Home / Front Page/ Eastern Merchants PLC buys rubber products giant Microcells for Rs. 575 m

Eastern Merchants PLC buys rubber products giant Microcells for Rs. 575 m

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 28 August 2018 00:15


Eastern Merchants PLC has acquired a 100% shareholding of Microcells Ltd., one of the premier rubber products manufacturers in Sri Lanka for Rs. 575 million.

The acquisition the biggest by Eastern Merchants PLC and was funded by a mix of equity and short-term debt.

Eastern Merchants PLC Deputy Chairman Harin de Silva said: “The acquisition is timely and in line with the company’s strategic plans to become a fully integrated rubber player.”

Eastern Merchants move also comes at a time when the Government is keen on boosting the rubber products exports sector. Last year the value-added rubber products sector earned a record $ 845 million last year.

Established in 1945, Eastern Merchants PLC is one of the major trading houses in Sri Lanka and a major exporter of natural rubber. Its portfolio also includes coconut fibre, desiccated coconut and 

Sri Lankan spices.

“Given the deep experience with natural rubber, the well placed sourcing networks and strong supply chain, Eastern Merchants PLC is certain of its ability to realise the synergistic value of this acquisition,” the company’s Managing Director Channa de Silva said.

Founded in 1978 by entrepreneur Anil Wickremeratne, Microcells Ltd. manufactures and exports technical rubber matting and sheeting products to a global client base. The products of award-winning Microcells has applications in multiple sectors ranging from the agricultural to industrial sectors. A Board of Investment approved venture, Microcells has its factory and office complex in Piliyandala and employs over 150 personnel.

The Board of Eastern Merchants PLC also believes that through this acquisition the company will be able to reach new heights and fulfil its fullest potential while continuing to create shareholder value.

In FY18 as per interim accounts, Eastern Merchants Plc’s consolidated revenue was Rs. 1.4 billion, up 19% from the previous year. However the Group posted a post-tax loss of Rs. 10.9 million, down by 11% from a year earlier.

The Board of Directors of Eastern Merchants Plc comprises J.B.L. de Silva (Chairman), H.J. de Silva (Deputy Chairman), C.S.L. de Silva (Managing Director), S. Jayakody, N.K.L. Tilakaratna, C.I. Tilakaratna, F. Mushin and R. Pradeep.

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Our Cricket Board simply cannot deliver – why not they all quit honourably?

Tuesday, 18 June 2019

“It is necessary, therefore, for the Government to pay serious attention to the doings of Sri Lanka Cricket [board] and take immediate action to lift their game for the progress of our glorious game.” Question for Sri Lanka Cricket (board) Sri La

Yesterday Tamils, today Muslims and tomorrow who?

Tuesday, 18 June 2019

From the time of S.W.R.D. Bandaranaike’s election victory in 1956, one and only one issue had dominated political party campaigns in this country; and that was communalism. The Tamil community was the main focus of these campaigns for over 50 years

Those who go by social proof are easy prey to crafty schemers

Monday, 17 June 2019

Going after social proof Swiss writer and novelist, Rolf Dobelli, in one of the essays in his 2013 book ‘The Art of Thinking Clearly’, has given a fine warning to his readers. He has warned against going by ‘social proof’ or ‘majority view

Poson ponderings on positional power: ‘Authority vested’ vs. ‘authority wasted’

Monday, 17 June 2019

We witnessed a serene Poson Poya, in a far more improved security setting in Sri Lanka. Whilst the Sri Lankan life slowly returning to normal, political fronts do not appear to show the same. Has the political power become the people ‘pava’ (sin)

Columnists More