Hemas Plans to Build 4th Hopital in Ratmalana Taking into Account Area’s Growing Middle Class

20th March 2013, www.dailymirror.lk

Hemas Hospitals Private Limited, the fully owned subsidiary of Hemas Holding PLC sending a strong signal to sector rivals yesterday revealed plans to construct its next hospital in Ratmalana, taking into account the area’s growing middle class. This will take the total number of Hemas hospitals to four.

Responding to a question by Mirror Business on future plans, Chairman Murtaza Esufally said they had recently purchased one acre of land to the value of Rs.250 million in an area between Ratmalana and Moratuwa for this purpose.

“In fact we see a vast potential in this particular area and a survey carried out prior to the decision too showed the growing middle income earning population which warrants quality healthcare facilities in Ratmalana,” he said.

Speaking on the investment of the project he noted that it will be around US $ 10 million (Rs. 1.3 billion) for a typical 60-bed hospital similar to the one being constructed at Thalawatugoda.

In another interesting revelation, it was indicated that it takes at least 7-8 years to recover the initial investment which is usually referred to as the payback period in Finance. Esufally who was tight lipped on the financial performance (as it is unlisted) however said that Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA), a financial performance yardstick in the hospital sector had been positive throughout.

Hemas Hospitals spent US $ 1.6 million for the 100-bed facility located at Wattala four years ago, followed by another US $ 500 million for the 50-bed Galle hospital and another US $ 1.4 billion for Thalawatugoda facility. Mirror Business exclusive reported on Hemas’ plans to put up hospitals in Thalawatugoda and Ratmalana back in January 2011 even before the start of the two projects.

Ambitious Esufally confided that the company’s plans were afoot to add another 600 beds (about 10 hospitals) touching at least one quarter of the populations’ lives within the next eight years. Esufally who did not rule out the possible expansion in the heart of Colombo said the company’s main strategy was to target the middle income earning category particularly in the suburbs. “Leveraging the four year experience in hospital business, 65 years heritage & the market leadership in the pharmaceutical industry (with a market share of 17-18 percent), we are quite confident that we could in the long run become the market leader in the healthcare sector,” he remarked. Nine months results to December 31 showed the healthcare sector contributing to the group with the highest revenue of Rs. 6.7 billion demonstrating a Year-on-Year growth of 22 percent. The sector bottom line too grew by 33 percent over the same period last year to Rs. 360 million.

Related Info :

• Sri Lanka's Hemas to Build a $25mn Hotel at Kalutara

• Sri Lanka's Hemas Builds another Hydropower Plant

• Sri Lanka Hemas and Dockyard with Singapore's Toll Bid for Oilfield Services of Cairn India

Sri Lanka's Hemas to Build a $25mn Hotel at Kalutara

11th March 2012, www.dailynews.lk, By Shirajiv Sirimane

Sri Lankan tourism is on an upward trend with increased arrivals and revenue and the country would soon need additional rooms to meet this demand. There is a renewed interest for the leisure sector in Sri Lanka and this arguers well for the industry said Group director of diversified group, Hemas Holdings, Abbas Eusufally, speaking to ' Daily News Business' at the ITB in Berlin. He said that there are new players entering the hotel sector by building new hotels and this is encouraging.

He said the Group too has decided to embark on one of the stalled hotel projects at Kalutara. “Our plan is to build a 150 room hotel complex next to Avani Kalutara and the investment for this would be over US $ 25 million. The Avani hotel too would once again be refurbished and would close in May until next winter.

The Group is also looking at investing on two other hotel projects in the deep South and we are currently studying these proposals. “I have been attending 35 ITB events on the trot and there is a very strong interest not only from traditional markets but from other segments as well,” he reiterated.

He said similarly, the Sri Lanka leisure sector too, soon would also see a high demand for qualified staff for the human resources sector. “Without quality and a well trained staff, one cannot give out a quality product and hence well trained staff is a must. A five star hotel cannot give a two star service,” he said.

Eurfally said that hotel schools and educational institutions set up for this purpose in the country are inadequate to meet the projected demand in Sri Lanka.

“The wages paid to hotel staff may not be enough to keep trained experienced staff in Sri Lanka due to brain drain ,” he said.

Commenting on the allegation that Lanka hotel rates had increased, he said that it is only a general statement. “However I think that in a free economy hotel rooms should not have a price control and it should depend on demand and supply forces,” he said. Regulations in this area is not required.

However he said that hotel rates should be decided on quality and service where the customer should not get the feeling that they are ripped off. 'Value for money is the key.'

