IFC to invest in Sunshine Holdings | Sunday Observer

IFC to invest in Sunshine Holdings

20 June, 2021

The IFC will invest $5 million in  Sunshine Consumer Lanka Ltd, a subsidiary of Sunshine Holdings PLC (Group). The move marks IFC’s first local currency investment in Sri Lanka’s consumer goods sector and will allow Sunshine Consumer Lanka Ltd to diversify its fast-moving consumer goods (FMCG) portfolio by expanding its operations from branded tea to confectionery, including healthy snacks.

 This new investment, amid the economic disruptions caused by the pandemic, will support the domestic confectionary supply chain and help strengthen the overall competitiveness of the country’s FMCG sector.

 “IFC’s partnership will allow us grow further through diversification of our businesses and acquisition of a company to expand our presence in the retail sector,” said  Group Managing Director of Sunshine Holdings PLC, Vish Govindasamy adding,  “We also plan to use this opportunity to improve product quality for consumers of confectionary, while increasing revenues and overall efficiencies for the Group’s distributors.” In Sri Lanka, most rural consumers have access only to small grocers and informal markets with limited access to consumer markets. With the urban population accounting for only about 19 percent of the national total — and the consumer demand shifting toward branded and quality packaged food products — increasing market inclusion will be key to enhancing the sector’s competitiveness. Domestic spending on FMCG is estimated by Euromonitor at $5.5 billion, out of which modern retailers represent only around 15 percent. “As Sri Lanka grapples with an economic downturn due to the Covid-19 crisis, strengthening the country’s resilience is critical to ensure a strong recovery,” said  IFC’s Acting Country Manager for Sri Lanka and the Maldives, Victor Antonypillai. “Our investment in Sunshine Consumer Lanka Ltd will help expand consumer access to quality fast-moving consumer goods (FMCG) and support the domestic supply chain, while preserving jobs and ensuring sustainable growth.”

IFC’s current investment is strategically aligned to IFC’s priorities in Sri Lanka, specifically focusing on improving competitiveness, job creation, and gender and rural inclusion.