First Wholesale Vegetable & Fruit Price Display at Cargills Fresh Produce Collection Centre in Thanamalwila Empowers Small Scale Farmers

31st March 2013, www.nation.lk

Cargills food Sri Lanka’s leading supermarket chain has launched its first vegetable and fruit wholesale price display terminal at its fresh produce collection centre in Thanamalwila. The terminal was ceremonially declared open by the minister of Coconut Development, Jagath Pushpakumara last week.

The launch of the wholesale price terminal further reiterates the commitment of Cargills towards the empowerment of small scale farmers. “Cargills continues to offer the prices above the wholesale market to farmers along with technical inputs training and marketing information while facilitating credit. Through our retail chain and our group’s manufacturing facilities we have created a revolutionary shift in taking the market to the farmers. Today with this launch of the price terminal we have taken a step further by providing market intelligence for the farmers” said the Chief operating officer-retail, Cargills (Ceylon) PLC, Sidath Kodikara. He added the price terminals would be launched at all collection centers under the group including Jaffna, Nuwara Eliya and Bandarawela.

Cargills had during the year concluded collected over 3,800 metric tons of fruits and vegetables from the Gangeyaya community in Thanamalwila to the value of Rs 238m. The ceremonial launch of the Cargills wholesale price terminal was held alongside the distribution of Rs 1.9m worth of benefits to the farmer community as part of Cargills farmer community development fund established in Gangeyaya, Thanamalwila.

Over 40 scholarships were awarded to students who have passed Grade 5 scholarship exams and those pursuing Advanced Level and External Degrees, and five laptops were awarded to students from the area pursuing University education. 54 students who are from families facing economic challenges were also granted learning material while a further 15 farmers who have made the highest contribution towards fresh produce collection from area were given farming equipment. In addition a resting shelter and 100 chairs were donated to the farmer society while plastic crates for post-harvest transportation were distributed among 30 farmers along with the launch of the wholesale price display terminal.

Cargills Food City also provided HNB Assuarance farmer insurance schemes for 137 farmers free of charge. The scheme covers farmers’ death, disability and permanent disability as well as healthcare benefits. This disbursement of benefits comes as part of the annual community development initiative planned by Cargills together with the farmer community and World Vision Lanka.

Explaining the project, Deputy General Manager of Agri Business for Cargills, Haridas Fernando said, “Every time Cargills buy a kilogram of vegetables from the farming community in Gangeyaya, 50 cent goes back to the community development fund. Annually the funds are utilized for scholarships and projects that would develop the quality of life of the farmer community”.

General Manager, Retail operations of Cargills, Keerthi Gunasekara added “We have developed a similar fund at our collection centers in Jaffna and Moneragala with plans to expand the concept to all farmer communities we work with. The funds provide scholarships for needy children from the community, resources for learning and advancement and even meet basic community infrastructure needs such as utility connections, community centers and libraries etc. Our focus is to engage the communities that work with us to charter their own course of development”.

Speaking to The Nation a farmer from Gangeyaya, D.G. Nandasena stated, “We are gaining lot of advantages and it’s very convenient to sell vegetables to Cargills. Even today I brought 500kgs of vegetables to the center. The only problem we face is that the transportation as the bridge we use is n a dilapidated state. We have come through a different route after gaining permission from the Wild Life Department as the road passes through thick jungle and also dangerous. It will be a great help if the authorities take steps to reconstruct the bridge as early as possible which will also save lot of time in transporting our produce.

Related Info :
• Cargills to Raises Rs2.6bn for a Mega Development in the Fort Property

• Sri Lanka Cargills Buys McCallum Breweries through a New Unit, Millers Breweries

• Sri Lanka Cargills and Northern Farmers come to Verbal Forward Contracts on Their Produce

• Cargills to Launch 100 New Outlets in Sri Lanka

• Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report

Yalpanam Dairy, Kilinochchi, Launched by BoC & Cargills. Project Creates New Opportunities in Northern Sri Lanka

19th January 2012, www.dailynews.lk, By Sanjeevi Jayasuriya

The Yalpanam Dairy Ltd, a joint venture between the Bank of Ceylon (BoC) and Cargills Ltd was launched yesterday.

