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Cargills inaugurates centralized distribution centre to strengthen economic activity

Cargills (Ceylon) PLC opened its new centralized distribution centre on 8th February 2023, marking yet another milestone.

Over the past 40 years Cargills has evolved to become Sri Lanka’s largest food company with its main focus on building markets and supporting the farming community as well as the local entrepreneurs.

Cargills philosophy has always been focused on community development and contributing towards a better Sri Lanka.

Located at Katana, the facility has been built with an investment of Rs. 4 billion and spans a 28-acre expanse – a symbol of the company’s continuous commitment to enhance supply chain logistics and improve productivity and efficiency to drive economic activity at the grassroots.

This facility has the capacity to distribute 50 000 CBF per day on average. Deploying the latest in technology across 325,000 sq. this space is dedicated to developing local businesses, from demand planning to cost reduction, the benefit of which will be directly passed on to the consumers.

The distribution centre will also enable Cargills to serve small and medium scale entrepreneurs better and offer them easy access to markets while delivering affordable nutrition across the nation. Cargills also has an extensive fleet which covers approximately 45 rounds across Sri Lanka every day, linking all its suppliers across the Island.

Commenting on the opening, Arjuna Kumarasinghe, Chief Operating Officer of Cargills Group, said, “Our newest investment is more than a landmark of excellence in operations and technology, it reaffirms our commitment towards developing the nation while uplifting small and medium entrepreneurs and farmers across our island nation through greater integration of our supply chain.

This is located centrally, in proximity to the airport and the port to ensure smooth logistics. We believe that our distribution centre will become yet another building block of our journey towards building a sustainable business whilst contributing towards the progress of our nation.”

Reaffirming its commitment to the environment this facility is equipped with 1 megawatt solar power and a rainwater harvesting system.

This distribution centre will implement Cargills’ commitment to develop small and medium entrepreneurs, while allowing Sri Lanka to focus on home grown products without relying on imports.

Cargills believes that the value created for entrepreneurs and consumers through the centre will reduce the burden at a time when food inflation has reached its highest in the country.

At present Cargills has more than 900 suppliers out of which around 320 are small and medium entrepreneurs.

The company has a base of 20,000 farmers who will also benefit from the enhanced infrastructure as the distribution centre has been designed with the intention of expanding in the future to help local food producers and create export opportunities.

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