Brown and Company
{{Short description|Sri Lankan conglomerate holding company}}
{{Infobox company
| name = Brown and Company PLC
| logo = Brown and Company logo.jpg
| logo_size =
| logo_caption = Logo of Brown and Company
| type = Public
| traded_as = {{Colombo Stock Exchange|BRWN.N0000}}
| ISIN = {{ISIN|sl=n|pl=y|LK0018N00008}}
| industry = Holding company
| founded = {{Start date and age|1875}} in Hatton, Sri Lanka
| founder = James Brown
| hq_location_city = Colombo
| hq_location_country = Sri Lanka
| key_people = {{Unbulleted list|Ishara Nanayakkara (Executive Chairman)|Kapila Jayawardena (Non-executive Director)}}
| revenue = {{increase}} LKR72,652 million
| revenue_year = 2023
| operating_income = {{decrease}} LKR(11,108) million
| income_year = 2023
| net_income = {{decrease}} LKR(12,528) million
| net_income_year = 2023
| assets = {{increase}} LKR466,854 million
| assets_year = 2023
| equity = {{decrease}} LKR72,642 million
| equity_year = 2023
| subsid = See text
| num_employees = {{increase}} 597
| num_employees_year = 2023
| parent = LOLC Holdings
| website = {{URL|https://www.brownsgroup.com/}}
}}
Brown and Company PLC, sometimes called Browns Group, is a conglomerate holding company in Sri Lanka. The company was founded by James Brown, a 25-year-old engineer and mechanic from London who arrived in Ceylon in 1872. In 1892, the company was incorporated and in 1991 the company became a listed company on the Colombo Stock Exchange. The company was included in S&P Sri Lanka 20 Index in June 2021.{{cite news |title=Constituent changes to the S&P Sri Lanka 20 Index |url=https://www.dailynews.lk/2021/06/21/business/252061/constituent-changes-sp-sri-lanka-20-index |access-date=28 June 2022 |work=Daily News |publisher=Associated Newspapers of Ceylon Limited |date=21 June 2021}} Brown and Company is one of the LMD 100 companies, an annual list of Sri Lankan listed companies by revenue, having ranked 42nd in the 2020/21 edition.{{cite news |title=Financial Profile |url=https://online.fliphtml5.com/pgkmm/gdzj/#p=74 |access-date=28 June 2022 |work=LMD 100 |publisher=Media Services Pvt Ltd}}
History
The company was founded by James Brown, a 25-year-old engineer and mechanic from Hampstead, London who arrived in Ceylon in 1872. Brown and Company was established in 1875 and the company engaged in importing and repairing agricultural machinery. In 1892, Brown and Company was incorporated as a limited liability company. The company expanded to Nawalapitiya and Colombo in 1897. in 1947, the company was renamed Brown and Company and brought the total share of Hatton National Bank and Hatton Transport and Agency Company. In 1959, the company became a "Ceylonese Company" with a Ceylonese trader's licence. Manufacturing of automotive batteries was commenced in 1961 by the company.{{cite news |last1=Warushamana |first1=Gamini |title=Trust and service excellence, the driving force of Browns |url=http://archives.sundayobserver.lk/2012/02/05/fin41.asp |access-date=28 June 2022 |work=Sunday Observer |publisher=Associated Newspapers of Ceylon Limited |date=5 February 2012}}
In 2012, LOLC acquired a controlling stake of Brown and Company for LKR1.32 billion.{{cite news |title=LOLC gets control of Browns for Rs. 1.32 b |url=https://www.ft.lk/TOP-STORY/lolc-gets-control-of-browns-for-rs-1-32-b/26-98061 |access-date=28 June 2022 |work=Daily FT |publisher=Wijeya Newspapers |date=14 July 2012}} In 2015, Brown & Company set up a green tea factory at Norwood Estate owned by Bogawantalawa Plantations PLC.{{cite news |title=Brown & Company sets up high-tech Green tea factory at Norwood Estate |url=https://www.dailymirror.lk/101311/brown-company-sets-up-high-tech-green-tea-factory-at-norwood-estate |access-date=28 June 2022 |work=dailymirror.lk |publisher=Wijeya Newspapers |date=31 December 2015}}
Operations
