Hemas joins global multinationals to pull out from Myanmar

• Continues to look for cross border deals to expand international footprint 

Hemas Holdings PLC said this week that it had begun groundwork to pull out from the crisis-stricken Myanmar after the country’s governance system started crumbling down since a junta assumed power in a military coup in February last year. 

To this end, the company had signed a sale and purchase agreement with its joint venture partner to dispose of Hemas’ stake in the business in that country. 

“Due to the challenges in the operating environment in Myanmar, we have entered into a sale and purchase agreement with our joint venture partner to sell HHL’s stake in Myanmar,” Hemas Group CEO Kasturi C. Wilson, said.

“As a result, we will be exiting the operations in Myanmar, effectively from the fourth quarter onwards,” she added.
Hemas has a pharmaceutical distribution operation in Myanmar under Hemas Mandalar Pharmaceutical Limited, in which Hemas Holdings PLC has 35 percent stake. 

The exit isn’t expected to bring a tangible impact on the group’s overall performance. 
Hemas joined a growing number of multinationals that have been operating in the Southeast Asian nation to pull out in protest against the junta’s continued violence against civilians since the coup. 

Two weeks ago energy giants, Total Energies SE and Chevron Corp., which had operated for decades in Myanmar, announced they would exit in six months. 

“The situation, in terms of human rights and more generally the rule of law, which have kept worsening in Myanmar since the coup of February 2021, has led us to reassess the situation,” Total Energies said. 

On January 10 Myanmar’s ousted leader, Aung San SuuKyi was sentenced to four years in prison convicting the elected leader and the former Nobel laureate for the illegal possession and import of walkie-talkies, and breaking COVID rules. 

UN Human Rights Chief, Michelle Bachelet called the trial a, “sham”, and the Human Rights Watch called the legal proceedings a, “courtroom circus of secret proceedings on bogus charges... so that (Aung San SuuKyi) will remain in prison indefinitely”.

Human rights campaigners hailed the decision to pull out by the two energy giants as it will stop bankrolling junta through their joint ventures. 

Hemas however said it will continue to look for opportunities for international expansion. 
“We strengthened the focus in continuing to expand our footprint beyond Sri Lanka, as we drive our internationalisation strategy,” Wilson said. 

The company already has a growing footprint in Bangladesh under its 100 percent consumer goods subsidiary, which manufactures and sells home & personal care product range, and the company has had, “double digit cumulative revenue and profitability growth due to improved market conditions in the first two months,” Wilson said.