Japan’s SBI Ven has invested a total of $2 million in a dairy farm operated by Sri Lanka’s leading agribusiness company Watawala Plantatitons PLC. A total of 34,629,311 ordinary voting shares were purchased by SBI at a price of $0.5775 per share (LKR 113.75). This investment allows SBI an 11% stake in Watawala.
Meanwhile to settle the inter- company debt Watawala has agreed to invest LKR 296 million and strengthen the balance sheet with the equity firm.
The Dairy Farm located in Ginigathhena was commenced by the company in 2016 as a pilot project titled “Lonarch Farm” and initially hosted 120 cattle, 3 cow houses and a milking parlour. At present it hosts a herd of over 1600 cattle of which 800 are milking cattle.
Watawala is responsible for over 3.5% of Sri Lanka’s annual milk production as it produces 18 000 litres of milk per day, 540 000 litres per month and 6.5 million to the local market annually.
The investment would propel the company’s daily operations and improve its infrastructure. The company has recently been focused on driving sustainable milk production. It must be noted that cattle herding is the world’s primary source of release of methane into the atmosphere. Methane which is considered a greenhouse gas is one of the leading drivers of global warming.
Furthermore the company hopes to support local rural cattle farmers while maintaining strict hygiene and feeding patterns which satisfy global nutrition standards.
No.820, Mount Cresent,Malabe,Sri Lanka