Browns Investments PLC, an investment company, is a subsidiary of Brown and Company. With an LKR10 billion investment Brown and Company increased its stake in the subsidiary to 46% from 33% in 2020.{{cite news |title=Browns Investments successfully raises Rs. 19.2 b via Rights |url=https://www.ft.lk/Front-Page/Browns-Investments-successfully-raises-Rs-19-2-b-via-Rights/44-705145 |access-date=28 June 2022 |work=Daily FT |publisher=Wijeya Newspapers |date=26 August 2020}} In 2022 March, the company announced a debenture issue worth LKR2 billion. LOLC Holdings provided the corporate guarantee for the issue and National Development Bank was the manager of the issue.{{cite news |title=Brown & Company goes for first-ever listed debenture |url=https://www.dailymirror.lk/business-news/Brown-Company-goes-for-first-ever-listed-debenture/273-234085 |access-date=28 June 2022 |work=dailymirror.lk |publisher=Wijeya Newspapers |date=30 March 2022}} ICRA Lanka adjudged the issue as an A Credit Enhancement rating with a stable outlook.{{cite web |title=Brown & Company PLC |url=https://www.icralanka.com/rationale/icra-lanka-assigns-slace-rating-with-stable-outlook-to-the-proposed-guaranteed-redeemable-debenture-programme-of-brown-company-plc/ |website=icralanka.com |publisher=ICRA Lanka |access-date=28 June 2022}} The company was awarded the silver award in the trading companies category at the 54th Annual Report Awards in 2018. The awards ceremony is organised by the Institute of Chartered Accountants of Sri Lanka and the ceremony was held at Shangri-La Colombo.{{cite news |title=Browns shines at 54th Annual Report Awards |url=https://www.dailynews.lk/2019/01/09/business/173623/browns-shines-54th-annual-report-awards |access-date=28 June 2022 |work=Daily News |publisher=Associated Newspapers of Ceylon Limited |date=9 January 2019}} Due to the bullish prospects in the apparel industry, the company is planning to invest LKR15.3 billion in a state of the art textile plant in Kurunegala District.{{cite news |title=Apparel sector bullish Browns to invest Rs. 15.3 b to set up country's most modern, largest textiles plant |url=https://www.ft.lk/front-page/Apparel-sector-bullish-Browns-to-invest-Rs-15-3-b-to-set-up-country-s-most-modern-largest-textiles-plant/44-735650 |access-date=28 June 2022 |work=Daily FT |publisher=Wijeya Newspapers |date=3 June 2022}} James Finlay, a company that conducted business in Sri Lanka since 1895, divested its stake at Hapugastenne and Udapussellawa Plantations, two tea plantation companies, to Browns for LKR1.9 billion in 2022.{{cite news |title=James Finlay divests control of Hapugastenne and Udapussellawa Plantations to Browns |url=https://island.lk/james-finlay-divests-control-of-hapugastenne-and-udapussellawa-plantations-to-browns/ |access-date=28 June 2022 |work=The Island |publisher=Upali Newspapers |date=2 January 2022}}
=Controversies=
A national audit has revealed irregular dealings at the Hingurana sugar factory which is run as a public-private partnership between the government of Sri Lanka, Brown and Company, and LOLC Holdings. It has revealed that billions worth of loans were taken from LOLC-associated companies at higher interest rates.{{cite news |last1=Wijedasa |first1=Namini |title=Hingurana sugar consortium takes billions worth of loans at soaring interest rates from its own affiliates |url=https://www.sundaytimes.lk/211212/news/hingurana-sugar-consortium-takes-billions-worth-of-loans-at-soaring-interest-rates-from-its-own-affiliates-465187.html |access-date=28 June 2022 |work=The Sunday Times |publisher=Wijeya Newspapers |date=12 December 2021}} A forensic audit carried out by KPMG revealed that the Employees' Provident Fund (EPF) had bought stocks in Brown and Company worth LKR737 million without approval from its investment committee. In some cases, the deal ticket of the transaction was unsigned, therefore the dealer could not be identified. As a result, EPF has made a loss of LKR1.1 billion.{{cite news |title=Sri Lanka's EPF bought shares with no approval, no analysis: forensic report |url=https://economynext.com/sri-lankas-epf-bought-shares-with-no-approval-no-analysis-forensic-report-42295/ |access-date=28 June 2022 |work=Economy Next |publisher=Echelon Media (Pvt) Ltd. |date=27 January 2020}}
=Quoted subsidiaries=
| class="wikitable" | ||
| Subsidiary | Group holding | Activity |
|---|---|---|
| Browns Investments PLC | 64.55% | Holding company |
| Eden Hotel Lanka PLC
| rowspan="2" | 89.38% | rowspan="5" | Hotelier | ||
| Palm Garden Hotels PLC | ||
| Serendib Hotels PLC | 55.75% | |
| Dolphin Hotels PLC | 69.33% | |
| Hotel Sigiriya PLC | 64.29% | |
| Hapugastenne Plantations PLC
| rowspan="2" | 90% | rowspan="2" | Plantations | ||
| Udapussellawa Plantations PLC | ||
| Agstar PLC | 55% | Trading |
See also
References
{{Reflist}}
External links
- [https://www.brownsgroup.com/ Official website]
{{S&P SL20}}
{{All Share Price Index}}
Category:1875 establishments in Ceylon
Category:Conglomerate companies established in 1875
Category:Companies listed on the Colombo Stock Exchange