Distilleries Company of Sri Lanka PLC
Encyclopedia
Distilleries Company of Sri Lanka PLC (DCSL) is a diversified Sri Lanka
n conglomerate listed on the Colombo Stock Exchange
with a market capitalization
of US$ 300 Million. It was one of the first Sri Lankan companies to be listed in Forbes's Best Managed companies under a USD billion (outside USA). The company has also been featured in business magazine Business Today
as one of its Top 10 listed companies in Sri Lanka
.
to the highest bidder, a consortium of investors formed by Milford Exports Ceylon Limited, Lanka Milk Foods (CWE) Limited (both companies controlled by Sri Lankan businessman Harry Jayawardena
) together with Smith New Court Investors from Singapore
.
with diversified interests in many areas of the country's economy.
of France, one of the top 5 liquor producers in the world, to incorporate Periceyl Limited to produce whiskeys, brandies, and other international liquor in Sri Lanka for the Sri Lankan market. To date the company represents world-renowned brands such as Chivas Regal
and Jameson Irish Whiskey
in Sri Lanka. Also in 1995 the company acquired the century old Beruwala Distillery Limited.
In 1996, the company signalled its intention of diversifying into non liquor sectors and acquired tea and rubber plantations by purchasing significant stakes in Madulsima Plantations PLC and Balangoda Plantations PLC under the government's privatization program. In 1999 the company acquired a significant stake in highly diversified Aitken Spence & Company Limited which has interests in power generation, shipping and hotels in Sri Lanka
, India
, Oman
and the Maldives
. In 2003 the company acquired a 90% stake in Sri Lanka Insurance Corporation Limited
when the Sri Lankan government sold the state owned insurer. Sri Lanka Insurance Corporation is a composite insurer with life and non life insurance portfolios and over US$ 500 million in assets and assets under management. In June 2009, the Supreme Court of Sri Lanka
determined that the privatization of Sri Lanka Insurance was flawed, annulled the privatization and ordered that its current owners return its shares in the company back to the treasury. However, its owners have been allowed to keep profits made by the insurer after privatization.
In 2005, the company acquired a 99% stake in Lanka Bell Limited, a fixed line telecom operator in Sri Lanka.
DCSL is currently the holding company of Lanka Bell Limited, Periceyl Private Limited, Pelwatte Sugar Industries PLC
, Balangoda Plantations PLC, Madulsima Plantations PLC, Texpro Industries Limited and associate company Aitken Spence
& Company PLC. Deshamanya
Harry Jayawardena
is the Chairman of Distilleries Company of Sri Lanka PLC.
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
n conglomerate listed on the Colombo Stock Exchange
Colombo Stock Exchange
The Colombo Stock Exchange is the main stock exchange in Sri Lanka. It is one of the most modern exchanges in South Asia, providing a fully automated trading platform...
with a market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of US$ 300 Million. It was one of the first Sri Lankan companies to be listed in Forbes's Best Managed companies under a USD billion (outside USA). The company has also been featured in business magazine Business Today
Business Today
Business Today may refer to:*Business Today , an American, non-profit student organization*Business Today , an Indian fortnightly business magazine* Business Today...
as one of its Top 10 listed companies in Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
.
Under State ownership
It was established in 1917 as the liquor producing division of the Excise Department of Ceylon. In 1974, the State Distilleries Corporation was established to take over the liquor distilling and producing activities of the Excise Department of Ceylon. On November 17, 1989 State Distilleries Corporation was converted into a company with shares. Thus, Distilleries Company of Sri Lanka Limited was born, under the Conversion of Public Corporations Act No: 23 of 1983. On February 20, 1992, 60% of the company were sold on the Colombo Stock ExchangeColombo Stock Exchange
The Colombo Stock Exchange is the main stock exchange in Sri Lanka. It is one of the most modern exchanges in South Asia, providing a fully automated trading platform...
to the highest bidder, a consortium of investors formed by Milford Exports Ceylon Limited, Lanka Milk Foods (CWE) Limited (both companies controlled by Sri Lankan businessman Harry Jayawardena
Harry Jayawardena
Deshamanya Don Harold Stassen Jayawardena , widely known as Harry Jayawardena, is one of the most prominent and controversial Sri Lankan businessmen...
) together with Smith New Court Investors from Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
.
Privatization
Distilleries Company of Sri Lanka PLC has been called "a landmark success in privatization". A state owned company producing liquor, it was privatized by the state in 1992. After less than two decades of privatization, DCSL has become a conglomerateConglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
with diversified interests in many areas of the country's economy.
