Investor Relations | JAT Holdings

Growth With Us

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.

Jat Holdings Plc

Voting Shares

Symbol	JAT.N0000
Last Traded Price	12.5 LKR
Volume	1120
Change	0.6 LKR
Percentage Change	5.042016806722689%
High	12.5 LKR
Low	12 LKR

Symbol	JAT HOLDINGS PLC
Real Time	434324
Stock Price	434324
Share Volume	434324
Change	22
Percentage Change	75%
High	434324
Low	225548

Investment Projects Through IPO Proceeds

SETTING UP A MANUFACTURING FACILITY IN BANGLADESH

Funds raised as per the Prospectus – LKR 515,423,927

The proposal was to acquire land at a cost of LKR 133,000,000 and to construct a building thereon at a cost of LKR 180,000,000; as estimated by the Management of JAT based on the experience gained through its export presence in Bangladesh and setting up similar facilities in Sri Lanka.

However, given the volatility in the world economy, JAT decided to rent a building for a period of five (5) years instead of constructing a facility. Funds were invested in procuring and setting up the required plant and machinery. Currently, the project has been completed and manufacturing has commenced.

Accordingly, the overall funds not utilized/saved in completing the project is LKR 347,183,941 of which LKR 101,000,000 is proposed to be invested in an Alkyd resin plant within the same premises, which would enable JAT to manufacture the main raw material for Bangladesh as well, which would be a backward vertical integration. This would leave a balance of approximately LKR 246,183,941 from this project.

SETTING UP A STATE-OF-THE-ART R&D FACILITY

Funds raised as per the Prospectus – LKR 433,165,000

The initial plan was to purchase a land and construct the R&D centre. However, with the abnormal increase in construction cost, depreciation of the Sri Lankan Rupee, and import restrictions due to the USD shortage, the Management opted to rent the laboratory space from the Sri Lanka Institute of Nanotechnology (Private) Limited (SLINTEC) for a period of five (5) years. Funds were allocated to purchase the necessary equipment with 85% of the requirement being imported and commissioned, thus enabling the researchers to commence operations as scheduled. The balance of 15% of the laboratory equipment is in transit. A further LKR 58,000,000 of the IPO funds is to be spent on the project.

Accordingly, the overall funds not utilized/saved in completing the project is LKR 195,626,691/-

INVESTMENT IN ‘WHITE BY JAT’ MARKETING DEVELOPMENT INITIATIVES

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

MANUFACTURING FACILITY IN EAST AFRICA

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