Richard Pieris in major expansion drive
Richard Pieris and Company is having a good financial year and will
end year with a profit in the excess of Rs 3 billion. Retail sector had
been one of their best performers.
Chairman, Richard Pieris and Company Arpico, Sena Yaddehige in an
interview with the ‘Daily News Business’ said that all sectors performed
up to expectations excluding the plantation sector where high wages were
still an issue. “The weages have been steadily increasing by around 60
percent over the last two years and is a growing concern,” he said.
Due to the success in the retail sector Arpico is planning an
aggressive expansion drive in the retail business and have plans to move
to the North East in a big way.
The chairman said that they are planning to invest Rs. 2 billion in
two years for expansions in the retail sector.
Outlining his plans he said that they want to expand into the leasing
industry and are currently looking for an overseas partner preferably
“The diversification with regard to insurance has been very
successful and the acceptance the company received were overwhelming.
The main reason for this is the proven reputation and track record of
Arpico and the trust people have towards Arpico for several years,” he
The insurance industry still has tremendous potential since only
around 12% of the population and 27% of the labour force had been
Expressing his views on short term plans for the company he said that
they are also looking for a 250,000 square feet warehouse in Colombo
mainly to increase efficiency in both their import and export business.
“Our furniture business is a Rs. 3 billion operation while the retail
business too is growing. In addition the company also exports tea and we
need large warehousing,” he said.
Commenting on the leisure sector he said that the company is very
keen to have their foot print in the industry as well. “We want to enter
the hospitality industry in a big way for a long time and had expressed
our interests to acquire Hotel Cey Sands, Bentota which too was owned by
Ceylinco Group and also the Confifi Hotel,” he disclosed.
He said that as a matter of principle they are not keen to pay more
than the market value for any ‘deal.’ “We earn the hard way and uphold
transparency all the time maintaining an open book,” he said.
Yaddehige added that shareholders are also a primary concern of them
and would keep on giving them more returns.