Conglomerate in the making
In 1995, the company entered into a joint venture with Pernod RicardPernod Ricard
Pernod Ricard is a French company that produces distilled beverages. The company's eponymous products, Pernod Anise and Ricard Pastis, are both anise-flavoured liqueurs and are often referred to simply as Pernod or Ricard...
of France, one of the top 5 liquor producers in the world, to incorporate Periceyl Limited to produce whiskeys, brandies, and other international liquor in Sri Lanka for the Sri Lankan market. To date the company represents world-renowned brands such as Chivas Regal
Chivas Regal
Chivas Regal is a blended Scotch whisky produced by Chivas Brothers, owned by Pernod Ricard. According to the brand packaging, Chivas Brothers was first established in 1801 in Aberdeen, Scotland. The Chivas brand's home is Strathisla Distillery at Keith, Moray in Speyside, Scotland.It is the...
and Jameson Irish Whiskey
Jameson Irish Whiskey
Jameson is a single distillery Irish whiskey produced by a division of the French distiller Pernod Ricard. Jameson is similar in its adherence to the single distillery principle to the single malt tradition, but Jameson combines malted barley with unmalted or "green" barley...
in Sri Lanka. Also in 1995 the company acquired the century old Beruwala Distillery Limited.
In 1996, the company signalled its intention of diversifying into non liquor sectors and acquired tea and rubber plantations by purchasing significant stakes in Madulsima Plantations PLC and Balangoda Plantations PLC under the government's privatization program. In 1999 the company acquired a significant stake in highly diversified Aitken Spence & Company Limited which has interests in power generation, shipping and hotels in Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
and the Maldives
Maldives
The Maldives , , officially Republic of Maldives , also referred to as the Maldive Islands, is an island nation in the Indian Ocean formed by a double chain of twenty-six atolls oriented north-south off India's Lakshadweep islands, between Minicoy Island and...
. In 2003 the company acquired a 90% stake in Sri Lanka Insurance Corporation Limited
Sri Lanka Insurance
Sri Lanka Insurance Corporation Limited, also known as Sri Lanka Insurance is the largest and strongest composite insurance provider in Sri Lanka. It is the first and only insurance company in Sri Lanka to be assigned a prime AA- rating for Insurance Financial Strength from the global rating agency...
when the Sri Lankan government sold the state owned insurer. Sri Lanka Insurance Corporation is a composite insurer with life and non life insurance portfolios and over US$ 500 million in assets and assets under management. In June 2009, the Supreme Court of Sri Lanka
Supreme Court of Sri Lanka
The Supreme Court of Sri Lanka is the highest court of the nation of Sri Lanka. The Supreme Court is the highest and final judicial instance of record and is empowered to exercise its powers, subject to the provisions of the Constitution. The Court has ultimate appellate jurisdiction in...
determined that the privatization of Sri Lanka Insurance was flawed, annulled the privatization and ordered that its current owners return its shares in the company back to the treasury. However, its owners have been allowed to keep profits made by the insurer after privatization.
In 2005, the company acquired a 99% stake in Lanka Bell Limited, a fixed line telecom operator in Sri Lanka.
DCSL is currently the holding company of Lanka Bell Limited, Periceyl Private Limited, Pelwatte Sugar Industries PLC
Pelwatte Sugar Industries PLC
Pelwatte Sugar Industries PLC is a listed as SUGA.N0000 in the Colombo Stock Exchange. The main sugar factory of the group is located in Buttala in The Moneragala District in the Uva Province , about 225 km from Colombo to the east of the country. Pelwatte Sugar was incorporated on 19 February...
, Balangoda Plantations PLC, Madulsima Plantations PLC, Texpro Industries Limited and associate company Aitken Spence
Aitken Spence
Aitken Spence PLC is a blue chip conglomerate operating out of Colombo, Sri Lanka.-History:Aitken Spence was formed in 1868 as Clark Spence and Co. It was appointed as an agent for Lloyds of London in 1876. Aitken Spence was established as a limited liability company in 1948...
& Company PLC. Deshamanya
Deshamanya
Deshamanya is the second highest Sri Lankan national honour awarded by the Government of Sri Lanka as a civil honour.It is conventionally used as a title or prefix to the awardee's name....
Harry Jayawardena
Harry Jayawardena
Deshamanya Don Harold Stassen Jayawardena , widely known as Harry Jayawardena, is one of the most prominent and controversial Sri Lankan businessmen...
is the Chairman of Distilleries Company of Sri Lanka PLC.