Cargills (Ceylon) Plc to hold 49% stake in Indo-Lanka dairy venture

Cargills (Ceylon) Plc Deputy Chairman/CEO  Ranjit Page (right) holding the copy of the agreement signed involving Indian National Dairy Development Board, the Gujarat Cooperative Milk Marketing Federation of India (Amul), on Wednesday in the presence of President Ranil Wickremesinghe, Foreign Affairs Minister Ali Sabry and the visiting India’s External Affairs  Minister Dr. S. Jaishankar

Cargills (Ceylon) Plc said yesterday it will hold a strategic 49% stake in the new Indo-Lanka dairy venture following a Government-to-Government deal signed in Colombo on Wednesday.

Cargills said a Joint Declaration of Intent (JDI) was signed in July 2023 between the Department of Animal Husbandry and Dairying of the Ministry of Fisheries, Animal Husbandry and Dairying of the Republic of India, and the Ministry of Agriculture of the Democratic Socialist Republic of Sri Lanka for

cooperation in the field of Animal Husbandry and Dairying.

The JDI envisages the formation of a joint venture company to implement the objectives set out in the JDI with the participation of the relevant entities from India and Sri Lanka.

In discussions between all the stakeholders involved, the Indian partners have conveyed that a joint venture will be formed between National Dairy Development Board of India (NDDB), Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), and Cargills (Ceylon) PLC (CCP) as the local partner and a shareholder agreement is under discussion between the parties.

“We hereby confirm that the shareholders agreement has been executed on 11 October 2023 between National Dairy Development Board of India (NDDB), Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), and Cargills (Ceylon) PLC (CCP) towards the formation of a joint venture company to implement the objectives set out in the JDI,” Cargills said.

According to this agreement, Cargills (Ceylon) PLC will hold a shareholding of 49%.

It said further disclosures will be made to the Colombo Stock Exchange as and when the requisite approvals are granted for the venture.

On Wednesday, the President’s Media in a statement said the partnership aims to advance Sri Lanka’s local dairy industry, a strategic move prompted by President Ranil Wickremesinghe’s official visit to India and the allocation of funding for the modernisation of Sri Lanka’s livestock sector.

“The main aim of this initiative is to strengthen milk production by an impressive 53% within the first five years, ultimately achieving self-sufficiency in milk production for Sri Lanka within 15 years.

This initiative anticipates empowering around 200,000 local farmers through the provision of high-quality medicines, animal nutrition, and technical support,” the President’s Media said.

“Furthermore, this collaborative effort will drive the digitalisation of the livestock sector, infuse investments in cutting-edge technologies to enhance the quality of milk-related by-products and ensure access to milk-related products at affordable prices,” it added.