Total FDI attracted by group companies of the diversified conglomerate thus far in 2016 increases to US$ 5 million
The packaging arm of the diversified Sunshine Holdings conglomerate – Sunshine Packaging Lanka Ltd. – is poised for further expansion following the receipt of US$ 2 million in Foreign Direct Investment (FDI) from Primeco Holdings Limited – a conglomerate incorporated in Hong Kong.
The FDI infusion is via an issue of new shares amounting to a 40% stake in Sunshine Packaging by Primeco Holdings which has interests in Steel, Coal and other commodities. Following the equity capital infusion, Sunshine Holdings holds a 60% stake in Sunshine Packaging.
The funds from the new investment will be used for further enhancement and expansion of the operations of Sunshine Packaging – which at present manufactures tea caddies, confectionary tins and printed tin sheets. With the new investment, Sunshine Packaging expects to step up its focus on the lucrative export market and significantly increase its business volumes – particularly by expanding its international orders via the partnership with Primeco Holdings. Sunshine Packaging also intends to convert its printing plant to the newer and more cost-effective UV printing technology.
The Foreign Direct Investment (FDI) of US$ 2 million by Primeco Holdings increases the total amount of FDI attracted by companies of the Sunshine Holdings group thus far in 2016 to US$ 5 million. Earlier this year, Watawala Dairy Ltd. attracted USD 3 million in FDI from Duxton Asset Management, a leading Singapore-based international and boutique asset manager, for a commercial dairy operation.
“The investment from Primeco Holdings reflects the strong confidence of international investors in the companies of the Sunshine Holdings Group,” Sunshine Holdings Group Managing Director (GMD) – Vish Govindasamy said. “While strengthening our own operations with capital infusions and global expertise, we take pride in facilitating FDI to the country – which has been identified as a key economic priority.”
Sunshine Packaging Lanka Ltd. currently has a monthly capacity of 680,000 cans and employs 150 staff at present. In 2005 the company was acquired by Sunshine Holdings which also has interests in healthcare, plantations, tea FMCG and renewable energy. For the 2015 financial year (which concluded on 31st March, 2015), Sunshine Packaging reported a revenue of Rs. 270 million.