Softlogic...

15-year tax holidays for coal based power generation.

Bangladesh Investment Development Authority (BIDA) Director, Kanti Kumar Saha noted that FDI stock of Bangladesh by Sri Lankans has increased from US$100 million in 2011 to over US$250 million by 2017.

High Commissioner of Bangladesh to Sri Lanka, Riaz Hamidullah, identified that apparel and textiles, maritime logistics and IT as the areas where the two countries could cooperate, and noted that the cooperation will be accelerated and enhanced with the signing of the proposed Sri Lanka – Bangladesh FTA.

BIDA noted that acquisitions/partnership opportunities in financial services, joint ventures (JV) in food processing, greenfield investments in manufacturing of steel and related products, acquisition/partnership opportunities in education, greenfield/ acquisition opportunities in hospitality, JV partnerships in apparel, particularly lingerie, partnership/greenfield opportunities in pharmaceutical (herbal products) and greenfield investments in IT/ IT enabled Services sectors are the segments where Sri Lankan investors could benefit.

The top Sri Lanka companies operating in Bangladesh includes of NDB capital Holdings, Laugfs Gas PLC, Commercial Bank, Brandiix, Hidarmani Group, Kelani Cables, LTL, Ceylon Biscuits Limited and Macksons Paints.

Bangladesh’s population set to increase to 200 million from the current 160 million and its government aims to transform the country to a developed country by 2041 with a US$ 3 trillion economy.

Softlogic, the owner of the up market fashion retailer ODEL PLC and the retailer of many other globally-acclaimed branded products however managed to increase the revenues of the group’s retail and telecommunication business during the period, albeit at a much slower pace.

The group’s retail and telecommunication segment, which also houses the consumer durables business and mobile distribution business, reported Rs.8.2 billion in revenues for the quarter from Rs.7.9 billion in the same period in 2017.

However, the operating profit of the segment fell to Rs.758. 4 million from Rs.827.8 million a year ago.

In March, Softlogic undertook a resetting exercise to restructure the group’s multiple units under representative broader segments.

This resulted in the creation of a retail sector holding company, Softlogic Retail Holdings Private Limited, and brought all its retail related businesses under this company.

As part of this exercise the group also identified four prime business verticals – retail, healthcare, financial services and re-classified leisure and automobiles as noncore segments.

The three core business verticals contribute 95 percent to the group top-line with retail, healthcare and financial services contributing 51 percent, 20 percent and 19 percent, respectively.

Meanwhile, the non-core businesses— automobile and leisure & property segments—contribute 2 percent and 3 percent each.

Softlogic last year leased out 40,000 square feet space in Colombo City Centre, a mega mall which is coming on line soon.

Meanwhile the ODEL Mall project is also scheduled to be completed by 2020.

Softlogic became over-leveraged as it borrowed heavily to fund these projects and the higher finance cost crippled the profits in recent quarters.

During the period under review, Softlogic raised Rs.3.9 billion in a rights issue to settle existing borrowings.

Earlier the company raised Rs.3.1 billion through a private placement to settle borrowings.

During the quarter under review the group paid close to a billion rupees as net finance cost.

Meanwhile, on June 1, the group entered into a syndicated loan agreement with three