Will DIST be the most successful conglomerate ?

soileconomy · 1 Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 5:40 am

soileconomy

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Virtually dist owns substantial portion of most successful business in Sri Lanka.

They own more than 5% of the following leading Banks' shares
(1) Commercial Bank-
(2) DFCC-
(3) HNB-
JKH is considered as the most successful , diversified and investor friendly corporate in SL.Dist owns More than 27 Mn shares of it.Slowly and gradually they are increasing it

40% of Aitken Spence shares goes ti DCSL's bag.Next to JKH, SPEN will be the one.
In addition they own Bala , Madu ,continential Insurance and many more...

Actually in HJ 's regime only SLIC started investing massively in quated shares.But unfortunately it was removed from DCSL group.If this was not the case , now DIST is the most valuable share.
BUT THEY ARE SLOWLY AND STEADILY MOVING TO THE HEIGHST.

K.Haputantri · 2 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 10:10 am

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Interesting to know these details. I collected shares of all the banks mentioned but kept away from DIST on ethical reasons but now it appears DIST has huge interest in those banks too. In the modern society there are very complex connections where no one can be 100% ethical. Antho jata bahi jata!

aj · 3 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 10:40 am

aj

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As I've read conglomerates / diversified companies have no appeal in other markets. They have been popular in the 60s or something. When you try to do diversified things you can't do anything right. Specialization is the key.
Sell peanuts and do it right.
Don't sell peanuts, sell cars, manage hotels, build houses, manage buses, grow tea, export batik...
Foreigners go for companies like JKH because there's nothing much of a choice in Sri Lanka. Sri Lankans think they should pay more for less efficient lazy companies.

UKboy · 4 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 12:59 pm

UKboy

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Can someone please let me know how healthy HJ is? This is the only company I always have respect but never bought any shares..
I'm always struggling to understand a DIST without HJ. That put me off buying DIST.

yellow knife · 5 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 1:27 pm

yellow knife

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Dear aj

your view on conglomerates are often cited in books written on investment some other countries...yet we have to understand sri lanka as Sri Lanka...How things happen here is sometimes different....Toyota never produce ice creams...its ridiculous to think so...the list can further grow...Mac Donald never produce movies...and Disney will never produce burghers...the reason is they believe entire globe as their market...Yet in Sri Lanka we beleive the market ends at our sea belt...think about the tag line of KICK COLA...Sri Lankan to the last drop....Doesn't it indirectly say if you are INDIAN,CHINESE, JAPANESE...BETTER DRINK NOT....that's our way of doing business...in the top list of Brands only Virgin of Richard Branson quoted as a diversified one..all the other brands are specialized...here in SL if you are not specialized you will get lost...like Pelwatta sugar...since Disti is diversified losing Pelwatta is not a matter...same aplies for Daya Gamage...losing Sevanagla is not a matter as he is also diversified...

Therefore we can enjoy Cargills Ice cream while filling Cargills Bank application with a Cargills branded pen wearing a Cargills T shirt and next ride a bike Cargills have imported....

WildBear · 6 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 7:23 pm

WildBear

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UKboy wrote:Can someone please let me know how healthy HJ is? This is the only company I always have respect but never bought any shares..
I'm always struggling to understand a DIST without HJ. That put me off buying DIST.

Once he's gone, his assets will inherit to his son's.There's a DHS J Junior, with same initials of the big dude.

Monster · 7 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 7:27 pm

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UKboy wrote:Can someone please let me know how healthy HJ is? This is the only company I always have respect but never bought any shares..
I'm always struggling to understand a DIST without HJ. That put me off buying DIST.

The same feeling is with me. HJ is reaching his late eighties. How DIST will be after HJ?

sapumal · 8 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 7:34 pm

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Monster wrote:

UKboy wrote:Can someone please let me know how healthy HJ is? This is the only company I always have respect but never bought any shares..
I'm always struggling to understand a DIST without HJ. That put me off buying DIST.

The same feeling is with me. HJ is reaching his late eighties. How DIST will be after HJ?

I met him few days ago. Still not bad

soileconomy · 9 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 7:58 pm

soileconomy

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aj wrote:As I've read conglomerates / diversified companies have no appeal in other markets. They have been popular in the 60s or something. When you try to do diversified things you can't do anything right. Specialization is the key.
Sell peanuts and do it right.
Don't sell peanuts, sell cars, manage hotels, build houses, manage buses, grow tea, export batik...
Foreigners go for companies like JKH because there's nothing much of a choice in Sri Lanka. Sri Lankans think they should pay more for less efficient lazy companies.

This concept of specialization is a modern theory which formulated and gave the strength to big names like Coca Cola , Toyota , McDonalds.
If we are to compare our own brand which I believe the most valuable brand developed by us is DILMAH.But If we talk to Mr Merril J Fernando he will tell us how difficult to go beyond the region for a company incorporated in SL.
So still I would prefer for diversified companies which may be a good set of different companies.Agreed with me aj?

soileconomy · 10 Re: Will DIST be the most successful conglomerate ? Thu Mar 01, 2012 8:10 pm

soileconomy

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UKboy wrote:Can someone please let me know how healthy HJ is? This is the only company I always have respect but never bought any shares..
I'm always struggling to understand a DIST without HJ. That put me off buying DIST.

.

Agreed.
Under HJ's regime his companies are very well managed.He is a good leader, ideal for a country like SL.But still he has not given chance to his second spell.
He never put his hand in to a business where he can't control.(This he has hinted in DCSL Annual Report-2010)
But who can say there will be another one who is better than him.