Business
Hatton Plantations looks to gain on its robust capital structure
Looking for opportunities to invest in tourism and solar power verticals
Says ‘would be happy to talk to right partners’
By Sanath Nanayakkare
Getting a more realistic control over historical truth and the current significance of a company will probably be the prime concern of a potential investor looking for a strategic tie-up with a particular company, before he or she decides to invest in it.
In that context, Hatton Plantations may not have a ‘story’ to tell, but rather a ‘credible report’ to present because many investors might be cynical about listening to stories.
Hatton Plantations PLC is a subsidiary of G&G Group of Companies, a Singapore-based conglomerate whose chairman is Gary Seaton from Australia who first visited Sri Lanka in the 1970s as a backpacker tourist. Then he and his family started looking at business opportunities in Sri Lanka in the 1980s and bought the first tea company in 1996 after the plantations privatization programme came into effect in Sri Lanka. That was the well-known Pussellawa Plantations spanning across 10,000 hectares.
Then they sold it in 2017 and bought Hatton Plantations (HPL PLC) in 2019 which has 7,500 hectares on 13 estates.
Today HPL PLC has 12 tea processing factories with a combined green leaf capacity of 155,500 kg per day. It uses Orthodox, CTC, Leafy, and Green Tea manufacturing methods supported by versatile production facilities. It engages in the production of high and medium-grown teas in the key regions of Watawala, Hatton, and Lindula.
Hatton Plantations PLC, was the highest producer amongst all the Regional Plantation Companies (RPCs), having sold a quantity of 6,484,037.50 kgs with an average of Rs.1,134.11 for the year 2024, preceded by equal performances in the three previous years. And HP PLC is one company that has been replanting for the past four years continuously – a key factor that has contributed to its continuous growth.
Speaking to the media at the Company’s office in Peliyagoda recently, Gary Seaton said. “We have a vision to further expand into plantation, and we also look at two other business verticals: renewable energy and tourism. We very much believe in transitioning from fossil fuels to renewables. Sri Lanka is one of those few remaining countries that hasn’t industrialized everything and that’s very much aligned with the vision of Hatton Plantations PLC. We understand the challenges Sri Lanka faced in the last 40 years. But despite those challenges, we are with Sri Lankans. Many Sri Lankans are leaving Sri Lanka to go abroad, but we are coming from abroad to operate from Sri Lanka. We are doing it the other way around,” he said on a lighter note.
Menaka Athukorala, CEO & MD Hatton Plantations PLC said,” As part of the diversification, we are going into coffee in a major way. We initiated this project three years ago and we have already planted coffee on 100 hectares, and we are already harvesting coffee. A total of 500 hectares of coffee will be planted in the next 3 to 4 years. Our total investment in coffee would be Rs. 1 billion and we have already invested Rs. 200 million. With this, our per hectare income grows with the optimum use of the land while getting the best productivity from our workforce in a mutually beneficial way.” he said.
Gowri Shankar, CEO G&G Group of Companies, Singapore noted,” There’s a shortage of coffee in India, so it will be a potential market for our unique Sri Lankan coffee brand apart from the U.S., and Australia markets. South India loves coffee over tea and North India’s preferred beverage is tea. So, our coffee has a great opportunity to enter the South Indian market. Hence, we are looking at these three key markets for exporting our coffee.”
“Some other companies also have started growing coffee, but we are the largest producer of coffee at present. We will be setting up our coffee processing unit in the next two years which will cost about Rs. 200- 300 million. By 2026, HPL PLC’s coffee will come to the local market and exports will commence in 4 years down the line”, Menaka Athukorala said.
Touching on their tea plantations, HPL PLC said that they have started deploying mechanization, precision agriculture and tech solutions to make their operations more efficient.
HPL has already started using drone technology to apply Foliar Spray on some of their estates to deliver essential nutrients directly to the tea leaves.
“Drones are being used in pilot projects to streamline the operational process, to increase the productivity in the fields and to make the monitoring more efficient and automative,” they said.
“We are upgrading the facilities being provided to our field workforce with convenient access to toilets and bathing places. We have a workforce of 4,000 on permanent basis and an equal number on a casual basis. The issue of labour wages has not caused us much of a problem because we have so many welfare activities that ensure our workers’ well-being.”
