Cargills (Ceylon)

Cargills (Ceylon) PLC

Company type	Public
Traded as	CSE:  CARG.N0000
ISIN	LK0020N00004
Industry	Retail FMCG Restaurants
Founded	1844;180 years ago (1844) in Colombo Fort, Sri Lanka
Founder	William Milne David Sime Cargill
Headquarters	No. 40, York Street, Colombo , Sri Lanka
Area served	Sri Lanka
Key people	Louis Page (Chairman) Ranjit Page (Deputy Chairman/CEO) Imtiaz Abdul Wahid (Group Managing Director)
Products	FMCG Brands Magic Kotmale Kist Cargills Finest Goldi Sams Retail Brands Cargills Food City Cargills Express Cargills Online Cargills Food Hall Restaurants Brands KFC Sri Lanka T.G.I. Friday's Sri Lanka
Revenue	LKR223 billion (2024)
Operating income	LKR13.5 billion (2024)
Net income	LKR5.9 billion (2024)
Total assets	LKR133 billion (2024)
Total equity	LKR36 billion (2024)
Owners	C T Holdings (71.2%) Ranjit Page (7.9%) Employees' Provident Fund (3.3%)
Number of employees	11,300+ (2024)
Parent	C T Holdings
Website	www.cargillsceylon.com
Footnotes /references [1]

Cargills (Ceylon) PLC is a Sri Lankan consumer company which is listed on the Colombo Stock Exchange. It is a market leader in the Modern Retail (supermarkets), FMCG, and Restaurants industries and also has a presence in the Banking, Real Estate, and Cinema sectors. The controlling interest in the company is held by C T Holdings PLC. ^[2]

History

In 1844 British businessman William Milne started Milne & Company, ^{[3] [4]} general warehousemen, importers of oilman stores etc, ^[5] with branches in Kandy and Galle. In 1850 Milne was joined by his friend, David Sime Cargill, ^[6] and the firm became Milne, Cargill & Co. ^[7] In 1860 Milne retired from business in Ceylon and moved back to Scotland to form a company in Glasgow to look after the business of Cargill & Co. in the UK. Cargill became the sole partner until he was joined by David MacKenzie and the name was changed to Cargill & Co. The company had a Colombo office at the intersection of Price and York Streets in Colombo Fort, a Kandy office at Upper Lake Road and an office in Galle Fort at 22 Pedlar Street. The Galle office was closed down in 1863. In 1890 the business expanded with the purchase of Medical Hall, a chemist and druggist company. Cargills also established another company, Sime & Co., ^[7] which sold lower quality goods. In 1896 Cargill & Co. was converted into a limited liability company registered in Glasgow. ^{[5] [7]} Two years later, the company bought James McLaren & Co.’s business in Nuwara Eliya, establishing a branch there.

Cargills building, Colombo Fort

Historic Cargills building

The iconic Cargills building in the centre of Colombo Fort was originally the residence of Captain Pieter Sluysken, the former Dutch military commander of Galle. ^[8] It was subsequently occupied by the first British Governor of Ceylon, Sir Frederick North, who lived there for a short time before moving to a spacious villa in Hulftsdorp. The building was acquired by Cargills in 1896, while D.S. Cargill was Chairman, Walter Hamilton was the Director and William Jenkins was the General Manager. Construction of the current building commenced in 1902, it was designed by Edward Skinner, built by Walker Sons and Company and completed in 1906. A foundation stone dated 1684 and a wooden statue of Minerva (Roman goddess of wisdom, arts and trade), ^[8] both retrieved from the gable end of Sluysken's house, are preserved by the ground floor lift. By 1909 employed "an executive staff of 32 Europeans and 600 hands." ^[8]

Following a successful bid by Sir Chittampalam A. Gardiner, the business was incorporated as a Public limited company on 1 March 1946. ^[8]

Transformation

In 1981 Ceylon Theatres (now CT Holdings PLC) acquired a controlling interest in the company ^[8] and Albert A. Page was appointed the Managing Director. Page went on to become the Chairman of Cargills on 26 November 1982.

Under the new management, Cargills explored the potential of innovating on its trading legacy. As a result, in 1983 Cargills established its first supermarket, with the opening of Cargills Food City at Staple Street, Colombo. In years to follow, Cargills expanded its supermarket chain across Sri Lanka, making it the largest and most extensive modern trade player in the country.

Cargills ventured into the production of processed meats in 1993 when the Company invested in its first manufacturing facility, in Mattakkuliya. In 1994, Cargills obtained the local franchisee rights for KFC Kentucky Fried Chicken, setting up the first restaurant at the Majestic City shopping complex. KFC Sri Lanka is presently the largest fast-food chain in the country, with over 70 locations.

Cargills began sourcing fruits and vegetables directly from farmers in 1999 when it established its first collection centre in Hanguranketha. This transformed the company and its philosophy, extending its reach beyond Colombo and starting its engagement with the faming community of Sri Lanka.

In 2002 it acquired a dairy processing plant and expanded its farmer outgrower network to include dairy farmers. The Magic ice cream brand was the outcome of this endeavour. In the same year, Cargills diversified into agri-processing with the acquisition of the Kist brand which created further market opportunities for farmers.

In 2008 Cargills acquired Millers Limited consolidating its marketing and distribution operation.

In 2010 Cargills undertook an aggressive expansion plan in the FMCG sector to ride the growth potential of a growing economy. During that year the Company expanded its interests in the dairy sector by acquiring Kotmale Holdings PLC ^[9] and entered another growing category with the acquisition of Diana Biscuits, now marketed under the Kist brand. ^[10]

In 2011, the Company secured a provisional commercial banking license from the Central Bank of Sri Lanka and commenced operations in 2014.

