2/18/2015 12:00:00 AM
IFC, a member of the World Bank Group, is investing LKR 2,550 million for an 8% equity stake in Sri Lanka’s Cargills Foods Company Pvt Limited (CFC), the retail subsidiary of Cargills (Ceylon) PLC to help the company expand its operations in the country, enhance its backward integration system and develop the efficiency of its supply chains.
'As Cargills Foods expands across Sri Lanka it will create more jobs and opportunities for skills development,” said Adam Sack, IFC Country Manager for Sri Lanka and Maldives. “IFC will share its global experience and industry knowledge to help improve efficiency and standards throughout the company’s supply chain.'
IFC’s investment in the company is also expected to help advance the internal processes of Cargills’ retail business. CFC is currently moving towards internationally accredited management systems for environmental and social standards while continuing to open opportunities for employment for rural youth and expand sustainable markets for farmers.
'This endorsement of our retail business by an institution of the caliber of IFC is a major positive for our Group. Our business model is driven by the principle of value creation for consumers, producers and the community through sustainable investment and growth that is focused across Sri Lanka. Nevertheless, over the past several years this ethos has faced serious challenges from the macro and fiscal environments. Together with IFC we would look to build on our business model, fine-tune our systems and processes and meet the expectations of all our stakeholders,' said Ranjit Page, Deputy Chairman of Cargills (Ceylon) PLC.
Sri Lanka’s modern trade sector is at a fairly early stage and accounts for about 15% of the total trade in the country. The sector has substantial impact in streamlining supply chains, enhancing food safety and quality standards, benchmarking farm gate prices for fresh produce and fronting rural township development. In an environment of steady economic growth and consistent policy, the country’s retail sector has the potential to significantly contribute towards regional economic prosperity.
CFC owns and operates Cargills Food City, Sri Lanka’s largest private supermarket chain. It directly sources produce from over 10,000 Sri Lankan farmers, and employs over 5000people across its network.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org
About Cargills Food City
Cargills Food City is Sri Lanka’s largest private supermarket chain, with a presence across the country. Cargills has been recognized for its innovation in leading modern trade growth in Sri Lanka and for being first modern retailer to develop its own out-grower network connecting farmers to sustainable markets. In 2014 ‘Cargills Food City’ was rated the 6th most valuable brand in Sri Lanka as per the Brand Finance Index.