“We are going to set up a vocational training institute on our estate in Hatton to train the children of our workers in various crafts. With the new-found skills, they can choose to work with us or go and be employed or self-employed elsewhere. We believe such socially responsible activities will foster stronger bonds between the company and the employees. That bond will take care of the whole ecosystem of Hatton Plantations for many years to come,” they said.
“For diversification in tourism, we are looking at strategic partnerships whose mainstream business is tourism. We don’t want to get into their line of business. As the infrastructure is already there with HPL’s holiday bungalows and picturesque tea estates, we will see who understands its value and bring their expertise of tourism to our assets. We will see how we can leverage those assets together with them and grow the business,” Gowri Shankar said.
Hatton Plantation PLC’s profit before tax was Rs. 1.2 billion in 2024. This year it will be slightly less because of the wage increase, and it is expected to be close to one billion rupees in FY 2024/25. And in FY 2025/26, the company expects a PBT of Rs. 1.3 billion when tech modernizations are successfully implemented.
“We have liquid cash assets that we would like to channel into these verticals. In the meantime, we are looking at the possibility of investing in tea plantation in Kenya as there is an opportunity to produce orthodox leafy teas in that country – where your yields are higher and profit margins are much greater,” they said.
The media was told that HPL was keen on investing in viable solar power projects anywhere in Sri Lanka that generates more than 5 megawatts of power.
Currently, HPL has eight hydro-power plants generating 12 megawatts. Lotus Hydro Power of the Group is the highest dividend-yielding company in the domain with around 14% yield rate, consistently maintaining it from 2014, except for the crisis-years in Sri Lanka.
“Hatton Plantations is willing to allocate Rs. 1 billion to invest in a viable solar project and we’d be happy to talk to the right partners”, “Gary Seaton said.
CEAT Kelani Holdings has been adjudged the best-managed tyre manufacturing company in Sri Lanka and reaffirmed as one of the top 20 companies in the country for best management practices, by the Institute of Chartered Professional Managers (CPM) Sri Lanka.
The company received the Category Award in the ‘Tyre, Rubber, Metal & Wood Furniture’ sector at the 2025 edition of CPM’s ‘Best Management Practices Company Awards’ in addition to the Top 20 award presented at the awards gala. This is the second consecutive year that CEAT Kelani was recognised as one of the best managed companies in Sri Lanka.
The CPM awards honour the best practices in management in terms of leadership, policies and strategies, people management, partnerships & resources, processes and performance.
“Awards of this nature will encourage us to strive for even greater heights in management practices, adopting global best practices in aligning strategic direction with a people-centric approach,” CEAT Kelani Managing Director Ravi Dadlani said. “We have already shattered the stereotype for large-scale manufacturing operations and are considered a case study for a successful privatisation of a state-owned enterprise, with unprecedented achievements in productivity, product development, deployment of new technology, research and development, market leadership, sustainability and good corporate citizenship.”
He said CEAT Kelani has transformed from an “inside-out” company to an “outside-in” organisation, placing customer and market centricity at the core of everything it does. This shift is reinforced through regular market visits by employees at all levels, including management, shop floor staff, and all business functions.
One of the highlights of the year assessed for the CPM awards was the launch of a comprehensive strategic marketing campaign aimed at enhancing brand premiumisation, increasing brand consideration and sales, focusing on leveraging CEAT car radials tyres’ positioning as German engineered tyres that deliver the most controlled and comfortable driving experience on Sri Lankan roads.
CEAT Kelani also significantly increased its support to Sri Lanka’s burgeoning vehicle assembly industry by developing high-performance Original Equipment (OEM) Tyres for a wide range of locally assembled vehicles, including cars, SUVs, motorcycles, scooters, and commercial vehicles. This initiative boosts competitiveness, creates jobs, and fosters economic growth. Through OEM projects, CEAT enhances its manufacturing capabilities, aligns with global quality standards, and tailors products to meet local needs.
Growth in the last five years, growth in 2024 and optimism for 2025. These are some of the key findings from the Sweden-Sri Lanka Business Council’s (SSLBC) 2025 Membership Survey, a news release from the organization said last week.
