Milford subsidiary goes for Rs.800mn capacity expansion

Businessman Harry Jayawardena-controlled Lanka Milk Foods PLC’s subsidiary Lanka Dairies (Pvt) Ltd is planning a capacity expansion worth Rs.800 million, the firm said in a stock exchange filing yesterday.

“This is to inform you that the Board of Directors of Lanka Milk foods (CWE) PLC has approved an expansion project at its subsidiary, Lanka Dairies (Pvt) Ltd to increase the plant capacity to process and pack more liquid milk, at a cost of around Rs.800 million,” the filing said. Harry Jayawardena’s Milford Exports as the single largest investor owns 33.5 percent of CWE while Mills Enterprises Limited holds 15.3 percent. Melstacorp Limited, as the third largest stakeholder has nearly 15 percent.

For the six months ended September 30, 2012 the firm reported a net profit of Rs.126 million compared to Rs.175 million reported in the corresponding quarter of the previous year.