Sri Lanka Breaking News-Daily Mirror Online
Press Clip from:
Financial Times
     Thursday, January 24, 2008
 
 
Diversified conglomerate Sunshine Holdings Limited expands into telecom industry

Diversified conglomerate Sunshine Holdings Limited further expanded its business portfolio by entering into the telecommunication industry, with its recent acquisition of a 10 per cent stake in VSNL Lanka Ltd (VLL), a fully owned subsidiary of Videsh Sanchar Nigam Limited (VSNL) India, the fourth largest long distance telecommunication provider.

The investment in the telecommunication industry is yet another pioneering initiative for Sunshine Holdings Limited, with plans underway to acquire a further  five per cent of VLL. This will help to add value to its shareholders as well as to balance and further strengthen the growing investment portfolio.

VSNL is one of the oldest and leading global telecom players in the world. In February 2002, the Government of India, as per their disinvestments plan, released 25 per cent of VSNL equity to a strategic partner. Consequently, VSNL was taken over under the administrative control of the TATA Group.

Mr. Vish Govindasamy, Group MD of Sunshine Holdings receiving the share certificates from Mr. V. Ravi Sankar, CEO, VSNL Lanka Ltd.

The visit of Ratan Tata, the Chairman of the TATA Group to Sri Lanka in 2002, seeking further opportunities with regards to business, identified Sri Lanka as a market with great potential in terms of the telecommunication industry. As a result of this VLL was incorporated in June 12, 2003, as a public limited company incorporated under the companies act (No 17 of 1982) of Sri Lanka.

Speaking on the acquisition, V Govindasamy, Group Managing Director of Sunshine Holdings Limited said "Due to our relationship with the TATA Group, I was appointed to the board of VLL and we started to work together. There was an understanding that the Sunshine Holdings Group will have a stake in the VSNL company. It is in that spirit that VSNL has now offered us this opportunity to enter into the telecommunication business. We are in the business of creating value addition to our shareholders. Telecommunications, namely the long distance telecommunication business by far is one of the best investment opportunities in Sri Lanka. It is also the backbone of a developing nation. For Sri Lanka to move forward, this industry is one of the most integral parts of its future development."

"We are very proud to be associated with the VSNL Company and the TATA Group and the Group of TATA's  strengthens our relationship further with them. By doing this we will add value to the shareholders of Sunshine Holding, being in one of the thrust industries not only in Sri Lanka but globally", he added further.

"Although, VSNL has been in existence for the past 140 years, Sri Lanka was a new territory for us, when we entered into this market in 2003. We are very appreciative of the support we have received from Sunshine Holdings Limited. This also reaffirms the relationship Sunshine Holdings Limited has with the TATA Group. VLL has been actively catering to the international communication requirements of Sri Lanka by providing cutting edge technology blended with responsive customer care", CEO-VLL, V. Ravi Sankar said.

The mission of VLL is to make its global and seamless architecture of information superhighways be available in Sri Lanka to connect the people and data networks efficiently for their requirements across the globe.

VLL strives to be the preferred partner to customers by providing appropriate and optimum communication solutions. The corporate philosophy of 'No compromise on quality' will be the guiding motive for services offered to customers in Sri Lanka. It operates in three market segments with products tailored to meet the specific needs of the individual segments, mainly concentrating on the business efforts of the wholesale voice and corporate data market. The products and services offered are international voice and international IP bandwidth, enterprise solutions such as international private lease circuit and MPLS based global VPN services and retail products such as their global calling cards.

Sunshine Holdings Limited is a diversified conglomerate with over 15,000 employees and strategic business holdings in tea, packaging, plantations, health care and tourism is at present a goldmine of investment due to the many innovations taking place in the various sectors of the company.

Its flagship company, Watawala Plantations Limited (WPL) is a marketing oriented company, which has developed its own brands. Its premium brand Zesta produces the finest quality blends of tea and continues to win the trust and confidence of consumers. Watawala Kahata is the company's most popular brand of tea. The brands have gained a 25 per cent share of the market within a short span of six years.

During the past year, Sunshine Holdings was ranked 35th among the LMD top 50 companies of Sri Lanka, heralding its place among the top tier of publicly listed companies.