ExpolankaHoldingsPLCAR2021-22.pdf - Flipbook - Page 21
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EXPOLANKA HOLDINGS PLC
INTEGRATED ANNUAL REPORT 2021/22
GROUP
STRATEGY
STRATEGY JOURNEY
The Origins
Following a dynamic strategy, the Expolanka Group
has made significant progress for over four decades
from its inception in 1978. The strategic focus in
the initial years revolved around a diversification-led
growth, leading the Group to venture into a gamut
of entrepreneurial investments across a range of
sectors. Although successful in its own right, the
orgnization faced capital constraints to pursue
scaleable, high-return ventures whilst saddled with
low-return businesses. This impeded on setting the
Group on a sustainable growth trajectory.
Restructure & Focus
It is in this backdrop, that our group embarked on a
series of restructuring endeavours before and after
the listing on the Colombo Stock Exchange in 2011.
Initially, we looked at restructuring volatile businesses.
Subsequently, from the period 2012 to 2017, the
group undertook a portfolio restructure initiative
and exited from several non-core businesses. This
enabled the group to reallocate Reserves to higher
ROE businesses, paving the way for growth in the
logistics sector.
SG Holdings acquisition of Expolanka
In 2014, SG Holdings (Sagawa) acquired 51% of
Expolanka, which created the foundation for the group
to pursue its growth initiatives. Sagawa has since
increased it’s stake in Expolanka to 75.6%. Sagawa
aided Expolanka’ s growth through facilitating working
capital funding, improved governance structures and
policy frameworks.
Expansion Strategy
Since 2017, we have been striving to build and
position our brand at the top across our business
verticals; and generate solid top-line growth with
strong returns and margins on a sustainable
manner. As an organization focused on creating
shareholder value, we embarked on our current
growth-based strategy, focused on Revenue Growth,
Efficient operations, holistic, unified business model,
augmented through sustainability and technology. Our
focused execution of this strategy has enabled the
company to achieve significant sustainable growth,
with improved margins and high returns. A pivotal
success of our strategy has been our agile approach
which has enabled us to effectively respond to market
challenges. The strength of our leadership team has
supported this growth journey effectively.
Our strategic delivery has been consistent,
comprehensive, agile and congruent—seeking
to achieve rapid top-line growth; build efficient
support structures and internal processes including
procurement, team development, capacity building,
network infrastructure; investment in digital technology
across our respective industries; and integrate
governance, environmental and social considerations
into core operations. Our efforts have culminated into
outstanding results,. This reporting year, our financial
results were exceptional, led by the logistics sector.
We are now better positioned on a solid strategic
platform—to scale up our core business verticals on a
steady growth trajectory, well into the next level.
Going forward, we will continue to bolt on best-fit
market opportunities for long-term value creation.
Navigating market complexities in a fast-evolving
business environment, we will seek to remain agile
and smart in our strategy making and delivery. We will
continue to drive for sustainable growth whilst being
efficient and leaner in managing our overhead costs,
thereby, securing stronger margins and returns. This
strategy will be periodically assessed, reviewed and
adjusted if and when necessary, factoring in changing
business dynamics over the short, medium to longterm.
