Sunshine Holdings PLC has focused its efforts on three core sectors—healthcare, consumer brands, and agribusiness, enabling the group to navigate economic uncertainties while building a foundation for long-term growth.
“While our businesses primarily focus on the highly regulated and volatile local economy, which increases our sensitivity to economic shocks, we benefit from operating in stable sectors,” said Group Chief Executive and Director Shyam Sathasivam. “Being in essential industries has worked to our advantage, particularly during crises such as COVID-19 and the economic downturn.”
For the financial year ending March 2024, the group reported Rs55.5 billion in revenue, a 7% year-on-year increase. Profit after tax rose by 66.4% to Rs6 billion. Much of this growth was from the healthcare sector, which now accounts for more than half of the group’s revenue.
“Pharmaceuticals, for instance, are steady—not prone to significant swings. Our approach is rooted in providing affordable healthcare,” Sathasivam notes.
Sunshine Healthcare, through its subsidiary Lina Manufacturing, has strengthened its position in pharmaceutical manufacturing. Lina focuses on respiratory treatments, producing Dry-powder Inhalers (DPIs) and holding a monopoly as the only local manufacturer of Metered Dose Inhalers (MDIs). The company crossed Rs2 billion in revenue during the 2023/24 financial year, doubling its income from the previous year, supported by a government contract for inhaled products. Operational efficiencies contributed to this achievement, with Lina’s factory now operating 24 hours daily.
The group has also received Rs3.2 billion in equity funding from the International Finance Corporation to primarily expand pharmaceutical manufacturing to meet local demand. Lina is now positioned to increase production capacity, particularly for metered-dose inhalers. The IFC investment will also fund Sunshine Healthcare’s medical devices business, especially to invest in placing diagnostic equipment across the country.
In the consumer brands sector, Sunshine continues to build on its strengths. “Our portfolio includes everyday essentials like tea and confectionery,” Sathasivam explains. “In tea, we expanded from premium offerings like Zesta to more affordable brands such as Watawala Thei and Ran Kahata, ensuring broad reach.” The group’s tea brands hold nearly 50% market share in Sri Lanka, with the export arm Sunshine Tea exporting approximately 200 varieties of tea to over 80 clients in markets such as the US, China, and Europe. The group’s export strategy balances branded products and private-label offerings, providing flexibility to meet market-specific demands.
“While Sri Lanka is a high-cost market, global demand for Ceylon Tea persists,” Sathasivam says, reflecting on the group’s continued focus on exports. Sunshine Tea’s exports remain a reliable source of foreign exchange earnings, with key customers like Ahmad Tea and Tetleys.
The confectionery segment maintains its market leadership with a 40% share in the hard-boiled candy category. It has diversified its product portfolio beyond the iconic Daintee toffee brands like Milady, Chocomint, and X-tra to include chocolates, biscuits, and other confectioneries. Since Sunshine acquired the Daintee confectionery business in 2020, the company has targeted niche markets that others are yet to exploit. The company plans to increase distribution through the HORECA channel and bakery chains to expand its reach in the coming financial year.
Agribusiness remains an integral part of Sunshine’s operations. Watawala Plantations PLC manages oil palm cultivation, generating Rs6.8 billion annually from operations across 3,393 hectares. The group also cultivates tea, rubber, cinnamon, and coconut, though investments in these areas are comparatively smaller. In dairy, the company has invested over Rs2 billion in Watawala Dairy Ltd, which contributes six million litres of fresh milk annually. The company’s herd of over 1,200 cows supports its operations, and the business is aligned with national objectives to reduce reliance on imported dairy products.
Internally, Sunshine prioritizes workforce development to support its business strategy. “Culture is critical. Beyond traditional R&D, we emphasize a workplace where ideas are encouraged and acted upon,” Sathasivam explains. “Senior management supports initiatives, but valuable ideas often come from those closest to the consumer or production processes.” Training programmes, mentorship initiatives, and tailored career paths align employees with the group’s objectives while addressing challenges in talent retention.
Looking ahead, Sunshine plans to continue investments within its existing sectors. “Healthcare will remain a priority, with pharmaceutical manufacturing a key growth area. We have secured funding to expand capacity and are steadily scaling operations,” Sathasivam says. “Consumer brands will focus on increasing market share and expanding distribution channels, while the agribusiness segment will pursue productivity improvements to increase yields.”
Sathasivam points to stable inflation and exchange rates under IMF-backed reforms as enablers for future growth. “With economic fundamentals improving, we aim to expand healthcare infrastructure, pharmaceutical exports, and tea exports to markets like China and India,” he explains. The group’s export strategies aim to address cost challenges and growing international demand for its products.
Sunshine Holdings remains focused on operational efficiency and workforce alignment to sustain its growth trajectory by leveraging targeted investments and adapting to evolving economic conditions, a skill honed across the group that enabled it to generate growth during challenging periods and propel it forward into the future.