Cargills Ceylon & CiC Holdings – Sri Lanka
Below are a couple of pure -blooded companies that I am giving a skip to, on account of somewhat higher leverage/debt, rapid build up of assets recently and restructuring. The market share of these companies is somewhat similar to what would be in India if we combine three groups plus more, Godrej + Dabur + Emami, and some more. Roughly accounting for 5-7% of Sri Lanka’s GDP.
First – http://cargillsceylon.com
Year of Establishment – 1844
Market Cap 1500 Crores INR / 250 Million USD
Businesses – more than 20, in more than half of them where company has more than 70% market share.
Retail – http://cargillsceylon.com/OurBusinesses/CargillsRetail.aspx (more than three retail chains, market leader in the country)
FMCG, FOOD, Dairy – http://cargillsceylon.com/OurBusinesses/CQF.aspx where KFC franchise acquired in 2010 is growing by 40% and TGIF acquired this year ( More than 10 businesses)
Agri – http://cargillsceylon.com/OurBusinesses/AgriBusiness.aspx
Annual Reports – http://cargillsceylon.com/InvestorRelations/CorporateReports.aspx
Second – http://www.cic.lk
Year of establishment ~1960
Market Cap 200 Crores INR / 35 Million USD
Businesses – more than 35, again company is leader in half of them and needs to prune to increase profitability
Company represents the two biggest market leaders in the world. Biggest Paint company of the World ( Market Cap 20 Billion USD – AKZO NOBEL), Biggest Personal Care company ( Market Cap 300 Billion USD – JOHNSONS & JOHNSONS). For a context Unilever globally is around 120 Billion USD.
It is really ironical that I give a miss to above two world class companies; but continue to latch on to C grade stocks from India like Gulshan Polyols, Wim Plast where I did make 3X and 20X returns but uncertain about their future Awesome-ness and Majesty. In a future post I may write about what is worth buying in Sri Lanka with a 20X potential in a decade.