“The results are also a reflection of the increasing interest for Sri Lanka among Swedish companies. In two years, the number of members of SSLBC has grown from 75 to 100.
– The results are encouraging. Our members have developed their business relations with Sri Lanka in recent years. We are also noticing a general increase in interest from the Swedish business community for Sri Lanka. The results should also be seen in the light of Sri Lanka’s fiscal recovery
since 2022. At the same time, the visa issue continues to be raised by our members, both for business visits and conferences or fairs. Action is needed by the relevant authorities,” says Leif I Ohlson, Secretary General Sweden-Sri Lanka Business Council.
The member survey was conducted in February 2025. In total, it was answered by 50% of the members. Respondents include companies active in IT, manufacturing, trade, food and tourism. Three out of four have been operating in or with Sri Lanka for at least three years. The number of members
of SSLBC have grown in the last two years, from 75 to 100.
Nearly six in ten say their business in or with Sri Lanka has grown in the last five years. A similar proportion have experienced growth in 2024. There is also strong confidence in the development of the business environment in Sri Lanka in 2025. Seven out of ten believe in a positive development, compared to one in four in 2023 when the survey was last conducted, and the effects of the fiscal crisis in 2022 were still clearly visible. Optimism is also strong among members for their own business in 2025. More than six in ten expect their activities in or with Sri Lanka to develop positively this year.
Members were also asked to rank the issues that are most important to them in 2025. In total, seven areas were ranked (the figure shown is the combined result of ‘most important’, ‘second most important’ and ‘third most important’:
1. Availability of skilled labor (74%)
2. Clear and predictable import/export rules (47%)
3. Financing (44%)
4. Flight connections (37%)
5. Stable payment flows (35%)
6. Positive image of Sri Lanka in Swedish media (34%)
7. Transportation (29%)
– Sri Lanka has a highly educated workforce, not least in the IT sector. The salary situation is also favorable. This is a reason for many Swedish IT companies to establish themselves in the country. At the same time, only a few members have received support or assistance from Swedish trade promotion agencies or their Sri Lankan counterparts in establishing or developing operations. There is more to be done here and over the past year we have seen a greater commitment from them, which will certainly be visible in future surveys.
However, presence on site and the opportunity to share their experiences with other entrepreneurs is most important. Here SSLBC plays an important role with our many years of experience and continuity, says Leif I Ohlson.
About Sweden-Sri Lanka Business Council
Sweden-Sri Lanka Business Council was established in 2006 and has 100 members. Members are active in IT, manufacturing, consumer goods and food, and tourism. Together, the members create over 2,000 jobs in Sri Lanka, directly and indirectly.
The Sweden-Sri Lanka Business Council is a membership organization that exists to create member value through knowledge sharing, expertise, professional networking and by promoting members’ issues. Sweden-Sri Lanka Business Council strives to facilitate and develop relationships between trade organizations, business intermediaries and companies in both countries to stimulate business and trade between Sweden and Sri Lanka.
(Contact details: Leif I Ohlson, Secretary General Sweden-Sri Lanka Business Council sec.gen@sslbc.se)
Russel’s Wellness recently launched an extensive range of wellness teas in five distinctive categories, aimed at offering a unique wellness experience to the world. This exclusive event was held at Amari Colombo on 22nd March 2025, with the participation of distinguished guests from various sectors in Sri Lanka. Russel’s Wellness is a subsidiary of Russel’s Group, a leading tea services and catering company in Sri Lanka, with over 35 years of experience in the industry and serving nearly 35,000 cups of teas everyday. Spearheaded by Mr. Russel Perera, Founder/Chairman of Russel’s Group, and Mr. Jehan Perera, Director – Strategy at Russel’s Group, Russel’s Wellness came to life with the objective of entering the export market.
This occasion was graced by Nishantha Jayasooriya, Director and CEO at Richlife Dairies and Shaw Wallace Ceylon Limited, and Director at Renuka Foods PLC as the Chief Guest; Indumini Kodikara, Director – Export Services, Export Development of Sri Lanka as the Guest of Honour; and Uruwarige Wannila Aththo, Chief of the Dambana indigenous people village as the Special Guest.
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