Richard Pieris to restructure loss making ventures

Hiran H.Senewiratne

Diversified congloramate Richard Pieris and Company plans to move away from all loss making and poorly performed entities to focus properly in their core -business activities, its Director/ Chief Operating Officer (COO) Pravir D. Samarasinghe said.

He said the company is involved mainly in retail and plantation sectors with more than 30 companies under its wing. They will either close non profitable entities or enter into joint ventures or divest them this year. Therefore, the companies will see critical evaluation in light of future portfolio," he said.

He said they have already earmarked what to divest or dispose and go for joint ventures their subsidiaries, which would be informed in the future.

Samarasinghe said one of the reasons they have decided to adopt this strategy was to concentrate on core business activities due to the un favourable macro economic environment in the country.

The increasing high interest rates and inflation in the country has discouraged them to go for major investments in the near future, he said.

The company has also held up their development plans of their four and a half acre land at Hyde Park Corner due to the uncertainty in the economy in the country.

The retail business is doing well and they expect to add three to four Arpico Super Centres to the ten centres in operation already.

The company's plantation sector is doing well and it is managing five regional plantation companies such as Namunukula, Maskeliya, and Kegalle which contribute around seven per cent of the total tea and rubber output in the country, he said.

He said that one of the problems encountered by their 50 tea and rubber estates are the increase in labour costs and the drop in labour productivity to maintain sustainability of the plantation sector in the medium to long term.

The company has taken a decision from this year onwards to give priority to expedite re-plantation in tea and rubber lands to improve production.

The company also will strengthen the rubber related manufacturing business to increase their market share not only in Sri Lanka but also in exporting countries, he said.