Chief guest of the event Central Bank Governor, Ajith Nivard Cabraal said that projects of this nature should be encouraged as they would help to breach regional disparities. He also said that these projects would help conflict areas to return to normalcy sooner than expected.

He also said that these projects create new opportunities and also help people to obtain gainful employment The joint venture will first function as a milk collection centre and it would soon be upgraded to a processing plant.


One of the biggest advantages of this project is that the supply and demand situation is equally met with adequate supply of fresh milk and a readymade market being created through Cargills outlets.

Bank of Ceylon Chairman Dr. Gamini Wickramasinghe said that they are now planning to expand this project and is looking at importing a ship load of milch cows from India to be given to farmers in the area in a bid to increase capacity.

"We are also looking at promoting organic farming in the area," he added.

Central Bank Governor Ajith Nivard Cabraal and BoC Chairman Dr Gamini Wickramasinghe hand over a cow to a dairy farmer in Killinochchi at the foundation laying ceremony of the Yalpanam Dairy Industry. Image Courtesy : www.island.lk, Pic By Sajith Jayasekara.

Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report

03rd January 2012, www.news360.lk

Sri Lanka’s supermarket trade is expected to see an unprecedented growth within the next few years, backed by increasing per capita income, an increase in the work force and the changing consumption patterns, says a newly released equity research report.

According to the report, the spread of supermarket trade in the country as of now stands at just 15%.



The report compiled by Bartleet Religare Securities says, with the end of the war, the three leading supermarket chains in the country, namely Cargills, Keells and Arpico have started expanding aggressively while investing heavily in to this segment.

The report also observes the demand for supermarkets is also backed by convenience and late shopping hours it offers to the customers.

“Some individuals are also attracted to processed food items found in supermarkets which are much easier to prepare”, the report reveals.

The study has found that Supermarkets are also at an advantage, as they have a higher bargaining power over suppliers and are in a better position to offer products at competitive prices due to economies of scale.

However, despite the growth potential, the report says that most supermarkets operate on thin margins thus banking on higher volumes to cover operational costs while at the same time focusing on cost effective strategies.

“ Owing to the high competition in the industry; various promotions, loyalty schemes and advertising has to be carried out on a regular basis to retain the respective clientele as switching cost to customers are minimal”, added the BRS report.

According to BRS, there are 516 supermarkets being operated in the country which can be categorized as supermarkets, hypermarkets and convenience stores.

Cargills operates 177 supermarkets and the state owned Sathosa which offers products at a subsidized rate operates a convenience store network of 250 stores.

Keells has 48 supermarkets being converted to a hyper market while Arpico operates 13 hyper markets.

Cargills to Raises Rs2.6bn for a Mega Development in the Fort Property

06th March 2011, www.sundaytimes.lk

CT Holding PLC, which controls retail giant Cargills, is raising a total of Rs 2.6 billion through a private placement and a rights issue with part of these funds going into a mega development in the Cargills property in Fort which would include an exclusive, upmarket hotel, market sources said.

Cargills officials including its Deputy Chairman Ranjit Page were not immediately available for comment but the sources said the funds from this capital infusion would be used for a development project at Cargills in Fort that would change the character of the area into a ‘touristic walkabout’.

The Cargills building was once the residence of the British Governor General of Ceylon.

Foreign partners involved in the projects were in Colombo this week to continue negotiations in the deal, and also met over dinner with local partners at a popular seaside restaurant, the sources said.

The company has been tight-lipped about the development owing to stringent Colombo Stockexchange rules about disclosure. Mr Page in an interview with this newspaper in mid-2010 disclosed that the company planned to transform the 120 year-old Cargills bulding into a London-based, Harrods-type of building.

