Annual report for 2004/05 - Hemas Holdings, Ltd

Group ProfileIt was a far thinking entrepreneur Sheikh Hasannally Esufally (MBE) who, in 1948, saw the promise oftrading in pharmaceuticals and chemicals in a newly independent country. Naming his trading enterpriseHemas (Drugs) Limited, seeing more opportunities emerge in the 1960s, the company diversified into themanufacture of toiletries in collaboration with a French multinational company. With the liberalisation ofthe economy in the late 1970s, the Group decided to venture into travel and tourism, commodity exports,apparel, power and transport.Along the way, the Group has chartered many a course as a dynamic industry leader, never losing sight ofits vision and goals, coming to be known among competitors and counterparts alike as a Group built onsolid values, futuristic vision, strength of innovation, commitment to quality and a dedication to care.FMCG SectorThe largest business within the Group, this sector is engaged in the development, manufacture, marketingand distribution of FMCG products with sights set on expanding its presence overseas as well. Rankedsecond in the country for personal care products, our portfolio comprises well known names that are aneveryday presence in Sri Lankan households. Fully equipped R&D facilities enhance product developmentwith manufacturing done at an ISO 9001 accredited production facility. Our distribution reach across theisland is aided by state of the art technology.HealthcareWith over half a century’s experience in the field of pharmaceuticals, we have expanded on our keystrengths to become the largest importer of pharmaceutical products in the private sector. Our portfolio ofagencies, which amount to more than 35, represent global R&D based pharmaceutical companies andleading suppliers of medical equipment, surgicals and diagnostics.LeisureWith primary business activities in this sector being destination management services, operation of travelcentres and ownership & management of hotels, Hemas is a preferred choice among world renowned traveland tour operators working within the region. Serendib, Dolphin, Sigiriya and Lihiniya Surf are the hotelsthat come under the umbrella of Hemas, while new developments are on the cards.TransportationOur portfolio in this sector comprises airline representation, travel retailing and air & sea logisticssolutions. In a highly competitive industry, Hemas has held fast to its market share improving year onyear through strategic customer focus initiations and value additions. Our strong relationships withprincipals has helped us better our expectations. Through a comprehensive and innovative internet portaland constantly expanding services, the travel arm is on par to compete in a highly aggressive market. Ourvalue added services, focus on niche markets and representation of global networks have helped thebusiness of freight management grow significantly in the recent past.Strategic InvestmentsPowerHemas made a strategic investment into the power sector in order to boost national infrastructuredevelopment through Heladhanavi, a joint venture between the Company and Lakdhanavi to construct andoperate a 100MW Thermal Power Plant. Having constructed the plant ahead of schedule, Hemas was ableto begin commercial operations earlier than expected. The company also signed a landmark Interest RateSwap Agreement in June 2004, deemed the largest such transaction hitherto in the country. Working onthis success, we are now pursuing further opportunities in the power sector.GarmentsAs one of the preferred suppliers for international brand names like Nike, Tesco and Next, the Company hasexpanded considerably given the demand for its services. The Company is expected to grow fastersubsequent to the strategic tie-up with The Fielding Group in March this year.PropertyHemas Developments has achieved a healthy growth year on year. Even though faced with a challengingenvironment of an over abundance of office space within the commercial capital, the Company remainsconfident that its efficient service imparted to its prestigious clientele at Hemas House will allow the fulloccupancy levels it has enjoyed thus far, to be carried into the future.