Cargills (Ceylon)

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Cargills (Ceylon) PLC
Type Public
CSE:  CARG.N0000
Industry Banking
Retail
FMCG
Restaurant
Founded1944;77 years ago (1944)
in Colombo Fort, Sri Lanka
FounderWilliam Milne
David Sime Cargill
HeadquartersNo. 40, York Street, Colombo 1, Sri Lanka.
Area served
Sri Lanka
Key people
Louis R. Page
Chairman
Valentine Ranjitkumar Page
CEO
Dilantha Jayawardhana
CFO
Products FMCG Brands
Cargills Magic
Heavenly
Kotmale
Cargills Kist
Cargills Supremo
Cargills Finest
Cargills Goldi
Cargills Sams
Milca
Cargills Lanka Milk

Retail Brands
Cargills Food City
Cargills Food City Express
Cargills Big City
Cargills Book City

Restaurant Brands
KFC Sri Lanka
T.G.I. Friday'sSri Lanka
RevenueIncrease2.svg Rs 94.661 billion (2019) [1]
Decrease2.svg Rs 4.687 billion (2019) [1]
Decrease2.svg Rs 2.032 billion (2019) [1]
Total assets Increase2.svg Rs 36.641 billion (2019) [1]
Total equity Increase2.svg Rs 5.965 billion (2019) [1]
OwnerC T Holdings PLC (70.2%)
V R Page (6.77%)
Employees' Provident Fund (3.28%)
Number of employees
Increase2.svg 8,932 (2019) [1]
Parent C T Holdings PLC
Subsidiaries
  • Cargills Foods Company (Private) Limited
    *Cargills Quality Foods Limited
    *Ceylon Agro Development Company (Private) Limited
    *Cargills Quality Dairies (Private) Limited
    *Cargills Agrifoods Limited
    *C P C (Lanka) Limited
    *Millers Limited
    *Cargills Quality Confectionaries (Private) Limited
    *Cargills Food Processors (Private) Limited
    *Kotmale Holdings PLC
    *Cargills Food Services (Private) Limited
Website www.cargillsceylon.com

Cargills (Ceylon) PLC is a Sri Lankan Retail, FMCG, Banking and Restaurant company which is listed on the Colombo Stock Exchange. The controlling interest in the company is held by Ceylon Theatres PLC. [2]

Contents

History

In 1844 British businessman William Milne started ‘Milne & Company', [3] general warehousemen, importers of oilman stores etc, [4] with branches in Kandy and Galle. In 1850 Milne was joined by his friend, David Sime Cargill, [5] and the firm became ‘Milne, Cargill & Co'. [6] 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 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.’, [6] which sold lower quality goods. In 1896 Cargill & Co. was converted into a Limited Liability Company registered in Glasgow. [4] [6] Two years later, the company bought James McLaren &Co.’s business in Nuwara Eliya, establishing a branch there.

Cargills - York Street

Historic Cargills building Cargills (9).jpg
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. [7] 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 the Director and William Jenkins was 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), [7] 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." [7]

Following a successful bid by Sir Chittampalam A. Gardiner the business was incorporated as a Public limited company on 1 March 1946. [7]

In 1981 Ceylon Theatres acquired a controlling interest in the company [7] 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 the first supermarket chain in Sri Lanka with the opening of its first outlet at Staple Street.

Cargills ventured into the production of processed meats in 1993 when the Company invested in its first manufacturing facility, Cargills Quality Foods, in Mattakkuliya. In 1996 Cargills acquired the franchise license for KFC and innovated on its secret recipe to deliver products that suited the local palate.

Cargills began sourcing fruits and vegetables directly from farmers in 1999 when it established its first collection centre in Hanguranketha. In 2002 it invested in a dairy processing plant and thereby expanded its outgrower network to include dairy farmers. Cargills Magic ice cream was the outcome of this endeavor. In the same year Cargills diversified into agri-processing with Cargills Kist 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 [8] and entered another growing category with the acquisition of Diana Biscuits now marketed under the Kist brand. [9]

In 2011, Cargills entered the soft alcohol industry by completing the acquisition of the McCallum Brewery and its brands. In the same year the Company secured a provisional commercial banking license from the Central Bank of Sri Lanka.

Cargills acquired the franchise license for T.G.I. Friday's and opened its first restaurant at Colombo Fort in October 2013. In April 2014 Cargills Bank commenced business operations and in the same year the Cargills Group kickstarted a restructuring initiative which saw Cargills exiting the soft alcohol business. As part of this restructuring, Cargills entered into agreement with the International Finance Corporation (IFC) for equity investment into the Cargills Retail sector

Banking

Modern Retailing

Cargills is involved in retailing goods through the following brands:

Food Manufacturing

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

Restaurant

Agri Business

Cargills Agri Business model [2]

Distribution

Millers Distributors [2]

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References

  1. 1 2 3 4 5 6 "Cargills Annual Report 2019" (PDF). Cargills. Cargills.
  2. 1 2 3 4 5 Cargills Ceylon PLC - Pride of the Nation
  3. Ceylon in Our Times, 1894-1969. Ceylon Cold Stores. p. 54.
  4. 1 2 "Origin of Big Oil Companies". The Glasgow Herald . 8 August 1944. p. 5. Retrieved 25 September 2016.
  5. Corley, T. A. B. (May 2006). "David Sime (1826–1904)". Oxford Dictionary of National Biography . Oxford University Press . Retrieved 13 August 2016.
  6. 1 2 3 MacMillan, Allister (1928). Seaports of India and Ceylon: Historical and Descriptive, Commercial and Industrial, Facts, Figures, & Resources. W. H. & L. Collingridge. p. 433.
  7. 1 2 3 4 5 "A symbol of yore". Sunday Times . 29 November 1988. Retrieved 26 September 2016.
  8. http://www.cargillsceylon.com/MediaCentre/News.aspx?newsId=0238
  9. http://www.cargillsceylon.com/MediaCentre/News.aspx?newsId=0241
  10. Cargills Food City