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Cargills acquires Diana Biscuits Manufactures (Pvt) Ltd further expanding interest in branded consumer goods

11/25/2010 12:00:00 AM   

Cargills Quality Foods (Pvt) Ltd a subsidiary of Cargills (Ceylon) PLC completed the acquisition of Diana Biscuits Manufactures (Pvt) Ltd today. The investment to acquire the production facility located in Nalanda, Matale totaled Rs 350 million.

Diana Biscuits is engaged in the manufacture, marketing and distribution of a range of biscuits under the brand name “Helan”, which fits in well with the current portfolio of products manufactured and marketed by the Cargills Group of Companies.

Industry Potential

Cargills is of the view that the anticipated double digit economic growth in the medium term and the consequent growth in per capita income and change in lifestyle among young Sri Lankans provide vast opportunities for the FMCG business. The Company is therefore looking to further expand its businesses in line with its core business interests in retail and FMCG.

Sri Lanka is among the highest per capita consumers of biscuits in the South Asian region. Cargills therefore sees great potential for expansion and innovation in the biscuit category. The Group also identifies branded consumer goods to be a thrust in its future expansion and diversification. The acquisition of Diana Biscuits manufactures (Pvt) Ltd comes in the wake of these identified opportunities and potential for sustainable growth.

Cargills Growth in FMCG

Since its entry into the food manufacturing business over two decades ago, Cargills has enjoyed sustained levels of growth in its FMCG businesses. All Cargills manufacturing brands, Cargills Magic, Cargills Finest, Cargills Supremo and Cargills Kist are established market leaders being responsible for driving industry growth through an innovation driven strategy. The competitive advantage of being the leader in modern trade industry through its Cargills Food City supermarket chain coupled with its islandwide marketing and distribution subsidiary Millers Limited provides the ideal platform on which Cargills can nurture the potential of this newly acquired biscuit company.