Cargill’s (Ceylon) PLC opened a centralised distribution centre, marking another milestone in its history.
Cargills has grown to become Sri Lanka’s largest food company over the past 40 years, with a primary focus on developing markets and assisting the farming community and local entrepreneurs. Cargills philosophy has always been centered on community development.
The facility, in Katana, was built with a Rs. 4 billion investment and spans 28-acres - a symbol of the company’s commitment to improve supply chain logistics, productivity, and efficiency to drive economic activity at the grassroots level. On average, this facility has the capacity to distribute 50,000 CBF per day.
Group Deputy Chairman of Cargills (Ceylon) PLC, Ranjit Page told Sunday Observer Business, “How I see it, as one of the largest local food companies, we have to feed the nation. We have a responsibility, and our customers made us who we are, so we can’t ignore them. Also, small producers helped shape who we are, so we must not forget them or the farming community. They are all from Sri Lanka.
“We opened the first supermarket in 1983, a few months after the communal riots, but we did not flee Sri Lanka. We faced challenges, and we addressed them by winning the hearts of the people (‘bokken thama dina gaththe’). We understand the daily needs of our customers when we feed them.
“Every Sri Lankan household needs coconut oil and coconuts. So we would have failed if we raised the prices of coconut and coconut oil. So we set a challenge for the sales team this year: no price increases. They must bear the price increase unless it is completely impossible due to additional taxes. That does not imply that we are profitable. As I previously said, customers, SMVs, farmers, and other partners helped shape us into the largest food company in the country.
“It’s very sad that so many people are leaving Sri Lanka, but I hope and believe that they will all return very soon. And I believe that if we all come together as one country; tomorrow will be a better, brighter day.
“It is unlikely to happen anytime soon, but we will work together as a company to share the partnership we have built with many people over the past 40 years. I’m proud to say that we are most likely one company with 320 small-scale producers. This facility isn’t only for us; it’s also for them.
“We are probably the only company that travels across the country 30 or more times per day. As a result, we can collect goods from a variety of people. So we can bring it here, take it to the customer, take it to any of our seven manufacturing facilities, and make a product and sell,” said Page.
The 325,000-square-foot space is dedicated to developing local businesses, from demand planning to cost reduction, the benefits of which will be directly passed on to consumers. The distribution centre will also allow Cargill’s to better serve small and medium-sized businesses by providing them with easier access to markets and delivering affordable nutrition across the country.
Cargill’s also has a large fleet of vehicles that makes approximately 45 rounds across Sri Lanka every day, connecting all of its suppliers.
Chief Operating Officer of Cargill’s Group, Arjuna Kumarasinghe said, “Our newest investment is more than a landmark of excellence in operations and technology. It reaffirms our commitment to developing the nation while uplifting small and medium entrepreneurs and farmers across our island nation through greater integration of our supply chain, this is centrally located, close to the airport and port, to ensure smooth logistics.
“We believe that our distribution centre will be another stepping stone on our path to building a sustainable business while also contributing to the advancement of our country,” he said.
To demonstrate its environmental commitment, this facility is outfitted with 1 megawatt of solar power and a rainwater harvesting system. The parking lot at this facility has been paved with Plastic Modified Asphalt Concrete (PMAC), with 4,600 kg of non-recyclable waste plastic used for this purpose.
The distribution centre will help Cargills fulfill its commitment to develop small and medium-sized businesses while also allowing Sri Lanka to focus on locally grown products rather than relying on imports. Cargills believes that the value created for entrepreneurs and consumers through the center will alleviate the burden at a time when food inflation in the country has reached an all-time high.
Cargills has over 900 suppliers, with approximately 320 of them being small and medium-sized businesses.
The company has a farmer base of 20,000 people who will benefit from the improved infrastructure, as the distribution centre was designed to expand in the future to help local food producers and create export opportunities.