Cargills acquired the franchise license for T.G.I. Friday's and opened its first restaurant at Colombo Fort in October 2013. The restaurant was later relocated to the One Galle Face mall in Colombo. That same year, Cargills opened the first Cargills Square shopping mall in Jaffna, with the Group's brands being the anchor tenants. These shopping and entertainment malls consists of Cinemas, restaurants, and retail outlets. Cargills has opened 5 such shopping complexes to date, located in Jaffna, Gampaha, Dematagoda, Bandarawela, and Katubedda.

Cargills along with its parent company C T Holdings also own the Ceylon Theatres cinema business which operates the Regal and Majestic Cinemas. Ceylon Theatres has been a pioneer in the movie production and exhibition business in Sri Lanka since 1928, and has consistently played a pivotal role in exhibiting, importing, and distributing motion pictures.

Operating sectors

Retail

Cargills is involved in retailing fresh and packaged goods through the following brands:

• Cargills Express - convenience stores
• Cargills Food City ^[11] - supermarkets
• Cargills Online - e-commerce
• Cargills Food Hall ^[2] - gourmet high-end supermarkets

The Cargills Retail sector operates over 530 supermarket stores across Sri Lanka. ^[12] It is the only private retailer in the country to have a presence in all districts of the country and has built its brand on the promise of convenience and lowest prices for the consumer. The business is operated through a decentralised set up consisting of 1 Central Distribution Centre for dry goods, ^[13] 13 fresh produce collection centres, 2 Central Processing Centres for fresh produce and seafood, and a 24-hour delivery system inclusive of a cold-chain. In 2023, Cargills also commenced fuel retailing through a partnership with Lanka IOC at selected outlets. ^[14]

Food manufacturing

Cargills is involved in food manufacturing through the following national brands:

• Kist - a range condiments and fruit based beverages
• Knuckles - premium bottled water
• Ride - energy drinks
• Festiva - seasonings and spices
• Magic - dairy ice cream
• Kotmale - dairy products such as cheese, butter, flavoured milk, UHT milk, pasteurised milk, yoghurts
• Goldi - frozen foods/processed meats

The Cargills FMCG business is one of the largest in Sri Lanka. It has 10 production facilities across the country which produces a range of products from value added dairy, confectionery, convenience foods, beverages, to condiments and spices.

Restaurants

The company is the Sri Lankan franchisee for international restaurant chains:

• KFC
• T.G.I. Fridays

Distribution

Millers - imports and distributes renowned global FMCG brands across Sri Lanka ^[2]

Banking

• Cargills Bank PLC - the Cargills Bank commenced operations in 2014 and is one of the newest entrants to the Sri Lankan banking sphere. The Cargills Bank has an agency banking arrangement with Cargills Retail supermarkets, which gives it access to multiple consumer touchpoints, in addition to its standalone bank branches. The bank was listed on the Colombo Stock Exchange in January 2024. ^[15]

Real estate

Cargills owns and operates five shopping and entertainment malls across the country, under the Cargills Square banner. The anchor tenants within these malls are Cargills brands such as Cargills Food City, KFC and Regal cinemas. The malls include fashion retailers, food courts, cinemas, supermarkets, cafes, and restaurants, creating entertainment opportunities for families and youth.

Entertainment

Cargills together with its parent company CT Holdings, owns and operates and Regal cinema network and the Majestic cineplex in Colombo. As a pioneer in the movie production and exhibition business since 1928, Ceylon Theatres Pvt Ltd has consistently played a pivotal role in exhibiting, importing, and distributing motion pictures.

Presently, Ceylon Theatres Pvt Ltd operates 18 state-of-the-art screens across the island, including Majestic Cineplex (Colombo), Regal (Colombo, Katubedda, Dematagoda, Gampaha, Nuwara Eliya, Jaffna and Bandarawela). Notably, Regal (Colombo) stands as a leading release centre for Sinhala movies, while Majestic and Empire Cineplex’s releases English and Hindi films.

References

1. "Annual Report 2022/23" (PDF). cse.lk. Cargills (Ceylon) PLC. Retrieved 29 January 2024.
2. Cargills Ceylon - Annual Report 2022/2023.
3. Ceylon Cold Stores (1969). Ceylon in Our Times, 1894-1969. Colombo Apothecaries. p. 54.
4. "Cargills Ceylon website". 31 July 2023.
5. "Origin of Big Oil Companies". The Glasgow Herald . 8 August 1944. p. 5. Retrieved 25 September 2016.
6. Corley, T. A. B. (May 2006). "David Sime (1826–1904)" . Oxford Dictionary of National Biography (online ed.). Oxford University Press. doi:10.1093/ref:odnb/47989 . Retrieved 13 August 2016.(Subscription or UK public library membership required.)
7. MacMillan, Allister (1928). Seaports of India and Ceylon: Historical and Descriptive, Commercial and Industrial, Facts, Figures, & Resources. W. H. & L. Collingridge. p. 433.
8. "A symbol of yore". Sunday Times . 29 November 1988. Retrieved 26 September 2016.
9. "Home | Cargills (Ceylon) PLC".
10. "Home | Cargills (Ceylon) PLC".
11. Cargills Food City
12. "Cargills opens 500th store". October 2022.
13. "Cargills opens state of the art distribution center".
14. "Enters fuel retailing".
15. "Cargills Bank listed on the CSE".

External links

• Official Website