The company already has three premium plantation crops in their portfolio, namely Mahogany, Sandalwood and Vanilla. Their officials however didn’t want to name what those five new crops will be, for fear of competition.
The company which began in 1999 has already begun paying investors who had invested in its Vanilla plots to the tune of Rs. eight million annually since 2007.
Touchwood has some 2,500 acres of such plantation crop spread over five districts under its command, providing employment to 300.
“Protectionism hurts even our business,” the company’s Deputy Chairman Asitha Koralage (43), a former planter told this reporter. “For instance if the Jack tree wasn’t protected, we might have had even invested in Jack,” he said.” Why should we invest in a tree that doesn’t belong to us.”
Touchwood, a BoI approved company in the first six months of the 2010/11 financial year (fy) ended September 30, 2010 saw revenue grow by 44% year on year (YoY) to Rs. 613.7 million and retained profit in the review period by 235% YoY to Rs. 86.3 million, according to its unaudited statement of accounts.
Touchwood in the fy ended March 31, 2010 saw revenue grow by 17.9% YoY to Rs. 857. 5 million and profit after tax by 31.1% to Rs. 333.8 million.
Its recent Rs. 534 million rights issue was fully subscribed.
The company’s chairman R.A. Maloney in his review said that investments in agro-forestation has been viewed as a sound portfolio diversification strategy as it broadbases the portfolio risk, given that agro-forestation investments carry only a moderate to low risk due to its independence from other financial market tools-stocks, bonds or real estate-and given its ability to offset inflation and currency devaluation. It possesses a unique ability to meet medium term investment horizons, whilst providing attractive returns due to a scenario of prudently managed risk and low volatility.
The LOLC Group which bought a 29% stake in the company for Rs. 278 million in October 2007 from Maloney, resold 15% of that stake back to him for Rs. 300 million in January of this year and the balance to the market at a tidy profit, thereby exiting from Touchwood.Maloney as at March 31, 2010 had a 16.4% direct stake in the company.
“Touchwood as Sri Lanka’s premier agro-plantation company, for the second consecutive year emerged as one of Sri Lanka’s most valuable brands by being ranked within Sri Lanka’s Top 100 Brand Index to emerge at the 67th ranking, up 15 places from its 2008 ranking, compiled annually by Brand Finance Lanka, a subsidiary of global entity Brand Finance plc,” its CEO Channa Abeygunawardene said.
A Sandalwood oil distillation plant was successfully commissioned in 2009/10 for the first time in Sri Lanka with technical collaboration from the Industrial Technology Institute, he said.
Touchwood remains committed to its goal of increasing its agro-plantation acreage to 15,000 acres over the next five years, Abeygunawardene further said.
source - http://www.thesundayleader.lk/?p=29294
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