Listed in the Colombo Stock Exchange (JAT.N0000) since 2021, JAT Holdings PLC has risen in financial strength, corporate reputation and brand recognition, reaching many milestones in its journey to becoming the leader in the wood coating industry in Sri Lanka. Driven by the vision of being the brand of choice to the finishing and furnishing sectors across South Asia, JAT Holdings already holds a dominant market position in Sri Lanka and Bangladesh whilst etching its presence in India, Maldives, Seychelles, Mauritius, Kenya and Ghana etc. As a fledging Sri Lankan multinational, investors can expect rewarding returns from the fast-pacing infrastructural development across South Asia as well as a 40% dividend on the investment made in JAT Holdings.
Symbol |
JAT.N0000 |
Last Traded Price |
9.9 LKR |
Volume |
5000 |
Change |
-0.1 LKR |
Percentage Change |
-1% |
High |
10.2 LKR |
Low |
9.7 LKR |
Symbol |
JAT HOLDINGS PLC |
Real Time |
434324 |
Stock Price |
434324 |
Share Volume |
434324 |
Change |
22 |
Percentage Change |
75% |
High |
434324 |
Low |
225548 |
Total expected investment : LKR 433 Mn
Expected utilisation timeline : Q2 of FY22 – Q4 of FY22
Taking into consideration the overall value creation in the production process through R&D over time, JAT
intends to enhance its existing R&D effort by investing in an 8,000 sq ft state-of-the-art fully-fledged R&D
facility.
This facility would have equipment that would enable reverse engineering, performance enhancement of
waterbase and solvent based wood and decorative coatings including the innovation of new performance
coatings and microbiological experimenting.
Further, the facility would create collaborations with renowned foreign laboratories and would employ foreign R&D specialists in addition to its current team of 18 research professionals.
As of August 2021, JAT has already acquired the land and initiated the design and groundwork for the proposed building.
Key benefits
Increase of Gross Profit margin in existing products by 2% YOY from FY23 and a further 2% from FY25
Customization of products to suit overseas markets in terms of costs and quality in order to penetrate the market further
Will enable new products development
Facilitate value engineering through backward vertical integration
Total expected investment : LKR 515 Mn
Expected utilisation timeline : Q2 of FY22 – Q4 of FY22
Capitalizing on its already established market presence for over a decade in Bangladesh, JAT intends to solidify its presence in the country through the development of a manufacturing facility for wood coating solutions.
JAT also intends to take advantage of the large consumer segment, the growing middle class market and the rapid economic growth of the country.
As of August 2021, JAT has secured the required premises and factory for manufacturing. The manufacturing facility is conveniently located at the proposed Savar Division of the Dhaka District, a central location for carrying out JAT’s business in Bangladesh. Subsequently, the company has also made way to ship necessary equipment which is crucial for the manufacturing of fast-moving wood coatings. Thus, the revenue and subsequent results from manufacturing which was planned for Q1 2022 will be brought forward to Q3 2021 as wood coatings account for 70% of total revenue in Bangladesh, enabling an improvement in the gross profit.
Key benefits
Cost savings leading to gross margin improvement due to manufacturing
Expand market share by leveraging on existing local network and ability to pass on portion of cost savings to customers
Ability to materialize benefits of the R&D facility directly
Flexibility to move into new coatings, if needed
Total expected investment : LKR 257 Mn
Expected utilisation timeline : Q2 of FY22 – Q4 of FY23
WHITE by JAT is a premium decorative brilliant white emulsion paint launched through an online platform enabling the lowest price to the end customer with convenient doorstep delivery.
Key benefits
Due to the focus being only on brilliant white and the uniqueness of the strategy, enables JAT to increase the market share rapidly over time
Capitalize on the moving trend for online purchases to penetrate the brilliant white market which accounts for 60% of the total decorative market in Sri Lanka of 24 Bn
Creates a strong brand presence within the decorative paint market
Gives the flexibility to emulate the present strategy in overseas market
Total expected investment : LKR 302 Mn
Expected utilisation timeline : Q2 of FY23 – Q4 of FY23
Taking advantage of the virgin market of Africa to introduce waterbase and PU wood coatings and capitalize on the existing distribution network.
Key benefits
Early mover advantage to secure market share
Cost effective manufacturing in order to penetrate the market
East African treaties in order to take advange of duty-free distribution within the network
Facilitate value engineering through backward vertical integration
2021/22
2020/21
31st March 2022
31st December 2021
30th September 2021
2021/22 - Q1 & Q2
2021/22 - Q3
2021
2021
