Another company controlled by Billionaire Harry Jayawardena, Sri Lanka’s Lanka Milk Foods (CWE) in a disclosure to Colombo Stock Exchange (CSE) yesterday (16) informed that it was investing US $7 million more in its dairy farm at Ambewela to increase production for the local market.

The firm said “further to the corporate disclosure dated 20^th August 2018, in respect to the investment approval received from the Board of Investment of Sri Lanka to incorporate a subsidiary company for setting up a dairy farm at Ambewela for local market, the company is please to be inform that BOI of Sri Lanka has grant approval to enhance the envisage investment of the project from US $10 million to US$ 17million (Rs.3103 million),”

The subsidiary of Lanka Milk Foods (CWE) PLC, United Dairies Lanka (Private) Limited has been registered under the Board of Investment of Sri Lanka and the Agreement between BOI and United Dairies Lanka (Private) Limited was registered in Terms of Section l7 (2) of the BOI law No. 4 of I 978 on 15th October 20 l9 and bears Registration No. 5201/l5/10/2019.

According to the disclosure dated 20^th august 2018, Lanka Milk Foods (CWE) PLC  had incorporated with a Private Limited Company on 23rd July 2018 named United Diaries Lanka (Pvt) Ltd at Ambewela in Nuwara Eliya District.

The disclosure further noted that  that the scope of this new subsidiary is to rear 2,000 cows in 4 new cow barns and 2 ultra-modern milking parlours and the estimated investment is Rs. 2 billion.

The filing added that the purpose of the new venture is to increase the quantity of good quality milk to be utilized in the production of Fresh Milk and Milk allied products of LMF focusing to develop marketing strategies to meet the ever increasing demand for Milk related products.

The company’s flagship brand, ‘Lakspray’ is a household name in Sri Lanka which has nourished generations of Sri Lankans for over 50 years. In addition, the Company markets many other leading brands, including Ambewela, Daily and My Juicee.

In FY2018/2019, the Group reported a revenue of Rs. 5.38 billion and  has recorded a profit of Rs. 101 million during the year under review, as against Rs. 276 million in the previous year.

Meanwhile In the Company’s last Annual Report, Chairman Harry Jayawardena said that the 'Ambewela' brand has continued to maintain its status as the highest performer in the Group.

“Our well-known Ambewela fresh milk and non-fat milk recorded a total revenue increase of Rs. 101 million this year. We must reiterate that Ambewela milk is the fresh milk that we obtain from our own farms without using any other milk sourced from other farmers.” He added.

The Group’s ultra-modern, sophisticated dairy factory, Ambewela Products Ltd., built in the farm premises at a cost of Rs. 1 billion, adds value to the farm milk, producing Ambewela Yoghurt, Ambewela Cheese and flavoured milk. Ambewela Fresh Milk 1l and 200ml packs are the market leaders in Sri Lanka in the fresh milk category. In addition, the Daily 200ml flavoured milk pack, which is also UHT processed and packed in tetra paper, is a popular value-added product of Ambewela milk.