He also said that time is ripe now for hotels to refurbish as today the industry is getting returns

mainly due to the peace dividend and there is RoI sooner than anticipated. Eurfally said that one of the grey areas in the industry that he identifies is the lack of a proper destination marketing with a good theme for a along period of time. “Sri Lanka is not properly focusing in these investments and this aspect should improve. Today with several themes, tourists are confused.”

The expressions such as Visit Malaysia, Amazing Thailand, were very successful and they still linger in the minds of the globe tourism industry. “I think Sri Lanka should stick to 'Lanka the Wonder of Asia' and only promote this catch line for a long term,” he said.

He said that being a listed company they have an obligation towards their share holders and would do their utmost to give them good returns. “We will invest but with caution,” he added.

Minor Intl Anantara & Hemas Serendib Buy Kani Lanka Resort, Kalutara, Sri Lanka for $22mn

10th August 2010, www.dailynews.lk

Minor International of Thailand together with its local partner Hemas Holdings, and through its subsidiary Serendib Hotels has acquired 100 percent shares of Cyprea Lanka, the owner and operator of Kani Lanka Resort and Spa, Kalutara.

The total acquisition and development cost of the property is estimated at US$ 22 million.

Kani Lanka Resort and Spa is spread across an 18 acre stretch of land situated at the tip of the river mouth of the Kalu Ganga in Kalutara, on the south western coast of Sri Lanka.

The 105 room four-star resort enjoys a spectacular view of the river and the sea.

The new owners plan to upgrade the existing property and develop a new resort under the ‘Anantara’ brand that will consist of 120 luxury rooms.

This will be the first-ever ‘Anantara’ branded resort in Sri Lanka and the first international chain of luxury hotels to come into post-conflict Sri Lanka. ‘Anantara’, a well-known brand around the world for its luxury resorts, is a member of Small Luxury Hotels of the World, Leafing Small Hotels, Virtuoso and the Kiwi Collection. Chairman/CEO of the Minor Group William E. Heinecke said Minor is delighted to bring its Anantara brand to Sri Lanka.

“The country has shown great promise, especially in the aftermath of the protracted civil disturbances. With Sri Lanka’s legendary hospitality, vast cultural diversity and infinite variety, I have no doubt that this partnership will transcend the envisaged goals and make Sri Lanka one of the top end destinations in the region,” he said.

Hemas Holdings Director and Serendib Leisure Management Chairman Abbas Esufally said time is ripe to re-define the boundaries of conventional tourism and explore new and bolder ventures.

“With 2011 being declared as ‘Visit Sri Lanka’ Year, and with the 750,000+ expected tourists, the potential is massive. Now is the time for all stakeholders to get together and get ready for 2011. Hemas is proud to partner with an organisation of the calibre of the Minor Group and its internationally acclaimed ‘Anantara’ brand.”

The newly acquired property will be managed by Serendib Leisure Management.

Sri Lanka's Hemas Power Earnings up on Hydro Power

29th July 2010, www.lankabusinessonline.com

Sri Lanka's Hemas Power said net profit for the June 2010 quarter shot up 967 percent to 80 million rupees from a year ago on a sharp increase in earnings from hydropower.

Sales of the company, a unit of the Hemas Holdings group, fell five percent to 729 million rupees owing to lower thermal power revenue, a stock exchange filing said.

"The reduction arose manly from an 11 percent reduction in revenue at Heladhanavi," Hemas Power managing director Kishan Nanayakkara said.

"However, the excellent performance of the hydropower sector reflecting a 405 percent increase in revenue between comparative quarters helped to nullify this impact to some degree."

Revenue from thermal power fell to 669 million rupees in June 2010 from 755 million the year before while revenue from hydro power rose to 53 million from 11 million rupees.

Profit from thermal power rose to 42 million from seven million rupees while profit from hydro power shot up to 40 million from six million rupees a year ago.

Nanayakkara said the revenue reduction at Heladhanavi stemmed from a tariff cut and lower power generation owing to a

maintenance overhaul.

"Almost half of our net profits for the quarter derived from the hydropower sector," he said.

"Though hydropower is seasonal, the fact that it now influences our net profits considerably signifies the positive impact of

our effort to spread the portfolio balance between the hydropower and thermal sectors."

Lower finance costs at the Heladhanavi plant and the interest income earned from investments also helped to increase the

company’s profits.

Nanayakkara said the firm's Giddawa Hydro Power plant made a net profit of 16.0 million rupees for the quarter and its Upper

Agra Oya Hydro Power plant a net profit of 25.0 million rupees.

"The power generation at both hydropower plants was considerably higher than the anticipated generation levels during the

quarter."

The firm is building another hydro power plant called the Magalganga project.

"We anticipate that the forthcoming quarter also to be a reasonably good one although our two hydropower plants will move in

to the dry-season until the forthcoming North-East monsoon season which begins in October or in November," Nanayakkara said.

