HEMAS HOLDINGS LIMITED

Hemas Holdings Limited is the holding company of a Group comprising twenty active subsidiaries and three active associate companies. The Group is engaged in a diverse set of business activities, focused on,

•Healthcare•Personal Care•Leisure•Transportation•Strategic Investments.

INTRODUCTION

HISTORY

The founding of the Group took place in 1948 when the original business, Hemas (Drugs) Ltd., was set up as a pharmaceuticals and chemicals trading enterprise by Sheikh Hasannally Esufally (MBE).

In the early 1960’s, building on its strengths, the Group diversified into the manufacture of toiletries in collaboration with a French multinational.

In the late 1970’s, following the Government's drive to develop the Leisure sector, the Group embarked on a successful diversification into Travel and Tourism.

HISTORY… Group further diversified its activities into commodity exports

and apparel manufacture.

To consolidate its Leisure and Transportation businesses, the Group acquired a controlling interest in Serendib Hotels Ltd. and entered into airline services and freight forwarding.

In 1993, the Group restructured its operations by transferring the individual businesses into separate subsidiaries having clear accountability to the parent company.

Most recently, the Group has entered the Power sector where it is in the process of establishing a 100MW thermal power plant as a joint venture.

FIVE SECTORS

FMCG Sector

The largest business within our Group.This sector is engaged in the development, manufacture, marketing and distribution of FMCG products with sights set on expanding its presence overseas as well.

Fully equipped R&D facilities enhance product development with manufacturing done at an ISO 9001 production facility.Our distribution reach across the island.

Our Personal Care Products

•Baby Care : Baby Cheremy Products.•Skin Care : FairRose fairness cream, Clair Products, Velvet soap  • Female Fragrances : Goya, Capri •Hair Care  : Kumarika, Dandex Shampoo•Oral Care : Clogard toothpaste•Male Fragrances : Gold products , Pro Sport Products

Healthcare

•With over half a century’s experience in the field of pharmaceuticals, we have expanded on our key strengths to become the largest importer of pharmaceutical products in the private sector.

•portfolio of agencies, represent global R&D based pharmaceutical companies and leading suppliers of medical equipment, surgical and diagnostics.

Leisure

•With primary business activities in this sector being destination management services, operation of travel centers and ownership & management of hotels.

•Hemas is a preferred choice among world renowned travel and tour operators working within the region. Serendib, Dolphin, Sigiriya and Lihiniya Surf are the hotels that come under the umbrella of Hemas

Transportation

Our portfolio in this sector comprises airline representation, travel retailing and air & sea logistics solutions. In a highly competitive industry, Hemas has held fast to its market share improving year on year through strategic customer focus initiations and value additions.

Strategic Investments

PowerHemas made a strategic investment into the power sector, with joint venture between the Company and Lakdhanavi to construct a 100MW Thermal Power Plant. this success, we are now pursuing further opportunities in the power sector.

GarmentsWe are one of the preferred suppliers for international brand names like Nike, Tesco and Next.

Property Development

MANAGEMENT STRUCTURE

Husein EsufallyDirector & CEO

Group Management Committee

Directors & Non Executive Directors

MD(Healthcare)

MD(Personel care)

MD(Leisure)

MD(Transportation)

MD(Strtegic Management)

Organizational AnalysisFinancial Aspects: For shareholders: Committed to delivering the best

ever returns a listed Company has given over the first seven years of listing.

For business partners: To be a winner to grow with.

For our Customers: from all quarters, we will deliver excellence... every time. Non-Financial

Aspects:For our Employees: Committed to creating exciting new opportunities and a rising share of wealth.

For the community: to be a responsible corporate citizen close to their lives.

For the State: They are a future winner with the nation at heart.

Strengths:A well qualified and experienced Board of Directors and a management Committee

ISO 9001 Certified Company

Prestigious Japanese Akimoto 5S award winner for the cleanliness and orderliness of operations

All companies of the Serendib Hotels Ltd, (Serendib, Sigiriya, and Stafford Hotels) are listed companies on the Colombo Stock Exchange.

Well established sales and distribution system

marketing strengths of a youthful, dynamic, trained marketing and sales team full of enthusiasm and ideas.

Partnered with some of the best international players, Emirates and Malaysia Airlines, and specialists on key gateways LTU, British Midland, Island Aviation and Druk Air.

SWOT ANALYSIS:

SWOT ANALYSIS:

Weaknesses:

Hotel system is not expanded enough to capture major market share

Less number of air line partners

The distribution network of pharmaceuticals is not established enough to cover the whole corners

SWOT ANALYSIS:

Opportunities:

Hemtours is amongst the leading Destination Management Companies (DMC) in Sri Lanka.

Have wide range of products & services, So can share the services of each sector.

Internationally recognized Company, so have lager Potential market for the products.

Because of the recognition of the company easy to introduce New Products to the market.

Almost all of the Apparel company’s exports are non-quota thereby strengthening its readiness for a quota free environment

SWOT ANALYSIS:

Threats:

Have to compete with many other powerful companies, (Some of them are specialized in only one field that Hamas does business)

Threat of Drawn back in Share market, as they some what rely on the stake holders equity

Terrorism problems may some times effect in drawn back of the Leisure sector of the company

On going project of coal power plant will be threat for the strategic Investments, In future.

FINANCIAL ANALYSIS:

Consolidated revenues and profit after tax for the year ended 31st March 2003 amounted to Rs. 5,290 million and Rs. 401 million respectively, while shareholders funds as at that date stood at Rs. 1,686 million.

Threats of

Substitutes

Bargaining power of suppliers

Bargaining power of buyers

Rivalry among competitors

Barriers to new entry

UnileverBaursJohn KeellsHeyleys

By advertising keep the higher demand for their products, R&D

By Quality assurance Bargaining power of customers can reduce

Continuous Production line,

Industry Analysis – Porters 5-Forces Model

Current Trends

• Looking for opportunities to distribute their products in overseas markets and welcome prospective distributors. – Commitment– Quality of customer services

• process of widening its activities in its various sectors.

• Today their employ state of the art manufacturing machinery and processes to manufacture a complete range of Personal care products for both the domestic and overseas market.

A Baurs & Company

Surgical, Medical & Diagnostic equipment, Their international exposure has ensured they understand the specific needs of the suppliers

Personal Care Nature’s Secrets

wide range of bioactive personal care products, Rich in natural extracts, Hair Care, Soap Free Cleansers, Creams and Lotions

John Keells

Have Luxury Hotels

Health Care

Leisure

Major Competitors in the Industry

Aitkin Spence

Leading transportation service in Srilanka

Strategic Investment

Major competitors in the industry…

Apparels – Slim line, Alexandria

Power

Transportation

Our Recommendations

Experimenting in finding new drugs.

Manufacturing in their own company in different trade name, Instead of importing them

Releasing garments to the local market

Expanding the hotel network all over the country.

Conducting lucky drawing programs once a year.( in personal care sector)

High quality and attractive television advertising in personal care.

Introducing new personal cares with in reasonable time.

Establishing more branches in cargo service.

Our Recommendations

Giving some donation to the child words in hospital on be haft of Baby cheramy.

Giving less cost selling item free, with less Demand items.

Making more connections with leading air lines.

Introducing some transporting packages ( eg: Four days shopping tour to Singapore with meal and accommodation)

Increase the amount on Strategic investment (Can invest money to start a private coal power plant, more concentrate on property devolopment)