Lankem Ceylon PLC is a chemicals,

paint Paint is any pigmented liquid, liquefiable, or solid mastic composition that, after application to a substrate in a thin layer, converts to a solid film. It is most commonly used to protect, color, or provide texture. Paint can be made in many ...

s and

consumer good A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike a intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good, but t ...

s manufacturing company in

Sri Lanka Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...

. The company also engaged in the

hospitality industry The hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, travel and tourism. It includes hotels, tourism agencies, restaurants and bars. Sector ...

by owning and operating resorts in Sri Lanka. The company is incorporated in 1964 by

Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...

and listed on the Colombo Stock Exchange in 1970. Brand Finance ranked the company 88th most valuable brand in Sri Lanka. The company ranked 61st in '' LMD 100'', an annual list of quoted companies by revenue in the financial year 2019–20.

History

Lankem Ceylon was incorporated as Shell Chemical Company of Ceylon Limited by

in 1964 as an agrochemical company. In 2010, Lankem Ceylon acquired C. W. Mackie. A new plant manufacturing

paint thinner A paint thinner is a solvent used to thin oil-based paints. Solvents labeled "paint thinner" are usually mineral spirits having a flash point at about 40 °C (104 °F), the same as some popular brands of charcoal starter. Common solven ...

and chemical was inaugurated in

Sapugaskanda Peliyagoda is a town in the Western Province of Sri Lanka, lying mostly on the north shore of the Kelani River The Kelani River ( si, කැළණි ගඟ) is a river in Sri Lanka. Ranking as the fourth-longest river in the country, it stre ...

in 2012 at cost of LKR120 million. Lankem Chemical Ltd, a subsidiary of Lankem Ceylon is the largest manufacturer and importer of paint thinner in Sri Lanka.

Operations

A 2017 study found the company is not following contemporary management accounting practices such as activity-based costing,

activity-based management Activity-based management (ABM) is a method of identifying and evaluating activities that a business performs, using activity-based costing to carry out a value chain analysis or a re-engineering initiative to improve strategic and operational decis ...

, and balanced scorecard. Suren Goonewardene was appointed as the managing director of the company in June 2020. ICRA Lanka Limited has withdrawn its rating of L at the company request in September 2020. In June 2021, company's LKR677 million rights issue went undersubscribed. The company was able to raise only LKR352.3 million. Despite disruptions to the supply chain, the company posted a profit in the fourth quarter of the financial year 2020–21 for the first time since 2014–15. The gross profit of LKR827 million is an increase of 46 per cent when compared to 2019–20. The company is one of the partners of the

Sri Lanka Institute of Nanotechnology The Sri Lanka Institute of Nanotechnology ( si, ශ්‍රී ලංකා නිනිති තාක්ෂණ ආයතනය; ta, இலங்கை நனோ தொழில்நுட்ப நிறுவனம்) (abbreviated and com ...

along with other private sector companies and the Ministry of Technology.

Acquiring ACME Printing & Packaging

The second-largest shareholder of ACME Printing & Packaging PLC, Richardson Holdings Ltd. divested its stake of 19.43 per cent of the company. E. B. Creasy & Company, an associate company of Lankem Ceylon acquired the stake increasing Lankem Ceylon and related parties shares to 32.17 per cent. This resulted in Lankem Ceylon being required to make an offer to purchase the rest of the ordinary shares according to the 1995 Company Takeovers and Mergers Code. On 16 September 2021, Lankem Ceylon submitted an application to the Securities and Exchange Commission of Sri Lanka with an offer price of LKR12.00 per share. Lankem Ceylon was able to increase its stake of ACME Printing & Packaging to 88.27 per cent thus becoming the

controlling shareholder A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the majo ...

of the company. Most of the minority shareholders responded positively to Lankem Ceylon's mandatory offer.

References

External links

Official website
{{All Share Price Index 1964 establishments in Ceylon Companies listed on the Colombo Stock Exchange Chemical companies established in 1964 Holding companies of Sri Lanka Conglomerate companies of Sri Lanka Manufacturing companies based in Colombo

History

Operations

Acquiring ACME Printing & Packaging

See also

References

External links