Sri Lankaâ€™s Cargills spends Rs3bn on new centralized logistics centre
ECONOMYNEXT – Cargills (Ceylon), which operates Sri Lanka’s biggest supermarket chain, is investing three billion rupees on a new centralized logistics centre to meet its future islandwide supply chain requirements.
“To support our growth, the business commenced construction of a new centralized logistics centre,” group chairman Louis Page told shareholders in the company’s annual report for last year.
The logistics centre will eventually centralize all logistics operations of the business with the Cargills ‘Food City’ supermarket chain expanding to 400 outlets this year.
Cargills said its investment for the first phase of the project is estimated at three billion rupees with operations scheduled to start in the first half of the 2020/21 financial year.
“The location has sufficient space for expansion, and we expect this site to meet our distribution and logistics needs for the foreseeable future,” it said.
“The planned state-of-the-art logistics centre will allow us to meet the requirements of the Cargills Food City channel for the foreseeable future, and allow us to continue our expansion throughout the country.
The retail operation expects to open its 400th outlet during the coming year, and sees good growth potential to continue expansion.
Cargills now has 380 supermarkets in all districts of the island, having added 27 outlets in 2018/19.
(COLOMBO, 04 July, 2019)