Browns bullish on automotive and plantation sectors
With a special focus on automotive and agriculture sectors, Browns Group of Companies (Browns) is looking for an opportunity to expand in their plantation business, top officials say.
Browns is a truly diversified company broadly dealing in trading, manufacturing, plantations and renewable energy, travel and leisure, healthcare, investments and the real estate business.
"We are looking to acquire two more agencies related to automotive sector and if available, we will take up an opportunity for expansion in the plantation sector," Danesh Abeyrathne, CEO Browns told the Business Times in an interview.
Browns’ trading business varies from automotive, agriculture, general trading, heavy machinery, power generation and marine sector supplies. The manufacturing sector has four fir ms - Browns Ther mal Engineering, Ajax Engineering, AgStar PLC and Creation Wooden Fabricators.
Browns' plantations and renewable energy sector has two plantations - Maturata Plantations and Gal Oya Plantations (Pvt) Ltd and a solar power operation, Saga Solar Power ( Pvt) Ltd. The leisure arm has Browns Hotels and Resorts Ltd, BG Air Services ( Pvt) Ltd and Excel World Entertainment Park. The healthcare sector consists of Browns Hospitals whereas their invest- ment arm has Browns Investments and a stake in Sierra Construction. Their real estate sector has Browns Industrial Park Ltd and Browns Properties ( Pvt) Ltd.
The agriculture sector supplies fertiliser, tractors, harvesters, rice planters etc. Browns' construction sector supplies professional handling equipment such as Hitachi, XCMG, Sakai and Manitou branded products for construction.
Browns pharmaceutical arm has been dealing in veterinary products for a long time. Mr. Abeyrathne said three years ago they started supplying consumer pharmaceuticals as well. The consumer electronics sector imports white goods while the marine arm supplies engines, accessories and steering systems to boats.
According to Mr. Abeyrathne, the outlook is very promising for the plantation sector with plans for Browns to blend state of the art technology for value creation. “Through a sister company of the group involved in advanced technologies, we are pursuing the production of nutraceuticals and cosmeceuticals by extracting spices, for the first time in the country.” Precision agriculture is another area Browns is actively exploring to enhance existing efficiencies of our plantations. Through the use of an advanced drone system, real time data will be collected, on crop health assessment, soil analysis and weather patterns. “Further, this will help in the efficient distribution of fertilisers and agro chemicals through aerial spraying system in addition to labour allocation for deficiency adjustment and identifying accurate crop yields,” Mr. Abeyrathne added.
Their leisure sector, Browns Hotels and Resorts that comes under Browns Investments has six hotels in Sri Lanka and four in the Maldives. Out of the latter, Nasundara will be opening next year. Bodufaru Finolhu, Bodu Finolhu and the Three Islands North Male are still in the preliminary stages of construction, Mr. Abeyrathne added.
He also said t h at the Pharmaceuticals Division intends to invest in Ayurvedic medicine in the near future apart from its existing portfolio of Western medicine while Browns Hospitals will expand its footprint in other urban locations.
Excel Restaurants Pvt Ltd, a subsidiary of Browns Investments PLC
( BI), was granted franchise rights of FLOOR by O! and SHORE by O!, two leading pub and restaurant brands owned by Pubs ‘ N Places Pvt Ltd, a sister company of Lion Brewery Ceylon PLC last year.
“The strategic move of Excel Restaurants Pvt Ltd grants a substantial opportunity to increase its presence in the entertainment sector. As a result of the new alliance, Excel Restaurants Pvt Ltd together with Browns Hotels and Resorts – a part of the BI arm, will manage the operations of the FLOOR by O! and SHORE by O! which were re-opened in April and May 2018 respectively, increasing their presence in the entertainment industry,” Mr. Abeyrathne said.
He said that the depreciation of the currency had a negative impact on the Browns Group as it relies on imports for many sectors. As the cost of imports went up, this affected profit margins. The difference in the exchange rate compared to the previous year, lessened towards the end of the year. However, the Group companies took proactive measures to alleviate exchange rate risk.
Mr. Abeyrathne noted that mirroring their sister group, the LOLC, Browns will not hesitate to expand into Africa and South East Asia whenever there’s an opportunity.