Sri Lanka Hemas and Dockyard with Singapore's Toll Bid for Oilfield Services of Cairn India

14th May 2010, www.lankabusinessonline.com

Sri Lanka's Hemas group and Colombo Dockyard have teamed up with Singapore's Toll Offshore Petroleum Services to bid for Cairn India's contract for offshore oil field support services, officials said.

"Hemas Holdings, Colombo Dockyard and Toll Offshore Petroleum Services have jointly placed a bid for the offshore supply base for Cairn," Irshad Mushin, director - maritime transportation of Hemas group told LBO.

"We have proposed viable sites in Sri Lanka."

Cairn Lanka, a unit of Cairn India, which is part of Britain's Cairn Energy, has called for expressions of interest and pre-qualification for provision of services to support its exploration effort.

Cairn has called for support for drilling, testing and completion of exploratory wells in a deep-water block in the Mannar Basin off north-west Sri Lanka.

Cairn plans to start drilling test wells by January 2011 to May 2011.

Colombo Dockyard managing director Mangala Yapa said offshore oil explorations in Sri Lankan waters gives good opportunities for both engineering and shipping companies.

"Colombo Dockyard is confident we can be involved in some of the engineering and other logistics requirements, especially because we have a fully-fledged engineering facility within Colombo port," he told LBO.

"Even at present we are repairing many offshore vessels from India's offshore industry."

The yard also builds offshore support vessels and is therefore aware of the requirements, Yapa said.

"Our role would be to provide all possible engineering and other logistical assistance for Cairn along with other partners."

Toll Offshore Petroleum Services is a subsidiary of Toll Asia, which is part of Toll Holdings, a big transport and logistics group headquartered in Australia.

It owns and operates offshore supply bases in Azerbaijan, Cambodia, China and Thailand.

Sri Lankan companies are keen to get Cairn's offshore support contract as it means new business in the new field of oil exploration.

It will also position them to offer similar services when exploration and drilling gets under way in other blocks in the Gulf of Mannar as well as in waters off the northern and southern coasts.

Sri Lankan firms would have to compete with firms in India which has an established offshore oil industry.

Oil explorations firms are expected to source some of their requirements from local industry in order to ensure the benefits of oil are shared in the domestic economy and also provide employment for locals.

Among the services requested by Cairn are anchor handling tugs, supply vessels and offshore supply barges.

Cairn Lanka has also called for rig positioning and site survey services, supply of fuel and water, provision of local logistic support such as cranes, port clearances, boat calls, and offshore supply base services.

Another service requested is air logistics which will provide opportunities for helicopter services offered by local aviation firms, officials said.

Cairn's exploration licence to explore for oil and natural gas in the Mannar Basin covers about 3,000 square kilometres in water depths of 200-1,800 metres.

Serendib Leisure Group's Hotel Dolphin to be Upgraded to 4 Star. Hotel at Waikkal, Sri Lanka to Renovate 50 Chalet Rooms

28th March 2010, www.nation.lk, By Azhar Razak

Sri Lanka’s Club Hotel Dolphin in Waikkal, a unit of the Serendib Leisure Group is to be upgraded into a four star hotel once the planned US $5 million refurbishment to a part of its hotel is completed. The hotel, which is now a three-star, is to renovate 50 of the hotel’s chalet rooms (cottages) during the period from May 1 to August 31, a senior official of the hotel said.

“All the cottage rooms as well as certain public areas of the hotel will be closed during renovation. However, the hotel would still operate the rest of the 96 deluxe rooms during the period,” Suranjith de Fonseka, Head of Sales and Marketing at Serendib Leisure Management Ltd. told The Nation Economist.
He said that the cottages once refurbished would be more spacious and equipped with an in-room safe locker facility.

Described as the resort for the young at heart, the cottages of the hotel are set in a quieter garden area with direct access to the beach and closer to the pool. Club Hotel Dolphin has two outdoor freshwater swimming pools that include the children’s pool.
The three hotels Club Hotel Dolphin, Hotel Serendib and Hotel Sigiriya that form the hotel sector of the Hemas Group falls under the management of Serendib Leisure Management Ltd., a fully owned subsidiary of Serendib Hotels Ltd.

Hemas Holdings is one of the leading quoted companies in Sri Lanka, engaged in a diverse set of business activities, focused on healthcare, personal care, leisure, transportation and strategic investments.

Hemas Hotels Prepare for Rejuvenation as Sri Lanka Prepares for a Better Tourism Climate after the War

31st January 2010, www.sundaytimes.lk

Hotels coming under the Hemas Group, like many other mega leisure companies, are undergoing a change in terms of re-development, upgrades and investment as Sri Lanka prepares for a better tourism climate after the war.

