Lankem Ceylon

Lankem Ceylon PLC is a diversified Sri Lankan manufacturing and investment company whose principal activities have centered on chemicals, paints, agrochemicals and consumer goods. The company also developed an operating presence in hospitality through ownership and operation of resorts in Sri Lanka. Its history began in 1964, when Royal Dutch Shell incorporated the business as Shell Chemical Company of Ceylon Limited to operate in the agrochemical sector. The company subsequently became known as Lankem Ceylon and was listed on the Colombo Stock Exchange in 1970. Chemical manufacturing remains an important part of the company's identity. Through Lankem Chemical Ltd, a subsidiary, the group has been described as Sri Lanka's largest manufacturer and importer of paint thinner. Its product and manufacturing activities extend beyond thinner to chemicals and paints, supporting industrial, construction and consumer markets. In 2012, Lankem inaugurated a manufacturing plant at Sapugaskanda for paint thinner and other chemicals. The facility represented an investment of LKR120 million and expanded the company's domestic production capacity. Lankem Ceylon has also used acquisitions and investments to broaden its portfolio. In 2010, it acquired C. W. Mackie, a Sri Lankan consumer-products business that became a subsidiary. The group later increased its exposure to printing and packaging through the acquisition of a controlling interest in ACME Printing & Packaging PLC. After Richardson Holdings Ltd. divested a 19.43 percent stake in ACME, E. B. Creasy & Company, an associate of Lankem Ceylon, acquired the shares. This raised Lankem Ceylon and related parties' combined holding to 32.17 percent and triggered a mandatory offer under Sri Lanka's takeover rules. Following the offer, Lankem Ceylon increased its stake in ACME to 88.27 percent. The company faced financial and operating pressures during the late 2010s and early 2020s. A 2017 academic study identified gaps between the company's practices and contemporary management-accounting techniques, including activity-based costing, activity-based management and the balanced-scorecard approach. In September 2020, ICRA Lanka withdrew an [SL]D rating at the company's request. In June 2021, a proposed LKR677 million rights issue was undersubscribed; the company raised LKR352.3 million. Despite supply-chain disruptions, Lankem reported a profit in the fourth quarter of the 2020–21 financial year, its first fourth-quarter profit since 2014–15. Gross profit for that quarter was reported at LKR827 million, 46 percent higher than in the comparable period of 2019–20. Lankem has also participated in research and social-impact initiatives. It is among the private-sector partners of the Sri Lanka Institute of Nanotechnology, alongside other companies and the Ministry of Technology. In 2023, its subsidiary C. W. Mackie PLC supported healthcare infrastructure by renovating the Accident and Emergency Ward and constructing a mini-surgical theatre at Anuradhapura Teaching Hospital. The project was presented as an effort to strengthen emergency and surgical care in the region. The company has been recognized within Sri Lankan corporate rankings. Brand Finance placed Lankem Ceylon 88th among Sri Lanka's most valuable brands, while the company ranked 61st in the LMD 100 list for the 2019–20 financial year, a ranking of quoted companies by revenue. Overall, Lankem Ceylon is best understood as a diversified Sri Lankan corporate brand built around industrial chemicals and consumer products, with additional exposure to paints, packaging, hospitality, research partnerships and community investment.

