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

Symbol

JAT.N0000

Last Traded Price

21.5 LKR

Volume

685

Change

-0.4 LKR

Percentage Change

-1.82648401826484%

High

22.5 LKR

Low

21.5 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

ENHANCING THE EXISTING RESEARCH &
DEVELOPMENT (R&D) FACILITY

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

MANUFACTURING FACILITY IN BANGLADESH

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

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

News & Updates

Downloads

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Prospectus JAT Holdings PLC

2021

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JAT IPO Information Memorandum

2021

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Annual Report

2020/21