for the company’s growth.

 

New Peacock estate in mid-country and Talgaswela estate in low country were the highest contributors to Elpitiya’s exceptional performance during the financial year.

Dr. Rohan M Fernando, Director and Head of Business Development & Plantations of Aitken Spence PLC and the Managing Director for Elpitiya Plantations PLC said, “Our strategies to optimally utilize the resources inherent in our estates and enhance the capabilities of our staff to generate sustainable growth to the company have proven fruitful. We will continue to look at ways to innovate in our cultivation and production processes as well as in our marketing, looking at new avenues for growth”.

 

New Peacock, Nayapana and Sheen estates achieved the highest ever recorded yield-per-hectare in tea, while Talgaswela estate recorded the highest ever palm oil yield-per-hectare. Tea prices of Dunsinane, New Peacock, Nayapana and Talgaswela estates improved above elevation averages with the better standard of leaf that was offered for manufacture.

 

The low country segment improved its productivity significantly from the crop diversification targeting low-income tea lands to palm oil and cinnamon. Continuous investments made by the company on re-cultivation of tea, rubber and palm oil have begun to pay dividends.

 

Company reaped substantial returns from on its mini-hydro power projects and from its investment in the joint-venture palm oil mill. 

 

Processes introduced towards the efficient use of the fertilizer subsidy to correct fertilizer deficiencies in soils contributed towards record-breaking crop levels harvested by estates belonging to Elpitiya Plantations.

 

Elpitiya’s successful direct overseas marketing of sole crepes to top international brands and RSS rubber manufacture using one-day drying systems kept the company’s rubber net sale average high despite  a low rubber market in Sri Lanka.

 

The sustainable forestation and re-forestation programmes commenced by Elpitiya Plantations subsequent to its taking over of the estates in 1997 have resulted in valuable timber reserves to the company’s asset base.

 

The CEO and Director of Elpitiya Plantations PLC, Mr. Tony Goonewardena said, “Our emphasis on the management our human resources and sustainable development have been the foundations on which we have been able to generate exceptional growth for the company. I would like to express our appreciation to all associates in our estates who have made excellent contributions to make these results possible”. 

 

“Elpitiya Plantations PLC pioneered in sending field staff on overseas training to Indonesia and we continue our policy of sending executive staff on overseas training, with the objective of strengthening our human resources”, he added.

During the financial year, the company built twenty new houses for the estate employees at Meddacumbra estate with the help of PADEM and International Institute of Development Training. Further twenty five houses were built at the Elpitiya estate with help of the National Housing Development Authority and the Plantations Human Development Trust. 

 

Elpitiya continues to grant mid-day meals to children in crèche facilities operated by the company and scholarships to children of employees attending university.  The company has ongoing programmes in developing the living standards of estate employees, by offering estate cooperative facilities, training programmes, loan facilities, free distribution of books, uniforms, and assistance towards New Year festivals and annual pilgrimages.Image

Dr. Rohan M Fernando, Director and Head of Business Development & Plantations of Aitken Spence & Managing Director for Elpitiya Plantations

Dr. Rohan M Fernando, Director and Head of Business Development & Plantations of Aitken Spence & Managing Director for Elpitiya Plantations

The CEO and Director of Elpitiya Plantations PLC - Mr.Goonewardena

The CEO and Director of Elpitiya Plantations PLC – Mr.Goonewardena

A Capacity To Endure

20 Apr

A discussion with Dr. Rohan Fernando, Director, Head of Business Development & Plantations, Aitken Spence PLC

Sustainability, the carbon footprint and carbon neutrality have become the “buzz words” of business today, but few truly understand the need or the multi-faceted significance of sustainability in today’s business climate. Dr. Rohan Fernando says that the Corporate Sustainability Team champions the need for sustainability in the current global context, adding that “Sustainability is not about doing good; it is about doing good business.”

Whilst most understand the environmental aspect of a sustainable business, many are unaware of the economic and social factors being focused on in a corporate sustainability strategy. In a drive to ensure the long term viability, profitability and integrity of business, the Corporate Sustainability Team in conjunction with the SBUs have taken it upon themselves to build on the strengths of each individual company, guiding the group on the path of corporate sustainability. The team is led by Mr. Ravi De Silva, whose vast experience and knowledge on the topic of sustainability, is consulted on sustainability strategizing and implementation.

Dr. Fernando says that sustainability in business makes the company more competitive, and, therefore, improves the bottom line. Globally, customers, investors, financing institutions, governments and interest groups are increasingly demanding greater levels of transparency in business conduct. Likewise, businesses which embrace corporate sustainability stand to gain with more loyal customers, enhanced business opportunities and mutually beneficial partnerships with key stakeholders. Hence, as a leading conglomerate with a dynamic global outlook it is natural that Aitken Spence builds on its heritage to aggressively pursue a group-wide sustainability strategy.

The diverse activities of the group pose a challenge in itself, for the nature of each company’s business dictates the aspect of sustainability it should adopt. Whilst certain companies, within the group such as Aitken Spence Hotels are able to champion sustainable strategies which have an environmental impact, other companies may decide to champion health and safety, governance, innovation, quality and human resources.

A deep-rooted belief that “As a leading corporate in Sri Lanka, with a global reach, it is our responsibility to maintain sustainable practices,” is one that must be both instilled and cultivated.  Each subsidiary has its own “sustainability representative,” who works in tandem with the Business Development unit to help inform and assist their colleagues in formulating an enduring and practical strategy for continuance, one that is customised to each entity’s separate needs.

The road to sustainability will be neither short, nor easy, but if travelled properly it will most certainly be a rewarding one for Aitken Spence.

Ace Magazine – 2010

Elpitiya Plantations’ Factories Receive Coveted ISO 22000

12 Jan

L-R: Mr. Tony Goonewardena (CEO/Director), Mr. Senerath Pahathkumbura (GM, Dunsinane), Mr. M I Izzadeen (GM, New Peacock) and Mr. N. Sriram (Country Manager SGS), the certifying agency.

Dunsinane Estate Tea Factory and New Peacock Estate Tea Factory of Elpitiya Plantations Plc have been awarded with the prestigious ISO 22000 Quality Certificate by SGS, Switzerland. These estate factories are owned and managed by Aitken Spence Plantation Managements Ltd.

The Dunsinane Tea Factory, situated in Pundalu Oya in the up country, produces quality CTC teas while New Peacock Tea Factory, situated in Pussellawa produces black, CTC teas with coloury liquors. Both factories have produced almost 2mn kilograms of quality CTC teas per annum since 1989.

“Obtaining the ISO 22000 certification attests to Elpitiya Plantations’ commitment to the manufacture of the highest quality CTC teas. The company is commends the hard work of the two General Managers Mr. Senerath Pahathkumbura and Mr. M I Izzadeen and the direction provided by the Chief Executive Officer/ Director, Mr. Tony Goonewardena”, said Dr. Rohan M. Fernando, Managing Director of Aitken Spence Plantations and Director, Aitken Spence Plc.

Media Release – 12 January 2009