Lankem Ceylon traces its origins to 1964, when Royal Dutch Shell incorporated Shell Chemical Company of Ceylon Limited in Sri Lanka. The original business was established as an agrochemical company, placing it within the country's developing industrial and agricultural supply chain. The company was listed on the Colombo Stock Exchange in 1970, giving it access to public capital and making it part of Sri Lanka's quoted corporate sector. Over time, the business expanded beyond its initial agrochemical focus. Its activities came to include chemical manufacturing and importing, paints, paint thinner and consumer products. Lankem Chemical Ltd, a subsidiary, became associated with the paint-thinner market and has been described as Sri Lanka's largest manufacturer and importer of paint thinner. In 2012, Lankem inaugurated a new plant at Sapugaskanda for paint thinner and chemical production. The facility cost LKR120 million and represented an effort to strengthen domestic manufacturing capacity. A significant portfolio expansion occurred in 2010, when Lankem Ceylon acquired C. W. Mackie. The transaction brought a consumer-products business into the group and broadened Lankem's exposure beyond industrial chemicals. The company also maintained interests in hospitality through ownership and operation of resorts in Sri Lanka. These activities formed part of a diversified corporate model rather than a single-category consumer brand. The company's management and financial practices attracted attention during the following decade. A 2017 study reported that Lankem was not applying several contemporary management-accounting methods, including activity-based costing, activity-based management and the balanced scorecard. In June 2020, Suren Goonewardene became managing director. In September of the same year, ICRA Lanka withdrew an [SL]D rating at the company's request. Capital-raising and restructuring became prominent issues in 2021. A LKR677 million rights issue launched in June was undersubscribed, and the company raised LKR352.3 million. During the 2020–21 financial year, supply-chain disruptions created operating challenges, but Lankem reported a fourth-quarter profit for the first time since 2014–15. Its fourth-quarter gross profit was LKR827 million, representing a 46 percent increase over 2019–20. Lankem also expanded through the printing and packaging sector. When Richardson Holdings Ltd. sold its 19.43 percent stake in ACME Printing & Packaging PLC, E. B. Creasy & Company, an associate of Lankem Ceylon, acquired the holding. The combined ownership of Lankem Ceylon and related parties reached 32.17 percent, prompting a mandatory offer under Sri Lanka's 1995 Company Takeovers and Mergers Code. Lankem submitted its offer application to the Securities and Exchange Commission of Sri Lanka on 16 September 2021 at LKR12 per share. The subsequent transaction increased Lankem's stake in ACME to 88.27 percent, making it the controlling shareholder. The group has participated in applied research and community initiatives. It is a partner of the Sri Lanka Institute of Nanotechnology together with other private companies and the Ministry of Technology. In September 2023, C. W. Mackie renovated the Accident and Emergency Ward and constructed a mini-surgical theatre at Anuradhapura Teaching Hospital. The project was recognized locally for improving emergency and surgical-care capacity. Lankem's corporate profile has also been reflected in Sri Lankan business rankings. Brand Finance ranked it 88th among the country's most valuable brands, and it placed 61st in the LMD 100 ranking for the 2019–20 financial year. The company's development therefore combines an industrial chemicals heritage with consumer goods, paints, packaging, hospitality, research cooperation and social investment.

• 2023

  Hospital infrastructure project completed

  [1]Lankem Ceylonen.wikipedia.org

  C. W. Mackie renovated an emergency ward and built a mini-surgical theatre at Anuradhapura Teaching Hospital.

• 2021

  ACME Printing & Packaging becomes controlled investment

  [1]Lankem Ceylonen.wikipedia.org

  Following a mandatory offer, Lankem increased its stake in ACME Printing & Packaging to 88.27 percent.

• 2020

  New managing director appointed

  [1]Lankem Ceylonen.wikipedia.org

  Suren Goonewardene was appointed managing director in June.

• 2012

  Sapugaskanda chemical plant inaugurated

  [1]Lankem Ceylonen.wikipedia.org

  The company opened a LKR120 million facility for paint thinner and chemical manufacturing at Sapugaskanda.

• 2010

  Acquisition of C. W. Mackie

  [1]Lankem Ceylonen.wikipedia.org

  Lankem Ceylon acquired C. W. Mackie, broadening its consumer-products activities.

• 1970

  Colombo Stock Exchange listing

  [1]Lankem Ceylonen.wikipedia.org

  The company became listed on the Colombo Stock Exchange.

• 1964

  Incorporation as Shell Chemical Company of Ceylon

  [1]Lankem Ceylonen.wikipedia.org

  Royal Dutch Shell incorporated the company in Sri Lanka as an agrochemical business.

A diversified Sri Lankan industrial and consumer-products group with a strong chemicals and paints base, complemented by acquisitions, packaging, hospitality and social-investment activities.

• Agricultural chemicals · 1964

  Agrochemicals

  Agrochemicals were the company's original business area following its incorporation by Royal Dutch Shell. The category established Lankem's early role in supplying chemical products to Sri Lanka's agricultural economy, although the available reference material does not identify individual product names or formulations.

• Chemical products

  Paint thinner

  Paint thinner is one of Lankem's best-documented chemical product categories. Lankem Chemical Ltd has been described as Sri Lanka's largest manufacturer and importer of paint thinner. Production was supported by the Sapugaskanda plant inaugurated in 2012.

