DIMO acquires fruit, vegetable export firm for Rs.450mn

Diesel & Motor Engineering PLC (DIMO), which has aggressively expanded into the agriculture sector in recent times, announced last week the acquisition of a processor of vegetable and fruits for exports for Rs.450 million. 
DIMO said it acquired 94.45 percent of the stated capital of Tropical Health Food (Private) Limited, which is engaged in the business of processing and preparing fruits and vegetables for export market, from Orhan Yilmaz for Rs.450 million. 

Tropical Health Food is a Board of Investment approved venture established in 1994 to process and export organic foods to the European market. The company is the first organic food exporting company in Sri Lanka under organic certification of Control Union-Netherland. 

As per its website, Tropical Health Food produces 3000 MT of pineapple, 100 MT of mango, 100 MT of banana, 115 MT of ripe and young jackfruits. Its factory at Heraliyawala Industrial Park, Malkaduwawa, Kurunegala, has a capacity of 8,000 jars per day.

In recent years, DIMO has stepped up investments in agribusiness. In 2018, it bought 51 percent stake each in Plantchem Ltd., and Plant Seeds Ltd., for Rs. 345.5 million and last year it upped the stake to 70 percent.  DIMO’s agriculture business includes import, sale and after-sales services of agri-machinery, import processing and distribution of agro chemicals, seeds and fertiliser, import producing, processing and sale of agricultural seeds.

For the nine months ended 31, 2022, DIMO’s agriculture segment reported revenue of Rs.7.5 billion compared to Rs.5.4 billion in the corresponding period last year, while the pre-tax profit soared to Rs.1.4 billion from Rs.580 million a year ago.  DIMO share closed at Rs.369.25 on Friday, up by Rs.4.00 or 1.10 from previous close.