Bairaha Group, engaged in poultry operations in Sri Lanka, is to take a new initiative, setting up a Broiler Farm in Puttalam, according to their recently released Annual Report.
‘Bairaha Farms PLC entered into an agreement with the Board of Investment (BoI) in December 2010, to set-up a large scaled state-of-the-art Broiler Farm in a 48-acre plot of land located in the Puttalam District,’ stated Yakooth Naleem, Chief Executive Officer, Bairaha Group in the report. This is to be set up under a newly incorporated wholly-owned subsidiary company of Bairaha Farms PLC named Nature’s Best Industry Ltd.
The expected first year investment is Rs. 120 million with a total additional Rs. 240 million for the second and third years.
Nature’s Best Industry Ltd will enjoy a 10-year tax holiday during its first year of making profit or not later than two years from the date of commencement of operation, which ever comes first.
‘We estimate that this project will progressively increase our broiler birds’ production capacity by about 15-20 percent per year over the next three years,’ remarked Naleem. The first batch of birds is expected to be harvested in August/September 2011. In addition, Bairaha Farms PLC holds a minority stake in Golden Grains Ltd which is engaging in the cultivation of maize and paddy. ‘We are confident that the current conditions prevailing in the country will support poultry industry growth,’ stated Prof. M. T. A. Furkhan, Chairman, Bairaha Group in the report. ‘We are also looking to better manage our production and supply processes with a view to passing on benefits to the consumer and farmer, making chicken and DOC’s available at reasonable prices.’
Bairaha Group recorded a net profit of Rs. 486 million for the period under review compared to the Rs. 134 million net profit the previous year, according to the report. The Group further recorded a 24% growth in revenue and 263% increase in profit compared with the previous year with the share price of Bairaha Farms PLC hitting an all time high of Rs. 525.