Friday, October 9, 2020

Sunshine completes an LKR 1.7 bn acquisition of Dainty

 


The Sri Lankan conglomerate consumer sector Sunshine Holdings has completed its acquisition of Dainty Ltd., a leading confectionery firm, adding many prestigious brands to its portfolio including Dainty, Milady and Bensons. The size of the deal was Rs. 1.7 billion In a statement, Sunshine said the change came at a time when the Group was trying to strategically broaden its presence in the fast-growing segment of Sri Lanka's FMCG by expanding its collection beyond tea, where it holds the No. 1.

Dainty joins the growing portfolio of businesses that market and distribute some of the country's most-loved tea brands — Watawala, Zesta, and Ran Kahata — by Sunshine Consumer. The purchase is dependable with the Group's strategy to develop and nurture local brands. Dainty Ltd., founded in 1984 in collaboration with the prestigious UK confectionery firm Barker and Dobson, is a market leader in Sri Lanka's sweets and toffee category.

The company currently boasts a wide range of chocolates, sweets, jellies, chocolates and cocoa-based confectionery, bubble-gum, desserts, biscuits and snacks where Daintee provides a market share of 40 per cent in toffees and candies. The goods are sold under the brands Daintee, Milady, Bensons, Chito, Chix, X-tra, Mr Bitz, Excella and Longlive, among others.

"We are pleased to welcome Sunshine Group managing director Vish Govindasamy to Dainty Ltd.'s confectionery brands and its talented employees," said Sunshine Group managing director. "Daintee's brand collection is household brands that have earned recognition and loyalty over generations. The addition of the Dainty brand portfolio is a significant step towards the objective of Sunshine Consumer to be a strong player in the FMCG sector. With our marketing expertise that has helped us to become Sri Lanka's No.1 branded tea company, we hope to achieve the dream that we have for each of our brands to be No. 1 in their sector of influence."

The company has two primary fabrication sites and four other warehousing and packaging locations in the industrial area of Ratmalana. Besides, Dainty Ltd. is ISO 9001:2015 accredited and is the country's only confectioner with an advanced microbiology testing centre.

OSL Take: The profits recorded by the Sri Lankan conglomerate is indicative of the strength and potential for growth of the country's economy. Sri Lanka's geological positioning in the Indian Ocean, the ease of making business environment and the many trade contracts, as well as trade privileges enjoyed by the country, has increased the island's business potential in the South Asian region. Foreign businesses/investors looking for opportunities could do so in Sri Lanka.

 VBS/AT/09/10/2020/Z_TB1

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