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.
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