• Construction and industrial chemicals

  Paints and industrial chemicals

  Lankem's manufacturing portfolio includes paints and other chemicals serving industrial and construction-related applications. The supplied sources do not provide a complete catalogue of brands, formulations or channels, so this entry describes the portfolio at category level.

• Consumer products · 2010

  Consumer goods

  Through the acquisition of C. W. Mackie, Lankem expanded into consumer goods. The available material confirms the business area but does not specify the full product range or individual consumer brands.

• Packaging · 2021

  Printing and packaging

  Lankem's controlling investment in ACME Printing & Packaging gave the group exposure to printing and packaging operations. This is a group business and not necessarily a product sold under the Lankem name.

• Hospitality

  Hospitality and resorts

  The company has also owned and operated resorts in Sri Lanka, adding hospitality to its manufacturing and consumer-goods activities. Specific resort names and current operating status are not identified in the supplied material.

• 2021

  Mandatory offer for ACME Printing & PackagingM&A

  Background

  The acquisition by E. B. Creasy & Company of Richardson Holdings' 19.43 percent stake in ACME raised Lankem Ceylon and related parties' combined holding to 32.17 percent, triggering takeover obligations.

  Action taken

  Lankem submitted a mandatory-offer application on 16 September 2021 at LKR12 per share and subsequently increased its stake in ACME to 88.27 percent.

  Aftermath

  Lankem became the controlling shareholder of ACME Printing & Packaging, with most minority shareholders responding positively to the offer.

  Source

• 2021

  Rights issue to raise capitalStrategy

  Background

  The company pursued new equity funding during a period of financial and supply-chain pressure.

  Action taken

  Lankem launched a LKR677 million rights issue in June 2021.

  Aftermath

  The issue was undersubscribed and raised LKR352.3 million.

  Rights-issue proceeds. LKR677 million target → LKR352.3 million raised (June 2021)

  Source

• 2012

  Sapugaskanda chemical manufacturing plantProduct launch

  Background

  The company needed additional domestic capacity for paint thinner and chemical production.

  Action taken

  Lankem inaugurated a new plant at Sapugaskanda.

  Aftermath

  The facility strengthened the group's position in paint thinner manufacturing and importing.

  Plant investment. LKR120 million invested (2012)

  Source

• 2010

  Acquisition of C. W. MackieM&A

  Background

  Lankem sought to diversify beyond its chemicals and paints base.

  Action taken

  The company acquired C. W. Mackie, adding consumer-products operations to the group.

  Aftermath

  C. W. Mackie continued as a subsidiary and later undertook a hospital infrastructure project.

  Source

• 2023

  C. W. Mackie supports hospital infrastructure project[1]Lankem Ceylonen.wikipedia.org

  Other

  Subsidiary C. W. Mackie PLC renovated the Accident and Emergency Ward and built a mini-surgical theatre at Anuradhapura Teaching Hospital.

• 2021

  Lankem Ceylon rights issue falls short of target[1]Lankem Ceylonen.wikipedia.org

  Other

  A LKR677 million rights issue was undersubscribed in June 2021, with the company raising LKR352.3 million.

• 2021

  Lankem reports first fourth-quarter profit since 2014–15[1]Lankem Ceylonen.wikipedia.org

  Other

  Despite supply-chain disruption, Lankem reported a fourth-quarter profit in the 2020–21 financial year. Gross profit was reported as LKR827 million, up 46 percent year on year.

• 2021

  Lankem increases holding in ACME Printing & Packaging[1]Lankem Ceylonen.wikipedia.org

  M&A

  Following a mandatory offer, Lankem Ceylon and related parties increased their ownership of ACME Printing & Packaging PLC, with Lankem ultimately holding 88.27 percent.

• 2020

  Suren Goonewardene appointed managing director[1]Lankem Ceylonen.wikipedia.org

  Leadership change

  Suren Goonewardene was appointed managing director of Lankem Ceylon in June 2020.

• 2020

  ICRA Lanka withdraws Lankem Ceylon rating at company request[1]Lankem Ceylonen.wikipedia.org

  Other

  ICRA Lanka withdrew its [SL]D rating for the company in September 2020 at Lankem Ceylon's request.

1. 1Lankem Ceylonen.wikipedia.org