All the offices in the building were to be moved to a new location and the building vacated for this massive development, he was quoted as saying. Some offices, the sources said, have moved ahead of the development.

The announcement by CT Holdings said that the company planned to raise Rs 2 billion from a private placement by issuing 9.6 million shares at Rs 210 each which was to be placed in three UK-based funds.

The company was also simultaneously planning to raise Rs 600 million by offering 3.0 million shares in a rights issue of 1-for-every-55 shares held at Rs 210 each. It said the money will fund real estate and leisure projects and strengthen the balance sheet through the repayment of debt.

The market sources, monitoring developments at Cargills, said a subsidiary Millers Brewery Ltd was steaming ahead with the re-launch of 3 Coins beer. The company purchased the brand and assets of McCallum Breweries Ltd last month and the sources said the brewery was being revamped in preparation for the re-launch of the product around end April.

Related Info :

• Cargills Building in Fort to be Made into a Harrods of Sri Lanka

• Colombo City Centre to be Developed into a Pedestrian Only Area for Tourist Attraction

Sri Lanka Cargills Buys McCallum Breweries through a New Unit, Millers Breweries

08th February 2011, www.lankabusinessonline.com

Sri Lanka's Cargills Ceylon, which runs the island's largest retail chain said it will buy a brewery through a new unit for 1,425 million rupees, increasing its food and beverage producing capacity.

Cargills said in a stock exchange filing that its unit Millers Brewery Limited will buy Sri Lanka's McCallum Breweries (Ceylon) Pvt Ltd, McCallum Brewing Company (Pvt) Ltd and Three Coins Company (Pvt) Ltd.

Millers Breweries have also received a license to engage in the beer business. Stuart Young, formerly from Sri Lanka's Nestle unit will be chairman of the firm.

Cargills has recently boght ice cream, dairy products and biscuit making plants adding to its existing fruit processing and ice cream plants.

Related Info :
• Cargills Building in Fort to be Made into a Harrods of Sri Lanka

• Cargills to Launch 100 New Outlets in Sri Lanka

• Sri Lanka Cargills and Northern Farmers come to Verbal Forward Contracts on Their Produce

Colombo City Centre to be Developed into a Pedestrian Only Area for Tourist Attraction

05th December 2010, www.thebottomline.lk,, By Indika Sakalasooriya

The historic Colombo City Centre, which had long been a ‘no entry region’ since it was located in a high security zone in the Fort area, is to be developed into a bustling tourist attraction, dotted with restaurants, luxury hotels and other recreational centers, a top government official said.

Defence Secretary and Urban Development Authority Chairman Gotabhaya Rajapaksa said at a recent function that the Colombo Fort area is to be rationalised under the Colombo City Development Prgramme.

“The City Centre will be developed into a ‘pedestrian only area’ and number of restaurants and several luxury hotels are to be built up,” he said.

Rajapaksa also said that a proposal to build a luxury hotel between the momentous Cargills building — which is considered Sri Lanka’s Harrods building — and the colonial Grand Oriental Hotel which is currently undergoing a complete revamp, was also being mooted.

According to sources in the local corporate scene, three companies have already submitted proposals for this project and premier blue chip John Keells Holding and diversified blue chip Hayleys are believed to be among them.

A foreign party with a Sri Lankan collaboration is believed to be the third contender for the project apart from the two local players, of which the details are not yet available.

Earlier Cargills also had expressed plans to develop the landmark Cargills building, the first super market in Sri Lanka, then Ceylon, into a building like Harrods in Central London.

As a part of the Colombo City Centre development project, a number of offices, both private and government sector, are now in the process of shifting.

It is also learnt that Cargills is probably the only privately owned property in the City Centre area and as a result the development process is expected to go smoothly with less resistance.