Hemas Holdings Group Director Abbas Esufally, who in charge of the group’s hotel and leisure activities, told the Business Times that the Club Hotel Dolphin at Waikkal, just past Negombo, will be upgraded to a 4-star property from a current 3 ½ star hotel, at a cost of Rs 500 million. “Work will begin this summer (March-October) on the renovation and part of hotel will be closed for this purpose,” he said adding that plans are also underway to revive the pact with Bangkok-based Minor Group and its Anantara brand of hotels.

“We want to go back to the plans that were put on hold due to the uncertainty (owing to the war),” Mr Esufally said, adding that the plan is to re-name the hotels in line with the Anantara brand. Hotel Serendib will be the first to come under the new plan and will be re-named accordingly.

The group is also looking at developing the Hemas land bank with unused properties in the south and hill country and considering investments in the East. In Kandy, the group plans to re-design a Yoga /Spa retreat on 32 acres of land which had a Geoffrey Bawa-architectural plan but was not proceeded with due to the country’s turbulence. “It’s easier to invest and manage boutique hotels because there is less marketing required and the returns are quicker,” he pointed out.

Club Hotel Dolphin Wins ITS Red Star Award. The First Time a Sri Lankan Hotel Nominated for the Prestigious Award

06th January 2010, www.thebottomline.lk

Club Hotel Dolphin, managed by Serendib Leisure Management, a subsidiary of Hemas Holdings Plc, brought honor to Sri Lanka by winning the ITS Red Star Award under the ITS program managed by the REWE Group, Germany. This is the first time a Sri Lankan hotel had been nominated for this prestigious award.

The ITS brand has the largest selection of hotels amongst the Tour Operators of the travel and tourism division of REWE Group. The focus of the ITS program is on three-to-four star hotels. The ITS Red Star Award is awarded to the best and most popular 60 hotels worldwide. The selection for the award mainly focuses on three key factors - referrals from their guests, consistent high standards of service delivery, and high levels of guest satisfaction. By winning this award, Club Hotel Dolphin has been recognised as the very best in the country.

This club-concept hotel is located in the seaside hamlet of Waikkal and is just a half hour’s drive from the international airport and 90 minutes north of Colombo. This sprawling hotel boasts a total of 150 rooms - 98 deluxe main rooms that are equipped with AC, cable TV, DVD player, Tea/Coffee making facilities, hair dryer, piped music and telephone, and 50 individual cottages that are additionally equipped with a mini bar, and 2 suites.

The hotel has two pools – one of which is the largest pool in Sri Lanka. This is the hub of all the action and animation at the hotel. Guests are offered a wide choice of activities such as tennis, squash, volleyball, badminton, darts, archery, croquette and mini golf. The animation team keeps guests occupied with activities such as water aerobics, a club dance, bingo nights, karaoke evenings, fire limbos and animation shows. For those who prefer something more tranquil, a relaxing spa treatment or a lazy afternoon by the ‘quiet pool’ is available. Guests can also take an interesting tour of the Negombo churches that were built during the colonial period, or opt to visit Colombo on a shopping spree.

REWE Group is a multi-national company. The travel arm – REWE Touristik - is one of the largest German Tour Operators and is an important partner of the Serendib Leisure Group.

Image: S. Anandaraj, Chief Operations Officer of Serendib Leisure Management presenting the ITS Red Star Award to the General Manager of Club Hotel Dolphin, Chamin Wickremasinghe. Also in the picture is the Assistant Manager of the Hotel, Jude Silva.

Sri Lanka Hemas Buys Hydro Power Plant of 2.6MW in Nuwara Eliya District

04th January 2010, www.lankabusinessonline.com

Sri Lanka's Hemas Power said it has bought a 2.6 megawatt (MW) hydro-power plant in the Nuwara Eliya district in the central hills from Senok Mark Hydro for 198.5 million rupees.

Under the deal, Hemas Power has bought 9.92 million shares, Senok Mark Hydro’s total issued share capital, at 20.00 rupees a share, Hemas said in a stock exchange filing.

Hemas Power is a unit of Hemas Holdings which has business interest in healthcare, consumer goods, shipping and power.

Its generation unit consists of Heladhanavi, a 100 mega watt thermal power plant, and a two-mega watt mini-hydro power plant in Kandy, also in the central hills.

Sri Lanka is heavily dependent on fossil-fuels for its power needs and is trying to increase renewable energy sources like hydro-power.

In August 2009, Hemas Holdings floated its power generation business to build a 1.6 MW mini hydro plant in Kandy to move away from costly fossil-fuel thermal power.