Softlogic on target with new ODEL mall, Kandy hospital and Movenpick Hotel

The Softlogic Group which acquired Sri Lanka’s popular fashion retail group ODEL last year has a lot on its plate this year with three more projects; the mega Odel mall in Colombo, a hospital in Kandy and a hotel in Colombo.

"We are building our Kandy Hospital and Movenpick while the 5-star hotel located next to the Colpetty shopping mall, Liberty Plaza at a cost of US$ 25 million is likely to be completed within the year," an official said.

It is to build a mega shopping complex at Alexandra Pace in Colombo 7 at an estimated cost of Rs. 3.5 billion, he added.

He said that the present Odel store at these premises would continue its operations with the mall being planned targeting most of the underutilized land base there. Recently the Softlogic Group acquired 93.2 per cent shares of ODEL after buying 45.16 per cent shares from pioneer Otara Gunawardene and her family members.

A detailed strategic redesigning of Odel’s interior is in progress. Ashok Pathirage, Chairman Softlogic has said in his latest quarterly statement of accounts that top German designers and architects are developing the blue print of this mall. This mall will feature an extensive retail space to house some of the best known brands both locally and internationally to cater to local demands and international tourists.

He added that they are in the phase of reducing the overheads by synergizing and consolidating our retail base by eliminating any cost-duplication or excess resources. Mr. Pathirage has said that accomplishing this is seen as a key driver to deliver better EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization; which is an accounting measure calculated as a proxy for a company's current operating profitability). The increase in activity levels and cost-sharing approach post consolidation has absorbed and mitigated fixed costs.

Odel PLC reported a quarterly (3QFY15) turnover of Rs. 1.4 billion from Rs. 1.38 billion last year taking the cumulative turnover to Rs. 3.7 billion as against Rs. 3.5 billion in the comparative period. “The most pressing objective right now is to extract the maximum pathway to synergize Softlogic Retail’s operations with Odel to boost efficiencies and bottom line performance,” Mr. Pathirage has added.

Addition to existing brands such as Nike and Levis were also placed at Odel in December 2014 and they are also keen to make available Mango, Charles and Keith and Giordano at Odel’s in the near future.