Group Goals and Strategies
Hayleys is now entering a period of consolidation that will target a strong return on the investments made
Strategic Context
The past few years saw aggressive acquisitions, such as our entry into aluminium extrusions to support the burgeoning construction industry, as well as into the booming leisure sector. Investments were also made to expand and reinvigorate the current business portfolio. In the leisure sector, we relaunched a rebranded Kingsbury and expanded the Amaya chain. Capacity additions are underway in activated carbon manufacture in Thailand and Indonesia. Our first investment in wind power saw the commencement of commercial operations during year under review.
These were large strategic investments in key growth sectors.
Looking inwards, we restructured our textiles business, while fibre bounced back to generate returns riding on the back of innovative R&D and new products and markets.
Given such a scenario, Hayleys is now entering a period of consolidation that will target a strong return on the investments made. We aim to reach US$ 1 bn in Group turnover within the next three years, with a corresponding growth in the bottom line.
Group Strategies
At Portfolio Level
- Redeploy or liquidate underperforming assets of the Group
- Develop existing, profitable businesses both horizontally and vertically
- Invest in new businesses and restructure existing ones based on their strategic fit with the portfolio
Across the Portfolio
- Enhance value addition and move up the value chain
- Continually improve products and services
- Maintain high and consistent quality in all what we do
- Implement lean manufacturing, process efficiency and waste minimisation
- Improve energy efficiency and environmental performance through the use of alternate fuels and green products, practices and processes
- Focus on developing people and leaders
- Expand our global footprint
Group Goals
| Time horizon | Parameter | Indicator | Target |
| Short-term | Profitability | ROCE (excluding real estate) |
>20% |
| EBITDA/assets | >10% | ||
| Liquidity | Operating cash flow/PAT | >100% | |
| Current ratio | 1.5 to 2.0x | ||
| Debt/EBITDA | <3.0 | ||
| Long-term | Growth | Growth in domestic revenue (>inflation) | >6% |
| Growth in export revenue (>LKR depreciation) | >4% | ||
| Growth in capital | >18% | ||
| Stability | External credit rating | ≥AA | |
| Gearing | 35 to 40% |