Related Info:
Sri Lanka’s Security Forces to Move out of Colombo to Make Way for Colombo City Development. Hotel, Casino, Apartment Complexes Earmarked

Cargills Building in Fort to be Made into a Harrods of Sri Lanka

Sri Lanka Cargills and Northern Farmers come to Verbal Forward Contracts on Their Produce

13th October 2010, www.lankabusinessonline.com

Sri Lanka's Cargills, the island's largest retail chain said it had added farmers from the former war-torn north to its country wide network that keeps its outlets supplied with fruits and vegetables.

"We have added 1,600 farmers from the North," Cargills chief Ranjith Page told the annual annual sessions of Sri Lanka's Institute of Certified Professional Managers.

The firm already has a network of 10,000 which is growing fresh produce for its retail chain.

Page said the farmers came from Kilinochchi, Mulaitivu and Jaffna.

Almost the entire population of Kilinochchi and Mulaitivu were in refugee camps after a 30-year war ended in May 2009.

Jaffna had been under central government control for some time.

The government has since re-settled most of them. The government, donors and charities are helping them rebuild their lives and livelihoods.

Page said the firm had cut post harvest losses, which is a key problem in Sri Lanka's fresh product supply chain.

Page said Cargills had 'verbal' forward contracts with the farmers around the country to buy their produce. Some farmers feared paper contracts.

It was necessary to understand the psychology of rural farmers before dealing with them, he said.

Cargills Building in Fort to be Made into a Harrods of Sri Lanka

23rd May 2010, www.sundaytimes.lk

The 120 year-old Cargills building in Fort will soon be transformed into a London-based, Harrods-type of building with the company charting new plans for its future.

All the offices in the building will be moved to a new location and the building vacated for this massive development, its Deputy Chairman Ranjit Page said.

He said the there is a huge opportunity following the end of the war and shopping malls is one area the company plans to expand into.

“The Cargills building in Fort is a grand old building and the story goes that the first Governor of Ceylon resided here.

We have been considering re-building it to its old glory. I think the time has come for us to take this opportunity seriously,” he said adding that the company is looking at its entire land base.

New office space is being provided for the Cargills team located in the old Cargills building. “Can the Cargills building be the Harrods of Sri Lanka, a destination for tourists from passenger liners, maybe tourists walking through enjoying the culture of Sri Lanka, wining and dining while purchasing luxury brands?

My team and I are now looking at this new exciting project. We are serious about this project and I believe we can deliver this,” he said.

Cargills to Launch 100 New Outlets in Sri Lanka

11th December 2009, www.dailymirror.lk, By Nizla Naizer

Sri Lanka's premier retail super market chain Cargills Food City announced the launch of 100 new outlets all over the country, with the opening up of its 140th outlet at Rajagiriya yesterday.

The new Cargills Foods City at Rajagiriya offers over 10,000 square feet of an ultra modern shopping experience for customers open from 8 a.m. to 11 p.m. daily.

Shoppers can expect the superior customer care that has come to be the hallmark of Cargills. The new outlet features a range of 10,000 products, a bakery, fresh vegetables and fish as well as a wide variety of high quality processed meat and much more.

Cargills CEO Ranjit Page said: "The launch of our 140th outlet is all the more special because this outlet marks simultaneously the first of 100 more Cargills Food City outlets that will be set up in neighbourhoods across 25 districts in the coming years."

"This bold decision was taken as a result of our understanding of consumers and their need for greater convenience and affordability. Being the first retail network to initiate our own out-grower network, we are proud of our ability to give the highest possible price to farmers while providing nutritious high quality goods to the consumer at the most affordable prices," he said.

"I am confident that the 100 new Cargills Food City outlets will create an agricultural revolution that will be the engine of growth for the nation. I am deeply grateful to Cargills Food City customers for their loyalty and look forward to their unstinted support over the next few years as Cargills Food City drives the transformation of the retail landscape in the country," Page added.

He also said that the decision to add 100 more outlets had positive repercussions for the nation in its entirety, since 70% of the workforce employed in Cargills Food City outlets hails from rural Sri Lanka, receiving advanced professional training at the non-profit Albert A. Page Institute of Food Business.