In December 2017, Emerald Sri Lanka Fund (“Emerald Fund”) invested in Idea Group Limited (“Company”), one of the leading manufacturers and distributors of PVC roofs, ceilings and architectural material in Sri Lanka.
The company will utilize the new capital to support the expansion of its production facilities and to meet working capital requirements.
Idea Group was founded by Sampath Mayakaduwa and commenced its operations in 2008. The Company operates through an island-wide network of approximately 400 exclusive franchise outlets under the brand names of ‘Sivilima’ and ‘Siyana’. This extensive network serves as a robust platform for the launch and promotion of complimentary products such as an extensive range of wall panels, adhesives and other household fixtures.
In 2016, Idea Group acquired a distressed architectural hardware manufacturing facility and within a short period converted it into a profitable operation. Since the acquisition, the firm’s management has successfully restructured costs, rationalized products and launched new product lines.
The company is expected to benefit from the growth in demand for alternative roofing materials in Sri Lanka with increased market awareness of the health hazards associated with asbestos based products. The Company’s PVC based roofing solution, i-Roof, offers a range of features such as environmentally sustainable, long-lasting colour, high tensile strength, fire retardant and anti- corrosive. Unlike asbestos based products, which are currently banned in 55 nations worldwide, i-Roof does not possess any associated health hazards making it a preferred solution for roofing needs of customers. i-Panel, the Company’s flagship ceiling panel brand offers a range of attractive designs and products that can be easily installed and maintained.
In 2017, the Company began manufacturing PVC roofing products and will commence manufacturing of ceiling products this year. The Company foresees large job creation opportunities and promotion of much needed import substitution through the expansion of its domestic manufacturing facilities. The aim of Emerald Fund and the Company is to operate these facilities incorporating high social and environmental standards.
“We are pleased to invest in Idea Group led by a dynamic entrepreneur. We are impressed by the innovative and visionary leadership of the Company. We believe the Idea Group will emerge as a one- stop-shop for construction materials in Sri Lanka,” said Senaka Kakiriwaragodage, Managing Director of NDB Zephyr Partners Lanka (Pvt) Limited, the manager of Emerald Sri Lanka Fund.
Sampath Mayakaduwa, founder and CEO of Idea Group said, “We are very honoured to have Emerald Fund as our partner to support our growth journey. We expect that the Emerald Fund team’s expertise in financial management and business strategy along with its global network will be significant contributors to our future growth.”
The Emerald Sri Lanka Fund is a pioneering private equity fund dedicated to investing in small and mid-sized businesses seeking expansion capital in Sri Lanka.
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